Omaha daily bee., 1908-01-26
UNION PACIFIC SUIT
Attorney General Will File Bill in
Equity to Dissolve Cor Vine.
TRAFFIC MoN0P' ICED
Charge That ~ htrols West
ern ~ Il Portland.
STOCK ..ERSHIP ATTACKED
Holdings of Santa Fe and Hill Sc
curities Declared Illegal,
DEAL WITH SAN PEDRO ROAD
MIR. BOnapRrte Says Tramc and stock
Arrangement with Clark Line
is Another Feature of
the Combination.

IL Another Feature of
the Combination.
WASHINGTON, Jan. 25-Attorney Gen
eral Bonaparte today directed that bill
in equity be filed TO set aside the control
by the Union Pacific Railway company and
its subsidiary corporations of the Southern
Pacific and the San Pedro, Los Angeles
and Salt Lake road; also to have declared
illegal the ownership by the Union Pacific
or the oregon Short Line of stock IN the
Santa Fe, the Great Northern and Northern
Pacific. all of said lines being competitors
of the Union Pacific.
The attorney general today issued an Of
ficial statement to this effect and after
referring to the extended investigation by
the Interstate Commerce commission into
the relations existing between the various
Inns of road engaged in Transcontinental
traffic says:
From the evidence so adduced and from
Independent investigation the department
has arrived at the conclusion that the stock
holdings of the Union Pacific and it's sub
sidiary company in the other corporations
mentioned above is in direct violation of
the Sherman act.
widespread Monopoly.
"The department regards the suit as of
first Importance as 1t is sought by means
thereof to break up substantial monopoly
of the transportation business Of the coun-
try between the Missouri river on the east
and the entire Pacific coast south of Port
land on the west.
aside from the railway companies above
named. the other defendants in the suit
are the Farmers Loan and Trust company
of New York, which is the depository of
all the stock of the San Pedro road under
a contract by which II is required to give
proxies to such persons as may be named
by Mr.. Hartman and Mr.. Clark for
period of years. There are also the follow
ing individual defendants who are alleged
to have conceived and carried out the con-
spiracy complained of, to wit: F. II. Harri-
man. Jacob II. Schiff. Otto II. Kahn. James
stillman. Henry c. Frick, Henry II. Rogers
and William A. Clark"
While naming the Individual defendants
the statement makes no mention Of any
intention TO prosecute any of these Off
cials personally in any criminal proceed
ings,
HistOry of Combinations.
The statement continues:
ut appears by the testimony in the
possession of the department that a COM
bination was formed about the beginning
of the year 1901 by Mr.. e. TT. Hartman
of New York. the president and chairman
of the executive committee OF the Union
Paciflc. and certain of his associates for
the purpose OF obtaining a monopoly of all
transcontinental transportation business
The first move made was the acquisition
of sufficient stock of the Southern Pacific
company to insure it's control That COM
Il NgNaar
from New Orleans and points in Texas on
tidewater through California to Portland
Ore; also another line from ogden to san
Francisco The Southern Pacific had been
for years one of the principal competitors
of the Union Pacific. AS the result of such
control the management of the two COM
panies had been amalgamated and since
1902 a majority of the board of directors
of the Southern Pacific have been members
of the board of directors OF the Union
Pacific Competition between the two COM
panies has been substantially eliminated.
San Pedro Road Absorbed.
"The San Pedro, Los Angeles & Salt
Lake road was projected as an inde-
pendent line by W. A Clark and his as
sociates to run from San Pedro, on tide
water in California, through Los Angeles
to Salt Lake City, having connection at
with the Gould system. After the work
of construction was in progress, the
parties in control of the Union Pacific,
by means of harrassing litigation de-
signed TO prevent the acquisition of neces-
sary right-of-way and by threats of
paralleling the line II constructed SO as
to render the same Improbable, and by
other means, induced Clark and his asso-
ciates to abandon the scheme of inde-
pendent road and to join with the Oregon
Short Line, taking over certain track
owned or controlled by that company in
southern Utah and eastern Nevada and
giving TO the oregon Short Line stock in
terest in the San Pedro, Los Angeles &
Salt Lake held by Clark and his assocla-
tion.
In addition. traffic agreements and
contracts were made between the San
Pedro and various corporations included
in the Hartman system, so-called, which
deprives the San Pedro of its independence
and makes IL In effect part of the same
system.
santa Fe and Hin LInSs.
"As 10 the Santa Fe, which is a competing
line with both the Union Pacific and South
ern Pacific, It appears that Mr.. Hartman
and his associates acquired sufficient in
terest in the Santa Fe so that two members
OF lhe Union Fdctilc Dohfu lo-Wlt, MeSSrS-
Frick and Rogers. became and still are d.
rectors OF the Santa Fe; and the Union
Pacific. as a corporation, purchased and
still holds large block of Santa Fe stock
AS the result OF the close union between
these lines competition has TO large ex-
tent been destroyed The oregon Short Line
is also a holder of large amounts OF stock
OF the Northern Pacific and Great Northern
Railway companies.
In pursuance OF the plans of Mr. Harri-
man and his associates for acquiring con-
troll of transcontinental traffic, the Union
Pacific, I'm 1901 secured a majority OF the
stock OF the Northern Pacific Railroad
company which was later turned over TO
the Northern Securities company. When
il was held by the supreme court OF the
United States that Il was illegal for the
latter corporation 10 hold the stocks Of the
Great KOrthoru and NOrthern nacfffc