The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1904-03-29
A CHECK TO SOCIALISM.

y
that Messrs, Hill and Morgan were the
chief missionaries of socialism in this coun-
try. He is quoted as saying that if the
Northern Securities merger had been up
held and had resulted in combination of
the railroads of the country through the de-
vice of holding company, government
control and ownership would have ensued,
and such could not fail to be deplorable,
politically and financially"
That the establishment of the merger, le
gality would have been followed by at least
gradual consolidation of the railroads
scarcely admits of doubt, says the New
York Tribune The tendency for years has
been in that direction wherever the law al
lows and the lawyers invention of the hold
ing company to get together indirectly
railroads which were directly forbidden toI
combine was exactly the instrument suited
to the consolidation of all railroads in spite
of antitrust laws. 1t was especially hap
py device, since it enabled those who started
out in momentary command of railroad
situation to extend their control indefinitely
without permanent ownership, A bare ma
jority of holding company would for all
time control two railroads only bare ma
iority of whose stock was owned by the
company. That fraction might still further
be reduced by merely owning control of a
holding company which in turn owned a
majority of the stock of one or more of the
original holding companies 1t would be
necessary to put in money enough to get
control of railroad systems, one by one, to
add to those already combined, put the con-
troll of the property in the hands of hold
ing company, and then let who would own
the greater part of the actual property.
Obviously there was no legal obstacle to
such complete dominion of the transporta-
ton system of the country by few men if
the Northern Securities Company had been
Sustained. Obviously also no such absolute
mastery of the business of the country by
private individuals would have been toler-
able The only outcome would have been
national control of the railroads. The pri-
vate holders who could thus triumph over
the law forbidding consolidation would pos
sess power rivalling that of government
itself No matter how reasonable and con-
servative the private management might be,
the demand for government control would
be irresistible. The private capitalists
would find that they had simply brought the
railroads into system gigantic enough to
point moral for socialist agitators, and so
united as to be convenient for purpose of
condemnation.
From this point of view it is clear that
not the leaders of Wall street but those who
attacked this newest scheme of railroad fl
nancing are the real conservatives. The
decision of the supreme court is a great
practical barrier to the spread of a social
istic movement which would have meant the
transformation of our government. No
body devoted to the traditions Of the Amer
ican constitution can contemplate without
dismay the idea Of the mastery Of the rail
roads Of the whole country being centered
in Washington, with their thousands of en-
ployes, holding all private enterprise in
| their grip, made part of the government
machine Either the railroad employees
would themselves be the dominant political
power, or they would be the tools of the po-
litical managers for the subjugation of the
people. Yet such system would be inevi-
table, and perhaps desirable, as an alterna-
tive to an irresponsible private control Of
these great highways, with their powers Of
working good or i'll to the whole states
! That is what the supreme court has happily
saved us from, and conservative finance is
beginning to realize it.
The emperor of Corea has sent for ar
; American dentist. Perhaps he wishes tC