Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-11-14
Right to Answer Questions is
Involved.
STIMsON OPENS FOR GOVERNMENT
capitalization is an Essential Factor
in Fixing Equitable Rates.
DEFENSE DENIES AUTHORITY
Claim that Corporations Are treated
ny states and that StOck
Deals Are Private
Afnirs,
BULLETIN.

NEW YORK, Nov l3.--At the coo
clusion Of tho Hartman hearing touigh
judge Hough said no would not decide
the question OF compelling Hartman TO
testify until December T.
NEW NORlI, Nov. lS-ASguments ON the
Interstate Commerce commissions motion
to compel Z. II. Hartman to answer GER
tain questions put TO him during tho COM
missions investigation Of railroad AFFAIRS
were begun before Judge Hough in the
United States court today
Judge Hough said he would allow each
side three and oue-half hours 10 present
rs case.
United States District Attorney stimSou
opened for the Interstate Commerce com
mission. He said that tho commission, b.
fore starting the investigation during which
Mr.. Hartman was asked the questions
which he has declined to answer. had
stated the object Of the investigation. This
object, Mr.. stin,son said was to inquire
into various combinations and consolida-
tions of and alleged violations of the law
by certain railroads engaged in Interstate
commerce.
St'mson on Hartman.
Mr.. stimson pointed out that the Union
Pacific controlled the line OF road from
| Omaha to Portland and the Southern Pa
cihc company, a line OF road from New
Orleans to Portland. lie said Mr.. Harri-
man had autocratic powers over the Union
Pacific Southern Pacific and oregon lines
that he was, in fact, the Union Pacific
system. Mr.. stimson outlined the rise of
the Hartman system and said that among
| stocks bought were Alton. Illinois Central
| Atchson. Baltimore e. Ohio. St. Paul and
others. The Union Pacific invested nearly
.lbo,O0O,OOO in this way, he said, and Mr
| Hartman took the entire responsibility.
Mr.. StimSon referred to purchases OF the
various stocks by Union Pacific and the
| refusal Of MIR. Hartman to give answers
to certain questions. He said all OF these
questions were merely to ascertain II any
stock was bought for Union Pacific from
its officers or directors.
The position of the commission, said the
| district attorney fs that 1t Is standing
| committee OF congress vested with inquisi-
! torial powers.
MIR. Stmson then cited numerous cases
\ to show that the Interstate Commerce COM
mission had power to demand the facts
| sought.
Waste OF Assets la Question.
| Mr. stimson said the constitutonality OF
a statute was not under consideration.
| Said he:
They are trying to cut congress on from
lnquiring into facts upon which legislation
! may be based"
He contended that the commission had
the same right to inquire into all the fnAn-
! cal transactions of an Interstate railroad
as to require the use of safety appliances
| on the roads.
| What the commission is endeavoring 10
| learn from the questions addressed TO MT.
! Hartman is. said Mr. stimson, whether
the enormous stock investments made with
| Union Pacific funds amounted to a wasta
OF the assets and impairment OF the facili-
| ties of an interstate common carrier and
whether the matter OF such Investments
| would be made subject to the regulation OF
| congress
Mr.. Stimson quoted from statement by
| Robert Mather of the Rock Island that
| railroad directors who purchased stock
| from themselves we're largely responsible
| for the wave OF distrust which has swept
the country. Said he:
No Privilege of Private Business.
Even II the Union Pacific stock trans
actions should be conceded to be private
! business, no man has a right TO withhold
! Information pertinent to the matter ~
issue by claiming q privilege OF private
| business. There is no such privilege"
Mr.. Stimson added that even II the In
| formation tended TO incTiminRte witness,
II could not be withheld. immunity from
prosecution being automatically extended
| IN such cases.
Mr.. stimson reviewed the various pur-
chases of the stock OF other railroads By
the Union Pacific and said;
Nearly tl5OOOO,0OO was spent in these
transactions, not counting what previously
/ H-Nz.
Mr., Hartman assumes responsibility for A.
! all. Tho records show his motives and pur-
poses. No words could more clearly indi-
cate stock jobbing than his replies at the
| investigation BY tho commission"
! Mr.. Stlmson concluded by submitting a
copy OF the speech made by Secretary Of
| War TAFT at Columbus, o.. In which inter-
state commerce and railroad regulation was
discussed.
MiIIburR for Hartman.
John O. Miiburn opened the argument On
behalf OF Mr.. Hartman. He declared no
! would not take issue with President Mathor
| OF with the distin suished secretary OF war.
] Their pTonouncements were interesting he
said, but he could not see what Ia the
world they had 20 do with the matter At
iss ue before the court
And I want 70 say Also continued Mr.
! Mnburn. that / md myself IN about all
! the trouble 7 care 10 confront when I at
| tempt TO try my cases under the law as Il
| exists without delving into the realms OF
laws that might be, The sole question be
fore your honor Is whether or not the
| power 10 make the inquiry involved Il
vested in a subordinate, an inferior body
like the Interstate Commerce commission
whose power IL purely a delegated one. I
will never concede 70 the proposition that
the commission is the equal OF congress 9"
Mr.. Milburn asserted that the Union Pa
cifie had the legal right 20 purchase stock
in other railroads: Il had the legal Hight
| TO buy Illinois Central stock from Mr.
Hartman and Mr.. Hartman had the legal
right 20 sell IL. The Transaction was