The Washington herald., 1918-06-01
Jim HILL? WHAT
WOULD HE DO?
Holland Discusses Probable
Attitude Of Magnates
to McAdoo Order.

ern Railroad system was under con-
strucrfon for an advance OF q good
many millions. New York, aided ny
Canada and London, found the money
Tor him. Mr.. Hill at that time was
quoted as saying IN private. as he
afterwards did in public, that the
American railroads would need a bill
lion a year for five years at least,
! IL they were to be able to meet the
great demands that would be made
upon them for traffic.
z. II. Hartman called upon his New
York bankers with a proposition in
Yoiving lean to him in behalf of
the Union Pacific Of a good many
millions. He, received the money. but
the senior partner in that banking
house confessed to friends that il
was with some concern that they
made the advance. Furthermore, it
was said that IL Mr.. Hartman could
have found the way he would have
secured many millions more, believing
that the expenditure of these millions
would make II possible so TO lower
the cost Of operation Of the Union
Pacific as to increase the investment
, value of the stock. He was COM
PEELED, however, to be satisfied with
Z the comparatively few millions which
he obtained through the New York
bankers
c. P. Huntington was often in the
market in order to secure loans. and,
II he could have found legislative IA
vor and perhaps Congressional favor,
he would have sought for many mil
lions more, for he believed that the
investment Of millions in the improve
ment OF Toadbeds and particularly
terminals might Offset the indisposi-
ton OF legislators or public service
commissions to increase rates.
The farseeing managers OF the Penn
sylvania, particularly the late A. j.
Cassatt. ventured to say-publicly some
years ago that there must be many
millions of new capital secured if
freight congestion was to he prevented
in five years, for the industries and
the agriculture of the country were
growing more rapidly than railroad
facilities for handling commodities.
Could there have been an increase in
rates granted by the Interstate Com
merce Commission. the necessity Tor
the expedituFe of many millions
through freshly secured capital might
have been obviated, partially at least.
A stupendous Raise.
Now comes the Director General Of
the Federated American Railroad svs-
tenn and by a single stroke of the
pen authorizes an increase of pas
senger and freight traffic, the aggTc-
gate of which. based upon tine best
estimates Of traffic, should be a little
under 800, 900. 600.
In other words. one man, vested
with more power than any public
service commission or the Interstate
Commerce Commission. possibly than
any legislative body. by a single COM
mand grants to the railroads such
increase Of rates as will yield them
upon the best estimate OF traffic be-
tween eight hundred and hfty million
and nine hundred millions in a single
year, lAss-
The power which is in the hands of
Director General McAdoo has been
frequently spoken of in the financial
district as stupendOus, unsurpassed bv
{ any individual power excepting that
Possessed by the autocTatic ruler Of
empires. perhaps only by Russia 5
czaT when that empire possessed a
cSar
But this is not all Mr.. McAdoo
from his sick bed. according to au-
thentic reports, formulated an. order
whereby the railroads of the United
States under his direction and that of
his subordinates will come into posses
sion OF nearly one billion of fresh
capital.
when They Were In Power.
According to common agreement the
four great railroad forces in the
United States who were in authority
within the past thirty years were
10 " II II
P. Huntington and A. ]. Cassatt
Each one of these men was an auto
crat At times the authority was
exercised in imperious manner, and
at times, especially in the case of Mr..
Hill. the iron determination was con-
cealed by plausible and even kindly
statements.
Mr. ~assatt was perhaps more d.
recTly and intimately in touch with
the stockholders of the Pennsylvania
Railroad Company than were Mr. Hill
with the stockholders Of the Great
Northern. Mr.. Hartman with the
stockholders Of the Union Pacific. or
Mr.. Huntington with the Stockholders
of the Southern Pacific
Three at least OF these railroad con-
structive forces, probably in their day
the greatest in the world, whose
achievements demonstrated until the
government took the railroads. the
American mastery Of railroad diplo-
macy. construction and upbuilding, ac-
knowledsed no authority to which
they were compelled to yield. Their
stockholders willingly recognized this
supreme authority and they felt justi-
fed in doing that. because the return
In the form of dividends and the ap-
probation Of stock were satisfactory.
Since Director General McAdoo, by
stupendous stroke of financing or
the exercise Of stupendous financial
power, has granted the railroads an
increase In rates by an amount which
must stagger the imaginatio Of the
Interstate Commerce Commission, and
has authorized the issuing of fresh
capital aggregating nearly q billion
dollars. and has Furthermore coinci-
IDENTIFY removed the railroad presi-
dents from their posts Of authority,
the question has been frequently
asked In the financial district what
would z. H. Hartman. or James ].
Hill, or c. p. Huntington. our great
est railroad builders, or even A. ].
cassatt do. II they were alive when
Informed by their superior who Is in
possession Of absolute power, that
hey were Of q sudden removed from
their post? Would they suIk? Would
hey restire? Would they defy? To
all Of these questions the answer
given almost without dissent has been
hey would accept cordially whatever
relation to the railroads the Director
General might find 1t expedient to
place them in. They would serve the
government to the best OF their ability,
,ecognizing- that this action, although