The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1907-07-20

transmitted to President Roosevelt and
to the department of Justice.
It will be determined by the presi-
dent and attorney general from the
report whether the government will
institute any sort of proceedings
against Mr.. Hartman or the corpora
tions involved in the inquiry. No rec
concentrations are made by the COM
mission as to whether criminal prose-
cutions shall be instituted as result
Of it's inquiry.
Only Law Checks Ambition
The report is an exhaustive sum-
mary of the evidence adduced at the
several hearings held by the commits
sion in the course of it's inquiry. It
enters fully into q discussion Of the
policy pursued by Mr.. Hartman in
obtaining and maintaining control Of
the various lines of railway in the
Hartman system and presents fairly
complete history of the operations Of
the various lines. Excerps from the
verbatim testimony of Mr.. Hartman
are given to show, as stated in the re-
port, ''that it is only the law which
prevents the concentration in Mr..
Harriman's hands of every railroad
lying between Canada and Mexico.
This is the frank admission of Mr..
Hartman himself, made at the hear
ing.
'"To gather under one head all exist
ing transcontinental lines, or as many
as possible. and to exclude the incom-
ing of all competition became mani
testify the Hartman policy, which was
inaugurated in 1901 by the issuance
of 100, 600, 900 of convertible bonds by
the Union Pacific" says the report.
Mr.. Hartman eventual control Of
many of the competing transcontin-
entail lines was prevented, it is point.
ed out, by the supreme courts decis-
ion in the Northern Securities case.
It is shown by the report that it has
not been the Hartman policy to per-
NIT the properties brought under Un-
ion Pacific control to decline, as in
every case they are better today than
they were when Mr.. Hartman &C.
quired them.
Competition Is Eliminated
Particular stress is laid by the COM
mission on the elimination of COM
petition in transcontlnental business
among the Hartman lines, and the
commission indicates that that is the
matter of large significance developed
in it's inquiry.
Special reference is made to the deal
by which Mr.. Hartman secured con-
troll Of the San Pedro road and the
manipulation of the Chicago & Alton,
a very careful synopsis Of the financial
operations in both instances being
given. Concerning the Chicago & Alton
transaction the commission says:
''It was admitted by Mr.. Hartman
that there was about sixty millions of
stock and liabilities issued against
which no property had been acquired
and this is undoubtedly an accurate
statement Of the facts"
The commission further says con-
corning tho Alton deal that sit is evil
dent that its history is rich In illus
trations of various Methods Of indie
ensible financing In its conclusions
he commission says:
''The effect Of the control of the
Southern Pacific by tho Union Pacific
has been to unity and amalgamate the
management Of these two roads and
steamship lines and to eliminate COM
petition between them In transcontiu-
entail business and in business to and
from Oriental ports.
"The joint control Of the Alton
railway BY the Union Pacific and the
Chicago, Rock Island & Pacific Rail-
way company has undoubtedly elimin-
ated competition between the Alton
and the Rock Island between Chicago,
st. Louis and Kansas City.
These are conspicuous examples of
the community Of interests and 'har-
mony Of management which Mr.. Har-
riman suggested when he demanded
representation upon the Santa Fe
board.
IF the policy Of purchasing and
controlling stocks in competing lines
is permitted to continue it must mean
suppression Of competition.
Should Forbid Joint Ownership
The recommendation of the COM
mission, which are more general than
specific in terms and application, say
that the function of the corporation
should be confined to the furnishing
of transportation, and that railways
should not be permitted to invest gen.
orally in the securities of other rail-
way and steamship companies, except
connecting lines for the purpose Of
forming through routes of transpor-
tation, including branches and feeders.
Its surplus funds, says the report,
ah0u1d ho y1aad for tho hokforvnorf -