The Cairo bulletin., 1906-11-14
NEW PLAN MAY
BALK HARTMAN
PROVISION IN ORIGINAL CHAR.
TER THAT MAY BE USED BY
INTERSTATE BODY.
UNION PACI' &c MERCER
To Be Attacked Under Old Regulation
Santa re Is Again Accused OF
Discrimination-Sm Lines
Are Absorbed.

Washington. d. c.. Nov. 13--ln the
sweeping investigation that the inter
state commerce commits on is max,
ing into the affairs of the Union Paci.
tic merger with the Illinois Central.
b. and O. and other Hartman proper
ties, fhe original federal charter OF
the Union Pacific has been carefully
/ stud ed and 1t has been discovered
that the government has a grip on the
situation entirely distinct from the
Ipowers conferred on the ccmmiss Oh
by the new rate law
! The act of congress chartering The
Union Pacific provides: THAT when
ever 1t appears that the net earning
OF the entire road and telegraph. in.
Guiding the maount allowed for ser.
vices rendered for the United States
after deducting all expenses. incIuI.
| ing repairs and the furnishing. rrn.
ming and managing of said road, shall
exceed 10 per centum upon its cost.
exclusive Of the per centum to be
paid to the United States. congress
may reduce the fare thereon If nm
reasonable in amount and may fix ami
establish same rate by law"
Provisions Still in Effect.
When a reorganization Of the sya
TEN was effected some years ago tNe
government waived Its 5 per centum
share in the earnings of the road. but
" hn hat
studied the charter that the remain
tng provisions of the law still stand
and are in effect. As the cost of the
property and nol the capitalization
made the bas' S of the computation OF
the earning capacity. II is claimed that
the road has long ago passed the point
where the governments regulating
powers become effective.
Under tho new rate law. complaint
is needed before an ac ion for tho
change OF rates becomes mattof for
the commits ion To inveyt gate In tta
light of the charter provision this VII
not be necessary In the case Of thn
Union Pacific. though as mater of
fact the interes ate commission can
conduct any Investigation II sees fit
involving the. operatier aud naanipa-
fissiyn zglf railRoad prcpgrsiaAl Az " A
orally understood the inxe Iiussfan
now goIng on IN regard 70 the tfarEf
man lines Is for the use of the a'tor-
ney general in basing suit on the
same lines as the Northern Securities
case.
Congress to investigate Merger.
When congress meets week aftet
next IT Is expected that direct an
thorization will be given the commits
sion TO push the investigation This
Is to be done by resolution calling for
specific information from the com
m ssi0n on the reported consolidation
Of the Hartman properties. Just how
the merger is TO be attacked by inc
government has not been explained.
as the roads to be combined are not
lines
No holding company has been form
ed and protiting by the Lesson of TIC
hin. Morgan line in the Northern Sc
Gu ties case. no such device has been
adopted. As matter of fact. joint
ownership of stock accomplished the
same purpose and avoids the barrier
set up by the supreme court.
one Of the most important develop
ment. of the Union Pacific invest
CATION under the authority Of he old
charter grant will be the Information
of the earning capac " OF
The road. based on IFS actual cost ms
IS a principle OF interstate commerce
aw that will be con ended for at the
,nming session Senator la Toilette
ed the fight last session and will rc'
,ive the matter al the hlsi opnor-
unity. The present commission is al %
n favor of this idea that he value
u the railroad property is the oa'v
ngical basis for rate making. and Viii
ry to make as much capital a. posi-
he ont of the case OF the Union Paci
ic
Santa Fe Again Accused.
Complaint was filed agiinst ihc
santa Fe railroad and connecting lin
,efore the interstate commerce com
ui sion today By the Commercial club
II Roswell y NJ and other organizs-
ions Of the Pcco~ valley. charging
hat his locality was being dia-r.m.-
,ated against IN The question Of rates
e Is charged in the petition tha. the
Santa Fe absorbed the PEGS Valley
abroad after It had been built by p-i-
ate individuals. and ever since the
ates have been 50 exorbitsnt as u
.reatiy retard the development OF the
ari0us cite along this line.
A comparison of rates TO common
'exas points from the Mississippi a1i
Iissouri rivers to Ch 'cago. St Paul
nd Minneapolis is given which shows
hat though the distance Is about ihs