The times. [volume] (Richmond, Va.) 1890-1903, 1902-02-21
THE 2ouGu RipEx IN .as SADDLE.

YESTERDAY rode into the camp OF the stock
traders and almost caused a panic. Some
time ago the President requested an
opinion from Attorney-General Knox as
to the legality OF the merger Of the
Northern Pacific and Great Northern
Railway sys.elus through the instruinen-
ta,ity OF what Is called the Northern Sc
crlritics Compa ny. The Attorney-Gell-
cral reported that. in his judgment, II
violated the provisions of the Sherman
+ act of 1890: wllersupon the President de-
clared that suitable action be taken 10
have the question judiciaily determined.
In pursuance of that instruction, Dill
of equity is now iIp course OF pre2ara-
= ton. which will soon oe flied, and Will
ask. as the Attorner-Genera puts H.
that the merger effected through the
exchange of shares of the Northern Sc
curities Company for shares IN the tWo
railroad companies be dissolved and such
shares ordered re-exchanscd to restore
The stocks of the two railroad companies
10 their original holders
1t is truly remarkable that such men
as Messrs Hartman and Morgan ana
1nil. with the best legal talent Of the
country at their command, should have
made All important deal OF this charac-
ter which the Attorney-Gcneral OF the
United States declares 10 be in viola
ton of the law. 1t is more remarka-
bic that the Government should 90 INTO
court and ask that the merger effected
through the exchange OF shares Of the
Northern Securities Company for shares
of the two railroad companies be dis
solved and such shares ordered re-eH-
changed 10 restore the stocks Of the two
railroad companies to their original hold
ers.f
BY what process of law can this be
accomplished? How can the owner OF
a share of stock be compelled TO sur
render that which he has purchased2
How can the seller of a share of stock
be compelled to take back that which
he has disposed of?
II the President is hostile to combina-
tions such as this. lie has materially
changed his view since his late message
TO Congress. In that message he ceclar-
ed that the organization in trade had
come in response TO a demand of the
times and that such organization was
necessary to carry on the great affairs
of this country and to enable us TO COM
pete as manufacturers and traders with
the foreigners in foreign markets. Com
ing 10 speak OF the railways of the coun-
try, he said 1.-The captains of industry
who have driven the railway systems
across this continent. who have built up
our commerce, who have developed our
manufactures. have on the whole done
great good to our people" He said that
without them the material development
of which we are SO proud could never
have taken place: and, moreover, that We
should recognize the immense Importance
10 this material development of leaving
as unnampercd as is compatible with the
public good. the strong and forceful men
upon whom the success of the business
operations invariably rests. THE slight
est study of business conditions he con-
Guided, will satisfy any one capable OF
forming a judgment that the personal
equation is the most important fact in
business operation; that the business
ability OF the men at the head of any
business concern. big or little. is usually
The factor which fixes the gulf between
striking success and hopeless failure"
Some Of these captains of industry
determined several months ago that IN
order to the successful conduct OF the
railroads with which they were associat-
cd and the development Of these lines,
they would come 10 an amicable agree
ncnt to stop fighting one another and
make terms Of peace. And so, having
agreed upon the terms, they organized
this Northern Securities Company, which
should take in hand the stocks involved
and hold them for the common good.
But President Roosevelt has determined
10 attack this agreement and II possible
TO dissolve the merger and throw the
whole business into hopeless confusion.
1t is interesting also TO recall what
the President said in his message con-
corning the so-called antitrust laws.
., lie said:
The mechanism of modern business is
so delicate that extreme care must be
taken not TO interfere with it In a spirit
Of rashncss or ignorance. Many OF those
who have made it their vocation to de-
roumce the great industrial combinations
which are popularity. although with tech
nical inaccuracy, known as trusts
appeal especially 10 hatred and fear.
These are precisely the two emotions.
particularly when combined with igno-
rance, which unfit men for the exercise
of cool and steady Judgment. In facing
new industrial conditions, the whole his
tory OF the world shows that legislation
will generally be both unwise and in
effective unless undertaken after calm
inquiry and with sober self-restraint.
Much OF the legislation directed at the
trusts would have been exceedingly mis-
chievous had it net also been entirely
Ineffective IN accordance With q well.
known sociological law the ignorant o!
reckless agitator has been the really eff
fective friend OF the evils which he has
been nominally opposing. In dealing
with business interests. for the Govern.