The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1906-02-15
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railroads engaged In interstate trade or
commerce and which would in that way
restrain such trade or commerce Is made
| illegal and that such illegality does not
! depend upon restraints OF interstate COM
merce which gre unreasonable in their
! nature, but embrace all direct restraints
, imposed by any combination, conspiracy
or monopoly upon such commerce.
The above being the law of the case, l
/ find on page 1864 Of the hearings before
the senate interstate commerce committee
the following facts. Mr.. Clements. one OF
the Interstate commerce commissioners,
says:
"on this subject of consolidation. ETC..
/ have some figures here further illustrat-
ing the processes by which II goes on
steadily, and have taken this simply be-
cause ii is striking Illustration OF the
same consolidation and combination
which must affect the limitation on COM
petition. The Pennsylvania railroad has
1926 .50i $50 in stock and the Pennsylvania
company $i00N.O0l the Baltimore and
Ohio company slS4,O0O,O0O, the Chesapeake
and ohio So, ,O06. 900 the Norfolk and West
ern $s90OO,OOO the Philadelphia, Baltimore
and Washington railroad s2S,0OOO0, the
Northern Central Railroad company sl1,-
OO0. 900. | am merely giving YOU the round
numbers here without the odd dollars. -
There are a great many other railroads
in the Pennsylvania system. am only
speaking OF these important lines. This
includes the Pennsylvania Railroad COM
pany and the Pennsylvania company. the
Baltimore and Ohio Railroad company.
the Norfolk and Western. the !Chesa-
peake and Ohio, the Philadelphia. Balti-
more and Washington and the Northern
Central ! have limited these TO this num-
Der because they are very conspicuous
"a q 81
manner in which these holdings are inter
locked, so to speak, with these different
roads. or the stock of the Pennsylvania
company the Pennsylvania Railroad COM
pany owns all-s40,0O 1000. or the stock OF
the Baltimore and Ohio Railroad COM
pany, which is sls4,0O0,000 the Pennsyl-
vsnia owns s5l 100000 and the Pennsyl-
vania company sl60V0.0O0. the Philadelphia.
Baltimore and Washington Railroad COM
pany owns 81. 7Sl 900, and the Northern Cen
tral Railroad company owns $l.IslOo0. or
the stock OF the Chesapeake and Ohio
Railroad company, which is $4,000, 900. the
Pennsylvania railroad owns sl0.0o0,00O, the
Pennsylvania company s4OOO,0o0 the
Northern Central Railway company
sl.5o5 600 or the stock of the Norfolk and
Western Railroad company, which is $685.
000,O00, the Pennsylvania Railroad COM
pany owns S25.000,000. the Pennsylvania
company $2G, 100000, the Northern Central
company Sl,5000O0. and OF the stock OF the
Philadelphia. Baltimore and Washington
Railroad company. which is S23.OO0,000 the
Pennsylvania Railroad company owns
SIS 900 900, with some odd fgures--prac-
tically all. -
A Reasonable Inference.
"Now, among the persons who are on
boards OF directors one person who Is on
the Pennsylvania Railroad company's
hoard af directors is on fwentV-fOur diff
ferent boards of directors. Another per-
son Is on seventeen boards and so on.
Some of these directors are on practically
al! OF these boards OF directors. For in
stance. Mr.. Barnes Is OH the dictatorship
of the Norfolk and Western road, the
Baltimore and Ohio, the Pennsylvania
company. the Pennsylvania Railroad COM
pany, but not on the Chesapeake and
Ohio Mr.. McRae Is on the Pennsylvania
company, the Pennsylvania Railroad COM
pany, the Baltimore and Ohio and the
Norfolk and Western. And so il goes. l
have these statements. which illustrate
how the management OF these roads Is In
the hands of the same men. -
But | think II a legitimate inference
when the same, Or many of the same.
people are on the board OF directors OF
each one of these roads, or all but one.
that they are not as likely to indulge in
competition with one another as they
We're when they were separate and dis
tinct and independent. That seems to be
! a reasonable inference"
l feel confident that full report from
the interstate commission will develop
| the fact that these roads are under one
management, that the rates of freight are
| fixed by one controlling head and that
| such u thing as competition among them
| does not exist.
call attention to another fact disclosed
| FsN,,.. tat asYf
merce commission in the case entitled No.
! ST., Red Rock Fuel company versus Bal
timore and Ohio Railroad company. de-
cided Nov. 70, 1905. where in substance
| this condition of Affairs 10 revealed: Not
only are the Pennsylvania railroad, the
! Baltimore and Ohio railroad and others
! In combina tion to control railroad trafilc
proper but that they own coal mines la
| combination. and that they refused aa-
commodations for the shipment OF coal by
| independent coal miners.
In the case last above referred TO the
I complainant was corporation for the
: purpose OF mining coal. 1t had 100 acres
OF land, 4.O0O of which were underlaid with
! coal This coal field was In the Fairmount
district, West Virginia. The company was
independent OF any railroad companies
| and simply desired TO get its coal out
as interstate commerce. These coal minsa
are situated near the track OF the rail-
road company controlled by the Il. and O.
BY building switch track J, $50 feet long.
which the company proposed to do and
was ready to do, they could connect with
the b. and O. track provided the latter
would permit the connection. The Baltl-
more and Ohio Railroad company refused
10 allow the connection and the facts
| clearly show that the reason they refused
is that these roads are In combination, as
| above stated. not onS for the purpose OF
controlling freight traffic proper. but also
for the purpose OF mining coal, and SIM
ply to keep THE company's coal out OF the
market in competition with their coal
they refused,to permit this connection.
The interstate commerce commission de-
| cided against the railroad company and
ordered that it permit the connection to
be made so that the complainant com
pany could get the product of it's mines
| ON the markets OF the country. In the
| finding Of fact by the commission in this
| case II clearly discloses to nay mind
. barefaced, bald. open conspiracy In
restraint of Interstate commerce. and |
| bslieye II the interstate commission Will
make a fun and complete report of all
| the facts in Its possession tending To
show the unlawful combinations among
these railroads that there Will be diS-
closed 10 the world most knocking, hu-
J initiating and notorious violation of the
Sherman antitrust law, right under the
very shadow OF the capitol of the nation.
An oratorloal Gem.