The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-03-07

thereafter the British Parliamen; leg
islated against the consolidation OF
railroads. That leg station proved to
be utterly futile.
In 1872 "a Parliamentary committee
made an elaborate and exhaustive in
~vestigation of the subject. In It's re-
port IL said hat consolidation had
not brought with II the evils that
were anticipated. bu' that. Ia any
event. iong and varied experience had
fully demonstrated the fact that. while
Parliament might hinder and thwart
u. II could not prevent IT," That was
forty years ago. To-day the railroads
n England have been consolidated
into , few great systems. which. after
long obstruction. have been sanctioned
bv The Government itself. Mr.. Nc
worth. IN" leading railway economist
In England. said. IN 1905
Competition is an instrument tha'
- "A. this moment breaking IN our
hands We must. | think.
assume that competition, which has
done good work for the public In It's
day. is practically ceasing TO have any
real operation in regulating English
railroads.
III ANU va ''liilFAAAt'h - ''hNtl~
IN our hands even faster than in Eng
land. Whenever the Government
breaks NJ a comb. nation. a. II did IN
the Northern Securities case. thu"
Southern rac,hc case and the New
Haven case. the result L. Ike the
slash of a sword through water; the
waters come together again in a new
combination. Competition between
O. 1T 800. gHA. I-LA=HLA1 Iaa
MIR. Ripley. would disappear with the
coueent of tn" American people. Il
the american p.opl, themselves really
controlled the railroads. That is tho
essence Of the plan proposed bc.ow.
Rdiirodd Financing: II requires from
$500. 900. 00O to s750.OCO. OOO every yea
to pay FOR necessary railroad expenses.
terminals. rolling stock and improve
meuts. This vas sum has been raised
hitherto by new issues al stock and
bonds. But the public will no longer
buy the stock and bonds. Investors
are afraid. How is tAe money to be
obtained? II * very evident that II
can hc obtained only by uniting tho
railroads and the public in some way.
How can that ue done Certainly not
by a temporary makeshifl such rs
! sudden increase NI ftttS. nat SlilpbN
means more warfare.
Profits: M pl1n which excludes the
public from future profits OF the rail-
roads will avail. An effective union
of interests must be based on the
solidarity "f partnership In profits.
TIA; a the key that opened Va"
"Regiona, Hanks
control. In Washington. on pec"m-
Der 20. 1914. Irnf. Grey. the president
Of the American Economic Assocll-
ton. said: The American public has
thoroughly made NJ rs mind to have
efficient contro.. according tn its own
idea Of rDccttr" control, or to have
public ownership"
The late j. Iierpont Morgan was
right when in teStifyng before the
Pujo committee he said: without you
have control. YOU cannot do anything"
He made sure Of that control by seek
ing and gaining the proxies of The
many small stockholders and voting
them in favor Of his own nominees
for corporate directors. In the Gov
crnment's brief 81 the law in the
Union Pacihc case the following
appears:
1T ls a well known fact that N
holding less han Il majority Of the
stock Of a larg,' railway company, II
having possession OF the transfer
books. can easily control the railroad.
for the reason that such stock Is
widely scattered. the FIJI mou s.
never voted and the officers are in
position to procure proxies and tnus
vote stock enough to control AT meet
ings."
Striking illustrations Of this are
found in the amount Of stock which
directors hold in the companies whose
stockholders they represent. An afil-
davit in the Government suit above
referred TO contains the following;
When We say that Hartman con-
trolls certain properties, We do not
necessarily imply that he actually
owns a majority of the outstanding
stock. Perhaps the most fruitful les
son OF his career is the revelation OF
the extent 20 which a few men can
control our transportation systems
while having only a very small per-
sonal ownership IN them"
Jacob Schtf. in his recent testi-
mony before the Industrial Commits
sion. aolemnly asserted that the stock
holders should take a more active part
IN corporate affairs.
You might as well ask the clouds in
the air TO propel the railroad locomo-
tives. The stockholders are multitu-
dinous, widely scattered. many of them
women and estates. They give their
! proxies TO whomsoever is in control
blindly and AUTOMATICALLY. Even when
their confidence IL abused they are
helpless and take their losses. They