Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-01-05
Hartman Community Of Interest Extends
Half Way Around the GlObe.
STEAMSHIPS AND RAILROADS COMBINE
Southern Pacific Owns Pacific Mail AID
Line from New YOrk to New Orleans.
UNION PACIFIC CONTROLS SAN PEDRO ROAD
Rock Island and Union Pacific Divide
Control Of Chicago & Alien.
HOLDING OF STOCKS IN OTHER ROAD

QhADh EMCAMC EuEChHASh
Illinois Central, santa Fe, n. a o.
and st. Paul stocks out of
Earnings.
NEW YORK, Jan. 4-Modern methods Of
combining and consolidating mammoth rail-
way systems and extending the principle
Of community OF interest we're investigated
here today at great length by the Inter
state Commerce commission, which began
an inquiry into the so-called Hartman
lines" The commission goes next week to
Chicago Several other cities may be Wis
ited before ali the desired testimony Is in
the hands OF the government representa-
tives whose object is to determine whether
any of the railroads Of the country are
consolidated or combined in restraint of
trade.
Counsel for the Union Pacific company
announced that President Hartman would
be unable to appear before the commission
for ten days or more on account OF Ill
health following operation
He said that Mr.. Hartman could testify
a. his own house IL the commission de-
sired. He urged. however, that the taking
OF Mr.. Harriman's testimony be postponed.
Mr.. Hartman was excused from attend
ance at this time.
Al todays hearing 1t was brought out
and admitted that the Union Pacific Rail-
road company, the Southern Pacific COM
pany the Oregon Short Line and the Ore
gon Railroad and Navigation company are
practically under the same administration,
Mr.. Hartman appearing as president Of
each company with only slight variations
in the lists Of other officers
1t was further shown that the Southern
Pacific company owns the Pacific Mail
Steamship company; that the Southern Pa
cifc and Union Pacific together hold a
majority Of the Occidental q Oriental
steamship company; and that the Hartman
interests own the Portland & Orient Steam
ship company, II was said the Occidental
IL in liquidation, but it still operates two
steamers. On the Atlantic ocean It was
shown that the Southern Pacific owns the
line of steamers running between New
York and New Orleans, formerly known as
the Morgan line.
Control of San Pedro.
The Union Pacific, by means OF an agree
ment signed by Mr.. Hartman and Senator
William A. Clark. has traffic Arrangement
with the San Pedro Los Angeles & Salt
Lake railway lasting ninety-nine years.
This agreement was entered into in 1908 and
by its terms the San Pedro cannot raise
or lower its rates without the consent OF
the Southern Pacific.
The Union Pacific exercised joint control
with the Rock Island over the Chicago 8
Alton RAILROAD. The agreement is that the
Union Pacific shall have charge Of the road
one year and the Rock Island the next
NThis agreement. entered into by Mr.. Harri-
man and w. b. Leeds. extends for period
OF ten years from 1904.
The Union Pacific owns SIS 123,100 worth
OF stock, or 295s per cent of the capitaliza-
ton OF the Illinois Central railroad.
The Union Pacific also owns s5.Os2SO
worth OF stock OF the st. Joseph & Grand
Island railroad. which is S7.S7 per cent Of
the whole.
The Oregon Short Line owns SSs54O, eO
worth of stock In the Baltimore & Ohio
railroad. this being 1852 per cent OF thu
whole.
OF Chicago. Milwaukee & St. Paul stocl
the Oregon Short Line owns s3.69o,000 worth
or 342 per cent. The company also owni
$2572O00. or 25s per. cent. OF the stock o.
the Chicago Northwestern; slo,OOO,OOO o.
the preferred stock OF the Atchison. To
peka & Santa Fe. being AS per cent and
ell26.7 .745. or 7.S7 per cent OF the capita
River railroAa.
OF these huldinss by the Hartman com
panies. the stocks OF the Illinois Central
baltimore & Ohio. New York Central. Chi
:. cago a Northwestern. Chicago. milwaukee,
a st. Paul. Atchison, Topeka & Santa F,
and Sc. Joseph a Grand Island, aggregatinI
ia value eles. .2ss, ,745. have all been bough
since July 1, 1906.
Bought with EarnaaEu.
''Where did the money come from ?
asked members OF the commission
In reply 1t was stated that the uniol
Pacific showed last July 4 surplus o
S5i.OO0 900. The Oregon Short Line declare
a dividend OF 20 per cent on Its stoc
held by the Union Pacific and also contrib
uted out OF It's general assets 10 the pur
chase money
After placing in evidence az to the own
ership OF the so-called Hartman lines,
counsel for the Interstate Commerce com
mission then had Alexander Millar. secre
tary OF the Hartman company. read fnor
the minutes OF many Union Paeihe execu
tive committee meetings In which It wa
shown that Mr.. Hartman reported variou
things he had done and the oommitte
simply voted to ratify and confirm his &C
tions Il was also shown that Mr.. Harri
man was given authority 70 borrow none
for the Union Pacific company withou
restriction
There was read from the minutes
copy OF Mr.. Harrimans letter TO Georg
J. Gould acknowledging Mr.. Gould's iette
IN which the latter told Ar. Hartman h
had determined to support the oOnstruS
tion OF the Western Paeihe railway Nj
Hartman told NF, Gould he would declin
, TO quality as q dtreotaT OF the Rio Grand
< Western. a. be di1 not wish 20 be In an
way responsible for the attitude Of this
company toward the Western Pacific.
The era Of pEnapenty through which "
are now pagslna," wrote Mr. Hartman
Mr., Gould. has been marked by less cor
struetion of competitive and non-prOducin
lines % transportation than anything els
but there has been great expenditure
providing for improvements and additions
facilities 20 the already existing line
thereby better conserving the interests
" che pubic aud the shareholders as wei
n -'For myself, l shall regret the loss OF yos
advice, which have valued In our affair
as well as the personal pleasure OF havir
you included IN them"