Warren sheaf. [volume] (Warren, Marshall County, Minn.) 1880-current, 1907-01-10

HARRIMAN's MODERN METHODS
OF COMBINING RAILWAYS
ARE REVEALED.
interstate Commerce Commission
Learns Of the Mammoth consoIlda-
ton of Railroad and Steamship

ton of Railroad and Steamship
Concerns Which He Has Effected.
New York, Jan. 5.-Modern meth
DDS Of combining and consolidating
mammoth railway systems and ex-
tending the principle of community
| of interest were delved into Friday
at great length by the Interstate COM
MERGE commission, which began In
this city an inquiry into the so-called
Hartman lines"
From here the commission goes
next week to Chicago. Several other
| cities may be visited before all the
! testimony that is desired is in the
hands of the representatives of the
government, whose object is to deter
mine whether any of the railroads of
the country are consolidated or COM
bined in restraint of trade.
At Fridays hearing it was brought
out and admitted that the Union Pa
cific Railroad company, the Southern
Pacific company, the Oregon Short
Line and the Oregon Railroad & Nav
igation company are practically under
the same administration, Mr.. Harri-
man appearing as president Of each
company, with only slight variations
in the lists of other officers.
Controls Steamship Lines.
It was further shown that the
Southern Pacific company and Union
Pacific together hold a majority of
the stock of the Occidental and
Oriental Steamship company, and
that Hartman interests are in control
of the Portland &. Asiatic Steamship
company All three of these lines
run steamers between either San
Francisco or Portland and the orient.
1t was said the Occidental is in nqui-
dalton but it still operates two steam
ers. On the Atlantic ocean, it was
shown, the Sothern Pacific owns the
line of steamers running between
New York and New Orleans, formerly
known as the Morgan line.
The Union Pacific, by means of an
agreement signed by Mr.. Hartman
and Senator William A. Clark, has a
traffic arrangement with the San Pc
dro, Los Angeles & Salt Lake railway
extending over period Of 80 years.
This agreement was entered into in
1903, and by it's terms the San Pedro
cannot raise or lower it's rates with
out the consent of the Southern Pa
cific company, which, it was stated,
does not own one dollar of stock in
the San Pedro company.
How the Alton Is Managed.
The Union Pacific exercises joint
control with the Chicago, Rock Island
& Pacific railroad over the Chicago &
Alton railroad. The agreement is
that the Union Pacific shall have
charge of the road one year and the
Rock Island the next. This agree
ment, entered into by Mr.. Hartman
and w. B. Leeds, extends for period
of ten years from 1904.
The Union Pacific owns $28,123, 100
worth of stock, or $3.50 per cent. of
the capitalization of the Illinois Gen.
trail railroad.
The Union Pacific also owns $685.
800 worth of stock of the st. Joseph
& Grand Island railroad, which is
37.37 per cent of the whole.
The Oregon Short Line owns $780,
$4,000 worth Of stock in the Balti-
more & Ohio Railroad company, this
being 1852 per cent of the whole.
Of Chicago, Milwaukee & st. Paul
stock, the Oregon Short Line owns
$3,690,000 worth, or 3.42 per cent. The
company also owns $2,572,000, or 2.58
per cent. of the stock of the Chicago
& Northwestern, $10,000,000 of the
preferred stock of the Atchison, To-
peka & Santa Fe, being 4.28 per cent,
and $14,285,745, or 7.97 per cent. of
the capital stock of the New York
Central & Hudson River railroad.
Of these holdings by the Hartman
companies the stocks Of the Illinois
Central, Baltimore & Ohio, New York
Central, Chicago &, Northwestern, Chi
cago, Milwaukee &, st. Paul, Atchison,
Topeka & Santa Fe and st. Joseph &
Grand Island, agggregating in value
$103,293,743, 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 sur
plus of $51,000,O0O. The Oregon Short
Line declared a dividend of so per
cent. on it's stock held by the Union
Pacific, and also contributed out of
it's general assets to- the purchase
money.