New-York tribune., 1907-01-05
RAILROAD INQUIRY ON.
HARRIM4N, ABSENT, I'LL.
Traffic Deal 7cith Clark Road
Illinois Central Ozcnership.

start yesterday in the investigation of the Har-
riman railroads with the avowed purpose of as
certaining IL the provisions of the Sherman law
have been violated in the united control OF the
Union Pacific and Southern Pacific and their
ownership or control OF other lines OF railway
Chairman Knapp and Commissioners Lane and
Harlan represented the full commission two
sessions in the Postofice Building. hearing
tmony eIicited by Frank B. Kellogg and c. A.
Severance the governments counsel in the il
quiry.
Mr. Kellogg at the close of the afternoon seS-
sion said the testimony of yesterday showed
that the Union Pacific had absolute control OF
the Southern Pacific; that these had full
control of the San Pedro. Los Angeles & Salt
Lake Railroad. which had been built as a COM
peting line by Senator ". A. Clark; that tbs
Illinois Central and Chicago & Alton lines had
been brought under the same control by ex-
tensive purchases Of stock, and that Edward n.
Hartman had become the master and controls
ling head of all of them.
Mr.. Hartman not at the hearing yester-
day. and he probably will not testify for fort
night John G. Mnburn. who was present with
ex-Judge Robert S. Lovett counsel for the
Union Pacific, said TO Chairman Knapp at thu
opening Of the morning session. in explanation
of Mr.. Harriman's absence:
Two weeks ago Mr. Hartman obliged 70
pected to be fully receVered By this time. but svch
Is not the case. Il is impossible for him TO leave
necessity OF testifying. but 1t would be inn
thst MIR Harriman's testimony should be tsEsn az
pnbc2 m a Fl it hsd m ben Ps Psksn sTf here '' as
Mr. Hartman much regrets t1at he cannot como
important witness He is intimately connected
with the roads which are to be investigatsd Z
for postponement of Mr.. Harriman's exonina-
when he is fully recovered either here at WASH
ington.
Chairman Knapp asked when Mr.. Harrirnan
probably could appear. saying it would be mani
festly improper for the commission to hold y
hearing at a private residence. and Mr.. Mill
burn said II might be a week ten days BE-
fore Mr. Hartman could leave his house. Chair-
man Knapp then said that Mr.. Hartman would
be excused until after the commission held 5
session in Chicago.
PREPARING FOR HARTMAN.
Alexander MiIIar. secretary Of the Union Pa
cifc. was the chief witness yesterday. occupy~
ing the chair all the morning session and pare
of the afternoon session He had with him the
records of meetings Of the directors and execu>i
tive committees OF the Union Pacific and ftA
allied railways. together with volumes OF ONE
ciaI reports and Mr. Kellogg had him read from
books and documents in order to get on the rsc-
ord facts which will form basis for Mr. Har.
riman's examination. In the morning session
MT. AllldT prOOuCeO a copy OF an agreement Dy
which the Union Pacific. the Southern Pacific
and the San Pedro bound themselves TO MAIN.
tain the same schedule Of rates for term OF
ninety-nne years In Article OF this tariff
agreement the San Pedro agrees to adopt.
print. publish and put in force at all points
upon its leased. owned or operated railroad. for
the harding of local business thereon, the law
full rates tariffs. cIassIications and charges''
used by the Southern Pacific. Article says:
Each party hereto mutually covenants and agrees
to and with the other that after The adoption and
putting in force OF rates as provided by Article
sprb rates without tfe consent Of tha otSeT psrt
hereto unless such change may be made necessary
or tariffs OF any other company competing line
Of railroad or TO conform to the hnal decree or
or some lawful and valid requirement of state or
national law
Mr.. Kellogg learned from Mr.. NIlar that ths
Union Pacific owned practically all the stock OF.
the Oregon Short Line and the Oregon Railway
and Navigation Company, we'll as the south-
ern Pacific.
And all these four companies have re sans
president. haven't they?"
Yes"
e Fl. Hartmann"
Yes"
ROADS UNDER ONE MANAGEMENT.
Mr. Kellogg took UP with the witness the lists
of officers and directors Of the four roads and
showed that all four were under practically ths
same management. Mr. Miar said the stock
books OF The Southern Pacific were in the eus-
tody of The Union Pacific
Q.-It is noy- usual to have fun vote p he
0.@ft is only N these companies in which thu
Union Pacific owns all the stock that YOU nave
90 a company whose stock is on the market
not more :wo-thirds OF the stock IS ever Voet
at an annual meeting. is III A-Usuaiiy not moro
than that
Mr. Mnburn admitted for the witness. who
was uncertain, that the oregon Short Line in
recent years had voted the majority OF the
southern Pacifc's stock at the annual meetings
of the Southern Pacific
The witness read resolution dated Octoben
o 1904 embodying contract entered into bY
e II Hartman. Jacob II. Schiff. James Still
man and Robert s. Lovett, parties of the hrss
part and j. H Moore. W. Fl. Moore. %. g. Reid
and w B. Leeds. parties OF the second part to
vote 1OS.4S1 shares of the Chicago & Alton pre-.
ferred stock. then deposited in the Central Trust
Company of New York. to insure joint
control OF the Chicago & Alton by the Union
Pacific and Rock Island interests.
II was also agreed that majority of the di~
rectors nominated by reason of this control
should be named after 1906 by the Rock Island
interests Prior to that time there special
agreement giving annually alternate control OF
the Chicago & Alton 10 the Union Pacific and thu
Rock Island companies This agreement, which
Is still in force was arranged TO run for ten
years.
TRUSTEES VOTED SAN PEDRO STOCK
Referring to the agreement for Identical tarif
rates on the Union Pacific. Southern Pacific and
San Pedro lines. Mr.. Kellogg said to the COM
mission that the papers showed that ali stock
of the San Pedro was deposited with the Farm