The Montgomery advertiser., 1907-07-14
COPIES SENT PRESIDENT AND ATTORNEY GENERAL
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.. Iaasisy. Washington. July ls.-A report wso made public today by the intsrssato commerce commissicn for its in6uirx Into the railroad operatiSns of 1d- ward H. Hartman and of the opera. tions of the so-called Hartman Ljuee Of railways which have besn in pro- gress for several months. The repert which was written by cemmissicKes Franklin K. Lsne. is the unenimots expression of the commission on tha subject. s ~
 Copies of the report have been trans> mitted to President Roosevelt and tho Department of Justice. It h expectsd by the commission that, 1t will be da. termined by the President and attornsr general whether to institute any sor2 or proceedings against Ar. Hartman ox tbe corporations involved In tho fn~ auiry. No recommendations are mAde by the commission that either crimfna1 or civil proceedings be institutad sS ' result of the inquiry.
 The report is an exhaustive summary os the evidence adduced at the several hearings held by the commission in thas course of iU inquiry. It enters fullv into 2 discussion of the policy pursuel by Ar. Hartman in obtaining ana maintaining control of the varoue linoe of railroad in the Hartman svstam an6 presents fairly complets klseory of the operations of the varioua ltnes nx- tracts from the testimony og 1Gr. uarrf-s { mau arc kiven to show q stated n ttss rsport: that t oMciaaly the law whlch pssxsnss sssa ,s sns conosnsr.si9E in TT Ass; iyipe tsfwssn CaasslIs a1i1 7I 1Se s< 5s
 1O eathsr NnAox 6ee MI IT z |s tng transcpntinantG1 l1aoS Sr a6 n1x 15s as possible to excludS the lAoctninx Fl all competitors, becamS msnifestlr the Hartman policy which was inau9ura- ted in 1901 by the issuancs of el0O.ooe.- 900 of convertible bonds by the Union Pacific.
 Northern Securities Deeiaien.
 Mr. Harriman's eventual control oe many of the competing transcontineu. tai lines was prevented. 1t is pointed out by the Supreme courts' decision n the Northern Securities case. It lo shown by the reports that 1t has been no part of the Hartman policy to per- init the properties brought under Un. ion Pacific control to decline as in every case they are better today than they were when MT. Hartman acquired them.
 Particular stress is laid by tho com> mission on the elimination of compost. tion in transcontinenta1 business amOun the Hartman lines and the commlsUton indicates that that is the matter e large significance developed in the ina Quiry.
 Special reference is made to the deal by which Mir. Hartman secured con. trol of the San Pedro road and the very careful synopsib of tho financial operations in both instances being giv- en.
 The Commission unanimously joins in the report which Is made by Com- missioner Franklin K. Lane. Copies of the report went today to the Prssi- dent and the Attorney General.
 The report of the Commission by Lane. Commissioner. opens with . re. cital of the order of the 18th of No. vember. 1906. instituted by the pros ceeding.
 The investigation SO far conducted under this order has related mainly te certain transactions of the Union Pas cifc Railroad Company, including the acquisition and control of the Southern Pacific Company. the purchase of lasgs
 
 companies and other matters of kinds red import. Testimony was taken ~ New York on the fourth and fifth ok January; at Chicago on the eighth ninth and tenth of January; at Seattle, on the twenty first of January; at Portland on the twenty-fourth and twenty-fifth of January; at San Frans cisco on the twenty ninth. thirtieth ana thirty-arst of January; at Los Angeles ha nA oio Af RAh and again at New York on the twenty fifth. twenty sixth. twenty-seventh and twenty eighth of February. On the fourth and fifth of April counsel were heard in oral argument and briefs sub- mitted. The facts disclosed by tho in. quiry have been carefully considered and are made the subject of this report.
 The Hartman Policy.
 Within three years after the reor- ganization of the Union Pacific Rail- road in 1897, MT. Edward H. Hartman became the dominating spirit in that corporation. As Chairman of the Ex- ecutive Committee he exercised powers that are well nigh absolute. The direc- tors have delegated their powers ito manage and direct all the business and affairs of the company to an executive committee of Ave members. who shall act in such manner as such committees shall deem best for the company's in- terest in all cases in which specific d. rections shall not have been given by the board" and in turn. the Chairman of the executive committee is author. ized to represent that body when 1t lo not in session. Accordingly, we finl that in 1902. Mir. Hartman was 'au- thorized to borrow such sums of money as may be required for the uses of this company, and to execute in the name and on behalf of this company a note or notes for the amounts so borrowed"
 The investigation showed that in practically all the great transactions of this company Mir. Hartman as chair man of the executive committee acted upon his own initiative and hts acts wers subsequently, ratified and ap.