Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1914-06-12
SOME HIGH FINANCE
Intelligent Review of Morgan's New
Haven Deals,


Haven Deals.
Colonel George Harvey is fond of
telling us that the late j. Pierpont
Morgan was much of n Christian,
and Mr. Charles S. Mellen relates a
story, which, if true, makes j. Pier
pont Morgan the most relentless and
the most rapacious robber high fl
nance" has as yet been delivered
of in our country. Heretofore Jay
Gould, Jim Fisk and Daniel Drew
stood in the front rank of American
railroad wreckers, but all three of
them together could not hold the
candle to ]. Pierpont Morgan when
that gentleman proceeded to give an
exhibition of high finance when high
finance was out for the stuff.
Morgan got hold of the New Haven
railroad, a very valuable property and
satisfactorily profitable. There was
the Wostchester railroad which Mar
gan insisted the New Haven should
buy. But there had to be some
changes in the Westchester and the
New Haven paid s1,200,OO0 in cash
to secure the amendments If no
politician or official was bought
then Morgan forced his railroad to
give s1,2OO,OOO for what could have
been had for nothing. Now, Morgan
was not given to such practices as
that.
The Westchester, worth $5,00O,OOO
was sold to the New Haven for SILL
OOO, 900, Morgan representing both
roads, and he made many a million
when Morgan, representing one cor
poration, traded with Morgan. rep
resenting another corporation. 1t was
the Credit Mobilizer over again. For
instance, say he had a small inter-
est in, but control of, a railroad some
where, and that he had large interest
in and control of the Steel trust. He
could sell that road steel rails at any
price he chose, losing little money
as Il stockholder in that road, but
making a heap of money as stock
holder in steel If all the supplies
our railroads have been necessitated
to buy had been obtained at fair
prices. the question of increase in
freight rates would not be before the
interstate commerce commission and
there would not be so much water in
railroad stocks There would not be
so many railroad bonds and the rates
of interest of those bonds would be
much lower.
Prince Bismarck was the greatest
administrator since Napoleon the
Great He created great Carloving-
ian empire, but the choicest fruit of
his genius for government came from
his railroad policy. He consolidated
all those of Germany, fixed the limit
Of stocks and bonds. put the roads
in firSt-class physical condition, ope-
rated them economically, though
maintaining the highest efficiency.
Every year there was Il surplus,
though ne was constantly reducing
rates and every dollar of that sur
plus was devoted to the cancellation
of stocks or the retirement of bonds.
What is the result? Today the
German people own the railroads.
Now Bismarck might have taken his
Gus fOrmus and raised an enormous
corp of Morgans, Vanderbilts. Goulds,
Harrimans, ROCkefellers, to absorb
the profits of the roads, but he pre-
ferred to benefit the people.
Would ii not be II good thing to
make one gigantic holding company
in our country, every dollar of the
stock of which should be preferred
and the dividends limited to per
cent and the interest on the bonds to
, per cent, let this concern acquire
all the steam roads and operate them
on the Bismarck plan. In fifty years,
if things was operated honestly, etii-
ciently and economically, the roads
would pretty nearly belong to the
people as they do in German.
But to get back to New Haven.
Under Morgan, that road acquired
the Boston and Maine, that had not
passed a dividend in more than sixty
years. But Il fellow named Billiard
got mixed up in the affair and got
from the New Haven treasury, 81
100000 without giving any value
whatever for ii.
And now comes the biggest trans
action of the lot. Nelson w. Aldrich,
lately Republican boss of the United
States senate, had control of what
is known as the Rhode Island troll
leys. They were worth $S,0OO,OOO. He
sold them to the New Haven for $2O,-
600, 900. OF course Morgan and
Rockefeller were interested in the
Rhode Island trolleys, or that trade
had not been made.
Then the Boston and Maine road
was made to buy other railroads. BY
the way, the Boston and Maine is now
bankrupt. The politics of Connectl-
cut was debauched. Newspapers
were SubsiZed. \ bill was got through
the Massachusetts legislature. but not
until the New Haven bought rail-
road Il prominent Massachusetts poll
tician owned. The Grand Trunk road
was shut out of New England and the
whole story is as precious Il piece of
high raSCality high finance has shown
since the investigation of the insur-
ance thicvery some years ago.
1t will hasten government owner
ship. Ii ought to cause the adoption
of the Bismarck plan. which would
he best if we were honest enough,
and that is devilish dUubtful.-Say-
vuyard.