The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-01-05
HARR|MAN LINES
INVESTIGATED.
Commission Enquire if
There is Combination
or Consolidation.
ENORMOUS SUNS
ARE CONTROLLED
II Was Shown That Hartman
Dictated the Policy Of the
Roads, Borrowed Money
Without Restriction
and Had His Acts
Confirmed.

NEW 1Oftht Jailiary i.---MDdetn METH
DDS Of combining and consolidating mann
moth railway systems. and extending the
principle of community OF interest We're
delvad into to-day ~ great length by
the Interstate Commerce Commission.
which began in this city an inquiry into
the so-caled Hartman lines" From
Hero the commission goes next week to
Chicago. The object of the commission
is TO determine whether the Hartman
lines OF any Of the railroads Of the coun-
try are consolidated or combined In re-
straint OF trade.
Al to-day's hearing IL WAS brought out
and admitted that the Union Pacific Rail
rpld Company, the Southern Pacific Com
pany. the Oregon Short Line and the Ore
gon Railroad and Navigation Company
are practically under the same admins
t.ation. the same name appearing as
president OF each company with only
slight variations in the lists of other
officers.
II was further shown that the South
ern Pacific Company owns the Pacific
Mali Steamship Company: that the South
ern Pacific Company and the Hartman in
terests are in control of the Portland and
Asiatic Steamship Company. All three of
these lines run steamers between either
san Fn4tncisco or Portland and the orr
rent. II was said that the Occidental is
in liquidation. but II still operates two
steamers on the Atlantic Ocean. 1t was
shown tbat the Southern Pacific owns the
line OF steamers running between New
York and New Orleans. formerly known as
the Morgan Btncs.
Union Pacific Agreement.
The Union Pacific. b. means Of an
agreement eIgned by Mr Hartman and
senator William y. Clark. has traffic
arrangement with the san Pedro, Los
mi "a T-sIr q Pal =
ing over Il period 81 ntnety-nine years
The San Pedro cannot raise or lower its
rates without the consent OF the Union
Pacific Company, which, II WAS stated.
does not own one dollar OF stock in the
San Pedro Company.
TIE Union Pacific exercises joiI1 con-
troll with the Chicago, Rock Island and
Pacific Railway over the Chicago and
Alton Railroad The agreement is that
the Union Pacific shall have charge Of
the road ons year and the Rock Island
the next.
The trni6n Pacific owns ses123. 100
worth of stock, or 2s59 per cent. Of the
capitalization. OF the Illinois Central Rail
road.
The Union Pacific also owns S5.os2,3o0
worth OF stock of the St Joseph ana
Grand Island Railroad, which Is 37.37 per
cent. of the whole. The Oregon Short
Line owns s39,5io. 500 worth of stock in
tho Baltimore and Ohio Railroad Com
paliy, this being 1852 per cent. Of the
whole.
OF Chicago, Milwaukee and st. Paul
stock. the Oregon Short Line owns
81 ,s9o.0 900 worth, or 3.+2 per cent. The
company also owns S2,5T2. 600. or 2.oS per
cent. of the stock OF the Chicago and
Northwestern; 10000 900 of the pre-
ferred stock OF the Atchison, Topeka
and Sante Fe, being 42S per cent. and
s14.2s5,745, or 7sT per cent of the capi-
tai stock Of the New York Central and
Hudson River Railroad.
or these holdings by the Hartman Com
panies. the stocks OF the Illinois Central,
Baltimore and Ohio. New York Central,
Chicago and Northwestern. Chicago, Mill
waukee and ST. Paul, Atchison, Topeka
and Santa Fe, and ST. Joseph and Grand
Island, aggregatng in value 3,213, 745.
have all been bought since July 1. 1906.
Where did the money come from?' ask
ed members of the commission.
In reply 1t was stated that the Union
Pacific showed last July a surplus of
SJl.0Oo,OoO The Oregon Short Line de-
clared dividend of 30 per cent. on its
stock held by the Union Pacific, and
also contributed out of its general assets
to the purchase money.
After placing In evidence all that was
available as to the ownership of the So
Z Called fftarFlfnau llIIeS, COullSel tOT the
Interstate Commerce Commission then had
Alexander Miller, secretary of the Harri-
man Company. read from the minutes OF
many executive committee meetings Of
the Union Pacific in which it was shown
that Mr.. Hartman reported various things
he had done. and the committee simply
voted to ratify and confirm his actions.
1t was also shown that Mr., Hartman
has authority, by resolution. to morrow
money for the uses of the Union Pacific
Company without restriction as to amount
or terms.
There was read from the minutes q
copy of Mi, Harriman's letter to George
j. Gould, acknowledging Mr.. Could $
letter, In which the latter told MI. Har-
rman he had determined to support the
construction of the Western Pacific Raii-
way. MI. Hartman told Mr., Gould he
would decline to qualify as a director OF
the Rio Grande Western, as he did NOT.
wish to he In any way responsible fol-.
the attitude of that company toward the
Western Pacific.
\ ----- p-------------
tAIr-Ii -n rN NrI,AI0 rNhAi