The Washington times., 1907-05-15
Remarkable Manipulation.

Attorneys Frank B. Kellogg and
Charles A. Severance, who wrote the
report for the commission. find that
the Hartman reorganization Of the
Alton was -one of the most remark
able cases of manipulation and STOCK
watering ever known" and they de-
mand that laws be passed which
shall stop such practices in future.
The report concludes that Harri-
man now has absolute control of
the Illinois Central. and that he Is
so powerful in the Santa Fe that he
has been able 10 stop all ccmpeti-
tion between II and his roads.
1t is declared that the combina-
tion of the Union and Southern Pa
eiic systems has been 50 powerful
as not only to suppress all compe-
tion, but To prevent the building Of
the San Pedro road, from Salt Lake
TO Los Angeles, as an independent
line The independent railroad in
the great empire dominated by Har-
riman is found to be impossible.
The report OF the commission, to-
gether with a complete transcript of
the many hundreds of pages Of tes-
timony taken in the hearings. viii
be sent TO Attorney General Bona
parte in a few days. 1t is felt by
the commission that the record is
a very complete and satisfactory
one for use in any legal proceedings
that may be instituted.
Series Of Suits Now.
In view OF the weII-known attitude Of
the Administration toward the Harri-
man combination. no doubt is enter
tanned that a series Of great suits will
be instituted in the immediate future 10
dissolve the different agreements. con-
tracts, and stock-holding agreements by
which the Union Pacific holds control
OF many of its properties.
There viii be one action TO compel the
Union Pacific to dispose Of its holdings
of a majority Of The stock Of the South
ern Pacific.
the contract between the Union Pacific
and the Chicago and Alton. under which
the Union Pacific and Rock Island are
guaranteed control Of the Alton in al
tentative years and by which the com
petition Of the Alton with the Rock
Island on the one hand and the Illinois
Central on the other is suppressed.
Ihere VIII be a prosecution because of
the contract between the Union Pacific
system and the San Pedro. Los Angeles.
ana salt Lake road. by which thew
agreed not 70 compete and not TO eX-
tend their lines into one anOther's terri
tory.
There will be a prosecution. II any
Federal law can be found under which
10 bring IL. on account Of the reorgani-
zauon and capital imitation Of the Chi
cago and Alton.
Story Of Harriman's Control.
In its report the commission tells
briefly the story of the Union Pacffc's
reorganization, and the establishment of
control; OF its acquisition
from the Huntington estate OF control
Of the Southern Pacific: Of the elinin-
alton of competition between these two
roads 1t is declared that these two
systems are naturally and inevitably
competitors for a vast traffic between
East and West. and TO the Orient. ana
hat their joint control by one interest
IS violation of the sherman law.
Prior 10 the passage of the intersrafe
commerce law they belonged 20 me
pool. IN which esch
-oad was awarded a fixed percentages of
he traffic.
His Dummy Directors.
Under the Union Pacific organization
ne report points out the majority of
directors IN each Of these companies
has also constituted the majority in the
'ther- Mr. Hartman has been presi- !
lent and chairman Of the board in each:
ina as chairman he has been delegated
III powers OF the board when II was not
session. He IS absolute IN hnth