Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-01-04
PROBE INTO The
-FOUR PAC|F|C3'
Interstate Commission Begins
Important Hearing In
New York
CLOSE ALLIANCE is REVEALED
Union and Central Pacific and Oregon
Line. Under One Management With
Hartman at the Head-Latter 10
Excused From Tsstifyins Because of
illness.


New York, Jan. 4.-The interstate
commerce commission began to-day an
inquiry in this city into the affairs OF
the Southern Pacific and Union Pacific
railway systems, the underlying pur-
poses of the investigation being to dis
cover whether or not the two railway
lines are natural competitors or wheth .
er there is an agreement between them
that may be construed as in restraint
az trade under the Sherman anti-trust
act.
( lG. H. Hartman, WHO was expected to
be the most important witness examin-
ed in this city, has notified the commits
sion, thru counsel for the Union Pa
cifc, that he will be unable to appear
before the commission on account Of Ill
health, following an operation. Harri-
man was excused from attendance at
this time. 1t was the general under
standing after sitting in this city today
and tomorrow the commissioners
would proceed to Chicago to take fur
ther testimony.
Chairman Knapp and Commissioner
Lane are acting for the full commission
in taking the testimony. Frank B..
Kellogg and C. A. Severance, attorneys
of St Paul, Mimi, are appearing as the
legal representatives of the commits
sion. Robert S. Lovett appeared as
counsel for the Union Pacific. William
3. Cornish, vice president of the Union
Pacific; w. v. S. Thorpe, director OF
purchases. Alexander Miller, secretary,
and William Maill. controller, ain .of the
Union Pacific system, We're present as
witnesses when the commission met
today.
Hartman Excused.
Lovett.. counsel for the Union Pa
cific, said Hartman will be able to
give his testimony in regular form
later
The commission will sit In Chi
cago Wednesday next" said Chairman
Knapp. will Hartman be able to
appear then and there?'
No, sir" came the prompt response
from counsel
Without designating specific date
for further inquiry of this subject"
said Knapp, "the commission will
accept the excuse offered for non-ap-
pearance of Hartman, and as there is
no desire to press the matter at this
time, he will be excused for tile pres
ent.''
Affiliation Shown.
The first witness was Secretary Mill
lar, of the Union Pacific. He said, in
response to questions by Kellogg, that
he also was secretary of the Southern
Pacific and Oregon Short Line, and
assistant secretary Of the Oregon Rail-
way and Navigation Company.
Is it not a fact that all these COM
panies are under the same control;
haven't they all the same president
E. H. Hartman, and the same vice
president, Mr.. Cornish?"
Yes, sir"
Millar was asked whether the Union
Pacific owned stock in the Occidental
and Oriental Steamship Company, and
said it did. The Southern Pacific" he
said, "owned the Morgan Steamship
Company"
Counsel for the commission then Of
fered in evidence lists of directors and
executive committee of the Union Pa
cific and Southern Pacific railways.
There was also offered in evidence
OF of fha
Line had voted majority of the stock
at each meeting of the Southern Pa
cific since April 8, 1908. Secretary
Millar would not admit the statement
was correct, saying he did not keep
the books. The statement went on
the record, however, under stipulation
of counsel. The bylaws Of the Union
Pacific, Southern Pacific Oregon Short
Line and Oregon Railway and Naviga-
tion Company were next offered as evil
dence. These four companies were
generally referred to during the pro-
gress of the hearing as the "lFour Pa
cifics."
wv. V. 8. Thorne and A. X. Vande-
venter appear as directors of the Sou
thern Pacific, but not Of the Union Pa
cific," said the attorney. Who fare
they?"
"Thorne is director of the pur-
chases Of the four companies Vande-
venter is assistant treasurer of the
Southern Pacific company"
Millar said the -four Pacffics' occu-
pied offices in the same building at 100
New York. The Chicago &
Alton railway was drawn into the in
quiry by the reading of an abstract
from the record of the proceedings
of the executive committee of the I'm
ion Pacific. This showed thar on Sept.
90. 1904, Hartman reported he had
bought 1O3,431 shares of the preferred
capital stock of the Alton and his act
was approved. The executive commits
tee of the Union Pacific authorized
Hartman and three associates, it ap-
peared, to enter into contract with W
b. Leeds, of the Chicago, Rock Island
& Pacific railway. by which the stocks
held in the Alton by the U,ipn Pac'fe
and by the Rock Island sholld be pool-