The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1903-04-21
CANNOT BE FORCED TO ENTER
INTO A RATE WAR.
CAN OPERATE IN HARMONY
Northern Securities Co. May Go Out
Of Existence But Peace
Will Reign.

New York, April 1S.-The Wall
Street Journal discusses the merger
decision and it's effects and presents
the following view of the matter:
The opinions of the leading rail
road men who have their headquar-
tiers here are unanimous upon the
point that the decision against the
Northern Securities company, even
it made permanent, will not adversely
affect the value of the stocks Of the
companies 10Y combined in the
Northern Securities company. They
say that the only way in which these
companies could be SO affected would
he by a return to the method formerly
practiced of competition between the
Great Northern and Northern Pacific
VIXEN the two roads were engaged in
the task of delineating their respec-
tive territory. They claim that even
under the terms of the decision the
roads cannot be forced to make diff
ferent rates or to compete in any 9TH
er way sc long as they do not desire
to do so. From this they argue that
the community of interest," idea as
long as it is carried out without &C.
tual corporate combination is abso-
lutely impregnable.
Railroad men believe that the Pc
Rod Of destructive competition be-
tween Great Northern and Northern
Pacific is a thing of the past. They
base this belief on the following facts:
First-ln all cases where the courts
have decided to dissolve corporations
in the past there has never been a
return to the same competition that
existed before such corporations were
former. When the Standard Oil trust
was dissolved a distribution of it's con
stituent stocks raj made. Yet the
Standard Oil company now controls
these same constituent companies,
and is doing the same business that
the Standard Oil trust of Ohio set out
to do. When the law courts dissolved
the Addystone Pipe and Steel COM
pany, that company went out of exist.
ence but for four years it's constituent
companies, though not combined, have
operated in complete harmony, and
without any of the bitter warfare that
first led to the formation of the trust.
Second-Through the harmoious
operation of Great Northern, Northern
Pacific and Burlington these COM
panies gained in gross earnings in
1902 ST, sos, 556. OF this increase
about SS,000,O00 is ascribed directly
10 the increase OF business growing
out of the cooperation of the compan.
les in the development OF the territory
served by them conformity. This
can that that amount in gross earn
ings has been added by the companies
directly through the operations of the
community of interest idea that un-
derlies the Northern Securities com.
pany. There is hardly a railroad man
in New York who does not subscribe
to this idea as examplified in the CO.
operation OF these roads no matter
how strongly he may objecst to the
principle of actual corporate combina-
ton.
The advantage that has been gained
by these roads will never be given
Up. 1t is considered dimly possible
that he Northern Securities company
will go utterly out of existence but
it is not for a moment considered pos
sjble, even by John Shelton Williams,
Mr.. MOrgan's most bitter critic, that
these roads will eve depart from the
principle OF harmonious operation
through which they have made during
the past year last reported such a tire.
mendous advance. The ga'n in gross
by the way, a 4 per cent larger than
the next largest gain in gross report
ed by Pennsylvania.
Third-To throw these roads bacl
Tito such conditions as existed in tina
territory prior to 1899 would be tt
undo at one step what every railroad
in the country and every railroad
legislator in congress has been try
ing to accomplish for the past tel
years. II would be a retrograde stel
toward the conditions that existed il
the days when seven transfers wer
needed on a trip from New York t.
Buffalo for the reason that the car
of the seven companies making VI
that route we're unable to pass from
their own lines to those of the mex
company. Harmony of operation /