The producers news., 1927-07-22

returns for capital actually invested,
lower freight and passenger rates,
and the maintenance of wage sched-
ules not inferior to those now prevail
ing. Management of rail systems on
strictly business principles would tend
to simplify the duties of the mem
bers of the l. c. c., as appeals would
be based upon questions of fact, In
volvlng business judgment rather
than arising from points of law.
Let Budd and Elliott Explain This
10. This merger scheme is only
partially described in the "Plan and
Deposit Agreement" 1t contains no
reference to possible limitations. 1t
contains nothing to disillusion those
stockholders who thing that their pro-
portlonate interests will not be af-
1ected through share for share ex-
change; nor is it denied that stock
holders are to be given one share of
no par" stock in exchange for each
snare that now has a par value of
SlOO. And there is no reason given
Tor failure to state that the issuance
OF no par" stock aids materially in
ooscurlng the amounts of the profits
gained by promoters. And conspicu-
Gus is the omission of a declaratorv
statement, on the part of the promot-
ers, that there is no intention of viii
atlng the now comparatively prosper
Gus N. P. and G. N. conditions bv
their consolidation with financiallv
crippled railroads which are now on
the way to or from the hands of
RECEIVERS. Important, too, would be
denial of, or a statement in iustifi-
cation of the construction of a new
rail line, southerly from the S. P. &
); to point in California, where
physical connection may be made and
consolidation affected with the West
ern Pacific, the Denver & Rio Grande.
and the Colorado Southern. Too
there should be denial of intention to
further burden the Northern Pacific
and the Great Northern. and to furtb-
er penalize their direct patrons bv ,ev-
action OF still higher rates, that pro
vision may be made for the payment
OF interest and dividends on watered
ponds and stocks, issued bv and on
pehal1 OF foreign crippled rail sisters.
whose adoption through consolidation
may be In contemplation.
roosevelt Defeated Similar Move Ok
Years Ago
IL. AS to the merit of rail mo-,
gers, 1t may be said that the prevail
ing conditions of TODAY are not nm
IKE tnose of twenty-five years ago.
AZ that Time this same merger was
attempted by the Northern Securities
company, but was defeated through
Gne activities of the then President
roosevelt, who characterized the then
promoters as "malefactors of great
wealth" In commenting further Mr.
Roosevelt said: '-'0l ~
The Northern Securities suit is
one OF the great achievements of
my administration. I look hack m
on it with gredc bride, for thron9b
II we emphasized in signal fash
ION, as in no other way could ba
emphasized, thC fact that the most
powerful men in this country couId
De held to accountability before the
law" '-i0
II. The details of the nronosed
merger of the N. P. and the 6. n
have been given very little, if anv
publicity. To serve a purpose. rem
resentatives of these rail systems
have appeared at different places in
tne Northwest, where they have voic-
ed their views to the extent of what
they themselves knew, or were willing
to disclose. The presidents of these
Railroads were heard at Helena. but
the meeting was invitational. And
those invited were of such intellectual
equipment as to preclude them from