The Kendrick gazette. [volume] (Kendrick, Idaho) 1892-1968, 1907-07-19
REPORT IS
PUBLIC
COMMISSION REPORTS
ON HARTMAN DEALS.
IT Is SAID HIS RAkEOFF AMOUNT.
ED TO HUNDREDS OF MILLIONS
OF DOLLARS.

A report has been made public by
the interstate commerce commission
of it's inquiry into the railroad opera
tons of Edward H. Hartman and the
operations of the so-called Hartman
lines of railroads, which has been in
progress for several months. The re-
port, which was written by Commits
sioner Franklin X. Lane, is the unan-
imous expression of the commission
The report has been sent to President
Roosevelt and the department of JUS
tice
Mr.. Harriman's policy, the report
intimates, is to gather under one head
all transcontinental lines and to ex-
clude the incoming of all competitors
His power is we'll nigh absolute over
his entire systems.
His corporation control includes
several great systems, every steam
ship line on the Pacific south of Puget
sound and two big steamship lines on
the Atlantic.
His partial railroad control includes
companies.
His "indefensible financeering" con-
sists of taking a rake-off Of nearly
$114, 100000 from railroad (the Chi
cago & Atom that cost but 5S,OOO,-
600 and nothing tangible added to the
property.
His recent ventures include acquir-
ing of interests in eastern railroads
within the last year, amounting to
nearly $132,000,00O.
His future intentions are the sup
preston of all railroad competition, if
not headed off by federal interference
1t is expected by the commission
that it will be determined by the pres
ident and Attorney General Bona
parte from the statements set out in
the report whether the government
will institute any sort of proceedings
against Mr.. Hartman or the corpora
tons involved in the inquiry. No
recommendations are made by the
commission as to whether criminal or
civil prosecutions be instituted as a
result of it's inquiry.
The report is an exhaustive sum-
mary of the evidence adduced at the
several hearings held by the commits
sion in the course of its inquiry. 1t
enters fully into a discussion of the
policy pursued by Mr.. Hartman in
obtaining and maintaining control of
the various lines of railway in the
Hartman system, and presents a
fairly complete history Of the opera
lions of the various lines. Excerpts
from the verbatim testimony of Mr..
Hartman are given to show, as stated
in the report, that it is only the law
which prevents the concentration in
Mr.. Harriman's hands of every line
lying between Canada and Mexico"
The frank admission of Mr.. Harri-
man himself, made at the hearing, ito
gather under one head all existing
transcontinental lines or as many as
possible, and to exclude the incoming
OF all competition" became manifest
ly the Hartman policy which was in
augurated in 1901 by the issuance of
500, 100000 of convertible bonds by
the Union Pacific, says the report.
Hartman Comments.
Mr. Hartman, speaking by tele-
phone from Arden, says:
From what am told the report is
a political document and part of a
personal pursuit of me.
1T is deemed good politics to at
tack me. But can stand much better
than the people of the country can
stand that sort of procedure on the
part of the governmental tribunals
charged with the duty of impartially
administering the laws.
81 shall study it confidentially and
have something to say about it later
But from what am told it is full of
strange misstatements of facts. For
example, in reference to the Chicago
& Alton it says that l caused about
100000 to be credited to construc-
ton expenditures in order to find an
excuse for borrowing money to pay
dividends. AS a matter of fact, that
was written recommendation made
by President FELTON, when l was in
Alaska and it was adopted by the
board Of directors at a meeting at
which I was not present. Again, it is
said that certain method of account
ing that was carried out would not
the effect of covering up the payment
OF the special dividend, thereby init
mating some wrongful concealment.
This is a most extraordinary state
ment for the writer of the report to
make when it is considered that the
stockholders necessarily knew of the
dividend because every one received
his share and when it was published
in every financial journal at the time
and was reported to the stock ex-
change and shown on it's printed lists.
The suggestion, therefore, of any
reason or desire for concealment is
most unfair.
Il am informed by those who have
examined it more carefully that the
article is full Of errors wholly mex
cusable. But I shall read it carefully
and make further statement regard
ing it, particularly of my connection
with the Chicago & Alton adjustment,
within a few days"