The Washington herald., 1907-01-09

Chicago, Jan. S.-What viii probably
prove the deepest probe ever undertaken
into the relations between the Pacific
railroads. under z. II. Harriman's con-
troll, was begun here by the Interstate
Commerce Commission to-day.
That r. II. Hartman and those friendly
to him hold over $40.C00C00 of the stock
of the Atchison. Topeka, and Santa Re
road was one OF the points brought out
at the hearing to-day Of this Sf0O00.CO9
Of Atchison stock, S10,000000 has been .ac-
quired since last July by the Union Pa
cifc. This was absolutely unknown 10
President Ripley and most OF the Atchison
board until IL was brought out in the
testimony given last Friday in New York
by Comptroller William Nahl. OF the
Union Pacific
Max Fix Responsibility On Hill.
Nor was this the only development at
the hearing As a result Of the pending
investigation, responsibility may yet be
fixed by the commission on the J. J. Hin
lines for the car shortage, fuel famine.
and dreadful suffering that has been
caused in the Northwest.
President Hiu was called 10 account for
these troubles in a telegram from the
commission last night. and to-day the
railroad magnate Of the North is reported
10 be hurrying TO Chicago TO tell the in
vestSators personally why he cannot
comply with their demand that he remedy
existing conditions
Charges by the Southwestern Livestock
Association Of raiIroad-rate discrimina-
tiCns and Of excessive terminal charges
on cattle shipments also assumed uuex-
peCted Importance
Disclosures OF Mir. Harriman's methods
OF obtaining a voice in the management
Of railroads supposedly under control out
side his own were made by President
Ripley. Of the Santa Fe
Hartman Works Under Cover.
The first intimation President Ripley
had that the Union Pacific held Sl0UJ90DJ
in Santa Fe stock reached him in press
dispatches from New York. the president
told the Interstate Commerce Commits
sion. Mr.. RipIeys report was that Har-
riman's practice IS 10 gain control Of a rail-
reads stock without permitting the fact
/ TO appear on the transfer books.
! did not credit the press reports. said
Z
Hartman was extensively interested in
Santa Fe. but in the summer of 1904
met him and he told me he had some
friends. including Il G.. Frick, Il. II.
Rogers. and Jacob Sehif. VINO were buying
Santa Fe stock because II was d good
Investment.
Not long afterward a meeting was
held in the East by Messrs. Schim, Prick.
and certain directors Of the Santa Fe. 1
was present at "a later gathering OF this
character, and the request was made that
We give the new investors representation
on the board Of directors.
Forces Friez and Rogers on Board.
we Of the Santa Re said We did not
think We cared 10 give such representa-
tiOn, because We objected To the presence
of men from competing lines on our board.
Then the Hartman men told Us that they
held about $4,000 shares Of our stock,
which is S3o.o00cC0 Of the S250.O00.CJ0 capital
ization. Under our system of voting they
tod Us they could compel Us TO give
them at least two directors.
In the fail of 1904 H. c. Frick and
H H Rogers were accordingly made
directors"
ARailroad men at the helm of the Harri-
man lines, whose salaries run into the
i've figure column, are waiting TO testify.
The main purpose of the inquiry is u
determine whether these lines have stiled
competition since Hartman became a
power.
Traffic Director J C. Stubbs. OF the
Southern and Union Pacific systems. W.;
outSpoken in the expression of his opinion
that the Hartman interests Viii escap.
unsCathed.
What DO you think will be accomp-
Hshed by this hearing2" he was asked.
Il don't know for sure" was the an
swer. with a glance at the legal battery
for the Hartman opposition. but 1 think
we will lick en-
Hill Says Famine Is Relieved.
Mr. Stubs Is scheduled as the star
witness at the hearing. Vice President
Benjamin Campbell, Of J. J. HIS North
ern Pacihc,lis already here Though com
plants are still flooding the commission
OF the Northwestern coal shortage.
charged TO be due 20 the ineficiency Of
the f1iu systems relief measures. Mr..
Hill himself has telegraphed that the
famine has been largely relieved If
Mr.. HHl fails to visit Chicago OF his own
volition 1t is unlikely that he will be
summoned here by the commission To
explain the discrepancy between his
statement and those OF the complainants
against his roads
The live stock inquiry was marked by
an angry clash between Attorney Cowau
for the livestock men. and Attorney
Dawes, for the Chicago. Burlington and
Quincy Railroad. the latter asserting that
information sought by the compainants
could not be furnished at a cost of less
than S10.000 to the railroads
Commissioner PTouty told the railroad
representative that his company should
keep its records In accessible form. Then
Second Vice President Keudrick. Of the
Santa Fe. came to Attorney Dawes res
cue with a statement Of the poor physi-
cal and financial condition Of tie Santa
Fes Southwestern branches in support OF
his assurance that livestock rates are
none too high