The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-07-14
MILD CENSURE OF HARTMAN
COMMISSIONS REPORT has No
HINT or PROSECUTION.
Simple Recital Of Facts which Constitute
''TndcfcnsIble Financicring'' In tho Eyes
OF Federal InvostiKators-Doub Even
Ctvil suits VIII he Instituted.


WASHINGTON. July Is.-The long expected
report OF the Interstate Commerce Conn
mission upon It's inquiry into the operations
! Of the neutrality-suspicious. managed by
Z. II. Hartman was made public to-day.
II will be disappointing to those who ex-
pected sensational statements and recom-
mendations from the commission. for the
language employed is mild and there is no
hint Of prosecution. 'Indefensibls fnsn.
ciering' is the strongest term used in the
report, copies Of which have been delivered
to President Roosevelt and httorney-Gen-
eral ~Bonaparte. The report Is unanimous.
Summarized the commissions conclu-
sions as set forth in tho report are that
competition in transportation has been
effectively stopped in a territory equal TO
one-third Of the United States. and T.. Il.
Hartman as an individual has dominated
the great railway consolidation which he
built up in the last few years. II Is recon-
mended by the commission that a Federal
law regulating the issue of railroad securities
should be enacted and that the functions OF
n ThiITOdu COZ DOTdt ITO ebouiu We Npillihch
to furnishing transp and that "
, SHOULD not be permitted to invest generally
in the stocks, bonds and securities OF other
railway or steamship companies connecting
lines excepted.
sTBoNG CAST PRESENTED.
The report is the result Of much discussion
and some compromise in the co nmission.
It is a simple recital OF facts, but a strong
case is presented even in that way. That
the Hartman railroads ave in some in
stances evadod and in others violated the
provisions of the sherman antitrust law is
made clear. Whether proceedings to dis
solve the various alleged illegal mergers for
which Mr.. Hartman and his associates are
charged with being responsible is for the
Attorney General to determine after he has
examined the report and the evidence sub
mitted with it. 1t is not likely that there
| will be any criminal prosecution, and it is
questionable in view Of the ahrogation OF
the agreements which were held 20 be
illegal whether any civil suits will he insti-
tuted.
Several weeks ago il was indicated that
the commission intended to hold up Mr..
Hartman as the horrible example in the
railroad and financial world. II was appar-
emily the commissions intention To exoori-
ate him in vigorous English. The COM
missions report on Standard Oil, wherein
that great monopoly was mercilessly f'ayed,
|, was considered as a model to he used. But
| the commission ultimately decided other
wise. The Hartman report, written by
Commissioner Franklin X. Lane and APP
proved by all his colleagues, is little mere
than a narrative. II Special Counsel frank
b. Kellogg wanted to have incorporated in
it the ginger he put in his memorandum OF
the Ease he failed to have his way.
COMPETITION
The report Analyses the Hartman policy
in consolidating railroad systems, strikingly
brings out the extent Of territory covered
by the Hartman roads. declares that COM
petition has been eliminated as a result OF
Harriman's operations not only within the
United States but or business between
the Pacific Coast and Oriental ports and
in effect charges, although mildly, that the
Southern Pacific and the Union Pacific in
their operation constitute a combination
in restraint Of trade and cites other COM
binations that are in all probability illegal
and susceptible Of civil action.
Within three years after the reorganizs-
ton OF the Union Pacific Railroad Company
in 1907. according to the report, Edward u.
Hartman became the dominating spirit
in that corporation. The investigation
showed" says tho report, that IN prac-
tically all the great transactions Of this
company Mr.. Hartman, as chairman Of
the executive committee, acted upon his
own initiative, and his acts were suisse
quently ratified and approved by the ex-
ecutive committee. " may fairly be said
therefore that the policies and purposes
Of the Union Pacific have been those Of
Mr.. Hartman"
When the Union Pacific WAS reorgsnized
il owned l,s22. 80 miles of railroad. EXTEND
ing from Council Bluffs, la, TO Ogden,
Utah, from Julesburg TO Denver, from
Denver to Cheyenne. from Kansas City
TO Denver formerly known as the Kansas
Pacihcl and various branches extending
into the territory on each side Of these
main lines. Previous TO the reorganization
the old company had control through stock
ownership OF the Oregon Short Line and
Utah Northern Railway and the Oregon
Railroad n Navigation Company. These
companies were also r~eorganized. and
shortly after the foreclosure sale the Union
Pacific Railroad Company acquired by
stock ownership the control Of these com
panies and has since acquired substantially
all their stock.
The Oregon Short Lint owns the lines OF
railway from Granger. Wyoming, on the
Union Pacific. to Huntington. Ore, and
from Salt Lake City to Butte. Mon. The
Oregon Railroad and Navigation Company
owns the lines from Huntington. Ore, to
Portland. Ore. together with a number
of important branch lines in the States OF
Washington. Idaho and Oregon. Prior to
the acquisition Of the control OF the South
ern Pacific by the Union Pacific the Oregon
Railroad and Navigation Company also
owned and operated a line Of steamers from
Portland TO San FRANCISCO and q line OF
steamers from Portland TO Japanese and
Chinese ports. The Union Pacih also
owned one-half the stock Of the Occidental
and Oriental Steamship Company. which
owned and operated q line OF ste amers