The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-01-05
Interstate Commerce Commits
sion Pursues Rigid Inquiry
at New York.
INTERESTING DISCLOSURES
OF STOCK MANIPULATION
E. H. Hartman IndispOsed, and
Unable to Appear Before
Commission.

NEW YORK, Jan. when the in-
quiry by the Interstate Commerce COM
mission to determine whether the South
ern Pacific and Union Pacific railway,
systems are natural and actual competi4
tors, or whether there is an agreement
between them which constitutes re-
straint of trade opened today, counsel
for the Union Pacific company an
nounccd that President Hartman would
be unable TO appear before the commits
SION for Ten days or more, on account
of lll-health following an operation. He
said that Mir. Hartman could testify
at his own house If the commission de-
sired, lie urged, however. that the TAX
ing Of Mr., Hartman s testimony be-
postponed. Mr.. Hartman was excused
from attending at this time.
Chairman Knapp and Commissioners
Lane and Harlan arc acting Cor the full
commission IN taking testimony.
IL was the general understanding TO,
day that after sitting in this city to-
day and tomorrow. the commissioners
would proceed 10 Chicago TO take fur
thcr testimony.
Frank B Kellogg and c. \, Sever
ancc, attorneys of st. Paul, are appear
ing as the legal representatives. of the
COMMISSION hopert =. LoFelt appeared
as counsel for the Union Pacific.
Among the witnesses who have been
summoned are \. =. Mohler, vice-presiJ
dent and general manager of the Union
Pacific system; J. g. Stuhbs, traffic di~
rector, William Mail, controller: Alex
ander Millar, secretary; W. V. S.
Thorne. director o. purchases. and
Julius kruttschnirt. director of mainte-
nance and operation, all OF the same
system.
In addition 70 the Union Pacific and
the Southern Pacific, the companies
which will probably figure most prom.
inently in the inquiry. will be the Ore-i
gon Short Line, the Oregon Railway
and Navigation company. and the San
Pedro, Los Angeles & Salt Lake COM
psny.
Secretary Minsrd Testides.
The first witness sworn was Secretary
Millar of tine Union Pacific. n said in
response to questions by Ny Kellogg
ern Pacific railway and of the Oregon
Short Line, and assistant secretary OF
the Oregon Railway and Navigation
company.
els it not q fact that all these COM
panies are under the same control ?
Have they not the same president, E.
H. Hartman. and the same vice .presi-i
dent, Mr.. Cornish?'
Yes, sir -
Mr., Millor was asked whether the
Union Pacific owned stock in the Occi-
dental and Oriental Steamship company
He said il did. The Southern Pacific,
he said. owned the Morgan Steamship
lines.
Counsel for the commission then Of
fered in evidence the list of directors
and of the executive committee Of the
mi s. vi
roads. There also was offered in evil
dence a statement showing that the
Oregon Short Line voted majority of
the stock at each meeting of the South
ern Pacific since April IS. 1898.
Secretary Millar would not admit the
statement was correct. saving he did
not keep the books. The statement went
in, however, under stipulation of coun-
The bylaws of the Union Pacific,
Pacific, the Oregon Short Line
and the Oregon Railway and Navigation
company was next offered in evidence.
The four companies were generally res
ferrod 90 during the progress of the
hearing as the Pour Pacihcs.
"W. V. s. Thorne ond A. X. Vant
leventer apearcd as directors of the,
Southern Pacific but not of the UnioR.
Pacific - said the attorney
"Who are thcyi'
"Mr Thorne is director Of purchases
of the four companies and Mr., Vande+
renter is assistant treasurer of the
Pacific company
Secretary Millar said "the four Pa
'ihcs occupied offices in the same
building at l2o Broadway, New York
The principal offices are the same, but
,ome departments are separate
Men who Voted the Stock.
'arioIs documents which We're offered
n evidence. among these being proxy
blanks showing that President Harri-;
nan, VicePresident Cornish and one
tber voted the ma ioritv of the stock
t the meetings Of tho Southern Pacific
uhsequent 10 that cOmpany's acouisi-
ION by the Union Pacific or Oregon
short Line.
Secretary Millar. by direction, read
rom the minutes of a meeting of the.
jniou Pacific directors, the entry IN
;hich certain directors were named to-
e voted for at forthcoming meeting
I the stockholders Of the Southern
'acifc.
Asked TO give him the name of tho,
irectors TO be printed upon the proxies
e sent ont before each meeting of tho
outhcrn Pacific, the witness could not
ecall.
Did You consult nv, Hartman
bout thcmii he was asked
Il don t think so, replied Mr., Mil
ny.
Considerable time WAS here taken up
d the production of transcripts of rec
rds of meetings of the Union Pacific
ompany, which mostly had to do with
he arrangements for the purchase of
he Southern Pacific stock early in 1901
The Chicago 6 Alton railway was
rawn into the inquiry by the reading
f en- abstract from the record of pro-
acdings of the executive committee of
ne Union Pacific, This showed that
cptember 20. 1904, President Hartman
cported he had bought l03,4 ,45l shares