Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1907-04-11
HARTMAN DEALS
Interstate Commerce Commission Is
Attempting to Learn More
Regarding Them.
HEARING THE ARGUMENTS
A Railroad Attorney, Said He Did Not
Think Law Could Prevent One
Man BuyIns All Lines II He
Had the Money.

Washington, April 5.-Argument II
the matter Of q. H. Harriman's rail-
road transactions was begun before the
interstate commerce commission on
Thursday. The case commenced at IL
o'clock and when the commission ad
journed for the day at 4:S0, Mr.. Har
riman's attorneys had not concluded
their presentation in his behalf.
The first of the series Of addresses
was made by Attorney Paul D. era
vath who represented not only Mr.. Har
riman, but also Kuhn, Loeb & Co.,
and he was followed by Judge Lovett
and John G. Millburn. Mr. Cravath
dealt especially with the Chicago &
Alton recapitalizatlon, while Mr.. Low
att devoted most Of his attention to
the attack upon the consolidation Of
the Union Pacific and the Southern
Pacific roads which was brought
about largely through Mr.. Harriman's
instrumentality. Mr.. Millburn had
not concluded when the commission
adjourned, but so far as he went he
dealt entirely with the union of these
two Pacific roads.
Mr.. Cravath commended that the Chi
cago & Alton transaction had been
misunderstood by both the commits
sion and the public, and he declared
the proceeding followed was not I'm
usual in financial transactions. Mr..
Lovett also gave some attention to
the Chicago and Alton affair, insist
ing the public had suffered no loss
on account of the method of the re-
capitalization. With reference to the
Southern Pacific and Union Pacific
roads, he declared they were not com
peting lines, but argued that even If
they were the transaction had not
been illegal because the Southern Pa
cific had been purchased outright by
the Union Pacific, which was not in
contravention of the constitution.
Mr.. Millburn said the general ap-
plication of the antitrust law to the
railroads Of the country, as 1t was
proposed to apply it in the Southern
Pacific Union Pacific deal, would put
every system upon the defensive and
that most Of them would have greater
difficulty than would the Union Pacific
system in meeting the attacks.
That no court had ever held that
bona fide purchase by one company
Of the stock Of another Is in violation
of the antitrust act, Mr.. Lovett as
serted with emphasis.
He admitted that there had been
some combinations between the Union
Pacific and the Southern Pacific, but
declared IL the volume of business had
been much larger 1t would have no
bearing upon the purchase of one road
by the owners of the other, as that
purchase was In itself legitimate
business transaction of such charac-
ter that the courts will not interfere
with 1t. There could be no curtail-
ment Of the right to buy property un.
der the antitrust act. Suppose the
motive of the purchase was to get
rid Of competition" asked Commits
sioner Clements.
Il believe the purchaser would still
have the right to buy"
do you apply that doctrine to public
utility corporations? asked Commits
sioner Clarke.
Assuming that they have the power
under their charters, should say yes"
"And you would regard the suspen
zion of competition as merely Incl
dental?" Mr.. Clarke asked.
81 am inclined to that opinion" an.
swered Mr.. Lovett.
He contended, however, that in the
Southern Pacific-Union Pacific trans
action the suppression of competition
had been so remote as to remove
that feature as a motive for the
transaction.
Replying to Mr.. Clements, Mr.. Low
EFT said the Union Pacific had bought
into the Atchison, Topeka & Santa Fe
as an investment He contended for the
legality Of this transaction and when
reminded that his position was at
variance with that Of Mr.. Hartman,
said one might easily differ from that
gentleman on a legal question. Com
missioner Clarke-said such line of rea-
soning would lead to the conclusion
that one man with sufficient money
might control all the railroads of the
country and Mr.. Loyett said he did
rot believe that the constitution would