Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-04-14
Report OF Commerce Commits
sion Recalls Some Railroad
History in Iowa
SOUGHT TO JeRsENzE STATE
Rock Island Merger and Efforts of the
Corporations to Gain Protection I'm
der Iowa Law-Cummins Prevented
II and Blythe Became His Sworn
Enemy.

Especial Washington Correspondence.
Washington, April 14.-The issuance
by the Interstate commerce commits
sion Of a remarkable report on the
operations Of holding companies ant
the consolidation Of control of rail
road companies and properties in the
United States, recalls the fact thai
Of the very first state executives te
protest against what Is now regarded
in this matter, a most dangerous anG
vicious tendency.
1t is shown by the commissions re-
port on intercorporate relations, JUS
issued, that almost one-third Of the
securities Of railroad companies are
held by other railroad companies. But
IL this be expanded to include holdings
Of individuals closely identified with
the control Of great railway properties
and by corporations such as the United
States Steel company, which are in the
railroad as we'll as other business; hold
lngs by the Pullman company, express
companies, in railroads-then it viii
be shown that just about half the rail-
way securities of the country are held
by other railroad interests.
This indicates somewhat the extent
to which consolidation and narrowing
of control Is going on. Thus 1t is
pointed out in the report that the, Rock
Qsland company of New Jersey is so
organized that the control Of $25,000.-
600 Of it's preferred stock actually car
ries with it the absolute domination
Of the entire Rock Island Frisco sys-
tenn Of about 1900 miles of road. with
combined capitalizatio ton Of $1,000 ,000,-
600. This is the finest instance in the
whole country of concentrating control
In few hands, and making it repre-
sent small financial responsibility.
Cummins Saw Danger.
The danger Of such an organization,
op-heavy and irresponsible, is now
adays frankly recognized by students
Of the public interest in these ques-
lions. But back in 1902, when the Rock
Island manipulation was effected, there
were comparatively few people who
erasped the tremendous economic i'm
port Of such things. One of these few
was Governor Cummins, who vetoed
che Molsberry bill, passed by the Iowa
legislature in order to pave the way
Cor this very Rock Island manipulation,
and who afterward, when another plan
was adopted to carry out the scheme,
Instructed his attorney general to
bring action under any law which
would sustain it. in order to prevent
the scheme being perfected.
The Molsberry bill was the great
issue and the great sensation of the
legislative session at Des Moines in
the winter Of 1902. Senator Frank M.
Molsberry Of Louisa, intro
duced 1t. 1t provided that all the limi-
tation heretofore provided by Iowa
law, on the per-mile capitalization of
railroads, should be removed 1t meant
that just such schemes as the great
holding company jobs latterly so COM
mon, should find nesting place in
Iowa.
Greatest Of Hobbies.
The bill was backed by the greatest
and most persistent lobby ever brought
dirty jobbery or to prevent a decent
law passing. j. w. Blythe, w. w.
Baldwin, Nat Hubbard, Brady, Hun
ter, and all their cohorts, were rushed
into Des Moines. The legislature was
dragooned A fight was organized. It
was shown that if that law passed it
would enable the Northern Securities
company. whose control Of the Hill
system was then in the federal courts
for test, to transplant its whole merg-
er to Iowa, under cover of Iowa law.
and in all probability to escape the
which ultimately overlook
It, 1t was not known. at that time.
that the Moore-L eeds-Reid crowd was
Just as much interested in the bill as
the Hill Morgan Blythe crowd; that
became known afterward by reason
OF the developments regarding that
groups acquisition Of the Rock Island
The most determined efforts were
made, thru the non-corporation news
papers of the state, to prevent the leg
islature committing itself to the
ignominy of passing this law to please
the big railroad interests. The rail-
road lobby never even attempted to
answer the charges that We're made;
they admitted that if the law passed 1t
would Elk up the Iowa laws so that
these big combinations Would prefer
to come here, rather than go to New
Jersey, Kentucky and Maine" That
was all that was needed, in those
cheerful days of railroad control at
Des Moines. Cummins had but Just
come into power. and the railroads still
held the legislature In their grasp.
That a governor would veto bill
which the railroad power wanted, when
not dreamed. A succession of gov
ernors Of the. Shaw and Drake type
had made the railroad lobby blind to
the possibility that the executive
power might yet be used to protest the
public interest.
cummins Vetoes Bill.
So the Molsberry bill passed. first
the house. then the senate. Everybody
who was intelligent enough to know
and who was honest with
himself. knew it was wicked legisla-
ton. But it passed. 1t went to Gov
ernor Cummins. He had ten days in |
which to decide what he would do
On the ninth day word reached J. w.
Blythe at Burlington that the governor
to veto the bill. Blythe
climbed on a local train and rode all
night to get to Des Moines He must |
stop such threatening manifestation
II independence. The idea Of gov
ernor vetoing a bill which he Blythe. |
he boss, wanted and had passed, was