Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1907-07-14

Washington. July ia report was
made public by the interstate COM
merce commission of its inquiry into
The railroad operation of Hartman.
and Of the operations of the so-called
Hartman lines of railway. which has
been in progress several months. The
report which was written by Franklin
X Lane is the unanimous expression
If the commission. The report has
been transmitted to the president and
the department of justice.
Ii is expected by the commission
that it viii be determined by the pres
ilent and the attorney general from
The statements set out in the report
whether the government will institute
any sort of proceedings against >Har
riman. or the corporations involved i'm
the inquiry. No recommendations are
made by the commission as to wheth-
er criminal or civil prosecution be
instituted as a result of its inquiry
The report is an exhaustive sum
mary OF the evidence and enters fully
into a discussion of the policy pur-
sued by Hartman in obtaining and
maintaining control of various lines of
=
presents fairly complete history of
the operations Of the various lines.
Excerpts from the verbatim testi-
mOny of Hartman are given to show
as stated in the report that 'it is only
the law which prevents the concentrat
ing in Harriman's hands of every rail-
road line lying between Canada and
Mexico" is a frank admission Of Har-
riman himself. made at the hearing.
To gather under one head all exist
ing rans-continental lines or as many
as possible. and to exclude the incom-
ing of all competitors. the report says,
became manifestly the Hartman pol
icy which was inaugurated in 1901. by
the issuance of 500. 900. 900 convertible
bonds by the Union Pacific. Harri
mans eventual control of many COM
peting transcontinental lines was pre-
vented, il is pointed out. by the su
preme courts decision in the North
ern Securities case.
1t is shown by the report that il
has not been Harriman's policy to
permit the properties brought under
Union Pacific control to decline, as in
every case they are better today than
they were when Hartman acquired
them. Particular stress is laid by the
commission on the elimination of COM
petition in transcontinental business
among the Hartman lines.
Special reference is made to the deal
by which Hartman secured control Of
the San Pedro road and the manipula-
tion of the Chicago and Alton, a very
careful synopsis of the financial op-
IN, hot f,,C
Concerning the Chicago and Alton
transaction the commission says: 'It
was admitted by Hartman that there
was about 500 900. 900 of stock and LA
bilities issued against which no prop
erty had been acquired, and this is
undoubtedly an accurate estimate"
The commission further says concern
ing the Alton deal that "it is evident
that its history is rich in illustrations
# the various methods of indefensible
financing"
In conclusion the commission says;
II may be observed that the bankers
wh0 manage Harriman's operations
appear to be richly rewarded. The tes-
timony shows that Kuhn. Loeb and
company received five per cent. or
$4,000 900, of 800. 900. 900 of the Union
Pacific convertible bonds. one half Of
which was retained by them and the
other half was given to a syndicate