The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-04-16
RAILWAY COMBINE
TO CONTROL WEST
Markets, Trade Centers and Traf-
fic to Respond to Overwhelm-
ing Influence.
Cooperation Strictly Within the
Law to Be Watchword of
+ go Alliance.
One of Six Magnates Concerned
Declares Nation s Hands
sa Are Tied.
Special to The Journal.

Special to The Journal.
New York, April 16.-"The whole
west, from Chicago and ST. Louis to
Seattle and San Francisco, and from
the Canadian boundary to the Gulf
of Mexico, will be in the hands of
five or six men within the next two
years, and all the laws that have been
or can be made cannot prevent it."
This opinion was expressed by a
western railroad man on the day that
Mr.. Hartman instituted suit against
Mr.. Hill. The critic who made the
statement will be one Of the five or
six men who Will control the western
railroad situation - within two
years."
In calculating the statement, he
pointed out several facts of interest:
"First-The tendency of the past
three years to put the same men on
the boards Of different railroads in
the west-best exemplifled in the cases
Of e. III. Hartman, George Gould and
James Stillman.
"Second-The intimate relationship
into which Hill, Gould, Hartman,
Stillman, Morgan and the Rock Island
party have been brought in the nego-
tiations leading up to the formation
OF gigantic mergers like Northern
Securities, Rock Island and the Gould
and Hartman consultations,
'"Third-The success Of the rail-
roads in meeting the competition of
Canadian Pacific and the Atlantic
lines since they began to cooperate.
"Fourth-The efficiency Of concert
ed action against labor. A simulta-
neous movement toward economy in
operation and building on the part Of
these five interests would be the only
possible means and an absolutely GER
tain means, to check any concerted
movement of labor to injure the roads.
United the roads can meet labor, but
divided labor must win. a|
"Fifth-The cheapening Of the cost
OF transportation and the consequent
reduction OF rates made possible
thereby" . ..
Two Points Understood.
The first two points have been much
discussed Of late and are now fairly
we'll understood. The third was eluci-
dated at some length by j. j. Hill In
his testimony before the interstate
commerce commission two years ago
and is now on file in every railroad
office. This Is the traffic factor that
Is going to place the American Pacific
merchant marine at the head Of the
trade Of the Orient If the western
powers stand together. Only by CO.
operation, they say, can they meet
Great Britain on the sea with an even
chance of winning.
Freights on steel products, for in
stance, must be as cheap from Pitts
burg to Hongkong as from Liverpool
to Hongkong, or Sheffield and Biz
ntngham will hold the steel product
trade of Japan and China forever.
The fifth point in the categor.
sounds trite. 1t is the excuse the rail
roads have always given for conson
dot mfr
Of 1t. Yet it is true. The northwes
knows that when the Northern Pacifl
and Great Northern were in a chron1
state of war, the regular rates wer
higher than they should have been
That was because in times of peac
they had to make up for the ravage
and losses of war.
Not Defiance Of Law.
Neither Is the prophecy quoted a
the beginning Of this story In deflanc
of the law, nor does it foreshadoy
any breaking Of the law.
1t does not mean g. gigantic poo
in the legal sense Of the term, or
gigantic merger, such as the yelloN
press makes every few days.
1t means cooperation under tn
laws Of common sense and strictl
within the laws Of commerce and o
congress. Mutual forbearance an
mutual prOUC Will De the WaCCnWOrQ
Of the alliance.
The entente that has existed 70
two years between the Atchison, Sa
Francisco and Rock Island in tn
southwest is a good example. No on
has heard Of rate wars in that coun
try: yet the business is strictly com
petitive.
All have made money and all hav
created business. Together they hav
competed with signal success for tn
trade Of the country even as ia
north as Nebraska, and have built u
Galveston, Houston and New Orlear
remarkably.
The present scheme Is merely a
extension of this peace. It will II
clude, ultimately, the Great Northern
Northern Pacific, Burlington. Unto
Pacific, Southern Pacific, the Orego
lines, Atchison, Missouri Pacific an
allies, Rock Island and San Francisc
st. Paul, Illinois Central and NORTH
Western.
Without corporate connection ar
without pooling agreement, the
lines will ultimately control all ma
kets, all trade centers and all traff
of the west except what small pa
may be picked up by local lines
11ts ~