The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1902-01-28
so SAYS Mr. HARTMAN
INQUIRY into the Community Of In
terest Combinations.
RAILROAD MEN CROWD THE COURTROOM
Hartman Explains the So-CalIed Contest on the
New York Stock Exchange Which
Resulted In the Famous
':3lack thursday"
(By the Associated Press.)

Chicago, Jan. 25.-When the second
days inquiry by the Interstate Com
mission into the community of interest
combination of the great railways of the
Northwest opened today great interest
was manifested in the testimony. The
United States court room, where the in
v~estigation was held, was crowded with
well known railway men.
E. H. Hartman, who organized the
Southern Pacifc-Union Pacific corpora
ton. and who was Mr.. Hills opponent
in the struggle for the Northern Pacific
Burlington control, was the first witness.
Mr.. Hartman explained the so-called
contest in the New York Stock Elk
change Which resulted in the famous
black Thursday
Il don't think there was any contest
said Mr.. Hartman. Some Of uS-the
Oregon short line people-thOught it
would be advantageous to have an in
terest il TIE Northern Pacific and pur-
chased stock that was lying loose all
over this country and Europe-held by
five to seven thousand persons. We
made no contest for the control of the
Northern Pacifc-we made purchases of
capital stock. We purchased prior to
the supposed contest and no stock was
acquired il May"
Mr.. Day tried to show that the contest
for Northern Pacific stock was the fore
runner of the panic on the exchange, but
Mr.. Hartman insisted that such was not
the case.
"Some of the stock he continued, eve
had bought in markets all over the world.
Some of this was on the way from these
various markets to be delivered. In the
meantime the sellers borrowed"
Questions We're then put that indi-
Gated ''jobbing'' had been resorted to
in the purchase, and which brought the
reply:
The stock was purchased in New
York from persons who bought from the
owners. Then when the so-called CON
test came and the stock was demanded,
the sellers found it difficult to fulfill the
contracts. Our interests in every case
rave these persons all the time they
wanted"
The questions as to just why Mr.. Har-
riman had disposed of his Northern Pa
cifc holdings. what was lost or made by
the transaction and whether Mr.. Hill
had made some agreement in case the
ICjulHSS N'tt SUlI, DIouSht 1I0lIl VII.
Hartman the rcsponse that natural con
d:tions controlled. He said Mr.. Hill had
given no assurances of any division of
Traffic and that the motive of the or
iginal purchase had been, that Of pre-
serving to the Union Pacific system the
avenues Of traffic open to it.
Mr.. Hartman insisted that tho COM
mon interest of all systems now aifil-
lated under the Northern Securities Com
pany must be considered rather than the
So-called community OF interests He
said he was a membCr OF the board Of
directors of the securities company and
Mr.. Hill was it's president, but the COM
bination under the company affected
rates in no wise.
The question of the formation Of the
Northern Securities Company and the as
ISOLATION of so many roads might inhu-'
encc rates brought q denial.
ct may enable US said Mr.. Harri-
man, when brought so close together.
to eliminate the prevailing distrust as 10
the various lines maintaining traffic
E, rates. The complaint has been of too
high rates-we may be able to stop the
discrimination in rates of one shipper
against another"
He stated that this, however, need not
have been done IN such a company. The
suggestion was made by the commission
thai this company might also prevent re-
duction of published rates by competing
| reads. He did not consider the company
afforded a power of concentration for
pooling. Other larger considerations than
/, s~tockholdings, he held, influenced rates.
IF Mr.. Hill or myself, owned all the
roads tho people would get better rate:
bpcauSa Of conditions With a free,
hand We could the better regulate The
rates to any point. The prevailing move.
ment Of cars. etc. influence
He added that he did not think com
petition ever reduced rates more thar
temporarily.
Mr.. Hill was not called on today.