The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-04-22
BY U. S.
The Ultimate Outcome Of the Mer-
ger Business.
THE VIEWS &oF W. s.: DWINNELI
ingalls, of 'sBiE Four
His Reasons.

w. S. fDWinnell, who has devoted con-
siderable time to a study of the recent
railway merger, agrees with President NJ
E. Ingalls, Of the Big -Four, that the ulti-
mate result Of such moves will be govern
ment ownership Of all railroads. Said
Mr.. Dwinnell: So
Mr. ingalls, evidently sees the handwriting
on the wall. Such a man as j. j. Hill, Who
when he comes to ST. Paul, goes Immediately
to his Office. where he is surrounded by his
safe llites and from there to the Minnesota
Club, where he meets men who think as he
does and who are just as far@away from
knowing the temper of the people. does, not
realize how completely aroused the people are
on this question, and how terribly in earnest
they are in their desire to secure remedy for
the conditions they expect to result from this
and similar consultations, both of public
service corporations and manufacturing in
dustries. 70
It would not5surprise me to see the control
of the house of representatives wrested from
the republican party at the next election
simply because the people. will hold the party
in power responsible for not having passed
laws designed to prevent consultations.
President Roosevelt's suggestion of publicity
for trust methods is absolutely useless. Al
ready the neoDle know as much about trusts
as they want to know They know all about
watered stocks increased prices and other
features. Why should time be wasted in re-
peating all those things 1t won't help the
people any and it won't harm the trusts.
Swing of the Pendulum.
Under. popular forms of government eco
nomic movements resemble the swing OF a
clock pendulum They go from one extreme
to the other. 1t is for this reason that | be-
lieve consolidation will result in government
control. IN itself that might not be bad
thing except that it would pave the way for
socialism The people would probably start
with municipal control of street railways, tel
ephone and telegraph lines. and then rail-
roads. But there is nothing to show that this
would be the end. When the people once dis
| cover that they can own railroads, what is to
prevent their carrying public ownership still
| further? AS conservative and an unbellever
in socialism, think it the part of wisdom
to get that pendulum back in the center of
its arc and to keep 1t there as nearly as pos
| sible in the future.
| 4 Plan of Government Ownership.
| Should government ownership come be-
lieve the government should not operate the
roads itself, but control them under a lease,
with rates and tariffs fixed by the govern
ment but with the detail work of operation
entrusted to leaseholders. $3.50. - .,-s
| / firmly believe that the railroad consoli-
! 6aton in its present form will be declared
illegal in the courts; but for the other con-
solicitations, the industrial trusts. new legis-
| lation appears to be necessary. =: 1t would be
unwise to attempt to break UP these trusts,
for that would mean great industrial panic
However, there is another and l believe an
effective way of coping with the difficulty, and
that is by means of a graduated tax on the
output of all corporations, The corporation
that produces S10,CC0,0 900 worth of goods should
be taxed at "a higher rate than that producing
only 81 100000 worth, in order to equalize the
lessened cost of production and to make a
monopoly impossible. Fl. .. -
Doesn't Blame Protection.
| I cannot see that the protective tariff has
had much to do with the formation of trusts
| Consolidat ions,. in, my opinion, have been
! brought about by two causes: First the fierce
competition that came into existence about
1892; and second, the favorable corporation
laws existing in 'manyi of the states. There is
a wonderful chance for the exhibition O.
! craftsmanship at Washington just now. The
man who could hit upon a plan for coping
with the trusts, and who could get it through
congress in the shape of. a law, might ash
the people for practically anything he wanted
and get it. ~ - ...- -. -..-.
admit that it will be difficult to disabus'
the people ofathe idea that the protective tariff
has been responsible for the formation o
trusts, and that the: republican party viii
have hard time to explain its position mex
fall. However. there is a growing sentimen
within the party in favor of tariff revision
That sentiment was expressed in the house
the other day in the vote on the Cuban bill
The insurgents did not so much vote for Cub;
as they voted for a lowering of the tariff
Personally, as a citizen of the: Mississippi
valley, I7favor a reduction of the tariff. 1t ii
a business proposition. If lived in New
England, should want the schedules lief
where they are now. ~ f.s'..,.-' ..-.<