The Washington herald., 1909-04-24
Mr.. Tsft and the Railroads..

The Roosevelt administration policy
regarding consolidation OF transportation
lines on the community Of interest plan
has been directly challenged by the rail-
roads. Two years ago the Pennsylvania
Railroad Company sold a portion OF It's
holdings OF Norfolk and Western stock.
and subsequently disposed Of its hold
ihgs OF Baltimore and Ohio and Chesa-
peake and Ohio stock. These transfers
were made. as was officially stated. in
difference TO the present state Of public
opinion upon such matters" although Il
was insisted that the company was en-
tIreIy within it's legal rights in purchss-
ing and holding these shares" Within
the past few days the Pennsylvania peO-
PIE have repurchased nearly all the Nor
folk and Western shares formerly IN
loaded. so that they now control 81 per
cent OF the latter's capital stock. or a
dominating interest, Just as they did
prior 10 the threatening demonstration OF
public sentiment during the Roosevelt
administration. That demonstration
checked for the time being the move
ment toward railway consolidation, but
the movement is now being resumed. ac-
cording 20 the New York Journal OF
Commerce, which thus describes the
situation
Under the Roosevelt regime the ABSORPTION a
competing lines vas strictly forbidden. but sncs
President Taft cane into otHce the bars have sp-
parsutly been let d0VR. for during the las, few
months various deals hare been made involving
the passing q control from weak 20 strurE IL
tsTestS Il nav be ADDED that other similar trans
actions are understood TO be pending The Canadian
Pacific, the Hill system. the Hartman system. and
the HaWlsy system has each been II the market
for new roads With more OF less success. 20 that
the PennS5lrsnia's action merely emphasizes the
trend OF events under the Taft administration
II would be interesting 10 know what
ground the railway interests have for as
suming that the Taft administration win
take different attitude from the Roose-
welt administration on railroad consolida-
ton The Interstate Commerce COmmis-
sion has declared that such consolidation
meant the inevitable suppression Of COM
petition, and that il was contrary 10 public
policy. as evidenced by the laws OF the
various States. as well as Federal stat
utes- In its report on the Hartman lines
the commission laid down the axiom that
railroads should not be permitted 10 in
vest generally in stocks, bonds. and Sc
cUrities Of other railways and OF steam
ship companies. except connecting lines. I
for the purpose Of forming through routes
OF transportation. including branches and
feeders.
Nov. Mr- Taft has said substantially
the same thing, notably in his address OF
August 70. 1867. before the Ohio Buckeye /
Club. wherein he planted himself squareIy
upon the Roosevelt programme Mr.. Taft
then said II should be unlawful for an
interstate railway TO acquire stock in a
competing line" and that competing lines
should be prohibited from having common
directors or officers He referred TO the
enormous power that one man could ac-
quire over the transportation systems OF
the country under the community Of in
terest plan. and said that no one could
read the history OF the Hartman trans
actions without looking for some means
Of remedying such a dangerous tendency,
which. If not stopped. viii lead 10 the
absorption Of ali the railroads OF the
country into one hand"
Il would be interesting, we repeat. TO
b informed OF the process OF reasoning
by which great railway fnanciers have
reached the conclusion that the bars are
down for policy OF railway consolidation
that Mr- Taft has condemned as danger
Gus and contrary TO public policy.