The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-07-14


| to Ogden by nny one OF three rai1
lines, and thence to Kansas City or
/ Omaha. without leaving the deck or
l nlntform of n carrier which he con-
trolls. md without duplicating any
part Of his iourney.--EXtract from
report of Interstate Commerce Com
mission. III.
WASHINGTON, July IA report
was made public to-day by the Inter-
state Commerce Commission of it's in-I
quiry into the railroad operations OF
Edward II. Hartman and Of the oper-
atons Of the so-caled Hartman lines
of railway, which has been in prof.
gress for several months The report
which was written by Commissioner
Franklin X Lane, is the unanimous
expression of the commission on the
subject. Copies of the report have
been transmitted to President Roose- Il
velt and to the Department of Justice
1t Is expected by the commission
that 1t will be determined by the Pres e
I tident and Attorney General sBonaparte.s
! from the statement Of facts set out
| in the report, whether the government
| will institute any sort of proceedings
against Mr.. Hartman or the corpcra-i
tions involved in the inquiry. No rec-5ts
concentrations are made by the COM
| mission that either crminap or, civil /
| prosecutions be Instituted. $iti$i
Takes In All the Evidence.
The report Is an exhaustive summary
of the evidence adduced at the several
4 hearings held by the commission In thu.
\ course of its inquiry. It enters fully
into a discussion OF the policy .pur-
II sued by Mr.. Hartman In obtaining and
i maintaining control of the various lines
OF railway In the Hartman system.
and presents fairly complete history
J OF the operations of the various lines
, Excerpts from the verbatim testimony
' OF Mr.. Hartman are, given to show,
as stated in the report:
That 1T Is only therelaw which pre-
} vents the concentration into Mr.. Harri-g
mans hands of every railroad line
lying between Canada and Mexico. Is
the frank admission of Mr.. Hartman
himself. made at the hearing. 81
l ITO gather under one head all AexS
. listing transcontlnental lines, or las
3 many Is possible, and to exclude the
incoming of all competitors, became.
J, manifestiy the Hartman policy, which,
! was inaugurated in 1901 by the issu-s
ahce of s10o.ooo,ooo of convertible
bonds by the Union Pacific
Has Improved Properties.
Mr.. Harriman'sf essential control OF
4 many Of the competing transcontinen-
tai lines was prevented, 1t Is pointed
: -Iscut, by the Supreme Courts decision
3 In the Northern Securities case. 1t iss
q shown by the report that 1t has been
h M. part of the Hartman policy to
permit the properties brought under
Union Pacific control to decline. as In
every case they are better to-day than
: they were when MIR. Hartman acquired
: them.
d Particular stress Is laid by the COM,
g mission on the elimination OF competi-
: ton In transcontlnental business among
7 the Hartman lines, and the commits
: sion indicates that that Is the matter
y OF large significance deVelopeu III i.a i
{ inquiry.
II Special reference is made to the deal
by which Mr. Hartman secured con-.
o troll Of the San Pedro road ana 70 IN
e manipulation OF the Chicago and Alton.
IS a very careful synopsis of the financial
II operations in both instances ne't''
= given. .,,,,,,nr.
d rhe investication SO far conducted
= lunder this order has related mainly
'r to certain transactions or the mon i
s. Pacific Railroad Company, including
d the acquisition OF control OF tne ~.
n ern Pacific Company the purchase OF
ID large amounts of stock Of various rail-
IS road companies, and other matters or
n kindred import.
e. The Hartman Policy.
,f Within three years after the re-
y orranization Of the Union Pacific
70 Railroad Company in 1897 Mr.. Edward
= II. Hartman became the dominating
: spirit in that corporation. AS chairman
ls Of the executive committee be exercises
'l movers that are well-nigh absolute
it The directors have delegated their
! power ito manage and direct all the
a business and affairs of the company
s. ia an executive committee OF rive
" members. who shall act in such man
t. ner as such committee shall deem best
for the company's interest in all case
in which specific directions shall not
have been given by the board and
:, In turn the chairman OF the executive
/ committee Is authorized to represent
that body when 1t is not in session,
Accordingly we find that in 1909 Mr.
Hartman was authorized 70 borrow
"a such sums OF money as may be re-
ouired for the uses OF this company,
and to execute in Che name and on
behalf OF this company note or notes
for the. amounts so borrowed The
Investigation showed that in practi'
cally all the great transactions of this
-, company, Mr.. Hartman, as chairman OF
~ the executive committees, acted upon
y his own iuitiative, and his acts were
Us, subsequently, ratified and approved by
elk tne executive committee. 1t may fairly
~. he said, therefore, that the policies and
- purposes OF the Union Pacific, have
an been those OF MI Hartman.
re Expansion of Union Pacific Control,
elk The Union Pacific has In the pas
"A SIX years so grown IN power and In
u, fmence that at this time II controls
I'D every line OF railroad reaching the
me Pacific coast between Portland on tbs
ok, north and the Mexican border on the
..s,, q