The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-07-14
DELAYED REPORT
IS SUBMITTED
Continued from Page /.

Continued from PAGE I.
ton including branches and feeders.
Its surplus funds, says the report,
should be used for the betterment of its
lines and in extensions.
In conclusion the report says:
competition between railways as
Wen as between other industries is the
established policy of the nation. And
while the acquisition of small minor
1ty stock of competing lines might not
decrease the competition. yet the ac-
QUESTION of any considerable amount of
stock, with representation on the board
of directors OF such railway unques-
tionably has the effect Of diminishing
competition and lessening to the ex-
tent its effectiveness. The time has
come when some reasonable regulation
should be imposed upon the issuance
OF. securities by railroads engaged in
interstate commerce.
In the opinion of the commission,
regulation will tend to make securities
safer and more secure for investments
and therefore of benefit not only to
the railroads, but to the public.
The Report
Within three years after the reorgani-
zdtlon OF the Union Pacific Railroad COM
pahy IN 1877, Mr. Edward II. Hartman
became the dominating spirit in that cor
poratlon- As chairman of the executive
committee he exercises powers that are
well nigh absolute. The directors have
delegated their power to manage and di-
rect all the business and affairs of the
company To an executive committee of
i've members, who shall act in such man
ner as such committee shall deem best
lOr the company 5 interest in all cases in
winch specific directions shall not have
been given by the board and in turn the
chairman of the executive committee is
authorized TO represent that body when il
II not III session. Accordingly We find
that in 1902 Mr.. Hartman was 'authOr-
lzed TO borrow such sums of money as
may be required for the uses of this com
fany, and to execute in the name and on
behalf of this company a note or notes
Ior the amounts so borrowed The in
NeStlgatlOn sh owed that in practically all
the great transactions of this company
Mr. Harrlmal, as chairman of the eX-
ecutlVe committee, acted upon his own in
luauVe and his acts were subsequently,
ratified and approved by the executive
committee. It may fairly be said there
lore that the policies and purposes of
me Union Pacific have been those of Mr..
Hartman.
Controls Great Highways.
Mr.; Hartman may journey by steam
snip from New York to New Orleans
thence by rail to San Francisco across
the Pacific ocean to China and returning
by another route TO the United States
may go to Ogden by any one of three rail
lines, and thence to Kansas City or Oma-
Ia, without leaving the deck or platform
Of carrier which he controls and with
out duplicating any part of his journey.
lie mas further what appears to be
dominating control in the Illinois Central
railroad running directly north from the
GuiI OF Mexico to the Great Lakes par
alleling the Mississippi river; and 1000
miles west OF the Illinois Central he con
trolls the only line of railroad paralleling
me racine coast and running from the
Columbia river to the Mexican border
u 80
has extended eastward; the Union Pacific
and oregon Short Line have acquired 1852
per cent of the stock of the Baltimore &
Ohio at a cost of $i54S $50 and have in
vested S19 634. 324 in New York Central and
Hudson River stock.
Prevented Only by Law.
That it is only the law which prevents
the concentration into Mr.. Harriman's
hands of every railroad line lying between
Canada and Mexico is the frank admiS-
sion of Mr.. Hartman himself at the hear
ing. To get under one head all existing
IranSCOntinental lines. or many as pos
sible, and to exclude the incoming of all
competitors became manlfesty the Har-
riman policy, which was inaugurated in
1901 by the issuance of 100000, 900 Of con-
VeTtible bonds by the Union Pacific. With
the proceeds of these bonds the Union
Pacific purchased control of the Southern
Pacific company and a majority of the
outstanding stock of the Northern Pacific
railroad company, which later incidentally
carried with il control of One-half of the
stock of the Chicago, Burlington x Quin-
cy Railway company, the stock of which
had been purchased Jointly by the North
ern Pacific and Great Northern cOmpd-
MES and their collateral trust bonds is
sued therefor Possession of these lines
would have given TO the Union Pacific alb
sOlute mastery over every avenue leading
to the Pacific coast within the United
States save that afforded by the Great
Northern on the northern boundary of
the country and that offered by the San
Ia Fe on the southern This plan, If eX-
ecuted. would have subjected to a COM
mon Will and policy nearly One-half of
the territory of the United StateS-a COM
paratiVeiy undeVelOped rapidly growing
and extremely rich territory into which
must necessarily extend the population
and business Of the eastern states.
Roads Much Improved.
1T has been, however, no part of the
Hartman policy to permit the properties
which We're brought under the Union Pa
cafic control to degenerate and decline; as
railroads they are better property to-
day, with lower grades. straighter tracks !
and more ample equipment than they /
We're when they came under that con- |
troll. Large sums have been generously /
expended in the carrying on of engineer /
for the Improvement of the service, and /
permanent value Of the property. :
The control of the Northern Pacific |
and the Burlington by the Union Pacific l
=
of the supreme court of the United States /
in the case of Hartman versus Northern I
Securities company, in which that court |
held that il would be in violation of the |
Sherman act for the Union Pacific to con-
troll those railways, as they were COM
peting lines. The Southern Pacific re-
mains within the control Of the Union
Pacific.
In all of its acquisition of stock control /
in other railroads, the Union Pacific has
either purchased the stocks directly it.
self or through the Oregon Short Line
Railroad company, which it owns and con-
trolls. and which for the purposes OF this
report will be considered as the Union Pa
cific In the year 1901 the Union Pacific
acquired 10000 shares out of a total of
/ 97S 4g2 shares of Southern Pacific stock. !
and subsequently acquired 10000 shares.
making a total of 10000 shares, or 45.l
per cent of the total stock issue of the
Southern Pacific. Thereafter, when the
preferred stock of the Southern Pacific
was issued, the Union Pacific subscribed
for its proportion. towit, 10000 shares out
of a total of 3q5. 6SS shares; so that at the