The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-09-02

yesterday, conference TO determine
what action shall be taken in the several
cases worked up against the Hartman
railway lines will be held by President
Roosevelt and his advisers when the
President returns to Washington In Oc-
tOber from his Western trip.
It will then be decided. K was asserted
by this official. whether the government
shall go into the Federal courts to break
up any or all OF the group of Hartman
railway combinations alleged TO be oper-
ated in restraint Of trade. and therefore
in violation Of the provisions of the Sher-
man antitrust act. OF acknowledge finally
that the evidence collected is not strong
enough to justify embarlzIng upon a
project that might end in failure.
Administration Appears Puzzled.
Consideration viii be given first. II IS
understood. TO the merger Of the Union
Pacific and the Southern Pacific systems.
which, some authorities declare, is the
strongest case in which the adminlstra-
ton may proceed. if fl has not abandoned
its Intention TO go after Mr. Hartman.
On the surface, the administration ap-
pears to be at a loss as to how TO proceed
in the matter. Some people hold that the
administration would be happy II the pub
lie forgot the case, and be content TO
pigeonhOle the evidence collected during
the past year, which certain officials al
lege tends to show that the great rail-
road combinations engineered and direct
ed by Mr. Hartman are conducted in
violation Of the Law. This. is was ex-
planned yesterday in an official quarter.
does not reflect accurately the attitude
Of the administration toward Mr.. Harri-
man or the Hartman lines.
individuals Not TO Be Prosecuted.
That individuals associated with the
Hartman railroad management viii not
be prosecuted eriminaliy was decided long
ago; in fact, before the President left
Washington for his summer vacation
But final decision as 10 whether civil
suits shall be instituted to break I'D Ger
tain combinations in restraint OF trade.
disclosed during the inquiry OF the Inter
matter, and for which Mr.. Hartman and
men associated with him are supposed
TO be responsible, is yet to be made. This
point viii be settled early in the fall.
There is good reason 10 believe that the
President viii discuss the Hartman case
In the first message to the Sixtieth Con-
gress, using 1t as an example in support
Of supplemental railroad legislation which
he will recommend and which he has al
ready outlined In public addresses. nota-
bly, at Indianapolis on Memorial Day.
May First Attack Southern Pacific.
It is now known for a certainty that if
the administration makes an effort to
smash" Hartman, the Union Pacific
Southern Pacific consolidation will be the
first point OF attack According 10 the
Interstate Commerce Commission. Compe-
titiOn between these two systems has
been eliminated under the Hartman
management Whether the merger is
benefcent or otherwise in its effect upon
interstate trade must be decided by the
legal advisers Of the administration. II
it should be held that the consolidation
Is wholesome IN its influences upon inter
state trade and interstate shippers. the
administration will not go into the courts.
probably as the United States Supreme
Court in its decree dissolving the merger
Of the Hill roads gave an intimation that
a merger OF competing railroads that
was helpful instead Of hurtful to inter
state commerce was in all probability
legal combination.
Praise for Hartman Management.
The Interstate Commerce Commission,
severe in its denunciation Of some OF
the methods Of Mr.. Hartman in acquir-
ing and manipulating railroad property.
commended the management Of the roads
under his control as follows:
1T has been no part Of the Hartman
policy to permit the properties which
were brought under the Union Pacific
control to degenerate and decline; as
railroads they are better properties to-
day, with lower grades, straighter tracks.
and more ample equipment than they
were when they came under that control.
Large sums have been generously ex-
pended in the carrying on Of engineering
works and betterments which make for
the Improvement Of the service and the
permanent value of the property"
In the conference on the Hartman case
TO be held here by the President and his
advisers next month this question Will
have careful consideration:
Whether a prosecution of the Har-
riman roads should be instituted in view
OF the fact that the President intends 10
recommend to the next Congress the pas
sage Of a law, which. in effect. would
except railroads from the application of
the provisions Of the Sherman anti
trust act?"
Pooling May BE LegaIized.
IN his Memorial Day speech at Indian
apolis the President, discussing the rail-
road situation generally, made this state
ment
Subject to first giving TO the govern
ment the power Of supervision and con-
troll, which I have advocated, the law
should be amended so that the railroads
may be permitted and encouraged to
make traffic agreements when these are
in the interest of the general public as
well as Of the railroad corporations MAX
Ing them. These agreements should. OF
course. be made public in the mInutest
detail. and should be subject to securing
the previous assent Of the Interstate CON-
merce Commission"
The President thus urged the legalizing
Of pooling agreements, a plan long advo-
Gated by Martin A Knapp, chairman of
the Interstate Commerce Commission.
With pooling legalized the antitrust act.
SO far as II applies TO railroads, would be
nullihed, in the opinion Of Chairman
Knapp By providing that traffic agree
ments between railroads should be super
vised by the Interstate Commerce Com
mission opportunity for abuse would be
removed