Los Angeles herald., 1907-11-14

conferred upon IL by congress and that
to force him TO reply to the questions
under the circumstances would be to de-
priye him Of liberty without due process
of law.
Stimson Opens Case
United States District Attorney Stimson
opened for the interstate commerce COM
mission. He said that the commission be-
fore starting the investigation during
which Hartman was asked the question
which he has declined to answer had
stated the object of the investigation.
This object, Mr.. Stimson said was to in
quire into various combinations and con-
solidations of alleged violations of the law
by certain railroads engaged In interstate
commerce.
Mr.. Stimson pointed out that the Union
controlled the line of road from Omaha to
Portland He said Mr. Hartman had au
tocratic powers over the Union Pacific.
Southern Pacific and Oregon lines, that he
was, in fact, the Union Pacific system.
Mr.. Stimson outlined the rise of the
Hartman system. and said that among
stock bought were Alton, Illinois Central,
Atchison, Baltimore & Ohio, st. Paul and
others. The Union Pacific invested nearly
S150,0000 900 in this way. he said, and Mr..
Hartman took the entire responsibility.
Mr.. Stimson referred to purchases of the
various stocks by the Union Pacific and
the refusal of Mr.. Hartman to give ans
wers to certain questions. He said all of
these qnestions were merely to ascertain
IL any stock was bought for the Union
Pacific from its officers or directors.
The position of the comission, said the
district attorney, is that it has stand
ing committee of congress vested with
inquisitorial power.
Mr.. Stimson said the constitutionality of
a statute was not under considera tion
Said he:
"They are trying to cut congress off
from inquiring into facts upon which
legislation may be based.
He contended that the comission had
the same right to inquire into all the
financial transactions of an interstate
railway as to require the use OF safety
appliances on the roads
What the commission is endeavoring
TO learn from the questions addressed to
whether the enormous stock investment
made with Union Pacific funds amounted
to waste of assets and impairments OF
the facilities of an interstate common
carrier. and whether the matter of such
Investments would be made subject 10
the regulation of congress.
Mr.. Stimson quoted from statement
by Robert Mather of the Rock Island
that railroad directors who purchased
stock for themselves were largely re-
sponsible for the wave of distrust which
has swept the country. He said
ssEven If the Unoin Pacific stock trans
actions should be conceded to be private
business, no man has right to with
hold information pertinent to the matter
at issue by claiming privilege OF pri-
vate business. There is no such priVl-
lege."
Testimony Must Be Given
Mr. stimson added that even if the
information tended to incriminate wit
ness it could not be withheld. immunity
from prosecution being automatically eX-
tended in such cases.
Mr.. Stimson reviewed the various pur-
chases of the stock of other railroads
by the Union Pacific and said:
Nearly $3.50, 900, 900 was spent in these
transactions, not counting what previous
lv had been put into the Southern Pa
cific. and Mr. Hartman assumes respon-
sibility for it all. The proceeds show
his motives and purpose. No words
could more clearly indicate stock 1obbing
than his replies at the investigation by
the commission"
Mr.. Stimson concluded by submitting a
COPY of the speech made by Secretary
of War Taft at Columbus Ohio in which
interstate commerce anu rdllrodu ie6u-
lation were discussed.
John Milburn opened the argument In
behalf Of Mr. Hartman. He declared
he would, not take issue with Presi-
dent Mather or with the distinguished
secretary of war. The pronouncement
was interesting, he said, but he could
not see what in the world it had to
do with the matter at issue before the
court
s'And want to say also" continued
Mr.. Milburn, "that / find myself in
about all the trouble 1 care to confront
when / attempt to try my cases under
the law as 1t exists without delving into
the realms of laws that might be. The
sole question before your honor is
whether or not the power to make the
inquiry involved is vested in subordi-
nate, an inferior body like the interstate
commerce commission, whose power is
purely a delegated one. will never con-
cede to the proposition that the COM
mission is the equal of congress-"
Had Right to Buy Stock
Mr. Milburn asserted that the Union
Pacific had the legal right to purchase
stock in other railroads, it had the legal
right to buy Illinois Central stock from
Mr. Hartman, and Mr.. Hartman had
the legal right to sell it. "The transac-
committee. adopted by the board of di-
rectors, and ratified by the stockholders
and was set forth in the minutes Of the
company in a perfectly regular way"
Mr.. Hartman was asked when he
bought Illinois Central stock:
IF that is not a matter of private
business what can be private business p
demanded Mr. Milburn.
ut was not until nine years after Mr.
Hartman had his Illinois Central stock
that he sold it to the Union Pacific at the
market price"
Judge Hough interrupted to ask if tn,
commission was not endeavoring to elicit
from Mr.. Hartman the facts as Il
whether or not he individually made
large sums of money by selling stock.
to corporation in which he was di
rector.
broadly that seems to be true" re-
piled the attorney, land the question
here arises as to whether or not Mr.
Hartman is protected by the constitution
in not answering such interrogations."
But said Judge Hough, the ground
Of your objection. as 1t appears In tn,
-oo,rd fo fhof tho eVbfarf m q tier ~ N.