Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-10-21
POLICY OF GOVERNMENT
Consolidation Not Opposed So Much
as Control of Rates.
DEPENDENCE ON HEPBURN LAW
Authority of Interstate Commerce
Commission to Regulate Charges
Before the Court.


watchful eye on the proposed merger
country. but SO far the only action taken
has been to direct the examining bu-
rcau, that part Of the department having
to do with investigation of combinations,
to keep Informed as to all steps looking
to such a consolidation of this business.
The Southern Express Company. which
handles the express business upon most
of the southern roads does not appear to
be involved in the expected combination.
The companies talked of in connection
with the merger are the United States.
Adams. American and Wells-Fargo.
In the past six months there has been
big and surprising advance in the mar
ket values of the stocks OF these roads,
and many things tended toward the be-
lief that combination Is In prospect.
Two days ago Wells-Fargo stock jumped
$93. % a share in one day. the most amaz-
ing jump ever known in Wall street I'M
der normal conditions Last year this
company earned 5S.3 per cent. and has al
ways been money maker. There mas
been a rise in the stock value of all the
other companies. es mated at $3.%0.oU
for United States Express stock. $4,000
OfO for American and SS,0o0NO for
Adams, that of Wells Fargo having been
S1s.G0O.OH0 in a few months. The total
increased value in the stocks Of the four
companies is in excess of $43.WO.oO
If there is a combination Of the COM
panies the Attorney General will have a
report at his command shortly afterward,
because the investigating bureau ls
prompt and accurate in its work. 1t goes
direct to the men and concerns involved
and gets all the available data.
Policy of Department.
| The policy of the Department Of Justice
as to the combinations in process through
out the country is not so much one Of
objection to consolidation as of objection
| to control of prices, rates. etc. In the
| Northern Securities case the United
| States Supreme Court decided that rail-
roads could not combine and that to do
so conspiracy in restraint of trade.
! The same question has never been pre-
scented. however, as to express companies
! That they could be proceeded against
! under the Sherman antitrust law is ad-
mitted and that they may be proceeded
! against under that law, if they combine,
! is to be settled.
| That the express companies may not
control rates and prices. though. is Of
| Importance in the eyes Of the Department
of Justice. Under the Hepburn law it is
| specifically stated that the term com
mon carrier" as used throughout the
law. shall include express companies and
| sleeping car companies. The interstate
commerce commission. which is intrusted
| with the enforcement OF the law. has
| power, therefore, to prevent raising of
rates or such changes in the rates as
would Cypress the public. The gaining Of
| a decision from the courts that the form
| of combination entered into by the eX-
| press companies is illegal would not ac-
complish much. as it is frankly admitted
| that some other form OF combination
would be assumed. Officials of the De-
! partment of Justice candidly admit that
| there are various forms of combination
| y,nScjb1p npipinp against form
results in the assumption of another.
! There is just Is much combination among
the roads involved in the original North
| ern Securities case as there was when
| that case was decided.
Dependence on Hepburn Law.
| officials Of the legal branch of the adj
ministration are, as stated. far more con-
cerned as to the ability of corpora tons
to control prices and rates than they are
in the combination of these concerns
With the Hepburn law such control. so
far as railroads, express companies and
sleeping car companies are concerned. can
be prevented. as there is not the slight
est concern in the department as to the
possibility that the Supreme Court will
hold against the rate-ixing power of the
interstate commerce commission. The
, commissions authority to make rates is
now before the court. but the Depart
ment OF Justice is confident as to the
outcome. Should that court rule against
the power of the commission the coun-
try would undoubtedly be at the mercy
of mergers of combinations, both as to
the combinations themselves and as to
the control Of prices. rates, etc.
Investigating Combinations.
The Department of Justice is inves-
| tigating numerous combinations that
are discussed in the daily papers Of the
country. At the present time searching
| investigation is being made of the al
| legged dry goods trust, the cotton duck
trust ands the proposed trust to handle
and control the raw cotton of the south.
Complaints as to combinations are con-
stantly reaching the department. and
most of these are looked into and full
| reports made to the Attorney General
| Sometimes it is discovered that the
| combination is not interstate in Its
scope and the case must be dropped.
| Not one case in a hundred ends in &C
| ton in the courts.
In the case Of the express companies
everything will depend upon the re-
ports that are made by the examiners.
providing there Is a merger Of the four
COMPANIES that control the express bust
| <ho eXCant In Few