Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1907-07-14
COMMERCE COMMISSION
SUBMITS ITS FINDINGS
GOVERNMENT OFFICIALS HAVE
REPORT
Federal Authorities May Take Action
If Statements Justify lt-GeneraI
Recommendation Accom-
pany Document
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CONTINUED from PnGe One.l
authorized to represent that board when
1t is not in session.
accordingly we find that in 1902 Mr.
Hartman was authorized to borrow such
the uses of this company and execute In
behalf of this company note or notes
for the amounts so borrowed.
1.-THE investigation showed that in all,
practically, the great transactions OF TINS
company Mr.. Hartman, as chairman OF
the executive committee, acted upon his
own initiative, and his acts were subse-
quently ratified and approved by the ex-
evutive committee. 1t may fairly be said,
therefore, that the policies and purposes
of the Union Pacific have been those of
Mr.. Hartman.
Mr.. Hartman may journey by steam
shin from New York to New Orleans
thence by rail to San Francisco, across
the Pacific ocean to China and returning
by another route to the United States
may go to Ogden by any one Of three
rail lines, and thence to Kansas City or
Omaha, without leaving the deck or plat
form of a carrier which he controls, and
without duplicating any part Of his jour-
ney.
Controls Illinois Central
'He has further what appears to be a
dominating control in the Illinois Central
railroad, running directly north from the
Gulf of Mexico to the Great Lakes. par
alleling the Mississippi river and 1000
miles west Of the Illinois Central he con-
trolls the only line of rallroad parn!!elirg
the Pacific coast and rCnring from the
e. lumb.a river to the Mexican border.
"Within n year his sphere Of ind 'sncc
has extended eastward; the Union Pacific
and Oregon Short Line have acqi,:ed
1852 PEI cent of the stock of tn, La.t,-
more e. Ohio az a cost of S45, 46G, 9G0 and
have inves ed 1924 in New York Cc'i-
trail & Hudson River stock.
THAT it is only the law which prevents
the concentration into Mr.. Harriman's
hands of every railroad line lying between
Canada and Mexico is toe frank admis-
sion of Mr.. Hartman himself. made at
the hearing.
ITO gather under one head all existing
transcontinental lines, or as many as
possible and to exclude the incoming of
all competitors became manifestly the
Hartman policy, which was inaugurated
in 1901 by the issuance of S100O00,0OO of
convertible bonds by the Union Pacific.
"With the proceeds OF these bonds the
Union Pacific purchased control of the
Southern Pacific company and a majority
of the outstanding stock of the Northern
Pacific Railroad company, which later
incidentally carried with 1t control of
one-half of the stock of the Chicago,
Burlington & Quincy Railroad company,
the stock of which has been purchased
Jointly by the Northern Pacific and Great
Northern companies, and their collateral
bonds issued therefor.
Absolute Mastery
Possession of these lines would have
given to the Union Pacific absolute mas
terry over every avenue leading to the
Pacific coast within the United States
on the northern border of the country
and that offered by the Santa Fe on the
southern. This plan, If executed would
have subjected to a common will and
policy nearly one-half of the territory
of the United States-a comparatively un-
developed, rapidly growing and extremely
rich territory into which must necessarily
extend the population and business OF
the eastern states.
at has been, however, no part of the
Hartman policy to permit the properties
which were brought under the Union
Pacific control to degenerate and decline;
as railroads they are better property to-
day, with lower grades straighter tracks
and more ample equipment than they
were when they came under that control.
Large sums have been generously ex-
pended in the carrying on of engineering
works and betterments, which make for
the Improvement of the service and per-
manent value of the property.
1.-THE control of the Northern Pacific
and the Burlington by the Union Pacific
was prevented eventually by the decision
of the supreme court of the United States
in the case of Hartman versus the North
ern Securities company, in what that
court held that it would be in violation of
the Sherman act for the Union Pacific to
control those railways, as they were COM
peting lines. The Southern Pacific re-
mains within the control of the Union
Pacific.
Union Pacific Acquisitions
"All of it's acquisitions of stock control
in other railroads, the Union Pacific has
either purchased the stocks directly itself
or through the Oregon Short Line Rail-
road company which it owns and controls
and which for the purposes of this report
will be considered as the Union Pacific
"In the year 1901 the Union Pacific ac-
quired 100000 shares out of a.. total OF
1.97S492 shares of Southern Pacific stock
and subsequently acquiring 10000 shares
making a total of 100000 shares or 454E
per cent of the total stock issue Of the
Southern Pacific company.
Thereafter when the preferred stock
of the Southern Pacific was issued the
Union Pacific subscribed for its proper
ton, to wit: 100000 shares out of total
of 396,6SS shares; so that at the present
time the Union Pacific owns 1,0SO,0O
shares out of toa1 of 2,3741S shares
The Southern Pacific company is g
holding corporation. 1t was organized I'M
DER special charter of the state of Ken
lucky in 1884 and was authorized to ac-
qulre by purchase or otherwise the stocks
bonds and securities of railway an6
steamship companies. Shortly after Its
organization 1t acquired the stocks of anc
controlled and still does own the stock
of and control a system of railroad ex.
tending from Ogden, Utah-where it con.
meets with the Union Pacific-to Sar
Francisco; from San Francisco to Port
land. and from San Francisco through
California Arizona. New Mexico Texa.
and Louisiana to New Orleans; and ha,
since acquired line of railroad into Mex,
leo.
Owns Steamships
at also owns and controls a line Of
steamships from Galveston and from New
Orleans to New York and Havana. 1t is
unnecessary to detail each separate rail.
way corporation owning the sections Of
the various lines in these states; ID Is
sufficient to say that through stocks II
controls the entire Southern Pacific sys.
tenn commonly known as the Sunset