Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-07-15

,rto railroad operations OF Edward n:
Hartman and OF the operations of the
so-called Hartman lines Of railway,
which has been in progress for several
months The report, which was writ
ten by Commissioner Franklin X. Lane,
Is the unanimous expression of the
commission. The report has been trans
mittcd to President Roosevelt and the
department of justice.
1t Is expected by the commission that
IL will be determined by the president
and Atty. Gen. Bonaparte from the
statements set out In the report wheth-
ar the government Will institute any
sort of proceedings against Mr.,
Hartman or the corporations Involved
I'm the inquiry. No recommendation
are made by the commission as TO
whether criminal or civil prosecutions
be Instituted as a result of It's inquiry
The report is an exhaustive summa-
rs OF the evidence adduced at the sew
etal hearings held by the commission
In the courts of Its inquiry. 1t enters
fully into a discussion of the policy
pursued by Mr.. Hartman in obtaining
control of the various lines OF railway
in the Hartman system and presents
a fairly complete history OF the operas
tions of the various lines. Excerpts
from the verbatim testimony of Mr.
Hartman are given to show, as stated
IN the report, that II is only the law
which prevents the concentrating in
Nj Harrimans hands of every railroad
line lying between Canada and Mexico"
as the frank admission of Mr.. Harrl-
man himself made at the hearing. The
report also says:
ITO gather under one head all exist
ing transcontinental lines or as many
ms possible, and to exclude the incom-
ing of all competitors became mani-
testify the Hartman policy which was
inaugurated in 1901 by the issuance of
S1000O0000 of convertible bonds by the
Union Pacific"
Mr.. Harriman's eventual control Of
many Of the competing transcontinental
lines was prevented. it is pointed out,
by the supreme courts decision in the
Northern Securities case. 1t is shown
by the reports that ii has not been the
Hartman policy TO permit the proper
ties brought under Union Pacific con-
troll to decline, as In every case they
are better today than they were when
Mr., Hartman acquired them.
Particular stress IL laid by the COM
mission on the elimination OF compete
ton in trapscontinental business
among the Hartman lines, and the
matter of large significance developed
IN its inquiry,
Specia! reference Is made to the deal
by which Mr. Hartman secured con-
troll OF the San Pedro road and the
manipulation of the Chicago & Alton, a
very careful synopsis of the financial
operations In both instances being
given. Concerning the Chicago & Alton
transaction the commission says:
ut was admitted by Mr.. Hartman
that there was about 100000, 900 OF
stock and liabilities issued against
which no property had been acquired.
and this is undoubtedly an accurate
estimate"
The commission further says con
corning the Alton deal that lit Is evil
dent that its history is rich in illus
tiations OF various methods of indie
fensibe financing"
COMMISSIONS CONCLUSIONS.
In its conclusions the commission
says:
"The effect of the control of the
southern Pacific by the Union Pacific
has been to unity and amalgamate the
management of these two roads and
steamship lines and to eliminate COM
petition between them in transcontin-
entail business and in business to and
from oriental ports.
THE joint control of the Alton rail-
way'by the Union Pacific and the Chi
cago. Rock Island & Pacific Railway
companies undoubtedly eliminated
competition between the Alton and
the Rock Island between Chicago,
ST. Louis and Kansas City.
"rhese are conspicuous illustrations
Of the community of interest and har-
mony of management which Mr..
Hartman suggested when he demand
ttl aTFD 10
board.
IF the policy OF purchasing and
controlling stock in competing lines Is
permitted to continue 1t must mean
suppression of competition"
CONCENTRATIONS.
The recommendations of the COM
mission, which are more general than
specific In terms and application, say
that the function OF railroad cOrpor-
alton should be confined TO the fur
nishing OF transportation and that
railways should not be permitted TO
invest generally In the securities or
other railway and steamship COM
panies except connecting lines FOR the
purpose of forming through routes OF
transportation including branches ana
feeders It's surplus funds. says the
report should be used for the bet
terment OF It's lines and In extensions.
COMPETITION THE POLICY.
In conclusion the report says;
Competition between railways as
well az between other industries Is
the established policy of the nation.
And while the acquisition of small
minority stock OF competing lines
might not decrease the competition,
Yet the acquisition OF any considerable
umount OF stock, with representation
ON the bonrd OF directors Of such
railway unquestiOnably mas the effect
OF diminishing competition and les
sonlng 10 that extont It, effectiveness
The time has come when some rea-
sonuble regulation should be imposed
upon the Issuance OF securities by
railroads engaged in Interstate CONF
merce
In the opinion Of the commission,
regulation win tend To make SECURITIES
safer ana more secure for iny6tments
and therefore OF benefit not only 10
the railroads, but TO the public.
HARTMAN DOMINATING SPIRIT.
within three years after the re-
organization of the Union Pacific rail-
road company In 1897 Mr. Edward ~.
Hartman became the dominating spirit
IN that corporation. As chairman ~
tne executive committee he exercises
powers that are Well nigh absolute Tho
directors have delegated their power 10
manage and direct all the business and
hnairs ~ the company 10 an executive
rimmittee Of five members, VINO shnll
act IN such manner as such committee
shall deem hest for the comDanys IN
tt. al Ia IA