New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-08
HARTMAN Is HOPEFUL.
SEES FAVORABLE SIGNS.
BelieUes That There Should Be
Legal Railroad Combination.


talk with a group OF newspaper men regarding
the attitude OF the national administration tow
ard the railroads and TO discuss various railroad
problems and tendencies affecting the interests
Of the general public.
Asked as to the likelihood Of a change Of pol
Soy on the part of the administration toward
corporations. Mr.. Hartman answered:
think the administration is looking at mat
tiers from little broader point II view. ana IS
inclined to meet the corporations the plane
of cooperation. I don't mean 70 make any.
personal reference to The President. but am re-
ferring 10 The administration generally.
The trouble has been partly with ne railway
managers. Most Of US men who have had the
responsibility of the management of great en-
terpflses nave had TOO much 10 90 l" pay ule
proper attention II relations with the peo-
PIE and with the government. To take our OWN
case: Since we have had the Union Pacific ana
the Southern Pacific nave spent more than
S250o00.900 in improvements. extensions and
berferrnents In this we have used mere than
100000 tons Of stee, rails and laid with new
rails 800 miles of track. The lighter rails.
which were replaced, have been reaid on other
parts Of the system. so that il may be said that
twice $500 miles Of line have been laid with
new track.
We have 5000 miles of the automatic block
system, o. more than any other railway system
fn the world. and 1.500 miles mora are under
construction. These things have occupied our
minds 10 the exclusion of deyoting consideration
10 our relations 10 the public
May il not be true that the railroads them
selves, by their acts have been partly responsible
Cor the present state Of public sentiment" was
asked.
The railroads. I think answered Mr. Harri-
man. ARE fault in that in the past they failed
20 keep up agreements among themselves-for
instance, in the matter Of rate arrangements.
Another factor has been the lack of control on
the part Of subordinate officials. the public get
ting a bad impression o. a road through dis
courtesy in station agents. for example"
40 MOVE To RAISE RATES.
Mr. Hartman said that he did not believe
there was any general movement among the
roads to raise rates. Asked if the restrictive
legislation being enacted in various parts
Of the country would have the effect Of decreas-
ing railroad dividends. he answered:
Il think that in the end il must, unless we can
counteraet it by economies
Reference being made TO the reported curtail-
ment Of improvement work and orders for equip
ment by the railroads, Mr. Hartman said
This restrictive legislation Is bringing about
loss Of confidence on the part Of capital so that
capitalists are 10th 10 take up large enter
prises- They fear that the agitation viii lead
10 the dissolution Of these big systems and
the money lenders are taking advantage of that
situation. II is fact that il raises the estimate
Of the cost Of operating big enterprises - to
3d1a per cent, and in some cases 80 per cent
In other words. where a line formerly had
pay per cent for money and pays per
cent. that means that il is paying 20 per cent
more than before. and this is just the same as
raising the cost OF material and labor If the
railroads have 10 pay higher rates for money
they viii have just much less for improve
ments.
In answering questions as TO the extent TO
which overcapitalization by railroads was re-
spohsble for the prevailing hostility toward
these corporations, Mr. Hartman referred to
the financing of the Chicago & Alton by the in
terests who took il over in 1893 and read ex-
tracts from the application for listing on the
New York Stock Exchange the Alton per cent
refunding bonds from which extracts il APP
peared that most Of the points brought out in
the Interstate Commerce Commissions recent
inquiry, conducted in this city had been fully
set forth in that application.
A circular. dated October "a 1899. from the
President Of the Alton az the time. Mr. Black
stone, was also read. In it were statements
showing the intention Of the old management r.
do certain financing, the carrying out of which
by the new interests has been severely criti-
cised
LEGAL COMBINATION NEEDED.
In answer to further questions Mr. Hartman
said:
think the President In his last message in
olcated that he had some such thing in minG
b.t I,o non "hershy we can do ieeally
something done whereby the transportation
under some qualified aria of the government IF
we could have the right Il am nor suggestina.
any pooling arrangement to make agreements
extending over terms of years. for directing
traffic over combinations OF lines it would hen
efit every body. Their could arrange thosa
matters without having 10 buy control and leave
Nte ownership IN the hands of DeODa Foo
instance. If the Great Northern and tho North.
ern Pacific and the Burlington could have OF
togethef- IL would not have been necessary for
the first two 10 buy the Burlington turning II
Nho or l6.00G stockholders OF thai property into
creators. Yes il il probable that. il the sort
or agreement which have just suggested should
pe permitted by Law. there would follow IN time
the dsintegration o. some of the big svste,ne
OF railways which have been built up as re-
suit 81 present conditions.
Mr.. Hartman said that. in a general v-av all
OF the railways were limiting their expenditures
10 what WAS absolutely necessary TO preserve the
properties. and he believed that this cur+ail-
ment would undoubtedly find reflection in de-
ereasing production in various industries Judge
GaTys statement that the stee! corporations IN
filed orders at the end Of February were almost
Up 10 the record figures Of the end Of the wear
1906 being referred 10. Mr.. Hartman gave I,
as his opinion that the orders or the books sew
eral months hence would show considerable
falling or from the present total which repre-
scented mainly orders given some time age
lie was asked whether or not his system
would raise traffic rates. I'm view OF the higher
COST OF all commodities. including money Our
policy is not to Increase rates." he answered
hut we shall have TO increase them unless we
can get some help
HAS NO OcEAN-TO-OCEAN PLAN
Then the question OF Mr.. Harrimans reported
desire 10 establish an ocean-to-ocean line OF
railway was preached. He said that az present
he saw no necessity for such a line The time
would probably come. he said. when a passenger
train would be run from the Atlantic 10 tho