The daily morning journal and courier., 1907-07-15
GOVERNMENT MILDLY CEHSURES HARRI MAN No Hint of Prosecution Found in Commissions
 Report. REPORT RESULT
 OF A COMPROMISE The Conclusion Reached and Recommendation
 Made.

and Recommendation
 Made.
 Washington, July 14.-The long ex- pected report of the Interstae Com merce Commission upon its inqniry into the operations of the railroad consolidation managed by E. H. liar riman was made public yesterday. It will be disappointing to those who ex- pected sensational statements and recommendation from the commis- sion, for the language employed is mild and there is no hint of prosecution. "Indefensible financiering" is the strongest term used in the report, cop ies Of which have been delivered to President Roosevelt and Attorney General Bonaparte. The report is unanimous.
 Summarized the commissions con- clusions as set forth 1 nthe report are that competitor in transportation has been effectively stopped in a territory equal to one-third of the United States and F. H. Hartman as an individual has dominated the great railway con- solidation which he built up in the last few years. It is recommended by the commission that a Federal law regu- lating the issue of railroad securities should be enacted and that the func- tions of railroad corporation should be confined to furnishing transporta- ton and that it should not be permit ted to invest generally in the stocks, bonds and securities of other railway or steamship companies, connecting lines excepted.
 Strong Case Presented.
 The report is the result of much dis cussion and some compromise in the commission. It Is simple recital of facts, but strong case is presented even in that way. That the Harri- man railroads have in some instances evaded and in other violated the pro- visions of the sherman antitrust laN is made clear. Whether proceeding to dissolve the various alleged illegal mergers for which MT. Hartman anc his associates are charged with being irresponsible is for the Attorney Gen. eral to determine after he has eXamin. ed the report and the evidence submit. ted with it. It is not likely that there will be any criminal prosecution and i is questionable in view of the abroga. ton of the agreements which were held to be illegal whether any civi suits will be instituted.
 Several weeks ago 1t was indicated that the commission intended tC hold up Mir Hartman as the horrible example in the railroad and financia world, It was apparently the commits sion's intention to excuriate him II vigorous English. The commission report on Standard oil, wherein that great monopoly was mercilessly flayed was considered as a model to be used But the commission ultimately decided otherwise. The Hartman report, writ ten by Commissioner Franklin K Lane and approved by al his colleagues is little more than narrative. l l Special Counsel Frank B. Kellogt wanted to have incorporated in 1t tht ginger he put in his memorandum O the case he failed to have his way. Conclusions of the Commission.
 The conclusions of the commission are as follows:
 The effect of the control of tn Southern Pacific by the Union Pacifi has been to unify and amalgamate tn management of these two railway companies and their steamship line and to eliminate competition between them in transeontinental business ant in business to and from Oriental ports
 The Union Pacific, as has beei shown, controls the San Pedro, Lo Angeles and Salt Lake Railroad. tn stock of which is deposited in tn hands of a trustee. This line was orig 1 inaIly intended as an independent roai extending from Salt Lake, where 1 connects with the Union Pacific an with the Denver and 10 Grande, t Los Angeles and San Pedro, Ca There is therefore no competition be tween this line and the Union Pacifl and Southern Pacific.
 It apears that the Union Pacific als owns Sl0000,000 par value of the stocl of the Atchison, Topeka and Santa F Railway Company, and about $30000, 900 more is owned by individuals con nected with the Union Pacific. makinI $40,000, 900, or substantially F per cent of the entire capital stock of the Sant Fe company. Who owns this stool outsode of the S10OOO,OOO MT. Harrimal declined to state. Two directors 0 | the Union Pacific are also directors o I the Santa Fe company, and there i now a division of the Oriental traffi by the Pacific Mail Steamship Com pany between the Union Pacific ant the Santa Fe systems.
 It apears that there has also been