The Birmingham age-herald., 1914-03-16
Marked Change in Method of Carrying on Big Busi-
 ness Propositions
MORGAN FORESIGHT
 STILL IN EVIDENCE
Original Idea Was to Bring About Thoroughly Organized and Com pact Railroad System in
 New England
By HOLLAND

New Yarl March 15.-(Special )-The Statement recently made by J. P. Morgan & Co. in reply to an inquiry by Howard Elliott, chief executive of the New Haven railroad system, appears to have been ac- cepted all over the country as truthful statement, not containing any mental res eryations or subterfuges. The fact that it shows that the average compensation to MT. Morgan's house in payment for such financing as it did for the New Haven Railroad company was only lit tie in excess of s17,000 year, has caused perhaps greater astonishment than any of the other details of the statement. For it has been frequently asked why if these great transactions yielded no larger com pensation to the firm than this record shows to have been paid did the late MT Morgan encourage or accept this fnanc- ing?
 The answer is probably to be found in the belief of the late MT. Morgan that uni featicn of the various railroad systems, and particularly such uniication as would stimulate the commercial growth of Bos- ton and that of the manufactures of New England, could be justified upon the 
 took great interest in New England, hav- ing been accustomed to refer with pride to the fact that he was born in Hartford, Conn. and that considerable part of his boyhood was passed in Boston,
 Pride of that kind, however, would not persuade Mir. Morgan that the soundest business proposition 50 far as railroad transportation in New England was con cerned, was based upon unification of the 2 various systems. He believed this policy long before he became actively identif1ed with the New Haven. There was perhaps never a better demonstration of the eco homie value of unificaton of two or more railroad systems than was the one 1ur- nished by the consolidation of the New York and New Haven company with the line which had earlier been built from New Haven to Springfield.
 This unfcation was compassed by the late William D. Bishop, son of the man who ventured III the late forties to con- {. struct railroad line from New Haven to New York, although the doing of this threatened serious competition with steamboat and packet lines and also the stage coach lines. The criticism of the senior Bishops purpose was even more aggressive than that of recent times oc- casioned by the attempt to extend the New Haven system as to cover all of New England. Towns and villages along s,ahe lines of the proposed railroads would not permit the lines to be surveyed so as Ito pass in proximity to those villages and towns. The steamboat and packet vessel owners complained that the construction of the railroad would destroy greatly impair their business, and the owners of stage coach lines were equally bitter in their complaint.
 The younger Bishop, in the early sew enties, undertook to unify into a single system the two railroad lines which gave rail communication between Springfield and New York The results which fol- lowed MT. Bishops success were immedi- ately apparent and it was this consolida- etion which, friends of Mr. Morgan have Ysaid called his attention to the commer- cial advantages as well as the advan- tages to railroad companies of unification of this kind.
 Ahead of His Time
 Out of that siege grew Mir. Morgans s purpose to bring about a compact, thor oughly organized railroad system in New England not for the purpose of crushing competition. but because of the conner cial advantages which such unification would create.
 But Mr. Morgan was years ahead of his time. He did not reckon upon public opin- fion. This had set strongly in New Eng land against TallTOdu uDlllCdtloH, cultliS because there was fear that the creation of a monopoly of transportation might be harmful to that region. That was per haps the chief reason why the attempt failed Yet it is the opinion of competent railroad manager that the time will sure ly come when Mir. Morgan's view will be accepted as sound. and will be acted upon. The New Publicity
 But perhaps the most striking Of the features associated with this detailed re- port of J. P. Morgan .& Co. in answer to an inquiry from Howard Elliott Is spoken of here as demonstrating how far the new spirit of publicity has gone It has been said that q few years ago no private banking house or any large busi- ness concern would have voluntarily made a public report complete in detail as was this one. But 1t seems to have been " forgotten that it was due to the influence