Hopkinsville Kentuckian. [volume] (Hopkinsville, Ky.) 1889-1918, 1913-06-05

state lines and to plead their exemp'
lions as citizens OF the several States
Ia which they we're Incorporated, TO
the Jurisdiction OF the National Gov
eminent over all their future opera
lions.
The ingenuity Of the device does
credit to the subtle and profound at
torneys, long experienced In the pro-
fession OF advising high financiers or
immense wealth In the noble art OF
evading the law. The creators OF this
new engine of oppression started with
the simple premise that every stock
holder has an absolute right and an
unlimited discretion In the disposal OF
his certificates of stock. Now, II all
the stockholders in one company, act
ing individually and not as an organ
lied body, should sell their stock to
one person, corporate or otherwise, IL
would" said these ingenious gentle
men, "be no concern of the Federal
Government" This thing" whether
q legal or an actual person, was ciu-
zen Of a State, and the sale to II OF q
share Of stock was, they stoutly main
tanned, not commerce between the
States" and was none Of Uncle Sans
business.
Now, II another set OF stockholders
in another company should, acting In
| dividually, sell their stock to the same
| concern. that was none Of the Gov
ernment's business either, and IL the
stock of two companies could be thus
secured, they could by the same token
! take over the securities of two hun
| bred.
The rights, privileges, franchises
| and exemptions of these various com
panies were of course no more com
| merce" than the certificate OF stock,
and the next step was to provide for In
| vesting one corporation with all the
rights and privileges of its constituent
| companies. Thus a single corporate
creation was at once invested with all
/ the rights, privileges and powers OF
trustee, stock broker and common
| carrier.
Such in brief Is the character of the
most effective and pernicious plan ever
/ invented by the perverted genius OF
| legal panderers to the service Of in
satiate greed-a modern holding COM
pany."
1t not only eliminated competition,
II removed every temptation, every
4 q,
stituent companies whose stock had
been surrendered to this powerful Gus
todian, and whose securities were
issued in lieu thereof. All the earnings
| of the formerly independent concerns
were put in 'hotchpotch" and the total
| pro rated among the stockholders In
the parent company, which voted the
stock, elected officers and directors,
/ A. g.. oA rnrtrOl nj QUorV
| material detail Of the business OF It's
various subsidiary corporations.
1t was the purpose of the daring buc-
cancers who conceived this plan to Sc
sure the absolute and unquesttoned
control OF every trunk line on the con
tinent. Had the plan been completely
successful, every holder Of railroad Sc
curities In the United States would
have had but one purpose and one In
terest. No longer identified with any
particular line, but Joint stockholder
in a vast plexus of railway systems
themselves united In interest BY imam
cial and industrial relations. eacf
stockholders profits depended not
upon the prosperity OF a single com
pany, but upon the maintenance OF
higher level for all freight rates upon
all the lines in the country.
These captains of industry" turned
corsairs, having secured the control OF
credits as we'll as of carriers, refused
to finance or to permit another te
finance any extensive project in rail
way construction not endorsed BY
those in charge of established lines.
]. p. Morgan & Co., acting in con
junction with Mellen, the President o.
the New York, New Haven & Hart
ford Railway Company, captured anC
controlled every facility for transporta
ton In any form by land or water, IL
five out of six of the New England
States, and they swept the sea from
Bangor, Me-, on the north. to Bridge
port Conn, on the south" of every
steamship line competing in interstate
| commerce against the New Haveni
combined steam and trolley lines OF
lana between New England and New
York
1T was" declared La Toilette oil
the floor of the Senate. "a huge gam
BILE, in which the New Haven mana
gers staked their railroad fortunes Oh
being able, by destroying competition
and monopolizing transportation, t
pay dividends on the enormous capl
talization which the operation In
volved."
]. p. Morgan and James J. Hill at
tempted in the Northwest what Mel
len and Morgan accomplished in tn
East. Having organized holding
company, with a capitalization of $500,
600, 900, they consolidated and con
trolled all transcontinental lines o
railway, extending across the north
ern tier of States west OF the Grea
Lakes, from the Great Lakes and tn
Mississippi River to the Pacih
Ocean," including the Great Northern
the Northern Pacific and the Chicago
Burlington & Quincy Railroad Com
panies, including in all over 5000
miles OF connected and consolidate
tracks.
In this criminal and far-reachinl
conspiracy to capture the commerce
of an empire. Edward H. Harrimal
arose tower-like "aboye his less al
horred compeers." Defiant and in