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About The commoner. (Lincoln, Neb.) 1901-1923 | View Entire Issue (Dec. 27, 1912)
-ymffnif'sjrmmr'', DECEMBER 27, 1912" he Common er. Congress Will Act On Big Railroad Exposure 5 Washington dispatch to the Now York World! The people of New England, outraged by the iron grip of monopoly which they declare the New York, New Haven and Hartford Railroad company and its allies have upon the six states, will get a chance to tell the American public of their wrongs before the house rules committee. Upon the gravity of the charges presented will depend the future action of the house. If the testimony shows that New England is suffering oppression in regard to its rights to transporta tion under fair conditions and at fair rates, then the house will adopt the O'Shaunessy resolution directing an investigation of the corporation, its dealings with subsidiary and allied companies, its organization and its alleged infractions of the Sherman anti-trust law. The rules committee in the first instance will hear of the charges that the New Haven has reduced New England to the condition of a mere territorial appendage of that company. The deals by which the New Haven has obtained the Boston and Maine, the Maine Central, Sound steamers, trolley lines, by which it has got con trol over the Boston and Albany, by which it has come to an understanding with the Grand Trunk Railroad of Canada all these things will be gone into. These questions wili be asked: How does it come that there is not a compet ing railroad left in New England? How does it come that the powerful and rich Grand Trunk was persuaded to quit its plan to build a competing line Into Providence and what were the means of persuasion? How does it come that the New Haven has gone far afield from railroad running and has entered all other spheres of transportation ex cept those by horse, automobile and aeroplane? And, finally, in what manner has the New Haven exercised this vast and autocratic power? Upon the answers will depend how much further the investigation is to go. Witnesses will be sent before the committee by the governor of Massachusetts and Rhode Island, the two states most affected by the call ing off of the Grand Tnmlr building operations and to be the chief sufferers from the twenty five year operating agreement stated to have been made between the czars of the two roads. Governor Foss of Massachusetts and Gover nor Pothier of Rhode Island have been asked by Chairman Henry of the rules committee, so he announced, to have before the committee all witnesses who have evidence against the New England rail and water combination. The corporation will be represented by counsel and is expected to present a flat denial of the charges, while declaring that the grievances are more imaginary than genuine. The O'Shaunessy resolution provides for a special committee of seven representatives to carry on the inquiry, in the event that the house decides to go further after hearing the evidence adduced before the rules committee. The attitude of the house leaders has been to place all investigations in the hands of the standing committees whose functions cover the fields in which the reason for the investigation arises. If this plan is carried out, it is likely that the inquiry will be conducted by the com mittee on interstate and foreign commerce, by a sub-committee of that committee or by the committee on railways and canals. Representative O'Shaunessy said that while he has faith in the willingness and ability of the oflicials of the department of justice to bring the corporation to the bar of judicial tribunals, the people of New England themselves are anxious to have the house uncover transporta tion conditions in the six states. The reason for this eagerness of New Eng enders lies in the fact that an inquiry by the house can get at facts unattainable 'n a court, uniiampered by strict judicial procedure and the exact rules of evidence necessary in courts, the house can cut wider and probe deeper into the railroad trouble than could any ordinary tri bunal. The whole transportation system of New England will be vivisected by the house. The nouse will find out what conditions are and why ujey are. Technicalities will avail nothing and win not give shelter to facts. rf,i e ,dIrect cause for the present indignation, !nicl! has New England at white heat, is the hnoi Trunk deal. But for, years past the- public "jb neon seething as deal after deal was put "trough by the New Haven , manager, each deal meaning further transportation subservience. . as Louis D. Brandeis ,of -Boston pointed out recently, tim vo ... thing da .nnn ", ol Ncw England is a linvnn i , cumulative causes. Tho New tranSnoHnHaC(,Ul7,d a substantial monopoly of and J!n.V01! Until on,y th0 1Ines of the Bangor o? Ma in !C tonfnB t0 tho extreme north throurt vi l ,0 1,nea of th Grund Tnk uiiough Vermont, wore independently owned. And now comes the Grand Trunk deal. Conn!pKtaCC,UlS? a" 0f the railroad llnes in Mn n c l and ,IVl0d0 ,8,nnd- th0 I3o8ton and ?J? no yst?,in and its subsidiary, the Maine Con- Mi; r , ,y the Boston and A1any came under hV ?n contro1 by an agreement between the New Haven and the Now York Central. ilio New Haven also had gradually acquired, Mr. Brandeis points out, all steamship lines con necting Massachusetts, Rhode Island and Con necticut with New York and points south, while acquiring interests which are substantially con trolling in the steamship lines to Maine and Canada. As a result tho people of New England declare that this monopoly has resulted in lack of pro gress in transportation facilities, with actual demoralization of service, as witness the fre quent disastrous wrecks on the New Haven in the last few months. Increase in rateB and fares are also charged, as well as arrogant con duct toward the public on the part of New Haven officials. The New England field was thus ripe for Grand Trunk competition when the late Charles M. Hayes, tho presidont, began casting his eyes southward from Montreal. Ho announced that he wanted to get into Boston and into Providence. Ho would give genuine competition to the New Haven, he said. The Southern New England railway was formed as a Grand Trunk subsidiary to undertake build ing operations to Providence. The Rhode Island legislature, with strong popular approval, passed the necessary legislation. The legislature of Massachusetts, over the strongest hostility from tho New Haven, did the same thing. Construc tion of the Providence line was actually begun and was being rushed. New England thought it saw relief from the monopolistic grip. Then came Nov. 11 last and with it the ces sation of work by tho Grand Trunk. New England heard that the New Haven, partly by threats to which force was given by the vast financial interests behind the road, and partly by concessions which have been declared to be equivalent to bribery, had ' caused the Grand Trunk to quit. The indignation reached the boiling point. The inquiry by the rules committee is the result. MORGAN'S FIXE ITALIAN HANI) ONCE MORE Boston dispatch to the New York World: The policies which have controlled the manage ment of the New York, New Haven and Hart ford railroad ever since Charles S. Mellen be came president of the road in 1903, policies which have had for their sole end and purpose nothing short of a complete monopoly of the transportation business of New England, have been governed by a few men: J. Pierpont Mor gan William Rockefeller; James McCrea, presi dent of the Pennsylvania railroad, and, before him, A. J. Cassatt, his predecessor; George F. Baker, representing the Adams Express com pany, and Lewis Cass Ledyard, representing the American Express company. This quintet, act ing through Mr. Mellen, the mouthpiece, has governed the destinies of the New Haven road aMYel5 SgT'tho capital stock of tho New Haven company now outstanding amounts to 170 583 100 and its bonded debt to $042,503, 041 as shown by the New Haven's last general oalance sheet, the five men above named own personally barely $500,000, par value, of the BtMr LMa It is true, has standing in his on K42 shares of the road, par value KSi 200 But it is an open secret that 20,000 !f'?Sese shares are in the name of this New vnru lawyer as a matter of convenience YoI TJr the convenience of the Pennsylva teranroad o? of sSme other corporation client nia railroad or oi a identity appear that does not wish to B H corpora. on the stock books of the New i tion Mr. nJAy the World of the list of A careful scrutiny by tne hag re shareholders ln. thteeWbut other interesting Tealed Zi ?hrow an amazing light upon the facts which hJ a"ith wbich the finances of S.mW "SWcorporation have been Juggled uudor tho Mollon regime. Tho actual shareholdings of tho four men first named woro as follows on March 31, 1012: , Sharon Par Valuo J. Pierpont Morgan 2,188 $218,800 William Rockefellor 2.150 215,000 Goorgo F. Bakor 500 50,000 James McCroa 100 10,000 Total 4,938 $493,800 Mr. Ledyard's holdings liavo already boon told. Mr. Ledyard is best known in Wall fltrcot an the corporation lawyer of Mr. Morgan, and as first vice president of the American Express company, and a lawyer whoso advice Is looked upon as the last word In all matters relating to the management of tho Pennsylvania rallrond It Is equally well known in Wall street that Mr. Ledyard votes as Mr. Morgan desires when their Interests aro In common, and he tnkes gond care that his Interests never run counter to those of Mr. Morgan. So for all practical pur poses It may be stated that Mr. Ledyard, though by far the strongest (nominal) slmroholdor on the New Haven's board of directors, has very little final voice in the operation of tho gigantic railway system. Ho did havo a largo voice In tho management of tho Boston and Maine road, but It was tho voire of the American Express company, which owned an enormous block of stock in tho Bos ton and Maine. When Mr. Mellen, prompted by his suporlors, stnrted to get control of the Boston and Mnino, in 190C, he found Mr. Ledyard's assistance In valuable, and between thorn thoy bought nnd sold the Boston and Maine, ostensibly to tho Now Haven, but really for tho benefit of tho American Express company. But that Is an other story, which will bo told In thoso dis patches later. Here, then, are four men, eliminating Mr. Led yard, who, with a voting power of loss thnn $500,000, control tho management of a rail road system which boasts of book assets of $503,492,087, according to Its last balanco shoot. And If Mr. Ledyard's voting power Is conceded, the five men control but $2,54 8,000 of tho $179, 000,000 of outstanding stock. It will be urged that there aro other directors and that they too own considerable stock. Tho reply Is that tho other directors do not own much stock and that their votes are dependent entirely upon tho wishes of the big five who havo been named. But for tho sako of mak ing the record complete the stockholdings of tho other directors are given herewith: George MacCulloch Miller, 1,000 shares; George J. Brush (deceased this year), 252 shares; I. Do Ver Warner, 855 shares; Edwin Mllner, 2,310 shares; Charles S. Mellen, 3,745 shares; Robert W. Taft, C4 shares; James S. Elton, 575 shares; James S. Hemingway, 360 shares; Henry K. McIIarg, 1,200 shares; Charles M. Pratt, C,C90 shares; Amory A. Lawrence (deceased this year), COO shares; Alexander Cochrane, 1,500 shares; John L. Bll lard, 1,844 shares; Thomas Do Witt Cuylor, 250 shares; Theodoro N. Vail, 250 shares; William Skinner, 5,002 shares; Newton Barney, 630 shares; Charles P. Brooker, COO shares; Edward Mulligan, 34 shares, Francis T. Maxwell, 300 shares; Frederick F. Brewster, 1,875 shares. When Mr. Brush, who owned 252 shares, died on Feb. C last, his place was filled by tho ap pointment of Augustus 8. May, treasurer of tho New Haven. May has been treasurer for some yeaTB and haB been used freely by Mellon as a treasurer, president or other officer of various subsidiary companies, but May did not, when appointed as a director, own a single sharo of tho New Haven stock. The sum total of the holdings by all the directors, thus sot forth, Is 55,816 shares, in which, of course, is Included the 20,000 shares standing in the name of Lewis Cass Ledyard. But giving full effect to all the holdings In the names of all the directors, It still remains the fact that men with a direct interest of less than $5,000,000 in tho New Haven railroad system have the entire control of its immense properties and Its assets of halt a billion. No such detailed statement of the holdings of the directors as is here set down has ever been made public before, and doubtless it will shock some of the very conservative and trust ing New England Investors to learn how little actual monetary Interest their board of directors has in tho company. Around Boston it is commonly supposed that Mr. Morgan and Mr. Rockefeller alone have mil lions invested In New Haven stock, and that they will rush to the aid of their fellow In vestors should anything happen to seriously de (Continued on Page 10.) Oil lJ-.-M V(ji &L. ta. "v .&-. '-.J. i. ttsjjujgjMmjKy