The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-02-27

tory covered by the Union Pacific sys-
| tenn; that the purchase of stock in the
| Santa Fe was a move toward the neu-
| tralization Of competition by that line
| and that the vast sums devoted to bet
terments ard dividends by the Union
Pacific had been taken from unfair
rates.
Rates Reduced.
Mr. Hartman declared Union Pa
cine rates had been reduced II per
cent since he became president, ant:
fell back on the assertion that the ex-
penditures for Improvements had de-
veloped the country and placed the
system in condition to handle the great
trafnc that has come in later years,
and that he and his stockholders were
entitled to the benefits their enterprise
had won. aFss
of the per-ton-p er-n1fle computation of
rates. Mr.. Hartman said the calcula-
ton was faulty because from the
standpoint of low rate it was adj
versely affected by high class freight
and favorably by low class freight. He
already had remarked that he did not
think it would necessarily be wrong
for road to earn 5 per cent on its
capitalization.
Where would YOU fix the limit ~
asked the commissioner.
why, 100 per cent if you like" re-
piled Hartman quickly. and then out
lined his views. He said that as long
as a road was properly conducted and
gave proper facilities and at no higher
rate than was charged by any other
road it was entitled to it's earnings no
matter what they We're There was no
not receive the benefits resulting from
good management.
What are you going to do with it ?"
he was asked. Are you going to do
nate it to the government or what?'
Nv hio11
you could return it to the shippers"
remarked Mr.. Clements, to the amuse-
ment of the room.
Mr.. Hartman then made plea for
some form of legislation which would
permit railways to arrange for traffic
handling under supervision of some
such federal body as the interstate
commerce commission with proper
would enable them to handle their
business lawfully and intelligently
He thought such. a law permitting a
combination of roads would possibly
result in lower rates.
Hartman Would Go On.
Commissioner Lane then began a
sketch of the enormous requirements
Of the Union Pacific under Hartman
He began with the issuance of the
500. 600 900 in bonds. and traced its
purchases out to Portland on the
coast on to the Orient by steamship
to New Orleans, to New York by
steamships, into the Northern Pacific
and out again, into the Alton, the Illi-
nois Central. the Santa Fe, the Balti-
more & Ohio and the New York Cen
trail His face paled and his voice
grew more impressive as he continued
the wonderful recital.
He faced the witness and pausing
for a moment said:
Where is that thing going to stop?"
nd
then somewhat nervously said:
Il DON'T think it has stopped.
don't think we have any more-I
would go on if I thought we could real
from those securities. 1 would go on
and buy some more things"
Commissioner Lane-"Supposing
you concentrated two or three more:
go right into New York.
Mr.. Milburn-"Why not p"
Mr.. Harriman+''Suppos we had
line from New York to San Francisco.
would it not be good thing-not that
we have any idea of doing it, but
would it not be a good thing?"
Commissioner Lane-"Supposing
you got the Santa Fe?"
Mr.. Harriman-"You would not let
US get it,"
Commissioner Lane-"How could
we help it?"
Mr. Harriman-"How could you
help it? 1 think you would bring out
your power to enforce the conditions
of the Sherman antitrust act pretty
quick. If you will let US, will go and
take the Santa Fe tomorrow
Commissioner Lane-"You would |
take it tomorrow"
Mr.. Harriman-"Why, certainly !
would. 1 would not have any hesita- |
lion; it is a pretty good property
Commissioner Lane-"Then it is |
only the restriction of the law that |
keeps you from taking it"
Mr. Hartmann would go on as
ong as l lived
Commissioner Lane-"Then after
you had gotten through with the San
"a Fe and had taken it, you would also
AXE the Northern Pacific and the
Great Northern, if you get Them"
Mr. Harriman-'If you would let
me-"
Commissioner Lane-''And your
power would gradually increase as you
ook one road after another, so that
rou might spread not only over the
Pacific coast, but spread out over the
Atlantic coast ?"
Mr.. Harriman-"Yes, but hasn't
,our organization increased it's pow
.r?"