Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1907-08-26
INTERSTATE OFFICIALS
ON RAILROAD TRAFFIC

made public late Saturday by the In
ter-state Commerce commission of its
inquiry into Sle railroad operations OF
Edward H. Hartman of the operations
of the so-called Hartman lines OF
railway, which has been in progress
for several months. The report, when
was written by Comr. Franklin X.
Lane, is the unanimous expression oil
the commission. Copies have been
transmitted to Pres. Roosevelt and the
department Of Justice
1t is expected by the commission
that it will be determined by the Pres
jdent and Attorney General Bonaparte,
from the statement OF facts set out III
the report, whether the government
will institute any sort of proceedings
against Mr.. Hartman or the corpora
tons involved in the inquiry NO rec
concentrations are made by the com
mission that either criminal or civil
prosecutions be instituted as a result
of its inquiry.
The report is an exhaustive sum-
mary of the evidence adduced at sew
eral hearings held by the commissions
1t enters fully into a discussion OF the
policy pursued by Mr.. Hartman Ill
obtaining and maintaining control OF
the various lines of railway III the
Hartman system and presents falr-
ly complete history of the operations
of the various lines. Excerpts from
the verbatim testimony of Mr.. Harri-
man are given to show as stated in
the report THAT it is only the law
which prevents the concentration into
Mr.. Harriman's hands OF every rail-
road line lying between Canada and
Mexico, according to the frank admis-
sion of Mr.. Hartman himself, made at
the hearing.
ITO gather under one head all eX-
listing trans-continental lines or as
many as possible and to exclude the
coming of all competitors became man
ifestly the Hartman policy, which was
inaugurated in 1901, by the issuance
of $100,O00,000 of convertible bonds by
the Union Pacific"
Mr.. Harriman's eventual control OF
many OF the competing trans-con-
tinental lines was prevented, it is
pointed out by the Supreme courts de-
cision in the Northern Securities. 1t
is shown by the report that it has been
no part of the Hartman policy to per-
nit the properties, brought under Union
Pacific controls to decline, as in every
case they are better today than they
were when Mrs Hartman acquired
them. a.
Particular stress is laid by the COM
mission on the elimination of 'competi-
ton in Sentimental business
among the Hartman lines and the
commission Indicates that this is 6
matter of large@si gnificance developed
in it's inquiry.
Special reference to the deal b.
which Mr.. Hartman secured control o
the San Pedro road and to the mani
pulation of the Chicago and Alton,
very careful synopsis of the financia
operations in both instances being
given.
AS result of these operations, thu
commission says:
"If the policy Of purchasing and con
trolling stock in competing lines is per
mitted to continue, it must mean sup
preston of competition
The recommendations of the com
mission, which are rather general thai
specific in their terms and applications
are as follows:
| 1.-THE function of railroad cor
poration should be confined to the fur
nishing of transportation. Railroad
should not be permitted to invest gen
orally in the stocks, bonds and securi
ties of other railway and OF steamship
companies, except connecting lines TO
the purpose of forming through route
of transportation, including branche
and feeders. 1t is in the interest o
the public to facilitate the consolida
ton of connecting lines. The credi
! of a railway company is founded upol
the resources and prosperity of tn
country through which it runs. 1t
surplus funds and credit should be USE
for the betterment of it's lines and Il
extensions and branches to develop tn
country contiguous to it.
Railroads securities should be sat
and conservative Investments for tn
people. To this end the risks of tn
railroads should be reduced to a mini
mum. 1t adds an element OF hazar
to a railroads capital and credit t
have it's funds invested in the stock
of other companies, thereby endangel
ing its solvency and it's ability to pa
reasonable dividends upon its oW
capital stock 1t is a serious 'menat
to the financial condition of the cour
try to have large railway systems ia
to meet their obligations or go int
the hands of receivers. and the obje'
of legislation and administratio
should be to lessen the risks of raj
way investments.
CIT is contrary to public polio
as well as unlawful for railways
acquire control of parallel and compe
ing lines. This policy is expressed
the federal laws and in the constit'
tons and laws of nearly every sta
in the union. Competition betwee
railways as well as between other il
dustries is the established policy
the nation So long as it is the poli'
of the general government OF the stat
to maintain competition between ma
urally competing lines, the ownersh
of any stock by one railway should
prohibited from having any comm(
directors or officers.
\. 80.