The news-democrat. (Providence, R.I.) 1906-1909, 1907-05-16
HARTMAN MAY
Be DEFENDANT
IN MANY SUITS

Washington, May ia proposed
federal law regulating the issuance OF
railroad securities and to prohibit the
purchase OF the shares Of one road by
another, recommendation that
series of suits be instituted against
the Hartman consolidation on a charge
OF violating the provisions OF the sher-
man antitrust act and other laws. a
highly interesting expose of Harri-
mans methods In manipulating the
Chicago and Alton system and other
railroad properties, and a statement
that competition in transportation has
been stifed by Hartman and his asso-
ciates in a large area OF the United
States, sums up In brief a report On
the Hartman case Just submitted to
the interstate commerce commission
by its special counsel Frank p.
Kellogg and c. A. Severance.
This report is a narrative OF the
manner in which f. II. Hartman OF
New York built up and welded together
the great railway combination that
bears his name. Messrs. Kellogg and
Severance severely arraign Mr.. Harri-
that his reorganization OF the Alton
was one of the most remarkable cases
OF manipulation and stock watering
ever known In this or any other coun-
try. The report was prepared by the
special counsel Immediately after the
AA
fore the commission early in April At
the request OF the commission the
special counsel reduced TO writing their
conclusions as to the business methods
of Hartman and the management OF
his railroads.
A report was circulated today ascrib-
ing to the commission the report OF
Messrs. Kellogg and Severance. II was
reported also that the commission had
completed its inquiry into the opera
tions OF the Hartman lines and would
forward TO the attorney general In
day or so all the evidence in the case.
together with certain recommendation.
These reports were positively denied
by Chairman Martin A. Knapp OF the
commission, who authorized the follow
ing statement:
The commission has not prepared
n report in the so-called Hartman case,
tions involved in the inquiry. The
whole matter Is still under considera-
tion and some phases OF IL are being
further investigated. IL may be that
the briefs OF memoranda submitted by
counsel have become known In some
quarters and the mistaken inference
drawn therefrom that the commission
has agreed upon report"
To this formal statement was added an
mi n
commission, as follows:
1T is unfair to the commission to say
that IL has recomme nded TO the attorney
general that the Hartman lines shall
be prosecuted under the terms OF the
Antitrust act. The commission makes
no recommendation to the attorney
general In such cases. The same pro-
cedGre will be followed In this matter
as in the case OF the merger of the Hill
roads. The commission made inquiry
into the management and conduct OF the
Great Northern and Northern Pacific
turned over TO the attorney general who
decided that the merger was obnoxious TO
the law. We did not recommend
prosecution of the Hill roads; we will
not do so In the case OF the Hartman
roads"
Messrs. kellogg and Severance take the
position that Harriman's Mnes have vio-
lated the Sherman Antitrust act in a
number of instances, notably in the con-
tracts made with the Rock Island, the
Southern Pacific, the Santa Fe, Illinois
Central and the San Pedro roads. They
also report that the profts OF the West
ern roads are being used to purchase
stock In Eastern systems.
The next step in the case will be taken
in New York the latter part OF the
month. According to Information re-
celved here yesterday Special Counsel
Kellogg is ready to institute In the United
States circuit court sitting In New York,
proceedings 10 require Hartman TO an
swer questions that he declined TO an
swer some months ago. when he ap-
peared before the commission as a Wit
ness Before a decision has been reached
in that suit. however, the commission
will prepare the record for the considera-
ton Of the attorney general. It will then
be for that official TO decide what fur
ther action shall be taken.
Lawyers here express the opinion that
the Hartman consolidation Is vulnerable
to attack and that II the government Is
so disposed II may successfully prose-
cute both the corporations that comprise
the combination and the individuals re-
sponsible for the violations of law that
have been disclosed. While Mr.. Harri-
man has had an immunity bath as far as
some transactions are concerned, there
are others. notably that OF the traffic
agreement between the San Pedro and
the Southern Pa acifc concerning which he
has not been asked to offer testimony
as a witness.