The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-05-27
RAILROADS FORMING
A GIGANTIC MERGER
CONTINUED FROM PAGE ONE.

I Nf-f INV III NUN f8uE bNEs
terprise get to the stock ticker. Repre-
/ sentatives the allied railroad interests
have been in Washington for some weeks.
but their activities have been kept under
cover and their mission here has been for
the most part a mystery Il is known
that certain hypothetical questions have
/ been presented to the Interstate Com
merce Commission and the Department
Of Justice. Evidently 1t was hoped to get
! a correct line on the probable attitude
Of the Federal government. without al
lowing the real purpose 10 become
known.
The tremendous values involved have
made II necessary. II has been intlmated.
10 Proceed with the utmost caution. In
the present state Of the public mind in
relation TO railroad affairs. and realizing
the power Of the administration TO swing
public opinion. IL was considered Of the
. highest Importance that the new venture
might be launched with the practical 20.
k Of the government With this ap-
proval assured. the fnanciers who are
directing this undertaking feel confident
NAtfAA a. fii irRfEh- AtlF FifiHilAkli lIlttISf-
ment not only Of the individual stock
holders Of the properties 10 be merged
but also that the new securities needed %
float the project will be sought eagerly
for investment by the outside public
II can be stated that the men in control
Of the proposed new system do not intend
to run counter either 10 the Federal gov
eminent or public opinion. as J. J. Hill
4 F.Hg.-
their railroad properties.
work with steamer Lines.
While the pretense has been made on
the part OF President Mellen and his as
sociates Of disposing of their steamship
lines along Long Island Sound to Charles
W. Morse. there are incidents in the new
merger which suggest that after all there
may be d further community Of interests
established between these apparent rivals
Morse already controls most of the
Gulf steamship fines and the new Greater
Pennsylvania system will evidently have
to make connections with these 10 Pana-
iHa al New Orleans and Mobile
In this connection it can be stated that
from now on most of the material 10 be
used in the construction Of the canal as
well as the machinery. additional tools.
and so forth. needed on the isthmus will
he shipped direct over this route from the
North
For years Il has been the highest ambi-
ton Of the great railroad kings "a control
a transcontinentaI system. This has been
the dream that !. J. Hill and f. H. Harri-
man have brought to a reality, but with
the opening of the Panama Canal not over
ten years hence. the tide Of traffic will
be 20 the North and South instead Of To
the East and West This danger has been
realized for years by the great Pacific
roads, and they have fought the construc-
ton Of the canal for that reason.
Short Line to Orient.
The Pennsylvania has been the first 10
grasp the significance and possibilities of
the Panama route to the Orient Without
a southern outlet it could not hope to
participate in the tremendous traffic that
will eventually go through the isthmus.
At Cincinnati It connects with the Louis
vile and Nashville. This road, it is under
stood. viii form the needed link between
the Pennsylvania at Cincinnati and the
Valley Line at Louisville.
Il is understood that the formal an
of the Greater Pennsylvania
merger has been delayed because Of the
failure to complete the New York tunnels
within the time expected. The revelations
In the Hartman investigation and effect
this has had on the financial market. have
also delayed final action, but It is believed
here that the plans are now ripe, though
the time for the official announcement Is
conjectural