Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-07-14
REPORT
ON HARTMAN
INQUIRY
NEXT MOVE IN MATTER
LIES WITH PRESIDENT
Commerce Commission Makes
No Recommendation For
Prosecution of Either Indi-
viduaIS or Corporations,

IBy Morning Journal Special Leased Wire.l
Washington, July ia report was
made public today by the interstate
commerce commission of its inquiry
into railroad operations of Edward II.
lines of railway which has been in
progress for several months, The re-
port, which was written by Commits
sioner Franklin K Lane, is the unan-
imous expression of the commission on
the subject. Copies of the report have
been transmitted to President Roose-
city and the department Of Justice
il 1t Is expected by the commission
that it will be determined by the pres
ident and Attorney General Bonaparte
from the statements of the report
whether the government will institute
any sort of proceedings against Mr.
Hartman or the corporations involved
in the inquiry. No recommendation
are made by the commission that
either criminal or civil prosecutions
be instituted as a result of it's in
quiry.
The report is an exhaustive SUM-
mary of the evidence adduced at the
several hearings held by the commits
sion in the course of its inquiry. 1t
enters fully into a discussion OF. the
+ policy pursued by Mr.. Hartman in OBJ
tanning and maintaining control of
J the various lines of railway i'm the
Hartman system and presents a fairly
} complete history of the operations 0f
the various lines. Excerpts from the
, verbatim testimony of Mr.. Hartman
! are given to show, as stated in the re-
port that 1t is only the law which
, prevents the concentrating in Mr.. Har-
riman's hands of every railroad line
7, lying between Canada and Mexico,
I which is the frank admission of Mr..
Hartman himself, made at the hear
! ing.
"To gather under one head all exist
ing transcontinental lines or as many
: as possibly and to exclude the ineonl-
5 ing of all competitors became mani-
I festly the Hartman policy which was
| inaugurated in 1901 by the issuance OF
r S100,000,000 Of convertible bonds by
! the Union Pacific"
Mr.. Harrmans control of many of
, the competing transcontinental lines
was prevented, II Is pointed out,
by the supreme courts decision In
the Northern Securities case. 1T Is
shown by the reports that 1t has not
been the Hartman policy to permit
the properties brought under Union
! Pacific control to decline. as in every
case they are better today than they
were when Mr.. Hartman acquired
them.
Particular stress is laid by the COM
mission on the elimination OF compe-
tition in in transcontnental business
among the Hartman lines. and the
commission indicates that that Is the
matter of large significance developed
in its inquiry.
Special reference Is made to the deal
iby which Mr. Hartman secured con-
troll of the San Pedro ROAD and the
manipulation of the Chicago and AL
ton, very careful synopsis of the
financial operations In both instances
being given. Concerning the Chicago
and Alton transaction. the commission
says:
'1t was admitted by Mr.. Hartman
that there was about sixty millions OF
stock and liabilities issued against
which no property had been acquired,
and this Is undoubtedly an accurate
estimate"
The commission further says con-
: cering the Alton deal that "it is evil
dent that Its history Is rich In Illus
= trations of various methods of indc-
fenslble financing"
1 In its conclusion the commission
says:
Southern Pacific by the Union Pa
clhc has been to unity and amalgam-
, ate the management of these two rail-
roads and steamship lines and to ellin-
. mate competition between them IN
Z trans-contlnental business and In bus
mess TO and from Oriental ports
. "rhe Joint control OF the Alton rail-
= way by the Union Pacific and the Chr
I cago, Rock Island and Pacific Rail
. way company has undoubtedly elmi-
l mated competition between the Alton
, and Rock Island, between ST. Louis
4 Chicago and Kansas city. These are
conspicuous Illustrations of the com
o munity of interests and harmony Oi
! management which Mr.. Hartman
: suggested when he demanded repre-
sentatlon upon the Santa Fe board
:. III the policy OF purchasing and
i controlling stocks Of competing lines
!. is permitted 10 continue II must mean
+ suppression Of competition"
G The recommendations OF the COM
. mission which are more general than
q lsp0clhc In terms and application saS
! That the function OF a railroad cor.
! lporation should be confined to the fur
4 nishing Of transportation, ana thtl
\ railroads should not be permitted T.
Z invest generally IA the securities 1i
l. other railroad and steamship compan'
= les, except connecting lines for thu
purpose Of forming through routes oi
transportation including branches ans
feeders. Its surplus funds should bs
y used for the betterment Of its lines ant
2 equipment
= In conclusion the report says:
n "Competitlon between railways a.
a well as between other Industries 4
Is the establishing policy Of the nation
u And while the acquisition Of smnl
4 minority of the stock OK competing
/ line might not decrease the competi'
= ton, yet the acquisition VI any eonsid
cradle amount Of stock, with represeh'
lation on the board Of directors 81
such railway unQuestlOnahly has tn
effect Of diminlahing competition and
=, csscnlng 10 the extent of its effective
= moss The time has come when s0ml
reasonable regulation should be i'm
posed upon the Issuance Of seeuritle
= By railroads engaged IN Interstate
o commerce. IN the opinion % the com
mission reasonable regulation VII
d tend to make the securities safer an
far more secure for Investment an