The Birmingham age-herald., 1907-07-14
Hartman Would Control All
 Roads in Sight
COMPETITION IS ELIMINATED
Report of Interstate Commerce com- mission Shows That Harriman's Control of Railroads Tends to
 Destroy All Competition.

Washington. July 13.-A report was made public today by the interstate com merce commission for it's inquiry into the railroad operations of Edward H. Harrf- man, and of the operations of the SO called Hartman lines of railways, which have been in progress for several months. The report, which was written by Com missioner Franklin K. Lane. is the unan- imous expression of the commission on the subject. Copies of the report have been transmitted to President Roosevelt and the department of justice. It Is ex- pected by the commission that It will be determined by the President and At torney General Bonaparte from the state ment of facts set out in the report. whether to institute any sort of proceed ings against Mir Hartman or the cor porations involved in the inquiry No recommendations are made by the com mission, that either criminal or civil pre- | ceedings be instituted as a result of the inquiry.
 The report is an exhaustive summary | of the evidence adduced at the several hearings held by the commission in the | course of it's inquiry. It enters fully into | a discussion of the policy pursued by | MT. Hartman in obtaining and main l tainng control of the various lines of | railway in the Hartman system and pre- sents fairly complete history of the | operations of the various lines Excerpts l from the testimony of MT. Hartman are given to show, as stated in the report: That 1t is officially the law which pre- vents the concentrating in MT. Harri- mans hands of every railroad line lv- ing between the Great Lakes and tho Gulf of Mexico"
 Harrimans Policy.
 Continuing under one head all existing trars-oontinental lines, or as many as possible, to exclude the incoming of all competitors, became manifestly the Har- riman policy which was lnaugurated in 1901 by the issuance of S00.O00O GOO of con | vertible bonds by the Onion Pacific
 MT. Harrlman's eventual control of many of the competing trans continental lines was prevented. it is pointed out. by the supreme courts decision in the l Northern Securities ease. It is shown | by the reports that il has been no part | of 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 MT Hartman acquired them.
 Particular stress is laid by the eoln- mission on the elimination of competition in trans-continental business among the Hartman lines and the commission ind- cates that that Is the matter of large significance developed in the inquiry
 Special reference is made to the deal by winch Mr. Hartman secured con trol and manipulation Of the Chicago and Alton, a very careful synopsis of the financial operations - both instances be- Ing given. In its conclusions the com mission says;
 Effect of Control
 The effect of the control of the South ern Pacific by the Union Pacific has been to unify and amalgamate the manage ment of these two railways and their steamship lines and to eliminate eompe- ti.Ion between them in trans-continental business and in business to and from l Oriental points.
 The joint control of the Alton railway l by the Union Pacific and the Chicago, Rock Island and Pacific railway has un- | doubtedly eliminated competition between the Alton and the Rock Island between | Chicago St. Louis and Kansas City l These are the conspicuous Illustrations of the development of the theory of com l munity of interest and harmony of man. | agement MT. Hartman suggested when he demanded representation upon the santa Fe board.
 If fhe policy of purchasing and con- 1 trolling stocks in competing lines in per mitted 10 continue it must mean suppress sion Of competiton.'
 Commissions Finding.
 ba recommendation of tba communication, which is rather general than specific in term and application. is as follows.
 'l The function of railroad corpord- ton should be confined to furnishing transportation. Railroads should not be permitted to invest generally in the stocks or bonds and securities of other railway ! and steamship companies excepting con meeting lines for the purpose of forming through routes of transportation branches and feeders It it in the interest of the 1 public to facilitate the consolidation of 1 connecting lines. The credit of a railway company Is founded upon the resources ! and prosperity of the country through ! credit should be used for the bettermeht of it's lines and to develop the country ] contiguous to i.
 Railroad securities should be conserva- l tive Investments for the people. Everyons l knows that railway securities fiuctuate . l ilDFt or ltSSs aftOiuluR lo lllt DIpSpfflis of the times and also by reason of the wide speculation in such circles It there- fore adds an element of hazard to a rail- | roads capital and credit to have its funds invested in the stocks of other com panies, thereby rendering it's sovency and its ability to pay reasonable dividends l upon its own capital stock. It is serious menace to the financial condition of the country to have large railway systems faii to meet their obligations or go into the hands of receivers. and the object of leg islation and administration should be to lessen the risks of railway investments.
 Competition Unlawful.
 go It Is unlawful for railways to ac- l quire control of parallel and competing lines We have examined the constitu- tions and laws of all of the states and find in about fort yof them prohibitions against consolidation of capital stock or franchises of competing railroads or the purchase and requirement by railway of competing lines. So long as it is tho
 
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