The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-06-17
SHIP CANAL BILL
CAUSES DEBATE
Senator Patterson Sees a Pos
Sible Scheme to Loot
the Public.
KNOX THINKS OTHERWISE
LAFOLLETTE ASKS PERTINENT
QUESTION.

Washington. June Ex-senator Pat
terson today found in the bill incorpor-
ating the Lake Erie and Ohio river
ship canal an encouragement to the
advocates of the ownership Of the pub
lie utilities. He spoke on the measure
soon after the senate convened, and
quoted a pamphlet issued by the COM
pany as giving an explanation for
asking a congressional charter the fact
that the government might ultimately
become the owner of the proposed
canal. He expressed confidence that
the bill would become q law and said
mat such a step would be a declaration
tnat the government might at no dis
tant day own and operate the canal
Tor the benefit Of the country and he
declared that 1t was not a great stride
from the ownership of a canal to the
ownership Of a railroad.
Mr.. Patterson did not however. re-
gard this as the real reason for coming
10 congress for q charter. He found
on the contrary that there was a fin
aHciai reason for the move. They were
preparing 10 go wild eating i'm the
jungle and the senator predicted
that i'm view of the transaction i'm the
United States Steel corporation. the
Pittsburg men said to be behind the
company would Lot enter it with
prospect with securing less than four
10 one.
Knox Was Aroused.
This statement aroused senator
Knox. who said that the Pittsburg peo-
pie had not been responsible for the
steel companies sale.
i understand that the idea was con-
ceiVed by eminent finauciers of New
York he said, and the people OF
P7ttsburg were not foolish enough to
lake less than they could set.
Mr.. Patterson c0nteBded, however
chat tine miIiionaires of Pittsburg had
been pIrticeDs cFiminis with those Of
New York, in the organization of the
L s Steel company conspiracy"
he added that they had succeeded in
selling for billion dollars property
not worth more than S25O,O0o 600.
The remaining $3.50, 600, 900 represented
wind and nothing mere.
He expressed the opinion that steel
companies were behind the enterprise.
That their object was 20 secure iron ore
cheaper than before. and by means of
the tariff keep prices up and maintain
their monopoly.
An Amendment Necessary.
Mr.. Patterson advocated an amend
meut 10 the bill that would forbid the
sale Of the canal stock for less than
par and AIr Knox said i'm reply that
While ne had o great deal to do with
corporations, ne had never known any
except wild cat Colorado mining
schemes" whose stock was sold for
.css than pa. Mr.. Patterson admitted
hat there were some wild cat mining
schemes and that this was a wild cat
canal-far less cXCusabie because its
profits would be eXtOTted from the
pockets of the people at large He
thought the canal should be under the
supervision of the interstate commerce
commission. He asked Mr.. Knox
whether there were any milIiOnaires
among the incOrpOratOrs and the latter
replied that there was among them one
man VINO might be classed as d mill
lionair--
The idea that a national charter is
sought because the government may
own cle canal fifty or one hundred
years hence is too absurd 10 credit"
said Mr.. Patterson
He gave il IS his opinion that the
step was taken to secure an advantage
in the disposal of stock and bonGs and
concluded. therefore that the hint at
future government ownership was d
mere subteTfuge-
Discussion Became Heated,
Mr.. Nelson defended the bill against
the Ch8rEe that il was a mere stock
iobbing scheme" and said il was just
as proper for the government 10 char
ter a canal as il vas for it 10 charter a
bank.
During the Minnesota senator's
speech, Senators Patterson and Knox