Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-05-24
Interstate Commerce Commits.
sion Finds Railway Wizard
! Violated No Law
EVILS FOUND, NEED CORRECTION
Manipulation Of Pacific Lines Not Sim
liar to the Northern Securities Case
President and Commissioner
Knapp confer-WiIl Relieve the Sit
uation.

Washington, May 24.-There is big
surprise in store for people who have
been expecting the interstate commerce
commission to recommend to the at
Hartman and his associates and the
dissolution of their railroad combina-
ton for violation Of the Sherman
antitrust law.
At conference at the White, house
yesterday afternoon the fact was
brought out that in the opinion ofylead-
ing members of the commission no law
has been violated by Mr.. Hartman.
Grave evils have been discovered which
vent their recurrence But so far as
the commissions investigation has es-
tablished neither the federal law nor
state law was broken by the fragrant
financial operations connected with the
exploitation Of the Chicago and Alton
nor was~there any infringement of the
law caused by the raising of dividends
of Union Pacific to Topper cent per an
mum in spite Of the peculiar circum-
stances surrounding this step.
1t was thought for time that prose-
cution might be brought under the
agreement made by the Union Pacific
and San Pedro railroad, which ex-
Senator Clark Of Montana built. But
that agreement has been dissolved and
Hartman is today the owner of the
road, as he is the owner Of the con-
trolling interest in the Southern Pa
cific and other lines associated with
that road and the parent road, the Un-
ion Pacific.
President and Knapp Confer.
The conference at the White house
was between the president and Chair
man Martin A. Knapp of the interstate
commerce commission. Mr.. Knapp de-
clined absolutely to discuss his CONVEX
sation with the president, but from
an authoritative source 1t was learned
that he was called to the White mouse
by Mr. Roosevelt, who desired to as
certain the facts in connection with
the commissions report on the So
called Hartman situation.
1t is possible report may be de-
layed until fall. but this Will be the
case only in the event that other ous-
mess before the commission connecleu
with the enforcement of the railroad
rate law requires immediate attention.
The commission, however, desires 10
complete it's report by the nrst OIL
July. 1t does not PROPOSE to say
therein that there has been or mas not
been any violation of law. 1t VIII
merely present the facts and submit
them to the attorney general for ms
consideration. But upon the showing
Of facts to be made the commission
does not believe that prosecution WIZ
be begun, or, if it is begun, that 1t VIII
be upheld by the United States SUI
preme court.
Not Like Northern Securities.
The consideration thus far given the
results of the investigation has con-
WINGED the commission that there is no
parallel between the Hartman case
and that of the Northern Securities
company. as at first was suggested.
The Northern Securities company was
a holding company organized under the
laws of the state of New Jersey for
the purpose of acquiring the stock OF,
the Great Northern and Northern Pa
ci6c railroads by paying therefor its
own stock. The Northern Securities
company never owned the Great
Northern and Northern Pacific shares
in any real or substantial sense and
was simply an fundamentally by
which the interests in the two roads
We're combined
Moreover there never was or has
been any question as to the compete
tive character of the Great Northern
and Northern Pacific. The two roads
are practically parallel for almost their
entire length, run east and west and
thru the same states touch at numer-
Gus points and connect with steamers
on Lake Superior and at Seattle. The
supreme court by narrow margin of
five to four, upheld the governments
contention and ordered the dissolution
of the Northern Securities company.
Not Competing Lines:
In the case of the Hartman combi-
nation during the lifetime Of Coils p.