The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-01-05
RAILROAD NEWS.
Hartman Lines Own 10 Millions
of Santa Fe Stock.
Since July1, 1906, Has Secured
1913 Millions of Securities.
CONTROL OF ALTON.
Testimony Shows How Money
Has Been Spent.
Gossip and Matters of Interest
in Railroad Circles.

New York, Jan. 5.-Under the insis-
tent probing of the federal inquisitors
here at the first hearing of the inter-
state commerce commission, investi-
cation into the Hartman merger evil
dence of an Illegal agreement between
E. H. Hartman and Senator w. A.
Clark of Montana, for the mainten-
ance of high rates and the throttling
of railroad competition in California
was uncovered. 1t also was brought
out that since July 1, 1906, the Harri-
man roads have bought S1O3,293,745
worth of stock in other lines. a
The commission will go to Chicago
neyt week. Several other cities may
be visited before all the desired testi-
mony is in the hands or the govern
ment representatives, whose object is
to determine whether any of the rail-
roads of the country are consolidated
or combined in restraint of trade.
At the hearing it was brought out
and admitted that the Union Pacific
Railroad company, the Southern Pa
cific company, the Oregon Short Line
and the Oregon Railroad & Naviga-
ton compny are practically under the
same administration. Mr.. Hartman
with only slight variations in the lists
of other officers.
The Hartman Clark Treaty.
1t was further shown that the
Southern Pacific company owns the
Pacific Mail Steamship company; that
the Southern Pacific and the Harri-
man interests control the Portland &
Asiatic Steamship company 1t was
said that the Occidental line is in Id
but it still operates two
steamers. On the Atlantic ocean it
was shown that the Southern Pacific
tween New York and New Orleans
known as the Morgan line.
The Union Pacific, by means of an
agreement signed by Mr.. Hartman and
Senator William A. Clark, has traffic
with the San Pedro, Los
Angeles & Salt Lake railway to last
80 years. This agreement was entered
into in 1903 and by its terms the San
Pedro cannot raise or lower it's rates
without the consent of the Southern
Pacific.
The Union Pacific exercises joint con-
troll with the ChicagoG Rock. Island &
Pacific over the Chicago & Alton rail-
road The agreement is that the Union
Pacific shall have charge of the road
one year and the Chicago, Rock Island
& Pacific the next. This agreement en-
tered into by Mr.. Hartman and w. B.
Leeds, extends for period of ten years
from 1904
The Union Pacific owns SIS, 1z3, 100
worth of stock. or %. 81 per cent of the
railroad. The Union Pacific also owns
IS, 082. 300 worth of stock of the st. JOS
eph & Grand Island railroad which is
1887 per cent of the whole. The Ore
son Short Line owns $39.540. 500 worth of
stock In the Baltimore & Ohio railroad. |
This is 1852 per cent of the whole. aihsI
OF Chicago, Milwaukee, & ST. Paul |
stock, the Oregon Short Line owns 49, |
80 900 worth, or 3.42 per cent. The COM |
Dany also owns $2,572. 900, or 2.58 per cent |
If the stock of the Chicago & North |
western; 10 million dollars of the pre- |
'erred stock of the Atchison, Topeka & |
santa F'e, being 4.2S per cent, and $14,- |
,85, 745 or 10Y per cent of the capital |
stock of the New York Central and |
Hudson River railroad.
OF these holdings by the Hartman |
the stocks of the Illinois |
Central, Baltimore & Ohio, New York
Central, Chicago Northwestern, Chi
Topeka & Santa Fe, and st. Joseph &
Grand Island, aggregating in value
4 8 ,293, 745, have all been bought since
fully 1, 1906.
Where tho Money Came From.
Where did the money come from?''
asked members of the commission.
In reply it was stated that the Union |
Pacific showed last July a surplus of 81
million dollars. The Oregon Short Line
dividend of so per cent on it's
took held by the Union Pacific, and
llso contributed out of its general as
let's to the purchase money.
After submitting evidence as to the
ownership of the Hartman lines, coun-
eel for the interstate commerce COM
mission had Alexander Miller, secre-
airy of the Hartman company, read
rom the minutes of many Union Pa
life executive committee meetings in
1