The Washington herald., 1917-12-31
HUB BUSINESS
MEMS ACUMEN
Holland Says Boston Is Cen,
ter Of Railroad Financ-
ing and Building.

o2Eo IN ASSOCIATION with Boston IN
tsrests were some years ago in
volved. OF course. the public 10 sus-
psnding Judgment. for there re-
mains 70 be heard such evidence as
the other side may produce. 1t IL
borne in mind. however. that the
transactions took place at q time
when. high finance OF q peculiarly
brilliant and not always highly
moral character was prevailing in
the United States That time ap-
pears to have passed
One question which has been fire.
, ausntly asked since the Trade Com
niasion's counsel. Nj. Heney. made
evidence 10 this: How did Il hap
PEN thAt Boston interests and Bos-
ton men were 80 conspicuously
idsntined. according to Mr.. Heney,
with what he alleges to have been
an sxtraordinary demonstration Of
ths subtle capacity OF high finance.
In one Of his statements Mr..
Hensy said that the late Richard
Oiney. who was President Cleve-
lands Secretary OF State; Frederick
h Prince and z. V. r. Thayer ap-
peared TO be identified in one way or
another with this transaction. But
the transaction itself was based
upon the properties represented by
the Chicago stock yards and the
packers OF Chicago are presumed to
be men of wealth sufficient to ac-
complish anything in the way of or
ganizstion of new companies which
might seem desirable to them with
out seeking help in Eastern finan-
eial eenters.
OF course while this Investigation Is
pending II would be inappropriate to
PCS any Judgment upon the merits OF
the case. But II Is possible to suggest
some reasons why men of high au-
thority in Boston may have been as
4 ISOLATED with transactions involving
the Chicago stockyaTdA
BOstsn's Great Railroads.
Three OF the largest railway sys-
TENS in the United States represent
not only Boston ability as that ex-
tsted a generation or more ago but
also Boston capital These three are
the Burlington Railway system, the
>Atchison and the Union Pacific. Bos-
toms Identification with the promo
ton and construction Of these lines
was for years a matter OF civic pride
in that city. Afterwards Boston lost
control OF these systems and no long
er is prominently identified with any
great railway system.
When John VI. Forbes, one Of Bos-
tons ablest business men, began the
Sconstruction OF what at last became
the Burlington railway system, he
planned the development Of town sites
along the line of the road. In this
way many townships were built up
wn-kN
dent The plan was successful both
from O development and from a money
point OF view.
der development a like plan was also
adopted which served to bring pros
perity to the Atchison. So also the
Union Pacific, which was for years a
distinctively Boston possession. imi
. tated the example set by Mr.. Forbes.
and established township sites. In
this way there came one of the first
of the fine demonstrations that trade
follows the rails.
In order to supplement these sys-
TENS and to furnish adequate market
facilities for the farmers and stock
!. raisers, Boston capital established at
Kansas City and Omaha what became
great stoCkyards. These stOckyards
were for a long time no more than
accessories of the railroads. They
were. as the railroads themselves
were, representative of Boston cap
itaL
Among the men OF capital who in
\ vested heavily in these railroad prop
critics was John F. Thayer. grand
father of Z. v. r. Thayer. who was
recently elected president of the
IL
Mr.. Thayer's estate was so large and
involved such careful attention that
his two sons devoted themselves ex-
cnsively to the maintenance OF the
Sfstate. One of the sons was the father
iof z. v. r. Thayer. The presumption
has always been in Boston that
J among the assets in the Thayer es
tate was a great deal of property
representing the railroad and stock
yard investments. II that be so 1t is
reasonable to assume that Z. V. r.
Thayer became well acquainted with
, these properties and also with the
manner in which the Chicago packers
secured the Omaha and Kansas City
yards. II Is possible. IL not probable.
that before the present investigation
Is ended il may be shown that Mr..
Thayer's name has been brought into
this matter solely because of his in
herited association with Boston in
terests in these railroads and these
sstockyards.
Olney's Association.
Richard oIney. secretary OF state
under President Cleveland. whose
name was mentioned by Mr.. Heney
In connection with this transaction.
Swas always regarded as a lawyer
whose sense of professional propri-
ETY. caused him to lean backwards.
II proposition was made to him for
professional advice respecting trans
actions which were not violation of
the letter but were violation OF the
, spirit OF the law. it was his custom
to say to his would-be clients. You
VIII have to retain another lawyer"
That reputation may be OF service in
haincaining the high esteem in
hich Mr.. Olney was held IL there
hould be further Identification Of
4r. Oiney with the transaction.
The Federal Trade Commission has
been Informed by fits counsel that
Frederick II. Prince. OF Boston. was
the so-called high financier who in
vented and then consummated the
deal which appears to involve the
Chicago packers. Mr.. Prince long
ago gained high reputation for espe-
ciaily great success in taking hold
Of moribund properties and then
Quiekening them into life. He
oeemsd to take greater pride in
aehievement OF that kind than grati-
ncation in any pecUnIary success the
Transaction brought to him. He is
spoken Of as q man Of singularly
astuts mind: not broad. perhaps, but