The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1907-01-05
CONSOLIDATING OF
Great RAILWAY SYSTEMS
THE INTERSTATE COMMISSION
STARTS ITS PROBE INTO THE
HARTMAN LINES.

!" - Aumitted Ihat the Union Pacific,
the Southern Pacific, the Oregon short
Line and the Oregon Railway ana
Navigation Companies Are Practicai-
" Under the Same Administration
MIR. Hartman President of Each.
New York, Jan. 4--Modern methods
of combining and consolidating mam-
moth railway systems and extending
the principle of community Of interest
We're delved into to-day at great
length by the interstate commerce
commission, which began in this city
an investigation into the history Of the
so-called Hartman lines" From here
the commission goes next week to
chicago. Several other cities may be
visited before all the testimony that is
desired is in the hands Of the repre-
sentatives of the government, whose
object is to determine whether any of
the railroads Of the country are con-
solidated or combined in restraint OF
trade.
At to-day's hearing it was brought
out in evidence and admitted that the
Union Pacific Railroad company, the
Southern Pacific company, the Oregon
Short line and the Oregon Railway &
Navigation company are practically
under the same administration, Mr..
Hartman appearing as president of
each company, with only slight Varia-
tions in the lists Of other officers.
1t was further shown that the South
ern Pacific company owns the Pacific
Mail Steamship company, that the
Southern Pacific and Union Pacific
jointly own the Occidental and Orient
steamship company, and that Harri-
man interests are in control of the
Portland & Asiatic Steamship company.
All three Of thes elines run steamers
between either San Francisco or Port
land, and the Orient. 1t was said the
Occidental is in liquidation, but it still
operates two steamers.
On the Atlantic ocean 1t was shown
that the Southern Pacific owns the
Line of steamers running between New
York and New Orleans, formerly
known as the Morgan line.
1t was shown further that the Union
Pacific has a traffic arrangement with
the San Pedro, Los Angeles and Salt
Lake railway extending over period
of ninety-nire years, and exercises a
joint control with the Chicago. Rock
Island s. Pacific railway ever the Chi
cago & Alton railroad; owns $2S, 12SS. -;
worth Of stock, or 29.59 per cent. of tlleS
capitalization of the Illinois Central
railroad, and owns s5,t 900 " s,r ~ a.
stock Of the st, Joseph & Grand Island
railroad, which is 37.S7 per cent. Of the
whole,
The Oregon Short line owns $50, $40 500
worth Of stock in the Baltimore e
Ohio Railroad company, this being 49,
62 pc, cent. of the whole.
OF Chicago, Milwaukee and ST. Paul
stock, the Oregon Short line owns 81
900 worth, Of S42 per cent. The
company also owns $2,572, 900 or 2.58 per
cent. of the stock Of the Chicago q
Northwestern, $10,000.OOO of the prefer
red stock of the Atchison Topeka Il
Santa Fe, being 4.2S per cent, and ST., IS
2S5,745 or 797 per cent. of the capital
stock of the New York Central & Hud-
son River railroad.
OF these holdings by the Hartman
companies the stocks of the Illinois
Central, Baltimore & Ohio, New York
Central, Chicago & Northwestern, Chi
cago, Milwaukee & st. Paul; Atchison,
Topeka & Santa Fe, and lSt. Joseph q
$103, ,29S,745 have all been bought since
July 1, 1906.
where did the money come from?s
asked members of the commission,
In reply it was stated that the Union
Pacific showed last July surplus Of
$51 100000 The Oregon Short line de-
clared dividend of so per cent. on ftsI
stock held by the Union Pacific, and
also contributed out Of its general asss
sets to the purchase money. III
After placing in evidence all that was
available as to the ownership of the So
called Hartman lines,' counsel for
Miller, secretary of the Harriman
company read from the minutes Of
many executive committee meetings og
the Union Pacific, in which it was
shown that Mr.. Hartman reported va
rious things he had done, and the COM
mitteo simply voted to ratify and cons
firm his actions. 1t was also shown
that Mr.. Hartman had authority. bN Il
resolution, to borrow money for the
uses of the Union Pacific company
without restriction as to amount on
terms.
The minutes Of the meeting last JulyR
at which Mr. Hartman personally urg~
ed the purchase of the Illinois Central :
stock wer eread These minutes quotA
ed Mr.. Hartman as saying that "while E
the Illinois Central was generally rec
ognized as an important and valuable L
system of railrads, yet he believed its
strtegic value and Importance was but
little understood even by some Of those
most active in its management"
The hearing will continue tomorrow.