The Columbus weekly dispatch., 1907-05-23
AFTER HARTMAN.


commerce commission TO investigate
E. Fl. Hartman and his railroad
deals, has been made public. 1t is a.
strong document, revealing the oper-
ations of this buccaneer of finance
and showing his methods up in the
most unenviable light The report
goes further and urges the govern
ment TO take the necessary steps to
smash the Hartman grip on the
country and release it from his
clutches, basing this statement upon
the fact that he has violated every
law aimed at and intended to protect
the people from the monopolies that
are depressing them.
One of the most interesting para
graphs of the report is its revelations
in connection with the now famous
Alton deal. Hartman and his part
ners in high crime gained control of
this road when its complete capital
ization of all kinds amounted to thir-
ty-three million dollars. They then
inflated this capitalization to the
enormous sum of one hundred and
fourteen million dollars, only eight
cen million dollars of which went
into improvements and extensions,
sixty-three million dollars being re-
served for Hartman and his gang,
nearly as much as the road was orig
inally worth.
The report finds that Hartman has
shut out railroad competition in an
area covering one-third of the United
States. Here he has a control that
is almost complete. 1t takes up one
by one the contracts of Hartman
with the Rock Island, Southern Pa
San Pedro, and holds them to be in
violation of the Sherman antitrust
law, and recommends that suits be
brought by the attorney general to
annul them. 1t holds that the law
should prevent the evil practice of
the purchase of the shares of one
railroad by another; that imitation of
securities, such as that brought about
by Hartman in the Alton deal,
should be prevented by legislation,
and it attacks in severe terms the
system followed by Hartman in us
ing railroad profits to buy stocks and
control roads in the East instead of
using profits for development pur-
poses. Probably on the whole no
more scathing or terrible arraign-
ment of a great railroading interest
has ever been made by the govern
ment than is made in this case.
Among other features of the report
the commission finds Hartman has
absolute control over the Illinois Cen
trail, giving a grain route to the gulf
and preventing the Alton and Illinois
Central from competing. This is
deemed of great Importance to the
Hartman plans for control of terri
tory. 1t is found that through an
agreement of the Southern Pacific |
and the Santa Fe the fruit traffic |
from California east is without COM |
to the Santa Fe, the same to the |
Southern Pacific, and ten per cent |
20 the San Pedro.
In addition, to complete control of |
he Southern Pacific, the Union Pa
:iffc has Baltimore & Ohio common
stock amounting to 21 per cent, with
z per cent. of the preferred; 20 per
cent. of Illinois Central, more than
per cent. Of Sante Fe, and about 6
Der cent. Of ST. Paul and s of New
York Central 1t controls the ST.
[ospeh & Grand Island 1t owns
learly all the securities of the Ore
,on Short Line, and owns outright
he San Pedro, and has $50, 900 900
in Hills system secu-
titles. Several years ago 1T bought
heavily Of Hill holdings, and has sold
;116, 100000 of them. The Pacific
Nail Steamship Company, which Is
controlled by the Southern, monop-
,lizes the ocean business of the Santa
'e and Southern Pacific. The two
Dads get equal shares of the tonnage
rom the steamship company. The
inc formerly operated by the Santa
te from San Domingo to the Atlantic
oast has been abandoned since the
Tnion Pacific got its heavy interest
n the Santa Fe-
The report is followed by a news
tenn to the effect that the president
will insist upon Harriman's criminal
Having delegated the
Investigation to the interstate COM
nerce commission, and having un-
,arthed conditions that will demand
action at the hands of the courts, the
administration can hardly recede
rom its position, and criminal pros
,cution should and ought Tn follow