The Washington herald., 1907-01-11
Commerce Commission will
Make Deeper Inquiry.
NOT IN FEAR OF FLIGHT
Denial Made that MagnateS
Plan Trip to Europe.
Hartman Declares lie viii BE
nanciers Believe Testimony Is for
Use in Antitrust Prosecution, and
Not tn Find Violations Of ihe In
tcrstate Commerce Laws.


tcrstate Commerce Laws.
| Chicago, Jan 1G-Thc Interstate Com
mercc Commission finished the taking Of
testimony Of other officials here. as was
/ the original intention. and it was decided
/ that the rest of the testimony concerning
the Operations Of the Hartman lines should
be taken by Commissioner Lane al Seat
tie, Portland. and possibly San Francisco.
Tho next hearing will be at Seattle on
January q
] II was decided by the commission to
day that when the hearing is resumed I'm
New York and Mr. Hartman and others
examined regarding their financial opera
tions. the whole commission should b.
present. on account Of the engagements
/ OF some of the members. il VIII not Be
/ possible for the whole body TO meet iu
New York and examine Nj Hartman
until the last week of February
/ Besides Alr. Hartman. William Rookie
/ feller and Jacob IT. Schim are under
subpoena The attorneys for the govern
ment are contemplating calling other men
/ besides these, but IL is understood that ga
/ far no other witnesses have been served.
/ Among those who may be added to the
/ list are u. II. Rogers and Henry a.
Frick, who. as President Ripley testified
/ here, We're pat on the Atchison board Il
/ Mr. Harrimans request, after they, Mr
I Hartman and Kuhn Loeb d Co. had
acquired 100000 OF Atchlson stock.
which they have since increased TO 80
OOe,o0o
Ask to Detain Witnesses.
/ There was a report here to-day that in
structions had been sent the Federal
authorities in New York 20 see that none
of the witnesses who are TO be examined
at the hearing in New York should be al
lowed 10 leave the country, including Mr.
. Hartman and IL Rockefeller This re-
port was denied by the commission and
the attorneys for the government, who
said that they had no reason 10 believe
that Mr.. Hartman, Mr. Rockefeller, or
Mr.. Schif had any intention of absenting
themselves when the commission meets
next in New York.
The next hearing in New York is to
deai exclusively with Dir Hsrriman's
financial operations. and is recognized by
every one rs being the most important
The commission has inquisitoriaI powers
that are very broad. and these viii be
| invoked 10 get 10 the bottom Of some
of the deals by which as the tesri-
moRy taken already would indicate. Mr.
Hartman has been getting a grip on
/ other roads, some OF them direct COM
petitors OF those he now controls. 1t
was stated by a member OF the commits
sion to-day that the commission believed
il had the right TO go into all the methods
by WI h these stocks were acquired,
/ and thai -- intended TO do so.
/ II is no secret now that the present in
| vestiSation was started. not with auv
| idea that it would reveal violations of
the interstate commerce law, which is
the only law the commission can ad-
minister but that il would result in the
production Of evidence before the com
mission of a violation Of the antitrust
law
The Interstate Commerce Commission
has nothing whatever to do with this
law. but is supposed. when any such
| evidence is unearthed, to turn il over to
the Attorney General who may. IF the
evidence warrant il. file a bill in equity
and ask for a decree compelling TIE Ore
gon Short Line and Union Pacific 10 dis
pose CT their holdings of Southern Pa
cific.
viii BE Sweeping.
The coming New York Investigation of
the Hartman roads promises even greater
sensations than have thus far marked
what has been by no means an ordinary
hearing
Evidence of the officers and directors
of the City National Bank and of Kuhn.
Loeb & CO. IS desired to show how th-
Union Pacific bond issue was manipulated
| TO procure enough stock 10 give Hartman
control OF rival systems and TO operate
| them in connection with roads already in
| his hands
! If it is shown that he mulcted the Union
Pacific for sums in excess of those re-
1 quired 60 make the purchases OF this
/ stock, two legal remedies are suggested
/ by members of the Interstate Commerce
! Commission as open to the Union Pacific
stockholders.
The prosecution may be demanded Of
any individual or individuals guilty Of
misrepresentatio0 of "a criminal nature.
or civil suits M be instituted 20 compel
/ the return of IL missing millions.
William ROckefeller's connection with
/ the Hartman purchases is declared by
/ the governments attorneys TO be shown
/ by the transfer of S5000Qoo0 of Southern
/ Pacific stock 10 him.
! Stillman viii be required TO tell what
/ ne paid for the 10000 shares of Illinois
/ Central stock he. as a Union Pa
cific director. soiG 20 the Union Pacific
at $40 per share. The commissions at
| torneys say the stock was offered on the
market at the time at $50
Want to Get At Facts
we want to be enlightened on all
/ these points, said one commissioner.
who refused to permit the publication Of
/ his name. ''and the Union Pacific stock
holders should be even z8ore deeply in
/ terested. The New York hearing may re-
veal TO them some astonishing things
| a majority Of members of the commits,
sion say they approve Commissioner
Clements plan to appeal to the court if II
is shown that the Hartman consolidation
1 destroyed competition.
we shall ask for more far-reachiuS
| ruling than in the Northern Securities
case, said Mr.. Clements. THAT merger
was dissolved. but its effect was contin-
ueG In the Hartman case, 3, We must
resort to the courts, the actual merger
and It's effect will be equally aimed az"
! \ telegram was sent to James J. Hill by