The free lance. (Fredericksburg, Va.) 1885-1926, 1907-07-16
HARTMAN SCORED
His Financing of Alton Railroad
Called "lndefensible."
NO SUIT IS RECOMMENDED
Interstate Commerce Commission De-
eisrcs His Policy Destroyed corpe-
tition, But Recommend No suit to
Dissolve Joint Control.

Dissolve Joint Control.
Washington. July l5-Aftcr moro
than a year ami half oi invcstiga-
ton and digestion the Interstate com
mercc commission made public the re-
suits OF the Hartman inquiry" In
the report Hartman Is scath.nCly coz
dcmuci Tor his "inGefcnslbie finance"
In the sCandalous Alton deal. where
he and his associates made a profit
OF $4,000 600 ont of the rccapi alira-
ton and then took 80 per cent divl-
dcnd from the proceeds OF bona sale
and is charged with having Planned
20 acquire control OF every foot OF rail
road property in the United States
but no Recommendation is made with
regard 10 prosecution OF Hartman or
suit for dissolution OF his system. That
IS left TO the president
The report is long and goes into *
/ daustive detail Under careful study
| q shows What has been the Hartman
/ policy This was-and apparently is
/ to buy railroad roorganize it. re-
| capitalize II. issue bonds. and use the
| money SO raised 10 buy another rail-
I road This railroad in turn % he 20.
/ organized. rccnpitalized ana MORE
| gagged fer more money % bay more
| railroads. al dniium. or until in the
fulhlmcut OF the imperial plans in the
brain ot Hartman. he should have be
meath his Jealous sway every railroad
! property between the Canadian Dor.
der and the Mexican frontier
/ Transcendent as tho scheme seems.
Il vas NOT appalling 20 Hnrrmau
From his New York Office pc reached
| forth his tentaclcs over the west AMI
! took Dr. Railroad after railroad De
| seized reUodeiicd. made profitable.
/ mo-tEaEed and Kept. lie wrought the
/ steel strands together until they bound
more than half OF rho transportation
| territory OF tho nation within his
realm. Ana every time Do bought rail
road ho ra3o if Yield bonds where
with to hry another II was tho plan
oi an cndls-s chain
Put when hn worked eastward ne
/ found che barbados OF the law against
him. Eo admitted on the witness
stand that the sherman law became 90
/ him an insurmoru,ahle obstacle. cnI
] SD ar iast he was checked
Bot Do Hlrrman's arpaiii1- CAM
| pai-n was cne ri seizure and financial
/ ra1in'. There was no layir- waste Ia
/ fha midst g tho comm ission'- terrific
/ cont- nation = the man there is one
| fash ot admiration where il is adj
! mittcd that every railroad ~ has car
urcd IS to-day a better railroad physi-
cai'y than il was before he took il.
Tho recommendations of the com
| mission declare that the function OF a
| railroad corporation should be COM
| fined Co the furnishing OF tfansporta-
/ ton. Railroads should not boz per-
| mittod 10 invest generally In the
/ stocks. bonds and securities Of other
railways and OF steamship companies
except connecting lines. for the pur-
/ pose 81 forming through routes OF
transportation. Including branches and
/ feeders
Railway securities should be safe
| and conservative Investments for the
| people and 20 this end the risks OF the
railroads should he reduced 20 a miai-
mum
Competition between railways as
well as between other Industries is the
established policy OF the nation. il IS
declared and the ownership OF any
stock boy any railway In a competine
railway should not De- permitted
From the Alton scandal the commits.
sion draws the conclusion that the
time has come when reasonable recu-
lation should De imposed upon the is
suance of securities by railways en-
gagged in interstate commerce.