Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-05-16
The Hartman Merger.

The country at large is in a mood to ac-
cept without question or bubble the find
ings of Messrs Kellogg and Severance Just
laid before the interstate commerce COM
mission as a result Of their recent INQUIRY
Into the Hartman railroad maneuvers and
transactions. There may be points of law
which will require calculation and there
may be questions of expedieney as to the
adoption of the recommendations in their
entirety. But In the main the propositions
which the special attorneys have embod-
led tn their report are of character to
define the modern methods of railroad
financing in terms which exactly meet the
public idea of what has been done and what
should be done to checkmate this process
The main points of these findings are OF
far-reaching import. They are:
That railroad competition has been abb
solutely ended in an area equal to one-third
or the United States in which Mr.. Harri-
man Is absolute master.
That Mr.. Harriman's contracts with the
Rock Island, Southern Pacific Santa Fe,
Illinois Central and San Pedro railroads
are In violation of the antitrust act. and
counsel is in favor Of proceedings against
them by the government.
That the purchase of the shares Of one
railroad by another is an evil practice that
should be stopped by law.
eneCI1ve
laws to prevent imitation of securities like
that of the Alton reorganization.
That the profits Of the great railroads Of
the far west are being used to buy and
control railroads in the east. instead of
building more roads for the development Of
the west
The Supreme Court OF the United States
has already held. In the Northern ISecuri-
ties merger case, that it is unlawful for
-
be united under single management.
There is, however. no law prohibiting the
purchase by one railway corporation of
stock in another system which lies beyond
Its immediate area of activity. 1t calls for
no great degree of credulity to conceive the
condition of gradual absorption of CON
trolls" by means of stock purchases which
enable single corporation to exercise a
dominating influence not only within its i'm
mediate field but throughout the entire
area of the United States. How to pre-
vent such an overgrowth is the most press
ing problem now before the administration
OF actual law violation the special counsel
have found evidence in the transactions
which have, in their words caused the
absolute cessation Of railroad competition
In an area equal to one-third Of the United
States. in which one man is absolute mas
ter. II this is true. and If the case falls
under the. scope Of the existing statutes
prohibiting the formation of competition
killing trusts and combinations, there re-
mains for the government no less than a
direct onset against the corporations or in
dividuals guilty of this operation. 1t may
be that the whole thing has been 30
shrewdly done that 1t lies just beyond the
exact letter Of the law. This may be
doubted. Mr.. Hartman and his associates
have unquestionably had the benefit Of the
most capable legal advice. but the special
counsel employed by the commission evil
IDENTIFY see their way clear to successful
prosecution. and If the circumstances are
as they have stated-and the facts are
notorious vigorous prosecution Of those
guilty of these proceedings should be insti-
tuted Immediately. The country will up
hold the administration in it's course.