The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1907-07-14
SUNDAY, JULY Il, 1867.
The Story Of Hartman

The Story Of Hartman.
Mr.. Hartman" SAYS Commissioner
Lane, in the report Of the Interstate
Commerce Commission summarizing the
results of the Hartman inquiry. may
journey by steamship from New York TO
New Orleans. thence by rail TO San Fran
cisco. across the Pacific Ocean 10 China.
and. returning by another route TO the
United States, may go 10 Ogden by any
one of three rail lines, and thence TO
Kansas City or Omaha. without leaving
the deck or platform of a carrier which
he controls, and without duplicating any
part of the journey"
This is a graphic picture Of mastery
over transcontinentaI and rans-Pacihe
commerce attained by the development in
the Western country. Of Mr.. Harriman's
theory of community Of interest and har-
mony of management Mr.. Harriman's
dominance is not confined to transcon-
tinental rail lines; he controls two i'm
portant north and south routes, the Iii
nois Central. paraleling the Mississippi
River. and various roads forming a con-
nected route from the Columbia River 10
the Mexican border, parallel to the Pacific
coast The Hartman system thus in
cludes two great trauscOntinental lines
with all their TamincauOns. two north
and south lines, all the trans Pacific
steamships operated out of Pacific ports
south of Puget Sound. the Pacific Mail
Line, and the Morgan Line. This great
system has been built up on the founda-
+so, 81 -rf,r pocfGo roeo,-r..r TTor
riman since 1897, has been IN absolute
control of the Union Pacific He had
authority 10 borrow such sums Of money
as he saw fit. and ali his acts. though
performed on his own initiative, were
subsequently approved by the executive
committee, Of which he was chairman.
Let US see how this tremendous power
was used. Mr.. Harriman's first move was
to issue 100000 Of convertible Union
Pacific bonds, with which he bought
control Of the Southern Pacific and the
Northern Pacific. the latter carrying with
it control of half the stock of the
Burlington. BY this bit of financiering.
Hartman to use the language OF Com
missioner Lane, obtained absolute mas,
terry over every avenue leading 10 the
Pacific coast within the United States
save that afforded by the Great Northern
on the northern border of the country
and that offered by the Sante Fe upon the
southern" Mr. Hartman has not con
cealed his ambition to get control OF
the Santa Fe, and, IN fact, he and his
friends own a large block Of stock in
that road. Nothing but fear Of the law.
Is he confessed 10 the commission, pre-
vents his adding the Santa Fe to his other
possessions If the Hartman policy of
gathering all transcOnunentaI lines under
one head had been fully executed, it /
would, according to Mr. Lane, have
subjected 10 a common will and policy
nearly one-half the territory of the United
States-a comparatively undevel0ped. /
rapidly growing. and extremely rich ter
ritory into which must necessarily ex-
tend the population and business of the
Eastern States" AS it is, Hartman con- /
troll has extngulshed competition between /
the common carriers under his DONNA /
ton.
Having subjected a considerable por- /
ton of Western railroad territory. Mr.. /
Hartman turned his attention TO the
East still using the Union Pacific as an
investment company. It was developed /
at the inquiry that the Union Pacific and /
its subordinate concern, the Oregon Short
Line. had assumed obligations now out /
standing, amounting to $lS1.O00,Oo0. all /
of which had been used in the purchase /
of stock in other roads. The Oregon Short
Line bought over S36.0O0.0OO of Baltimore
and Ohio stock, while the Union Pacific /
purchased SO per cent OF Illinois Central /
and 10000 shares of Chicago and Alton /
preferred. In addition to these stocks, /
the Union Pacific and allied companies i
own a large number OF Northern Pacific I
and Great Northern shares. and have also /
bought stocks Of the Santa Fe. Chicago +
Milwaukee and st. Paul. the Chicago and /
Northwestern the New York Central. and /
some other railroads. With the methods 4
employed in the acquisition and exploita- /
ton of the Alton. the public is familiar. 1
"Indefensible financing is the mild term
used by Commissioner Lane to describe 4
these methods. which constitute one oil
the darkest chapters IL American rail /
road finance.
What is the judgment of the Inter /
state Commerce Commission upon theI
Hartman policy? II is that il tends in
evitably TO suppression OF competition,
whereas the maintenance of COMPETE
ton is the established policy of the
nation. The commission therefore recon-
mends that the ownership of stock by one
railway IN a competing railway should be
forbidden, and that competing ines should
be prohibited from having caSm1n direct
ORC CT officers. t is als9 recommended