The news-democrat. (Providence, R.I.) 1906-1909, 1907-11-13
COURT ASKED TO
FORCE HARTMAN
To ANSWER
CONTINUED from Pagc Onc.)
SPoONER APPEARS.

SENONEh AfEtsARS
Interest was added 70 the PROCEEDINGS
today by the first appearance OF former
senator John q. Spooner ~ Wisconsin, as
an attorney for Mr.. Hartman.
Attorney Stlmson referred 10 the in
ves;ment of nearly sl5o.Oo0eo In Alton. II
llnois Central and other companies by
Union Pacific and the refusal OF Mr.. Har-
riman 20 give answers 20 certain ques-
tions. lie said all OF these questions we're
merely 10 ascertain N any stock Was
bought for Union Pacific from its officers
or directors.
The position OF the commission. said the
district attorney, is that il Is a standing
committee OF congress vested With In
quisit0rial powers
Mr.. Stimsop then cited numerous eases
20 show that the Interstate commerce
commission had powers 20 demand the
facts sought. lie said that the constitu-
tion1lity OF statute was not under con-
sideration. Mr., Hartman. ne declared.
was trying 20 cut congress of from even
considering a statute which might affect
certain OF the financial operations OF his
lines, They are trying to cut congress
on from nquirng into facts upon which
legislation may be based" continued
StimSon
HAS RIGHT TO INQUIRE.
Mr.. Stimson contended that the inter-
state commerce commission had the same
right 20 inquire into all the financial
transactions OF an Interstate railroad as
it did 10 require the placing of safety APP
pliances on all engines and ears regard
less of whether the engines and cars In
question were actually crossing state
lines or standing on side tracks
What the commission is erAieavoring 10
learn from Mr.. Hartman is said Mr.,
StimSon. whether or not the enormous
stock of investments made with Union
Pacific funds amounted 90 a waste OF tho
assets and impairment ol the facilities OF
am interstate common carrier and wheth-
er the matter OF such investments would
be made subject 20 the regulation or con
gress
~ Mr. Stimson asserted that immoral and
improper transactions were reSponsibls
for the position In which some og the rad
roads now find themselves, lie quoted
Robert Mather president OF the Rock Is
land as saying that railroad directors VINO
purchased stock froui themselves We're
largely responsible for the wave Of dis
trust which has swept the country
IL requires large amount OF nerve
Tor MI Hartman 10 claim that the
Union Pacific stock transactions are
matters OF private business" exclaimed
Mr. sumson, who ADDED thar even il the
information tended 10 inCriminate wit
ness ~ could not be withheld from the
commission, immunity trom prosecution
being automatically extended In such
eases
Mr. Stimson reviewed the various pur.
Chases OF the stock of other railroads by
the Union Pacific and said.
Nearly Si1o.0aco was spent in these /
transactions. not counting Mhat preXi- [
OUSTy had been put into southern Pacific. I
And Mr.; Hartman assumes responsibility /
The records show hts motives and /
purposes No words could more clearly I
Indicate stock joeeing than his replies ar |
the Investigation hy the interstate COM 4
merce commission.
He sold on a rising market"
Mr.. StimSon concluded by submitting 20 I
the court a copy OF the speech made by /
SecEetSry OF War Taft. at Columbus. o,
in which the matter OF Interstate COM /
merce and the regulation OF railroads was |
discussed
Judge Hough said ne had not read the !
address but would DC glad TO 10 so
HARRIMAN'S SIDE.
John q Milburn opened the argument in
behalf OF Mr. Hartman lie declared he
would not take issue with President Matn- |
er or with the distinguished secretary OF
war. Their prOnouneements We're interest
ing, ne said. bat he could not set what IN !
the world they had 10 DO with the matter !
at issue before the court
And / want 20 say also" continued !
Mr. Milburn that l find myself In about |
all the trouble care 10 confront when !
attempt TO try my cases under the law 1
as II exists today. without delvIng into \
the realms OF law that might he. The sole I
question before your honor is whether or I
not the power u make the inquiry in
vOlved in these proceedings is vested I'm q 4
subordinate, an inferior body like the in- i
{ er- state commerce commission. whose Il
power is purely delegated one l will 4
never eoneede TO the proposition that the 4
Interstate commerce commission Is the 4
equal OF congress.
Mr. Milburn asserted that the Union
Paciac had the legal right 10 purchase 4
stock I'm other railroads. IL had the legal \
right 10 buw Illinois Central stock from
Mr. Hartman and Mr. Hartman had the 4
legal right 20 sell a. The transaction was
authorized by the executive committee.
adopted by the board OF directors and rat
fled by the stockholders.
The transaction was all set forth IN
the minutes OF the company In a perfectly I
regular way.
Mr. Milburr was stil speaking when