New-York tribune., 1907-07-18

VIEH1S OF u. Il. KNAPP.
Not COMMISSIONS ProUince to Rec
omm6nd Prosecution. He lSaus.
IBy Telegraph to The Tribune. !

Syracuse, July 11-Martin a. Knapp. Of the
Interstate Commerce Commission, arrived here
last night
'The report Of the commission in the So
caled Hartman investigation said Mr. Knann
"was intended 20 present in an orderly and
readable form the principal facts disclosed It
seens unnecessary to characterize these facts
beaaase 'hey carry their own comment Their
sgnito2Hce is the general policy disclosed
and the common purpose which connects the
different transactions. That purpose is mainly
accomplished, as will be seen. tbro,,gb Tho -
chase by one railroad Of the securities of other
railroad and steamship lines the Durctasir,
F'h0 occurring the necessary funds by selling its
o"n obuRau5Is. Tho extent 10 which this
nieNn01 has been employed is indicated by the
enormous n-.4sage virtually controlled by the
Union Pacific. That company used about $50
VVApO IA buying the securities Of other com
panies about S7o0o0C00 was paid for the
oo1theTn Pacific and the balance 70. stock Of
I.e illinois Central, the -Atohison Baltimore g.
mo Chicago & Alton, New York Central and
other roads
IRIS method o: cxtencrcs and un.ty.ne rail-
F0ao control is noc IN violation Of any federal
INV u couFee. II the resulc N a particular in
s's-i~e pI4ngs about such q restraint OF competi-
E0- 7s tHe antitrust law fo-bids that law may
be INVOKED as Tar as it has application There
iIlGES Is restriction
chAFteF OF The purcha sing road or in the laws
OF the state under which II - organized This
method o. consolidation CT transportation lines
can De utilized freely. II this case the Union
Pacific, which Is a Utah corporation has express
zutnoflly 10 make such purchases, while the
Southern Pacitic. chartered by tho State of Ken
tucAy was created as a nero holding company
Whether ;he purchase BY the Union Pecfc ~
soEls - Per cent Of the stock OF tile Southern
Pacific, with the enormous control thereby ac-
CURED IS n violation OF the antitrust law Is
net for tns commission 10 determine because il
IS charged with 10 duty under that law and has
no authority 20 administer it. II would be mani
festiy unsuitable for the commission 10 make a
recommendation TO the Attorne. General re-
specting law which he, and not the commission,
is under obligation TO enforce
Nhat l have just said applies TO criminal
prosecution as we'll as civil procedure. Whether
any Of these transactions in violation Of
the criminal provisions Of the antitrust law it
is doubtless true that Mr.. Hartman secured i'm
munity by being called as a witness. This mat
Ter was carefully considered by the commission.
anc IL seemed plain that II was more important
10 develop and expose the actual facts and
there appeared 70 be no way TO get to the bot
tom Of some OF these transactions except by
putting Mr.. Hartman on the stand. Moreover
he was called as witness in the Northern Se-
curities case some years ago. and his exau1ina-
tion then covered 10 some extent the Southern
Pacific purchase. The immunity statute is very
broad TO say nothing OF the statute of umlta-
tons. These things being so. il seems 10 be
conceded on all sides that there was no ground
for criminal prosecution.
MY notion is that the time has come
when the further issue OF securities by railroa ds
engaged in interstate commerce and their dis
position should be the subject Of federal reeua-
ton. do not believe that any man or group
Of men who have acquired control Of one road
should be at liberty 70 issue obligations OF that
road At any price 10 any extent and then
the proceeds IN extending their control over
other roads. Nor do I think there should be
any distinction between competing and connect
ing lines Ny personal view goes beyond the
recommendation Of the commission. and I be-
Heve the whole subject should be brought under
federal control