Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-16

INSIDE OF WALL STREET
The Power Of the Money Barons and Its Limitations
Everybody is Stronger Than Anybody"
]. : 3 y . q
BIZ EDWIN LEFEvRE.


1t is truism that everybody Is stronger
than anybody and nowhere has this been
demonstrated SO frequently or SO complete
~ as in Wall street: YET. whenever some
big deal is announced the public is In
variably called upon to read lengthy ar
ticles on the dangerous tendency of the
times and the growing power and the IN
creasing arrogance of the money barons. A
dozen men could meet, appoint committee
of three to treat with representatives of the
government and without leaving the room.
they could turn over to Uncle Sam practi-
cally all the railroads of the United States
and the six principal Industrial trusts. This
fact, which after all is altogether 'theo-
retlcal." has been various,y interpreted. TO
some sanguine teinperaments it means that
when the time comes the establishment of
government ownership of the railroads Will
be accomplished with little trouble. To
others it is an embodied menace against
republican Institutions and the dawn OF
government by the plutocracy. 1t means
neither. 1t does not, as matter OF facts
mean much of anything
Mr.. Cassatt would be the Pennsylvania
representative, Mr.. Hartman the Union
Pacific's. Mr.. Vanderbilt would decide for
the New York Central system and the
Northwest, Mr.. Hill for the Great North
ern and Northern Pacific. Mr.. Morgan LOT
the Southern railway and others. Mr. Reio
for the Rock Island, Mr.. Gould for the MIS-
souri, Pacific and so on. But after all they
do not own these roads in fee simple 8lr.
Morgan because he is a masterful man. Mr.
Hill because his stockholders have these
many years allowed him to be car until
both he and they are accustomed to aosoiu-
tism Mr.. Reid because of three OF TOUR as
t.. t- ir,Ac
and by actual ownership control the ma
jority Of the voting stock; Mr.. Gould, X
Mr. John D. Rockefeller Is In an amiapie
mood might perhaps say at such a meeting
whether their roads should be turned over
to the government or not, or without rear
of opposition might inaugurate radicai
change of policy. But Mr.. Hartman can.
not do without Kuhn, Loeb q 20. anu tIIe
bankers could at a pinch do without MN,
And Mr. Cassatt, though seldom opiiseo 10
modify his own opinions by reason OF US
senting voices of fellow directors IN Tue
Pennsylvania is far from POSSESSING aansi, au he
attic powers AS for MIR. Fandefplt; ne
could do less than nothing II MT =" ll,alh
Rockefeller and Mr.. Morgan happeleu ~
hold different views. Notwithstanding an
that is said about the Vanderbilts, theirs Is
a nrecarious hold on the management OF
the so-called Vanderbilt lines. Ihere ar
not one but several men whose hoioihss y,
New York Central stock are larger IMAM
the Vanderbilt holdings. The descendants
~ the great commodore, however. are there
because of the prestige Of the name has not
yet died out.
Like the Napoleonic legend the Vander-
b,lt tradition still lives. They are bosses
by the tolerance and permission or the ma
tority. because the majority is not united
against the prestigious minority. But no"
precariors such a thing can be was shown
at the time the Rock Island crowd went
after the Northwest. 1t is not generally
known but 1t Is an absolute fact that
Messrs. Reid, Leeds and Moore, by pur-
chases of the stock in the open market
and by means OF proxies secured from All
over the country actually, could nave voted
Northwestern at the famous meeting. This
is something the Vanderbilts know very
we'll, because they were so frightened at tne
time that they will not live long enough
to forget it, Mr.. Hill, car of the NORTH
western railway situation. was severely
jolted on May 9, 1901, when he FOUND that
Mr. Hartman and his associates hao TAX
en- the control of the Northern Paclhc away
from him. This may be denied again as
it has been denied in the past, but 1t Is
nevertheless true that the actual majority
of the stock of the Northern Pacific was
in Kuhn. Loeb s. Co.'S office on the day or
the big panic and for some time thereafter
Mr.. Gould inherited from his father the
Missouri Pacific but it was not very long
ago that his friends viewed with alarm
the fact that Mr.. John d. Rockefeller
owned more Missouri Pacific stock than the
Gould family did and those same friends
breathed sigh of relief when they learn
ed that Mr.. Gould had paid back to Mr..
Rockefeller the money he had been bor-
rowing from Mr.. Rockefeller in order to
carry out his plans, in all something like
$40. 100000 according to Mr.. Gould's init
mates. Mr.. Morgan. we know, after his
marvellous success in floating the big steel