The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-07-14

The lOng-expected report Of the Inter
state Commerce Commission, upon its in
quiry into the operations Of the railroad
consolidation managed by Z. H Harri-
man. was made public yesterday It will
be disappointing to those who expected
sensational statements and recommenda-
tions from the commission, for the Ian
guage employed is mild, and there is no
hint Of prosecution. 'Tndefensible finan-
ciering' is the strongest term used In the
report, copies Of which have been de-
hvered TO President Roosevelt and Attor-
ney General Bonaparte. The report is
unanimous.
Summarized, the commissions conclu-
sions as set forth in the report are that
competition in transportation has been
effectively stopped in n territory eqaal
10 one-third Of the United States. and 3.
II. Hartman as an individual has domi-
mated the great railway consolidation
which he built up in the last few years.
It IS recommended by the commission
that a Federal law regulating the issue
of railroad securities should be enacted
and that the functions of railroad cor
poration should be confined to furnishing
transportation, and that It should not
be permitted TO invest generally in the
stocks. bonds, and securities of other
railway or steamship companies. connect
ing lines excepted
simply a Recital of Facts.
The report is tie result of much dis
cussion and some compromise IN the CON-
mission 1t is a simple recital Of facts.
but stong case is presented even in that
way. That the Hartman railroads have
in some insta1 es evaded and in others
violated the provisions of the Sherman
antitrust law is made clear.
Whether proceedings to dissolve the
various alleged Illegal mergers for which
Mr. Hartman and his associates are
charged with being responsible is for the
Attorney General to determine after he
has examined the report and the evidence
submitted with it. It is not likely that
there viii be any criminal prosecution.
and it is questionable. in view of the
abTogation Of the agreements which were
held to be Illegal, whether any civil suits
will be instituted
Several weeks ago it was indicated that
Hartman as the horrible example in the
railroad and financial world It was an
parenJly the commissions intention to
excoriate him in vigorous English. The
commlsslOns report on Standard Oil
wherein that great monopoly was merci-
lessly hayed, was considered as a model
But the commission ultimately decided
otherwise. The Hartman report, written
by Commissioner Franklin K. Lane. ard
approved by ali his colleagues. is little
more than narrative If Special Counsel
Frank B. Kellogg wanted to have in
eorporated in it the ginger he put in his
memorandum Of the case, he failed to
have his way.
Harriman's Policy Analysed.
The report analyses the Hartman pol
icy in consolidating railroad systems
strikingly brings out the extent of terri
tory covered by the Hartman roads, de-
clares that competition has been elimi-
mated as a result of Harriman's opera
tions, not only within the United States.
but on business between the Pacific Coast
and Oriental ports. and in effect charges.
although mildly. that the Southern Pacific
and the Union Pacific in their operation
constitute a combination in restraint of
trade, and cites other combinations that
are possibly Illegal and susceptible of civil
action.
Within three years after the reOrganiza-
ton of the Union Pacific Railroad Com
pany, in 1857, according to the report, Ed
ward II. Hartman became the dominat-
ing spirit in that corporation. The report
continues:
The investigation showed that in prac-
ueaily all the great transactions of this
company Mr.. Hartman. as chairman of
the executive committee. acted upon his
own initiative. and his acts were subse-
quently ratified and approved by the ex-
ecutive committee. It may fairly ne said.
therefore, that the policies and purposes
Of the Union Pacific have been those OF
Mr. Hartman
Original Extent of Road.
When the Union Pacific was reorgan-
lied it owned 1,S2259 miles of railroad
extending from Council Bluffs. Iowa. 10
Ogden, Utah; from Julesburg to Denver.
from Denver to Cheyenne, from Kansas
City TO Denver formerly known as the
Continued on Page q. Column 1.
= 4 Na