The San Francisco call., 1907-01-05
Interstate Commission In
vestigates Methods of
Mammoth Consultations
HARTMAN LINES
TAKEN UP FIRST
Blanket Ownership and
Traffic Agreements Shown
at First Days Proceedings


fnG the principle of community of In
terest were Investigated here today Mt
great length by the Interstate Com
merce Commission, which began nm
inquiry into the so-caIled chairman
! lines" The commission goes next week
to Chicago. Several other cities may
be visited before all the desired testi-
mony is in the hands of the Govern
ment's representatives, whose object Is
to determine whether any of the rail-
roads of the country are consolidated
or combined I'm restraint OF trade.
At today's hearing 1t was brought
out and admitted thnt the Union Pa
ciic Railway Company, the Southern
Pacific Company. the Oregon Short
Line and the Oregon Railroad and Nav
igation Company were practically un-
der the same administration, Hartman
appearing as president of each COM
pany, with only slight variations In
the lists OF other officers.
ITS TENTACLEs REACH FAR
1t was further shown that the South
ern Pacific Company owned the Pacific
Mail Steamship Company: that the
Southern Pacific and Union Pacific to-
gether held a majority OF the stock of
the Occidental and Oriental Steamship
Company. and that Hartman inter-
ests controlled the Portland and
Asiatic Steamship Company. 1t was
shown that the Occidental was IN
liquidation, but still operated two
steamers. On the Atlantic Coast it
was shown that the Southern Pacific
owned the line of steamers running
between New York and New Orleans
known as the Morgan line.
The Union Pacific. through an agree
ment signed by Hartman and Senator
William A. Clark. had traffic ar
rangement with the San Pedro, Los
-
ing ninety-nine years This agreement
was entered into In 1903, and by Its
terms the San Pedro cannot raise or
lower it's 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
agreement is that the Union Pacific
shall have charge of the road one
year and the Rock Island the next
This agreement, entered into by Har-
riman and w. B. Leeds. extends for a
period of ten years from 1904.
The Union Pacific owns s2S.123.100
worth of stock, or 1883 per cent of
the capitalization of the Illinois Cen
trail Railroad.
The Union Pacific also owns s5.0S2.-
| 500 worth OF stock of the st. Joseph
and Grand Island Railroad. which is
3737 per cent Of the whole.
| The Oregon Short Line owns $3s. 540,-
500 worth of stock in the Baltimore
and Ohio Railroad, this being 1852 per
cent OF the whole.
OF Chicago. Milwaukee and ST. Paul
stock, the Oregon Short Line owns s3,-
| $50, 900 worth, or 3.42 per cent. This
| latter company owns also s2,572 600, or
| 25S per cent, OF the stock of the chi
cago and Northwestern; sl0,000.000 OF
| the preferred stock of the Atchison.
\ hnf ~
cent. and s14.2S5.745. or 7.97 per cent. OF
/ the capital stock of the New York Gem
! trail and Hudson River Railroad
WHENCE CAME THE COIN
OF these holdings by the Hartman
| companies the stocks OF the Illinois
Central, Baltimore and Ohio, New York
Central Chicago and Northwestern.
Chicago, Milwaukee and st. Paul, Atch-
| ison, Topeka and Santa Fe and St
Joseph and Grand Island. aggregating
in value $103,293,745. have all been
bought since July 1, 1906.
Where did the money come from?"
asked members Of the commission.
In reply It was stated that the Union
Pacific showed last July a surplus of
s51 ,000,0O0 The Oregon Short Line de-
clared dividend of so per cent o. its
/ stock held by the Union Pacific. and
| also contributed out of its general as
| sets to the purchase money.
After presenting evidence as to the
ownership of the so-called Hartman
| lines,r counsel for the commission had
! Alexander Millar, secretary OF the Har-
/ riman Company called. He read from
the minutes of many Union Pacific ex-
ecutive committee meetings in which
| it was shown that Hartman reported
various things he had done and the
! committee simply voted to ratify and
confirm his actions. 1t was also shown
that Hartman had authority TO borrow
money for the Union Pacific Company
without restriction
HARTMAN TO GOULD
There was read from the minutes a
| Gould, acknowledging Gould's letter, in
which the latter told Hartman he had
determined to support the construction
/ of the Western Pacific Railway. Har-
riman told Gould he would decline to
| qualify as a director Of the Rio Grande
Western. as he did not wish to be in
any way responsible for the attitude
of that company toward the Western
4 Pacific.
.'The era of prosperity through which
we are passing" wrote Hartman TO
Gould. has been marked by less con-
struction OF destructive, competitive
and non-producing lines OF transporta-
tfon than any former one: but there has
been great expenditure in providing for
improvements and additional facilities
! to the already existing lines, thereby
/ better conserving the interests Of the
public and the shareholders az we'll For
myself / shall regret the loss Of your
advice, which / have valued In our af-
fairs. as well as the personal pleasure
| of having you included in them"
| Gould had resigned from the Union