The Washington times., 1907-11-03
HARTMAN TRIES
TO AVOID DANGER
Of PROSECUTION
Latest Move Is Holding
Company for Union
Pacific investments.
Law Department Watch
ing Him-MuSt Sell Rail-
roads He Owns.

T. II. Hartman, who stands charged
b. the Interstate Commerce Commission
with operating his railroad system IT.
violation Of the Sherman antitrust law,
is struggling 10 shake himself loose
from the incubus Of a Federal prosecu-
ton.
His mind and those Of his intimate
associates are concentrated upon de-
vising a plan whereby the investment
assets of the Union Pacific can be taken
care Of 50 that the law cannot reach
him.
Every energy is being devoted toward
accomplishing this before the Depart
ment of Justice announces the decision
II has reached on the charges which It
has had under careful consideration
since early summer.
Hartman Tries to Dodge.
HarriInans latest step, so high Gov
eminent officials declare, was the recent
announcement by the Union Pacific
directory that a holding company was
being organized TO take over certain
Investment securities. He has already
Invested himself Of the following abuses
held 10 be Illegal by the Interstate Com
merce Commission:
Abrogation OF the contract for the con-
troll Of the san Pedro. Los Angeles. and
Salt lake Railroad Company. whereby
traffic in the citrus fruit industry OF
Southern California was controlled.
REIMBURSEMENT Of the joint control Of
the Chicago & Alton. held by the com
mission 10 be competing line with
HaTriman's Illinois Central
Keepinq Eve on Hartman
It was made clear here tonight by
high authority that the law branch
OF the Government is watching every
step Hartman is taking in his rail-
road management II ne ceases TO
violate the law before the Government
is ready 70 interpose the strong arm
Of the law, so much the better, IL Is
said. 1t is made clear, however, that
the Federal authorities viii stand for
no "shenanigan."
The only way that Hartman and the
Union Pacific can avoid prosecution IS
10 divorce absolutely the railroad from
any other venture than transportation
There must be no subterfuges: no
blind holdings; no organization along
the lines Of the old Northern Securi-
ties Company, which was knocked sky
high by the Supreme Court
Must Sell Railroads.
Not only must Hartman let 20 his
stupendous interests IN the Sante Fe.
St Paul, Northwestern. and New York
Central, aggregating over 100000, but
It Is believed he must let loose Of his
holdings OF S44W0,O00 in the Balti more
and Ohio. and 81. 900 900 in the Illinois
Central. More than this He must re-
iin1uish control of the Southern Pacific.
which reaches slightly over 100000
shares out OF a total Of 2.574Is0 shares.
aggregating Ia value over S1Z5. 000OO8
II is said that the Attorney General
and the President agree with the finding
OF the Inter state Commerce Commission
on this point. The commission holds.
The effect and control Of the South
ern Pacific by the Union Pacific has
been TO unity and amalgamate the man
agementS Of these two railroad cOmpa-
MES and their steamship lines. and to
eliminate competition between them in
. trans-contlnental business. and I'm bust
ness TO and from foreign ports
Were Once Competitors.
The Attorney General has evidence to
show that before the acquisition of this
stock by the Union Pacific. the South
ern Pacific, with its lines Of rail and
steamships, competed with the Union
Pacific
The Government holds as absolutely
untenable the contention of the Union
Pacific that Il has the right TO operate
a continuous line from San Francisco
to New York over the lines Of the
Southern Pacific, Union Pacific, and
Baltimore and Ohio.