New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-22
4 CLICK 10 SOCLALISn.

President Mellen Of the New-York. New
Haven and Hartford apparently agrees with
those who year or so ago were saying that
Messrs. Hill and Morgan were the chief mis-
sionaries OF socialism in this country. he is
quoted al saying that if the Northern Securities
merger had been upheld and had resulted In a
combination of the railroads Of the country
through the device Of holding company gov
"ernment control and ownership would have
'ensued. and such could not fail to be deplor-
able, politically and financially"
That the establishment Of the mergers le-
galIfv would have been followed by at least a
gradual consolidation of the railroads scarcely
admits Of q doubt. The tendency for years
has been in that direction wherever the law
allowed: and the lawyers invention Of the hold
ing company to get together indirectly rail-
roads which were directly forbidden to combine
was exactly the instrument suited TO the con-
solidation Of all railroads in spite Of anti
trust laws. 1t was especially happy device,
since 1t enabled those who started out In mo-
pleutary command Of railroad situation to ex-
tend their control indefinitely without perma-
nent ownership. 4 bare majority Of a holding
company would for all time control two rail-
roads only bare majority Of whose stock was
owned by the company. That fraction might
still further be reduced by merely owning a
control Of a holding company which In turn
owned a majority Of the stock OF one or more
Of the original holding companies. Ii would be
merely necessary TO put in money enough to
get control OF railroad systems one by one. TO
add to thoss already combined, put the control
Of the property in the hands Of a holding COM
pany. and then let who would own the greater
part Of the actual property.
Obviously there was no legal obstacle to such
complete domination Of the transportation sys-
TEN Of the country by a few men IL the North
ern Securities Company had been sustained.
Obviously also no such absolute mastery OF
the business OF the country by private indl-
viduals would have been tolerable. The only
outcome would have been national control OF
railroads. The private holders who could thus
triumph over the law forbidding consolidation
would possess a power rivalling that Of gov
erumeut itself No matter how reasonable and
conservative the private management might be.
the demand for government control would be
irresistible The private capitalists would ind
that they had simply brought the railroads Into
q system gigantic enough to point q moral for
socialist agitators. and so united as to be con-
venient FOR purposes Of condemnation
From this point OF view Il is clear that not
the leaders OF Wall Street but those who Ht-
tucked This newest scheme OF railroad nnanc-
ing are the real conservatives. The decision Of
the Supreme Court is q great practical barrier
70 the spread Il a socialistc movement which
would have meant the transformation Of our
government Nobody devoted to the traditions
OF the American Constitution can contemplate
without dismay the idea Of tho mastery Of the
railroads Of the whole country being centred
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 political managers for the
adbjectioE OF the people. Yet such a system
would DO Inevitable, and perhaps desirable, as
an alternative TO an irresponsible private con-
troll Of these great highways, with their powers
Of working good or I'll TO whole States That
IS what the Supreme Court has happily saved
US from. and conservative finance IS beginning
10 realize il