The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1908-01-26
suit TO DISSOLVE ! i ! L.
HARTMAN /. Y !. |. \. SYSTEM ) !, N
Acknowledgement Seeks to Break
Up Union Pacific Control Of
tic Southern Pacific.
WILL DESTROY MONOPOLY
But No 1ntin1ation That Officials
Will Be Prosecuted Personally
or iii Criminal Proceedings.

Attorney General Bonaparte to-day d.
rtcted that bill in equity be filed
to set aside the control by tho Union
Pacific Railroad Company and It's sub
.sidfary corporations or the Southern
Pacific and the san Pedro, LOS An
eeles 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 lie, tho Great
Northern and Northern Pacific, all OF
SAID lines being competitors OF the
Union Pacific. The Attorney General
day issued an official statement to
this effect. and after referring 10 the
extended investigation by the Inter
state Commerce Commission into the
relations existing between the various
lines of road engaged In .transconti-.
mental traffic, says:
From the evidence 30 adduced and
from independents investigation the de-
partment has arrived at the conclusion
that the stock holdings OF the Union;
Pacific and its subsidiary companies in
the other corporations mentioned above
is In direct violation OF the Sherman
act.
To Brcnk UP Monopoly.
The department regards the suit 40
OF first Importance. as It Is sought
by means thereof to break up a sub
stantial monopoly Of the Transportation
business OF the country between the
Missouri River on the East and the
entire Pacific Coast south of Portland
on the West.
aside from the railway companies
above named. the other defendant in
the suit is the Farmers Loan and Trust
Company OF New York, which is the
depositary OF all the stock OF the San
Pedro road. under contract by which
II is required to give proxies TO such
persons as may be named by Mr.. Har
rirnan and Mr.. Clark for period OF
years.
There are also the following indl-
yidual defendants. WHO are alleged to
have conceived and carried out the con-
spiracS complained OF. to-wit: e. IL.
Hartman. Jacob n. schiff. Otto IL.
Kuhn. James Stiliman. Henry G. Frick.
Henry II. Rogers and William A. Clark
While naming the Individual defend
ants the statement makes no mention
& OF any Intention to prosecute any OF
these officials personally or in criminal
proceedings.
History of tho Deal. 81
The statement continues: ct appears
by the testimony IN tho possession OF
the department that combination
was formed about the beginning Of
the year 1901 by Mr.. E. II. Hartman,
OF New York, the president and chair
man of the executive committee of the
Union Pacific. and scertaln of his asso-
GATES. for the purpose OF obtaining a
monopoly OF all transcontinental trans
portation business.
The first move made was the acquisi-
tion OF SUFFICIENT stock OF the Southern
Pacific Company to insure its control.
That company owned a line OF railroad
extending from New Orleans and ports
IN Texas. on tidewater through Califor-
MIA to Portland, Oregon; also another
line from Ogden, Utah. to San Fran
cisco, Cal. The Southern Pacific had
been for years one OF the principal
competitors Of the Union Pacific AS
the result OF such control by stock
ownership the management OF the twn
companies have Deen ,amalgamated. and
since 1902 a majority of the board5of
directors OF the Southern Pacific have
bcen members OF the board of directors
OF the Union Pacific. Competition be-
tween the two companies has been
substantially eliminated.
& 'The San Pedro, Los Angeles and
Salt Lake road was projected as IN
independent line by Mr.. w. a. Clark
and his associates to run from San
a Pedro, on tidewater In California,
through Los Angeles to Salt Lake City,
having connection Mt that point with
tho Union Pacific and with the Gould
system.
AFTER the work of construction was
in progress the parties in control Of
the Union Pacific. by means OF harass-
ing obligation, designed to prevent the
acquisition OF necessary rights of way.
and by threats OF parallcling the line
being constructed, so as to render tho
same improbable. and by other means,
induced Clark and his associates to
abandon the scheme OF an independent
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 an
equal stock interest In the San Pedro
Los Angeles and Salt Lake road, Will,
that held by Clark and his associates
I'm addition, traffic agreements and
other contracts We're made between the
San Pedro and various corporations
included in the Hartman system, So
called. which deprives the San Pedro
#of its Independence ana ma sess It In
effect part of tho same system.-
The Santa FEES Position.
s5''As to the Santa Fc, which lis ID
competing line with both the Uniol