The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-01-07
ABSOLUTE CONTROL.
E. H. Hartman Has Been Dictator in
Rail Management.


In view of the fact that E. H. Har-
riman made a speech in Topeka de-
claring that he did not control a sin
gle line of railroad, and that his pow
er was not what he was ordinarily
credited with by the newspapers, the
following New York dispatch is inter
esting:
E. H. Harriman's absolute control
of vast railroad systems stretching
from the Atlantic to the Pacific, and
of steamship lines plying from the
western coast of the United States to
the Orient, was shown in the first ses-
sion of the interstate commerce com
missions investigation into the so call
ed Hartman lines
1t was admitted in the hearing by
offlcialS and employees of the various
lines controlled by Hartman that the
Union Pacific, Southern Pacific, Ore
gon Short Line, and the Oregon Rail-
road and Navigation company are I'M
der the same administration, with one
or two minor exceptions, Mr. Harri-
man being president of each.
1t was further shown by testimony
of officials of these and other com
panfes that through the Union Pacific
and oregon Short Line vast amounts
OF stock, in some cases controlling in
terests. are held in many other great
railroads of the west
That Mr.. Harriman's control is alb
solute was shown by testimony of Of
hcials of various roads and by minutes
of executive meetings of directors In
many instances Mr.. Hartman report
ed to directors he had done this or
that. In each case his acts were for
mally authorized without question. At
one meeting blank resolution was
adopted giving him unlimited power
to borrow money as it might be re-
quired for use of the Union Pacific
railroad.
The inquiry begun by the commits
sion is into affairs of the Southern Pa
cif1c and Union Pacific systems. It's
purpose is to discover whether the
two lines are natural competitors, or
whether there is an agreement be-
tween them that may be construed as
being in restraint Of trade and in Vio-
latfon of the Sherman antitrust act
Harriman'S complete control of the
Union Pacific was shown by minutes
of directors meetings read by Alexan-
der Miller, secretary of the company.
books account of the purchase of the
Illinois Central at a meeting July 10,
1906. Mr.. Hartman vacated the
chair and said from the floor he be-
est of the Union Pacific company to
have a connection with the Illinois
Central, inasmuch as the Union Pacific
had no line to the Gulf of Mexico or
to Chicago.
Sees Opportunities in 1. G.
Central would be greatly enhanced by
the construction of the Panama canal.
He further declared that the real
value of the Illinois Central was little
most active in it's management.
These and many other legitimate
reasons were given" the minutes went
on, ''as to why the purchase of stock
should be made"
Mr.. Hartman said he was the own
er of some of the stock which he adj
vised the Union Pacific to buy, and
for that reason he could not act James
Stillman and H. H. Rogers also said
they were interested, and, with Mr..
Hartman, were excused from voting.
H. c. Prick headed committee to in
vestigate the stock, with power to act
The committee recommended the pur-
chase of the stock, and it was done. A
large block of the stock was obtained !
from Kuhn, Loeb & Co., and some |
&c, 600 shares were bought, along with |
the Railroad Securities company, which |
had this stock as it's sole asset. The
Railroad Securities company was owned
by Mr.. Hartman.
Stuyvesant Fish Gets 100000
Stuyvesant Fish, it appeared, was also
a part owner of the Railroad Securities |
company. To purchase Mr.. Fish's in |
terest, the Union Pacific surrendered to |
him S,796 shares of Illinois Central rail- |
road stock valued at about $1,500000, |
and paid another 1880, 600 in cash.
The deal, it appeared. had been made |
by Mr.. Hartman, and was simply ratt- |
fed and confirmed by the committee.
BY means of the minute book, counsel |
then proceeded to place before the COM |
mission the fact that most of the ex-
ecutiveN committee meetings consisted of |
the ratification and confirmation" of |
Of these meetings the chairman reported |
that acting as president of the Oregon |
Short Line, he had bought the Balti- |