Other People's Money, and How the Bankers Use ItBrandeis, Louis Dembitz
History
Other People's Money, and How the Bankers Use It
Brandeis, Louis Dembitz
Banks and banking -- United States; Finance -- United States
5. $23,205,679, in acquiring New York Central stock.
6. $10,395,000, in acquiring Atchison, Topeka & Santa Fe stock.
7. $8,946,781, in acquiring Chicago & Alton stock.
8. $11,610,187, in acquiring Chicago, Milwaukee & St. Paul stock.
9. $6,750,423, in acquiring Chicago & Northwestern stock.
10. $6,936,696, in acquiring Railroad Securities Co. stock
(Illinois Central stock.)
The immediate effect of these stock acquisitions, as stated by the
Interstate Commerce Commission in 1907, was merely this:
“Mr. Harriman may journey by steamship from New York to New Orleans,
thence by rail to San Francisco, across the Pacific Ocean to China,
and, returning by another route to the United States, may go to Ogden
by any one of three rail lines, and thence to Kansas City or Omaha,
without leaving the deck or platform of a carrier which he controls,
and without duplicating any part of his journey.
“He has further what appears to be a dominant control in the Illinois
Central Railroad running directly north from the Gulf of Mexico to the
Great Lakes, parallel to the Mississippi River; and two thousand miles
west of the Mississippi he controls the only line of railroad parallel
to the Pacific Coast, and running from the Colorado River to the
Mexican border....
“The testimony taken at this hearing shows that about fifty thousand
square miles of territory in the State of Oregon, surrounded by the
lines of the Oregon Short Line Railroad Company, the Oregon Railroad
and Navigation Company, and the Southern Pacific Company, is not
developed. While the funds of those companies which could be used for
that purpose are being invested in stocks like the New York Central and
other lines having only a remote relation to the territory in which
the Union Pacific System is located.”
Mr. Harriman succeeded in becoming director in 27 railroads with 39,354
miles of line; and they extended from the Atlantic to the Pacific; from
the Great Lakes to the Gulf of Mexico.
THE AFTERMATH
Public-domain text, read in full here on John Shaqi.
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