The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-02-02
SUIT BEGUN
TO DISSOLVE
BIG MERGER
Government Files Bill in Equity
in Circuit Court Here Against
the Hartman Roads.
SHERMAN LAW VIOLATED
IS CHARGE IN THE BILL
SU6PoENAEs ISSUED BY JUDGE
MARSHALL FOR CAPITALISTS
AND RAILROADS.

A suit in equity was filed yesterday in
the United States circuit court to enjoin
number of western railroads and their
stockholders from continuing longer in an
alleged combination in violation Of the
Sherman law. The action was brought
by Hiram F. Booth, United States dis
trict attorney. at the direction of the
United States attorney general. Charles
j. Bonaparte. The defendants named IN
the bill are the Union Pacific Railroad
company, the Oregon short Line Railroad
company. the Oregon Railroad & Naviga-
uon company. the San PEDRO Los All
5eles q Salt Lake Railroad company the
Atkinson, Topeka & Santa Fe Railwav
company, the Southern Pacific Railroad
company, the Northern Pacific Railroad
company, the Great Northern. Railroad
company, the Farmers Loan & Trust
company. u. H. Hartman, Jacob Schiff.
Otto Fl. Kahn James Stillman Henry H.
Clark.
The bill sets out in detail the several
agreements, contracts and operations By
winch the defendants Hartman. Schiff
Kahn, Sullman, Rogers. Frick and Clark
az various times since Jan. J. 1901. are
alleged to have secured for themselves
and others the management and control
OF the various defendant roads their
branches and steamship lines and to
nave operated them ever since i'm restraint
OF trade and commerce among states and
with foreign nations.
The action is brought under the act OF
congress approved July II. 1880, An act
to protect trade and commerce against
unlawful restraint and monopoly" 1t is
alleged that there is "A combination and
conspiracy among the defendants in dero-
cation of the common rights of all the
people of the United States.
Perpetual Injunction Is Asked.
The prayer to the court is that per
petual Injunction be issued eDioiufny the
defendants
stockholders from doing any and every
act or thing ia furtherance of the com
bination or conspiracy or tending to car
y OUT the conspiracy or tending to COM
piete control or partial control of the
competing lines of railroad bv the Union
Pacific. Oregon Short Line or Oregon
Railroad & Navigation company, or their
oIilcers, directors and executive commit
tees IN control
1t is furthermore asked that each of
the acts and dOings of the defendants
in pursuance of the alleged conspiracy
be decreed to be in violation of the act
mentioned and commanding the defer
dants and their agents to desist in such
alleged unlawful acts and that they be
enjOined from taking part in OF perform
ing any contract. combination or con-
spiracy the purpose or effect OF which
will be to restrain trade and commerce
among the various states and territories
and with foreign nations, to mOnOpolize
and attempt to mOnOpOlize trade and
commerce in violation of the act.
Writs of subpoena are asked for the
defendants named and the ''CO-cOnspira-
tors whose names are unknown TO the
complainant to appear and answer. but
not under oath. the allegations men
toned in the petition.
Furthermore, it is prayed that. pending
the final aDDea ring of this case a tenn
porary restraining order and temporary
writ OF Injunction may issue enjOining
the defendants as asked in the petition.
Not to Vote Stock.
The prayer is that each Of the defen-
dant stockholders. officers. directors and
agents be peTDetually enjOined from vOt-
ing such stock. whether by proxy or
otherwise. and from paying any divi-
dends upon the stock to any OF the par
ties unless authorized by the court and
from recognizing as valid any transfer,
mortgage. pledge or assignment of the
stock Of the defendant railroads unless
authorized by the court
The complaint is signed by Hiram e
Booth. attorney for the United States for
parte. attorney general of the United
States; Milton d. Purdy. assistant to the
attorney general; Frank L. kellogg. and
Z. a. Severance. special assistant to the
attorney general.
As an appendix to the bill of COM
plant there are two agreements- The first
Of these is designated as Exhibit A and
is dated July 9, 1902. and in ii is the text
IF the agreement alleged TO have been
entered into by W. A. Clark and Ell.
Hartman for the purchase of a portion
Of the Oregon Short Line by Mr.. Clark
for the San Pedro; for the leasing Of ter
miDal facilities in Salt Lake by the San
Pedro from the Oregon Short Line for
years; for a traffic agreement
between the San Pedro, the Short Line
and the Union Pacific railroads; and for
he purchase Oy Mr.. Hartman of a one
half interest in the San Pedro and sub
sidiary companies.
Exhibit is dated June :. 1893 and is
entitled Stock Trust Agreement" It is
signed by W A Clark; w A. Clark as
rustee; z. H. Hartman as trustee and
BY the Farmers Loan & Trust company
L provides for a pooling arrangement OF
he stock for ten years from the date on
which the San Pedro was opened for bust
ness between Salt Lake and San APedrO.
Subpoenaes Are Issued.
Upon the filing Of the bill OF complaint
he following order directing that sUbpOe-
Continued on PAGE 8.