New-York tribune., 1907-06-09
THERAILROAD PROBLEM
PRESIDENTS VIEW OE IT
Nothing Radical in His Policy
The White House Conference.
IFrom The Tribune Bur.au.I


Washington. June S.-The President has once
more disappointed his critics and gratifsd his
we'll wishers by refusing 10 rush into criminal
prosecutions OF railway mergers. He has.
the contrary. insisted that grave probIsTn
should be approached with deliberation and
viewed from every point before reaching final
decision. Briefly stated. the problem which he
laid before the members OF his Cabinet. OF the
Interstate Commerce Commission and its sps-
cial attorney. Frank E. kellogg. last night. was
whether the government could prosecute. under
the Sherman antitrust law, all forms OF rail-
way mergers Incidentally It may be stated that
the subject Of pending and prospective trust
prosecutions was not discussed. were the de-
tails of pending railway Investigations consid-
cred except in the brOadest sense II is also
true that the advsability OF prosecutions based
ON a violation of the anti-rebate law was not
under discussion.
Embracing the last opportunity before de-
parting for his summer sojourn at Oyster Bay,
the President summoned those of his CABINET
who could attend and the others above men
toned, to discuss with him and to formuiate a
policy for the guidance of the Attorney General
in dealing with the railroads Of the country,
especially those which have under tnvesti-
CATION by the Interstate Commerce Commission.
No formal report of the commission on the Har-
rirnan cases has been formulated. and. OF course,
none was discussed. In approaching the prop
ositlon the President dwelt the heavy re-
sponsibiIity which confronted him and his ad-
visers The possibility of unwarranted injury
to innocent stockholders and the capacity Of the
railroads 10 wreak their vengeance on labor by
suspension Of improvements and wholesale dis
charge Of employees were referred to. as was the
danger that combination OF short crops with
anv course calculated TO destroy conhdence In
a large class of securities might bring on hard
times and result in great suffering to all classes
of the community.
THINKS COMBINATIONS NECESSARY.
Regarding the culpab bnity of all forms OF rail-
way mergers some Of the Presidents closest
advisers have long held the view that it was not
the intention of Congress. when ii enacted the
Sherman antitrust law, 10 make its provisions
applicable to combinations of railways. despite
the fact that the Supreme Court has construed
the statute as enacted, 70 mean the contrary.
The President has more than once urged upon
Congress the advisa bility of legitmattzlns, un-
der proper restrictions certain forms of rail-
way combinations. and has quoted the Inter
state Commerce Commission in support OF the
proposition that such combinations are prac-
ttcaIly unavoidable
In his recent speech at Indianapolis the Presi-
dent said;
The law should lie amended 50 that railroads
may be permitted and encouraged 10 make
traf7c agreements when these are IN the in
terest of the general public weu as OF the
railroad corporations making them These
agreements should. ~ course. he made public
i'm The ninutest detail. and should be subject 20
securing the previous assent Of the Interstats
Commerce Commission
There are many railway managers who thor
oyghIv agree with the Presidents policy, and
whether they should be prosecuted for having in
the past made such agreements is grave ques-
.t,o - v-zT
property of railroads the President has refrained
from indorsng general policy OF attempting n
estimate the relation Of existing value to current
securities because of the interests OF innocent
stockholders who might suffer. and because %
his confidence that in almost every case ths
growth Of the country, and coincidently OF the
value Of the roads. would result IN the latter
attaining the face value Of the securities. even
where there may now be a wide discrepancy.
Similar logic applied the present proposition
win doubtless afford an ample guide to those
who would reach correct conclusion regarding
last nights conference.
While it has not been deemed wise 70 Iuaks
any public announcement regarding the conclu-
slons reached. and while, moreover. in several
instances no inal conclusions could be formed
because of the somewhat incomplete character
of ,he evidence before jhe conference. il may he
said that the President is fully alive To all the
CunSiUeTal ions which should direct his course at
the presen, time and that when IL comes to be
finally examined neither radicalism precipi-
fancy Will have been found to have played any
part in moulding the policy of the administra-
tion
That d disposition 10 take into consideration
the consequences Of wholesale railroad proseCu-
tsors may subject tne administration 10 wild ana
unreasonable criticism the President is fuIs'
aware. but. as his course in office has alws1 3
been guided by his convictions and as in fornlu-
Iating mis- policies ne has never been guided o.
deferred by popular clamOr. so in the presen.
instance he is acting in what he believes 10 bo
the best interests of the whole public. and, Z
experience may be accepted as a guide, the as
sauits OF his critics will not materially detIact
from the success of his administration nor shaks
that confidence in which he is held by the largo
majority Of his fellow citizens,
IN