The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1908-01-15
THE MONGOLIA
AND MANCHURIA


WAsHlNGTOy. january O. Members
OF the Interstate Commerce Commits
sion are yaiuly striving 90 solve an
intricate puzzle, the answer To- which
Is that e. H. Hartman gets $50 600 "a
month for the use of two steamships
presumably owned by the Oregon snort
line or the Union Pacific The stock
holders. whose coin paid for the YES
sells get the privilege OF paying for
some Of the repairs ON the ships
a peculiar feature of the deal by
which Hartman gets all the profits is
| the dual position he occupies AS Har-
riman. the individual he leases TO the
Pacific Mail Company of which he is
president, the steamers that are
charged TO the Oregon Short Line, and
subsequently included in the assets OF
the Union PaciGc--but the entire reye-
nue. goes to Hartman the individual
Details of this transaction are par
TALLY disclosed i'm the testimony taken
railroad system and the affairs Of the
Pacific Mail Steamship Company.
Lawyers for the Interstate Commerce
Commission put two and two together
and found that Hartman was getting
100000 a month from his own steam
ship company for the use of the steam
ers Mongolia and Manchuria that were
authorized to be bought by the Oregon
short Line
During the Pacific Mail investigation
by Commissioner Lane Attorney Sew
GRANGE for the commission sought to
ascertain who owned the Mancnuria
and Mongolia and the following testi-
mony appears in the transcript Of those
hearings
Mr.. Seyerance-Ihere was intro
duced in evidence in New York an ex-
Ccrpt form the minutes of the meet
ing of the executive committee Of the
Oregon Short Line of the Goth of
March 1903. At that meeting Mr.. Har-
riman reported that pursuant to the
authority conferred upon him at the
meeting of the executive committee of
February 10, 1903, he had purchased
from the Atlantic Transportation Com
pany two ocean steamers at the APP
proximate sum of $2,22O,OOO each, and
his action was ratified and certified.
Are these two ships the Mongolia and
ManChuria.
-, ly,y, f1n 10 n
yes, sir.
Mr. Severance-Then these ships be-
long to the Oregon Short Line, 40
they?
Mr. Schwerin-As far back at
know, they belong to e. II. Hartman.
Ooh, they belong to Hartman
personally?
A.-As far back as | know, yes.
/ Q.-Woud it not appear from these
minutes that they were bought for the
Oregon Short Line?
Al never saw the minutes before
you read them or heard Of them
Continuing the examination MI.
Severance had Mr.. Schwerin testify
Pacific Mail and that the charter party
of the two vessels runs between Harri-
man and the steamship company OF
which Schwerin is vice-president and
general manager, and gets his instruc-
tions from Hartman. Attorney Lovet
interrupted to volunteer the informa-
ton that the steamers are registered
in Mr.. Harriman's name. Mr.. Sever
ance then quoted from the annual re-
mort of the Union Pacific in which the
Oregon Short Line is included as sub
sidiary property, to show that the
steamers Mongolia and Manchuria are
listed as assets of the Union Pacific.
The attorney emphasized the fact that
the report he quoted was that intended
for the stockholders and not the one
prepared for the Interstate Commerce
; Commission.
, 1T now appears" continued Mr. Sew
{ erance from the entry in the annual
, report that these steamers belong
, either to the Union Pacific, the Oregon
Short Line or the Oregon Railroad and
, Navigation Company These com
panies are making a common report
to their stockholders
, u never heard of that report be-
) fore" said Mr.. Schwerin.
p Mr.. Severance next pointed out that
p the steamers were enumerated as de
, ferred assets" and valued at S5l26796
The testimony proceeds thus:
: Mr.. Severance-With whom was the
arrangement made for the leasing OF
these boats?
p Schwerin-With Mr.. Hartman.
Q.-You represented the Pacific Mail
Ayes.
Q.-You are vice-president of the Pa
cifc Mail, and you mare arrangements
with the president, Mr. Hartman o.
the same company?
Ayes, | recognized Mr.. Hartman