The San Francisco call., 1903-01-17
WALL STREET
CAPITULATES
TO PRESIDENT
Will Not Seek to
Defeat Trust
Measure.
White House Wins the
AcquieScence of
Morgan.
Financial Kings Ready to
Accept Conservative
Action.
Special Dispatch to The Call

t--- ~
WASHINGTON. Jan. 1s-President
Roosevelt has convinced J. Pierpont Nor
gan that TOW Is the accepted time for
conservative legislation 10 regulate trusts.
Morgan and those associated with him in
The great combinations known as the Nor
gan group have become convinced that
the President means business now, as he
6.d when he insisted that the coal strike
should be ended by an agreement for ar
duration They have learned 10 respect
the Presidents words as meaning lust
what they express and when he said
mere would be an extra session IL this
Congress failed to pass legislation 10 reg
tilate the trusts they began 10 consider
the aovisability OF getting on the Presi-
dents side Of the question.
Morgan has let II be known that he and
his friends viii not resist conservative
trust legislation like that proposed by
ne subcommittee which is al work
formulating a bin which will meet the
so ministratiOn policy The trust mag
mates known as the Morgan group have
reversed their attitude on the trust oues-
ti0n q. q they desire TO be known as pro
1noters of good trusts, not afraid Of the
Governments supervision and regulation.
MORGAN SWINGS INTO LINE.
Morgan has. through one of his trusted
FErtners, made known 10 some Of the Re
publican leaders in Congress that he will
nor resist effort 70 pass a bill which
proposes 70 have a department Of com
merce. through a bureau OF corporations
make inves cations as 10 the conduct Of
trusts, 20 make Il as dangerous TO the
receiver n rebates and secret freight dis
criminations as TO the transportation
companies that grant such rebates. and
10 prevent the Interference Of trusts with
The price-making power by secret con-
tracts or understandings.
he Morgan group or hnanciers. who
are principally Interested il railroad prop
critics and the steel trust. are ready n
have such legislation at this time. They
profess 10 have discovered that the Pres
ident is not as radical as he sppesred
from his speeches and messages. although
the President has not changed his policy.
The real reason for the change Of atti-
tude on the part Of Morgan and his
friends is the knowledge that the Presi-
dent intends 10 call an extra session Of
the Fifty-eighth Congress II he does not
secure some legislation for the regula-
tion of trusts Al this session. Financial
Interests have been told. not by the Presi-
dent. but by some Of the most conserva-
live Republicans in Congress. that now is
the accepted time for them 10 get out Of
the way Of the VIII Of the people and get
tnto the administration ark before the
waters are Jet loose in food.
ACTION WILL NOT BE RADICAL.
The disposition Of Congress now is 10
make careful and conservative begin
ning in trust legislation 10 meet real evils.
ard not interfere with legitimate enter
prise II the way FOR such legislation is
made TOO difficult at this session public
opinion viii demand radical legislation
from the next Congress. and the pressure
viii be too heavy 10 resist with conserva-
tism. Morgan and his friends are ready
70 get ont OF the way OF the administrs
lion policy. and leading railroad men in
control Of such lines as the New York
Central. the Pennsylvania and those
controlled by Morgan are quite willing q
have the law so strengthened as to pre-
vent discrimination in rates, especially Il
the punishment falls alike on the receive,
well as the giver Of preferential rates
They say this would enable them L
lldllldlu puuilSlc0 rates ana preKen
great shippers holding them up for prefer
entail rates
FEATURES OF PROPOSED BILL
The bin viii be reported from the sub
committee on trusts next week and vii
b. 2 conservative measure. 1t will pro
vide for four principles OF regulation
There viii be a modified provision FOL
publicity one that will not expose the
legitimate business methods Of firms tC
tLeir rivals, but viii provide a method FOL
dealing with corporations that pursue
such methods as viii place them under
suspicion
There VIII be another provision fol
making effective the law against prefer-
ential rates Of transportation, and to pun.
ISL severely not only the givers but tho
receivers Of such preferences.
There viii be another provision desline
in the same way with corporations thai
seek 10 interfere with the prfce-roalxine
power by secret arrangements or con
tracts, and provision for the securing OF
evidence Of such practices.
There also viii be provision for Coy.
eminent investigation Of trust netbods