Waterbury evening Democrat., 1907-11-14
ALLY 0F HARTMAN.
Ex-Senatos Spooner Fights to
 Keep Magnate's Lips Sealed.
HE OPPOSES FEDERAL SUIT.
Question of Making the Railway Poten.
 tate Answer Interstate Commerce Commissions Queries to Be Decided Dec. 1-Judge Calls For Briefs. "

tate HHSwcT IntcTStdIc SotnincfSo
 Commissions Queries to Be Decided
 Dec. 1-Judge Calls For Briefs.
 New York, Nov 14.-E. H. Hartman will know on Dec. whether court is willing to sustain him in his refusal to answer questions put to him by the interstate commerce commission or whether he is in contempt of court through his refusal to answer.
 As summarized by Judge Hough aft CT listening to the argument before him in the United States circuit court, the main issue is, Must Mir. Hartman re- veal whether he made money by sell ing stocks to company of which he is director?
 The stand taken by Mir Harriman's counsel is that the questions he refus- ed to answer did not relate in any manner to interstate commerce, but were purely personal and impertinent. | and that, as congress itself could have taken no, action on the matters inQuir- ed into, the commission had no right to compel him to reply
 Spooner an Ally of Hartman.
 MT. Hartman, who did not person ally attend the court was represented before Judge Hough by John C. Spoon CT. formerly senator from Wisconsin,; John G. Milburn and Judge R. S. Lov- ett. Walter D. Hines appeared for Ot- to H. Kuhn of the firm of Kuhn. Loeb & Co.,, bankers, who had also refused to answer questions that he deemed of a personal nature The commissions arguments were made by United States District Attorney H. L. Stimson and Frank B. Kellogg of St. Paul.
 MT. Stimson began by explaining to Judge Hough how the Union Pacific railroad had purchased great blocks of stock in other roads, always, accord ing to MT. Harriman's testimony, for purposes of investment, not to control competing lines. Mr. Hartman, he said, had autocratic power and was the ego in the whole matter. He was fin a position to act for the board of directors of the Union Pacific and for the executive committee when they
 were not actually in session, relying
 on them to ratify his acts. He could
 borrow money on his own responsibili- tv. About S15O.OO0,000 was spent in what Mir. Stimson termed stock job bing transactions, sales having been | made in a rising market,
 Ruin to Other Railroads. . Congress has ample powers to in ouire into the financial operations of common carriers. Mir Stinson urged | that the information sought from MT . Hartman was essential in order to frame legislation which will prevent a repetition of such stock deals by rail ! roads. The effect of such operations in .. the stock market may be to ruin other . railroads by throwing general discred , it on American securities. Improper methods of the management of cer tain railroads is today an impeachment . in the path of progress of other rail ] roads.
 Under existing laws there can be nc . harmony of interests between compet .. ing lines. MT. Hartman admitted ] frankly that if the law had permitted a direct agreement with other road: s the Union Pacific would not have found it necessary to buy stock 1T , them so as to obtain representation il their boards.
 Senator Argues Against Suit. Senator Spooner said he desired { !, construction of the powers of the com mission, as involved in the questions { put to Mir. Hartman. He read man, 2 legal opinions showing the power of ; } state to regulate it's own creature cor < porations cannot be interfered with b. federal authorities.
 The state may authorize a corpora
 tion to buy stock in other corporations {, 1t determines the amount of capita
 stock in a corporation; it may kill ;
 corporation, while congress cannot
 The state has exclusive Jurisdiction
 over intrastate commerce. the fedora
 governments power being limited t
 interstate commerce. The Union Pa
 ciic road was legally empowered t
 make the stock purchases. The ac
 creating the commission gave no in
 quisitorial or visitorial powers into tn
 affairs of private citizens. The prov sions are plain referring to commo
 carriers between states. Think of pi e lorying man before public opinion. , he exclaimed. lin order to inform cor
 gress of matters not within it's scope When Senator Spooner conclude y Judge Hough told the lawyers to sul
 init briefs. He reserved his decisio m until Dec. 1.
 M..1;sor Ir ctes For Divoree