The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-05
Interstate Commerce Commission
Looks for Restraint Of Trade
VAST LINES LAND AND SEA.
Testimony Shows That Railroads and
Steamship Companies Controlled
BY Hartman Take In the
Orient In Their Scope.

New York, January 4.-Modern methods
of combining and constructing mammoth
| railroad system and extending the prin-
ciple of community of interest were delved
into today at great length by the inter-
state commerce commission, which be-
gan In this city inquiry into the So
| called Hartman lines.
| From here the commission goes next
week to Chicago Several other cities
will be visited before all the testimony
that is desired is In the hands of the
representatives of the government, whose
| object is to determine whether any of
the railroads of the country are CONSOLE
dated or combined in restraint of trade
Counsel for the Union Pacific company
announced that President e. II. Harri-
man, on account of i'll health, following
an operation, would be unable to appear
| before the interstate commerce commis-
sion, which began here today an inquiry
| into the affairs of the Southern Pacific
and Union Pacific Railway systems. Coun-
| sci further said that Mr.. Hartman could
| testify at his own house IL the commis-
sion desired. He urged. however. that
| the taking OF Mr.. Harrimans testimony
| be postponed Mr. Hartman was excused
| from attendance at this time. 1t will be
according to counsel.
Same Administration.
| At today's hearing it was brought out
and admitted that the Union Pacific Rail-
| road company, the Southern Pacific COM
pany the Oregon Short Line and the
| oregon Railroad and Navigation company
are practically under the same adminis-
| tration, Mr. Hartman appearing as pres
ident of each company with only slight
variations in the lists of other Officers.
| 1t was further shown that the Southern
| Pacific company owns the Pacific Mail
| Steamship company; that the Southern
| Pacific company and Hartman interests
/ are in control OF the Portland and Asiatlc
Steamship company. All three OF these
lines run steamers between either San
| Francisco or Portland, and the Orient
| It was said the Occidental is in liquida-
| tion, but still operated.
| On the Atlantic ocean 1t was shown
| that the Southern Pacific owns the line
of steamers running between New York
and New Orleans, known the Morgan
| line. The Union Pacific by means Of
an agreement signed by Mr.. Hartman
| and Senator William A. Clark. has a
| traffic arrangement with the San Pedro.
| Los Angeles and Salt Lake railway ex-
| tending over period of % years. This
agreement was entered into in 1903 and
| by it's terms the San Pedro cannot raise
or lower its rates without the consent
of the Southern Pacific company. which
it was stated did not own one dollar of
stock in the San Pedro company.
Joint Control.
| The Union Pacific exercises joint con-
| troll with the Chicago. Rock Island and
Pacific railroad over the Chicago and AL
ton. The agreement is that the Union Pa
cihc shall have charge of the road one
| year and the Rock Island the next This
| agreement entered into by Mr.. Hartman
and w. b. Leeds existed for period Of
| two years from 1904.
| The Union Pacific owns S2S 100 worth
| of stock or 29.59 per cent OF the capitali-
zation of the Illinois Central railroad. The
Union Pacific railroad also owns $5,0S2,3o0
worth of stock of the st. Joseph and
Grand Island railroad. which is 81 81 per
| cent of the whole.
| The Oregon Short Line owns $39. 80 600
worth of stock in the Baltimore and Ohio
Railroad company, this being Is. 62 per
| cent of the whole.
The Chicago, Milwaukee and St. Paul
stock. the Oregon Short Line. owns 81. .f90.-
600 worth. or 3.42 per cent. The company
also owns s2,5270W, or IS per cent. OF
the Chicago and Northwestern, $10,00o000
of the preferred stock of the Atchison.
Topeka and Santa Fe. being 4.2s per cent.
and $14, ,2S5, 745, or 7.S per cent. Of the cap
| ita stock. of the New York Central and
| Hudson River railroad.
Bought Since July I.
OF these holdings by the Hartman
| companies, the stocks of the Illinois Gem
! ltral, Baltimore and Ohio, New York Cen
| ral, Chicago and Northwestern, st. Jo-
seph and Grand Island, aggregating in
value S1O3 3.293, 10 have all been bought
| Since July l. 1906
| "Where did the money come from?"
asked members of the commission.
| In reply IL was stated that the Union
| Pacific showed last July surplus OF
$51 900, 900. The Oregon Short Line de-
clared "A dividend of so per cent on its
stock held by the Union Pacific and also
contributed out of the general assets to
the purchase money. After placing in evil
dence all members abailable as to the
ownership of the so-called Hartman
lines" counsel for the interstate COM
merce commission, then had Alexander
Millar, secretary of the Hartman CONF
pany read from the minutes OF many ex-
eoutve committee meetings of the Union
| Pacific in which IL shown that Mr..
Hartman represented various things he
had done. and tho committee simply vot-
ed to ratify and confirm his actions.
| 1t was also shown that Mr.. Hartman
had authority by reason of the board to
borrow money for the use of the Union
I