Omaha daily bee., 1907-07-14
REPORT ON HARTMAN
Union Pacific Ownership of Railroads
Analysed by Commissioner.
WIDE SCOPE OF INFLUENCE
Monopoly of West Alleged object Of
Many Deals.
HEAD OF CONCERN ABSOLUTE
Directors Place All Power in Harri-
mans Hands.
HEAD OF CONCERN ABSOLUTE
ROADS ARE WELL MAINTAINED
PhyEicRI Conditions of Lines better
Than when Hartman Took Com
troll, but Financial Methods
Are Disliked.

troll but Financial Methods
Are DisIiLed.
! WASHINGTON, July 1S-The lnterstats
Commerce commission has made public its
report on the Hartman inquiry. The report
of the commission Is made by Comms-
sloner Lane, 1t opens by stating that the
investigation was made by the commission
on its own initiative and gives the places
whore hearings were held. The report then
says;
within three years after the reorganza-
ton Of the Union Pacific Railroad COM
| pany In 1897 Mr.. Edward II. Hartman be-
came the dominating spirit In that corpora
/ tion. As chairman of the executive COM
mittee he exercises powers that are we'll
nigh absolute. The directors have delegated
their power to manage and direct all the
business and affairs of the company to
an executive committee of 1ve members,
who shall act in such manner such
committee shall deem best for the COM
panys interest in all cases in which 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 II is not In ses-
sion. Accordingly we find that in 1902 Mr..
Hartman was authorized to borrow such
sums of money as may be required for the
use of this company, and to execute in
the name and on behalf of this company
n note or notes for the amounts so bor-
rowed.' The investigation showed that in
practically all the great transactions of
this company Mr.. Hartman, as chairman
of the executive committee, acted upon
his own initiative. and his acts were sub
sequently ratified and approved by the ex-
therefore, that the policies and purposes
of the Union Pacific have been those of
Mr.. Hartman.
what Hartman Bought.
when the Union Pacific was reorganized
It owned 1S22.59 miles OF railroad, extending
from Council Bluffs. Ia, to Ogden Utah.
from Julesburg to Denver, from Denver to
Cheyenne, from Kansas City to Denver
formerly known as the Kansas Pacilc).
and various branches extending into the
territory on each side of those main lines
Previous to reorganization the old conn
pany had control through stock ownership.
of the Oregon Short Line and Utah North
ern railway and the Oregon Railroad and
Navigation company. These companies
were also reorganized and shortly after the
foreclosure sale the Union Pacific Railroad
company acquired by stock ownership the
control of these companies. and has since
acquired substantially all their stock. The
Oregon Short Line owns the lines OF rail-
way from Granger, Wyo., on the Union
Pacific to Huntington, Ore, and from Salt
Lake City to Butte Mont. The Oregon
Railroad and Navigation company owns
the lines from Huntington, Ore, TO Port
land, Ore, together with n number of
important branch lines in the states Of
Washington, Idaho and Oregon. Prior to
the acquisition OF the control OF the South
ern Pacific by the Union Pacific the oregon
Railroad and Navigation company also
owned and oneprated a line Of steamers
from Portland to San Francisco and
line OF steamers from Portland to japanese
and Chinese ports. The Union Pacific also
owned one-half the stock of the Occidental
and Oriental Steamship company, which
owned and operated line OF steamers ply
ing between San Francisco and oriental
ports.
Expansion of Union PRcifc Control.
with these properties as a nucleus, and
with the credit based on these assets, the
Union Pacific has In the past six years so
grown in power and influence that at this
time It controls every line OF railroad reach
ing the Pacific coast between Portland on
the north and the Mexican border on the
south-a distance great as that from
Maine to Florids-excepting alone the Santa
Fe line, in which It has large stock in
terests; and of his ability to take this
road at any time the law will permit Mr..
Hartman expresses no doubt, Among the
lines thus brought under the same control,
in addition to the Union Pacific, Oregon
, Railroad and Navagtion company. and Ore
/. gon Short Line, there:
'The San Pedro line. running from Salt
Lake City, through Los Angeles to San
Pedro harbor, on the Pacific coast, pro-
, jected and begun by Senator Clark as an
independent line, which Mr.. Hartman
stopped and absorbed
, IAN the lines OF the Southern Pacific
: company "a holding corporation). includ-
ing:
''The Southern Pacihc Sunset route run
: ming by two routes from San Francisco TO
Los Angeles and thence through Arizona,
D New Mexico Texas and Louisiana 10 New
Orleans. with many extensive branches.
"The Central Pacific Ogden route, run
ming from ogden to San Francisco and from
6 rRoseville (near sacramento) to tho Ore
E gon state line, with several branches.
: "The Oregon g. California railroad, run
. ming from Portland TO the California state
line which, with the Central Paoiic's
70 Francisco.
I Monopoly I'm Steamships.
e 'In addition, the Union Pacific controls
e every regular line OF trans-paoihc steam
ships operated out Of the Pacific coast ports
south OF Puget Sound; also the Pacific
Z mail line plying between San Francisco
and Panama. and the Morgan line Of
!, freight and passenger carriers. operated
between New York City, Havana, New
Orleans. and Galveston.
"Mr Hartman may journey by steam
! ship from New York to New Orleans.
= thence by rail to San Francisco. across the
g Pacific Ocean 90 China, and. returning by
= another route to the United States, may
3 go 10 ogden by any one OF three rail lines,
Il and thence TO Kansas city or Omaha. with
n out leaving the deck OF platform OF car
r rier which he controls, and without dupli-
! eating any part OF his Journey.
q HE has further what appears TO be a
dominating control In the Illinois Central