The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1907-05-17

Recommend, New ana EncctlVe Laws
to Prevent Initiation of Securities
Railroad Competition Suppressed in
an Area Equal to One-third of the
United States-COmmission Confcrs
on Report. :.
New York, May ia portion of
Lhe recommendations of Attorneys
Frank B. Kellogg and c. A. Sever
ance to the interstate commerce
commission concerning the Hartman
railroad investigation has been pub
lished here 1t reviews the testimony
and holds that RAILROAD competition
has been suppressed in an area equal
to one-third of the United States, the
contracts between the Union Pacific
and Rock leland for the control OF the
Alton Railway, as we'll as the con-
tracts between the Union Pacific and
the Southern Pacific and the steps
Central and the San Pedro road, are
all in violation of the Sherman anti
arust act 1t recommends that the
attorney general institute proceedings
to annt the agreements. 1t also re-
commends that there should be new
ana effective laws to prevent infa-
tion of securities and declares that
the profits of the great railroads of
the far west are being used to buy
stocks and control systems in the
east instead of building more roads
for the development Of the west as
they should be.
Union Pacific was the storm cente"
of an attack by traders on the stock
exchange today on the appearance of
the report Of counsel for the inter-
state commerce commission. Union
Pacific stock slumped nearly four
points before support was forthcoming
and the whole list became weak and
unsettled on the news and declined
a point on the average. Southern
Pacific fell off a point but steadied
with good buying. All railroads hold
ing stock control of other lines were
adversely affected by the news, prin-
cipally Pennsylvania which became
weak. After the first shock of the
news had passed the market became
steady at the decline.
Washington, May 15.-Therecom-
mendations of Messrs. Kellogg and
Severance in regard to the Hartman
railroads are not yet accepted and
confirmed by the interstate commerce
| commission so that they stand at pres
ent merely as recommendation to the
commission and not the report of the
commission itself.
The members of the commission con
ferred for an hour this afternoon over
the report from New York that the
| recommendation of Frank B. hel-
| logg and c. A Severance had been
made public and then authorized the
following statement:
"The commission has not prepared
a report in the so-called Hartman
case nor has it yet decided any Of the
| questions involved in the inquiry
| The whole matter is still under con'
| sideration and some phases of it are
being further investigated.
ut may be the brief Of memor-
anda submitted By counsel have be.
come known in some quarters and the
mistaken inference drawn therefore
that the commission las agreed upon
a report"
It is likely that as soon as the com
mission shall have determined On ;
line of procedure, provided the de
cision should be to institute proceed
ings against Mr.. Hartman and other:
ALL the facts in the case will be sub
mitted to the department OF justic'
for such action as it may conside
nroDer. 1t is scarcely likely that il
| its letter of transmittal of the evi
dence to the department OF justice tn
commission would suggest what actor
should be taken by the department
containing itself merely with state
mont of facts. 1t v>uld then be 10
the deoartnent OF justice to determin
what the method of procedure shoui
ibe.