Pine Bluff daily graphic., 1904-03-17
WEDNESDAY, MARCH IS, 1904.
CORPORATION POWER CHECKED.

Every contention of the Northern
Securities company to legal existence,
to the right to control three great
railroad properties and operate them
in harmony was denied by the su-
preme court of the United States. The
decree of the four circuit judges of
year ago was affirmed and the first
81 600 ,0000 railroad corporation, the
first concern to centralize ownership
of the great carrying companies, is de-
clared to be in violation Of the law
against combination In restraint Of
trade.
With five judges in its favor, the
construction of the law is absolute,
there is no evasion; no escape. The
reach for corporation power llas been
checked: the erowning scheme of the
age of eonsolidf ton has been re-
buked. A score of the same character
were ready for launching. The North
ern Securities was a test of the limi>
ta1iun Of financial combinations. In
the railroad world it was 4 new fea-
sufe; it opened up illimitable possi-
bilities of controlling it without the
need of great capital The right Of
the corporation to hold the stocks of
two railroads would have carried with
it the right to hold a dozen Or more,
to issue bonds against stocks, to buy
more properties to issue more bonds.
The speculative interests of the
country, the promoters of railroad cor
porations the captains of transporta
tion, the men who love to exercise
power in the realm Of money saw in
the securities idea an easy way to gov
ern and control Mr.. Hill was uncon
sciously pointing out to the men who
govern Wall street the way to govern
the country's commercial and indus
trial capital. Hills ambition was to
make great railroad system, reaching
from the Pacific to the Atlantic, with
ocean freighters taking the traffic to
the nations of the orient. This re-
quired more money than one set of
men could command, The Se1uri-
ties company presented a solution.
Mr.. Morgan had faith in Hill and re-
garded his ideas as practical. Three
railroads were brought together; the
Burlington, owned by an Iowa corpora
ton, which. without money, but only
the power of few big rames, pre-
vailed upon the holders of the stock
to take twice its par value in a hondN
whose interest Burlington could readi-
ly earn. but TO give it more stability
the Great Northern and Northern Pa
pacific guaranteed These two then
controlling Burlington deposited Their
stock in the Northern Securities cGm-
pany. Beyond this stage it was said
the next step would have been the
acquiring of the Erie railroad and a
direct connection to the Atlantic
The scheme was nipped early in its
career: its possibilities under the ap-
plication of the keen intellect of the
Wall street people created a fetr
among investors. among business in
terests, and the spectacular events at
tending the consummation Of the Hill
Morgan combine evoked so great a
public protest that at its very outset
it was attacked and its condition has
been one Of inertness for two years.
Three years ago this month the plan
was developed, while the gigantic steel
corporation was being floated out into
the rising market Of speculation; it
had to wait until some of the money
invested in that Industrial combination
was realized. Within two months of
its projection competitive buying by
a transcontinental rival. the Union
Pacific, brought ON the panic of May
8 and the pleasure of success was mar
red by REIMBURSEMENT of half the con-
troll of the Burlington to its rival.
Though the security scheme is kill