The Washington times., 1907-01-06

nents. with a strange power to subor-
dinate other mems wills To his own,
with the capacity absolutely and al
ways 20 keep his plans 10 himself, and
backed by the confidence and the credit
and the wealth or the most potent
group of financial people in America
the STANDARD Oil group-Was well on
abe way Io the completion of the first
part ia what now appears TO have been
nothing less than plan OF transpor-
tatiOn empire.
Roosevelt Intervenes.
Theodore Roosevelt. representing
eighty millions of people whom Harri-
man proposed TO make tributary 10 his
wonderful transportation fabric has
interviewed. The FIRST battle in this.
abe greatest struggle between public
and private interests that this or any
other nation has ever known is now in
progress
The nrst skiTmish IN This opening bat
tie is being fought in New York. where
The Interstate Commerce Commission. IN
the last two days. has begun its investi-
cation in the financial affairs and rela-
lions Of the Hartman system
And what IS the Hartman SYSTEM
Until three days ago IL was supposed
TO be composed OF til Union Pacific,
Central Pacific, Southern Pacific. san
Pedro, Los Angeles, and salt Lake,
Oregon short Line, Oregon Railway
and Navigation, Illinois Central, Chi
cage and Alton, and minor allied rail-
roads, aggregating something like as
OOO miles OF track.
But now it Is known that the Harri-
man system includes not only these,
but also tremendous interests in the
stocks Of the Baltimore and Ohio. OF
which it holds about 40 per cent; the
New York Central, OF which II holds 3
per cent; the AtohisOn, Topeka and
Santa Pc, and the Chicago, milwaukee
ana st. Paul stiu more, tho Earri-
man system holds, or held until very
recently, immense amounts OF the
stocks OF the Northern Pacific ana the
Great Northern, though these latter
have been largely, 1t Is understood,
1iquidated-
Since June 60. last. the Hartman sys-
TEN has invested no less than Slu3,u00, O0J
Ia the stocks of roads which up to that
time were not regarded as affiliated with
The Hartman group.
Where did the money come from?
Nobody except Nj Hartman himself
can tell.
Part oil the business or The Interstate
Commerce Commissions Inquiry is TO
compel him 10 tell
To answer that question Where did
lie get the money! requires 10 go into
the entire scheme of up-to-date financial
methods in the organization OF great
property.
In the first place. 10 is part of the Har-
Timan method Of management 10 build
APP an immense surplus ia the treasury
ar every corporation which is con
trolled. The Union Pacific, the oregon
Short Line. the Southern Pacific, has
each had for years a surplus of many
millions. and IL is interesting 10 note
that the roads which Hartman has
lately been buying into are also largely
systems which have held large surplus
funds on hand.
These Have Great SURPRISES.
Thus the Chicago, Milwaukee and st.
Paul. for many years was credited with
the largest cash surplus OF any road in
the country. and the Illinois Central and
the New York Central were properties
which not only carried large surplus
but. ny reason Of careful and. conserya-
tive management. enjoyed credit almost
without limit.
once in control OF a railroad system.
il has been MIR. Harriman's uniform
policy 10 make himself the absolute
dictator OF its every financial detail.
The members Of his boards Of direc-
tors were mere dummies, men whom he
would summon together when occasion
HI
have them indOrse il, and then have
himself made the agent to carry out
The plans with fun authority and APP
pTovai OF the board.
NOBODY assumed 20 interfere with any
plan which lac might have developed;
nobody asked questions; il was the duty
Of a Hartman director 10 do exactly
as he was told. 20 say nothing, and TO
take whatever slice of the melon was
handed 10 him.
Millions at His Back.
The astounding revelation. for an
stance, was made before the Interstate
Commerce Commission IN New York
that several years ago Mr.. Harrimau's
Union Pacific board passed a resoIu-
tion authorizing him to borrow whatever
money might, in his Judgment, be need
ed for the railroad or in connection with
It's enterprises.
Under the authority Of that resolution
Mir Hartman borrowed millions upon
millions on the notes of the Oregon
Short Line, ana invested the proceeds
in the stock of the Northern Pacific
That was done in the effort TO wrest
contrCl from James j. HIM. The result
was the famous corner of Northern Pa
cidc of May S. 1902. when Narthern Pa
ciftc stock went to $1,000 a share.
When these splendid gamblers OF high