The Washington herald., 1907-01-05
INQUIRY ON
Hartman Methods Are Under
Fire of Commerce Board.
ASKS ABOUT SOME BIG LOANS
No Figures Were Given Nor Any
CIew to What These Amounts Were
Is ACCOMPLISHMENTS Committee
Merely Ratified and Confirmed the
Railroad Magaate's Acts.

New York. Jan. AZ. H. Harriman's
enormous stock purchase in behalf Of
the railroads he controls and the pracd-
cally unlimited authority given to him by
the executive committee Of the Union Pa
cifc to borrow money were gone into to
some extent to-day by the Interstate Com
merce Commission in the inquiry which it
has started into the Hartman railroad
system.
1t was brought out in the afternoon that
since the annual report Of the Union Pa
cific and Oregon Short Line. Of June 30.
those two roads have bought S1OC, OO00 900 Of
stock in other roads. the most notable
purchase being that Of SIS l23.10O of the
s95, 10000 Of Illinois Central stock. This
was authorized at a meeting Of the Union
Pacific executive committee on HASH
mans recommendation, the meeting being
held on July 10, 1906
In October, il also developed, Hartman
bought 6625 Of the preferred and II, 925 Of
the common shares in the Railroad Sc
curties Company. a holding company for
Illinois Central stock For this he gave
Fish 765 shares Of the Illinois Central and
Sl,537 in cash These purchases were made
at the time when Hartman was out to do
up Fish apparently Hartman in these
transactions sold stock to his own COM
pany. He owned one-third Of the stock
Of the Railroad Securities Company and
5000 shares of the Illinois Central stock
purchased In July.
simply Ratified HarrIman's Act.
The records Of the executive committee.
which were read this afternoon. showed
that Hartman almost invariably went
ahead with such Transactions. and the
executive committee simply met and re-
solved to ratify and confirm his action.
This was under a section Of the bylaws
Of the Union Pacific and other companies
giving the executive committee the power
Of the whole board Of directors and then
giving the chairman Of the executive COM
mittee the power Of that committee when
Il was not in session.
There were a number Of vague refer
enCes made 10 the loans negotiated by
Mr.. Hartman on the minutes Of the exec
utive committee. with the simple state
ment that they had BEEN approved No
figures were given nor any clew 10 what
dered that statements be ready by to-
morrow morning showing these transac-
tons
The inc airy developed to-day much that
was already known about the Hartman
properties, and much that wasn't known.
Much time was spent in getting from the
TWO witnesses examined facts tending 10
show that the various Hartman rail-
roads. including the Union Pacific and the
Southern Pacific. were operated by prac-
ticaily the same officers and were. 10 all
iDteuts and purposes. one system. II WIS
also brought out, for purposes Of the in
vestigation, that they fed steamship lines
under the same control
To he Brought Out Later.
No questions were asked to-day tend
ing 70 show that these lines were parallel
and competing rords. beyond the fact
ELECTED that in a general way they ran
from the Pacific Coast to the Eastern
States. That they are natural competi-
tors, and were in reality such before their
acquisition by Hartman. the commission
expects 10 bring out later
Hartman did not appear to-day as was
expected, John c. MHburn stating for
him that he was still suffering from p
slight surgical operation. He was willing
10 be examined M his home. but the com
mission would not agree TO this. and Har-
rimans testimony viii be given later
upon the commissions return TO this cftv
rfom Chicago, where il goes tomorrow
niqhf