Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1907-01-05
Ihe Interstate Commerce Commission S
Continued Researches -
President With Unrestricted Authority Of Several
Roads Which In Turn Are Heavy Stockholders In
Many other Companies. =.

New York. Jan. S-Medern methods
of combining and consolidating NAM
9th railroad systems ana extending the
principle of community of interest
were Investigated here today at great
length by the interstate commerce COM
mission which began an inquiry into
the so-called Hartman lines"
The commission goes next week TO
Chicago. Several other cities may be
visited before all the desired testimony
is In the hands OF the government
representatives whose object is to de-
termine whether any railroads of the
country are consolidated. or combined
in restraint of trade. At today's hearing
il was brought out and admitted that
the Union Pacific Railroad company.
the Southern Pacific company, the Ore
gon Short Line and the Oregon Rail-
road and Navigation company are
practically under the same adniinistra-
ton, Mr.. Hartman appearing as pres
luent of each company with slight var
iations in the list of officers.
1t was shown the Southern Pacific
owns the Pacific Mail Steamship COM
pany and that the Southern Pacific and
Hartman interests control the Port
land and Asiatic steamship company.
II was shown that the Occidental is in
steamers.
On the Atlantic coast it was shown
that the Southern Pacific owns a line OF
steamers running between New York
and New Orleans known as the Morgan
Line. The Union Pacific by means G:
an agreement signed by Mr.. Hartman
and Senator VIM. a. Clark. has traffic
arrangement with the San Pedro. Los
Angeles and Salt Lake Railroad COM
pany lasting SO years. The agreement
was entered into in 1903 and by its
terms the San Pedro cannot raise or
lower rates without the consent of the
Southern Pacific.
The Union Pacific exercises joint
control with the Rock island over the
Chicago and Alton railroad, The
Union Pacific owns 1858 per cent of
the capitalization of the Illinois Cen
tral and owns stock OF the st. Joseph
and Grand Island amounting to 37.35
per cent.
The Oregon Short Line owns stock
in the Baltimore and Ohio amounting
to 1852 per cent. OF the Chicago. Mil
waukee and St. Paul, the Oregon Short
Line owns 342 per cent. The company
also owns 2.5S per cent of the stock
of the Chicago and Northwestern; OF
the preferred stock Of the Atchison
Topeka and Santa Fe 4-2s per cent and
T.97 per cent of the New York Central
OF these holdings by the Hartman
companies. the stocks of the Illinois
Central. the Baltimore and Ohio. the
New York Central. the Chicago North
western. the Chicago, Milwaukee and
st. Paul, the AtchisOn Topeka and
Santa Fe and the st. Joseph a nd Grand
Island. aggregating in value to S1O3.
293,745, were all bought since July 1
1906.
Where did the money come from
asked a member of the commission. In
reply it was stated that the UnIen
Pacific showed last July a surplus OF
S51. .OO0. 900. The Oregon Short Line de
clared a divident of so per cent on the
stock held by the Union Pacific and
also contributed out of its general as
sets to the purchase money. Alex,
Millar, secretary of the Hartman COM
pany. read from the minutes of the
many Union Pacific executive commit
tee meetings in which IT was shown
Mr.. Hartman reported various things
he had done and the com mittee simply
voted to ratify and confirm his ac-
tions 1t was shown that Mr.. Har-
riman was given autho ity TO borrow
money for the Union Plcihc company
without restriction.
Mr. Miller was instr dcted to bring
before the commission tomorrow a
statement prepared for the directors OF
the Union Pacific. anC on which they
declared the dividend last August. He
agreed. Mr. Miller was directed to
prepare a statement showing the cost
of stocks, the amount received from
sales and the value of shares still on
hand.
Commissioner Lane asked if profits
had been made by the Union Pacific in
any stock transactions.
81 can't rccalI' said Mr.. Miller. "if
there were any they were probably
small"
What was done with the profits ?''
''They are subject to the order of the
board of directors
when YOU take Union Pacific mon
ey, invest it in stocks and make =
profit that profit is held subject to
the pleasure Of Ehe directors"
Il think So"
AS matter OF fact. did not Union
Pacific buy the Alton and other shares
out Of the profits derived from tho
sales OF North ern Pacific and other
stocks of that grOuD?"
From those and possibly others"
Have you any entry of the books
that woul1 show 80
4 believe not