Los Angeles herald., 1907-07-14
HARTMAN LINES
SUBJECT OF REPORT
INTERSTATE COMMERCE COMMISSION MAKES MOST
Exhaustive REPORT
President and Attorney General Expected from State
Whether Not Government Has Cause for
Insitutng Proceedings Against Railroad Magnate

ing the Alton deal that 'it is evident that
it's history is rich in illustrations of va
rious methods of indefensible financing"
In its conclusion the commission says:
"The effect of the control of the South
ern Pacific by the Union Pacific has been
to unity and amalgamate the manage
ment of these two roads and steamship
lines and, to eliminate competition be-
tween them in transcontinental business
and in business to and from oriental
ports.
"The joint control of the Alton railroad
by the Union Pacific and the Chicago,
Rock Island & Pacific Railway company
has undoubtedly eliminated competition
between the Alton and the Rock Island
between Chicago, st. Louis and Kansas
City.
These are conspicuous illustrations of
the community of interests and 'har-
mony of management which Mr.. Harri-
man suggested when he demanded repre-
sentation upon the Santa Fe board.
"If the policy of purchasing and con-
trolling stocks in competing lines Is per-
mitted to continue, 1t must mean suppress
sion of competition"
Commissions Recommendation
The recommendations of the commits
sion, which are more general than spe-
the function of a railway corporation
should be confined to the furnishing of
TRANSFORMATION and that railways should
not be permitted to invest generally in
the securities of other railway and steam
ship companies, excepting connecting
lines for the purpose of forming through
routes of transportation, including
branches and feeders. Its surplus FUNDS,
says the report, should be used for the
oy,I tn for nCin
In conclusion the report says:
Competition between railways as well
as between other industries is the estab-
lished policy of the nation. And while
the acquisition of small minority stocks
of a competing line might not decrease
the competition, yet the acquisition OF
any considerable amount of stock, with
representation on the board of directors
of such railroads, unquestionably has the
effect of diminishing competition and
lessening to an extent it's effectiveness.
The time has come when some reasonable
regulation should be imposed upon the
issuance of securities by railroads en-
gagged in interstate commerce"
In the opinion of the commission regu-
lation will tend to make securities safer
and more secure for investments, and
therefore benefit not only the railroads
but the public.
Hartman Dominates
within three years after the reorgar
ization of the Union Pacific Railroad com
pany In 1896 Mr.. Hartman became the
dominating spirit in that corporation.
"As chairman of the executive commit
tee he exercised powers that are well
nigh absolute. The directors have dele
gated their power to manage and direct
all the business and affairs of the COM
pany to an executive committee of five
members, who shall act in such manner
as such committee shall deem best for
the company's interest in all cases in
which specific directions shall not have
been given by the board and in turn the
chairman of the executive committee is
CONTINUED on Page Three.)