The Washington times., 1907-06-02
WAR ON HARTMAN
AWAITS THE WORD
FROM ROOSEVELT
InfractionS of Sherman
Act Ready to Be
Acted On.
Manipulation Immune, But
His Corporations Not
Out of Danger.

Following the return OF President
Roosevelt to the Capital, it is under
stood that there will be held. early this
week. a conference-pOssibly several of
them-for consideration OF the Govern
ment's course in the matter OF prose-
cutting the Hartman railroad combina-
ton.
1t has already been determined to
start proceedings at once to compel Mr..
Hartman to answer the questions
which. at the inquiry in New York,
some weeks ago. he declined to answer.
But this has nothing to do with the
larger question Of an effort, under the
antitrust law, 10 break up the Harri-
man railroad group.
Roads Not Immune.
Considerable misunderstanding has
has arisen as to the attitude Of the
authorities, and the possibilities Of sue
cessful prosecution. II has been mis-
takenly supposed in many quarters that
Mr. Harriman's testifying concerning
transactions OF his roads relieved the
roads from the menace OF prosecution.
This Is by no means true AS to those
matters about which he testified. Mr.
Hartman is given immunity from per-
sonal prosecution; but this does not
give the same immunity 10 his corpora
lions. Under the antitrust act the
Hartman system may be attacked al
several points, if Attorney Kellogg is
correct, and thre IS little doubt that
some of its contracts and arrangements
can be proved Illegal, and abrogated.
There is, indeed, serious doubt wheth-
or the Union Pacific's control of the
Southern Pacific is a violation of the
antitrust act, because the Southern
Pacific is held by some very good law
yers to be rather "a connecting than a
competing line with the Union Pacific
But this is only one Of several mat
ters as to which Mr.. Kellogg found that
the Union Pacific combination was open
to attack.
The Alton Deal.
For instance. the contract between the
Union Pacific and Rock Island for joint
control Of the Alton is one matter as
10 which there is considered to be nc
doubht that the Sherman law has beer
violated. The Alton is plainly a com
peting line with the Rock Island. Both
have lines from Kansas City to Chicago
Under this contract the Hartman grouI
and the Rock Island are given cOntrO
of the road in alternating years. Thi.
arrangement not only suppresses fol
every alternate year competition be
tween Rock Island and Alton. but II
prevents competition between the Rock
Island and the Union Pacific system
for the business Of the great West and
Southwest.
Again. Attorney Kellogg pointed out
that a contract between the Hartman
system and the Santa Fe for joint con
troll Of the Northwestern Pacific road
was in exactly similar fashion a breach
of the Sherman law. The Northwestern
Pacific extends northwest from Sar
Francisco. and is building under a con
tract between the Southern Pacific and
the Santa Pc. by which il maintains
connection with both OF them. Thus
there is an exact parallel to the con
tract between the Rock Island. and
Union Pacific for control of the Alton
u P. and Illinois Central.
The Union Pacinc's relations with the
Illinois Central. though not amounting
TO technical stock control, yet constitute
in Mr.. KellOgg's opinion. absolute con.
troll for all practical purposes. and a,
the Illinois Central is. in an important
sense, a competitor of both the Cnior
and the Southern Pacific. and in tho
most direct way a competitor Of tn,
Alton and Rock Island, this is ais,
thought by some good lawyers to con.
stitute violation Of the antitrust stat.
ute
Firally. there is the famous contract
now abrogated, II is true-between tn,
Union Pacific and the San Pedro road
On this IL has been strongly insisted tina
both Mr.. Hartman and former Senator
W. a. Clark were liable to crimina
prosecution, while there is no doubt
apparently. with the lawyers that tn,
penalties OF the Sherman act can b,
applied TO the corporations.
There is to be determined. then. tn,
question Of whether prosecutions shall
be started on account Of any or all q
these various contracts in' restraint O
trade. 1t is a question that will not b.
finally determined by anybody subordI
nate 70 the President He will advis
with the Interstate Commission. the at
torneys for the commission. and the At
tOrney General. but the final decision
viii he made by him and will probably
10 made gOOn