Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-11-02
LEGAL Fight IS DUE
Hartman "silence" Case to Be
Decided by United States
Supreme Court.
MUST RAIL MAGNATE TALK
Important Law Points Invoived-Ques-
ton of Whether Rail Company Can
Speculate Also InvoIved-keIIosg to
Present Government Arguments
Other News.


Washington, Nov. 1.-The justices OF
| the United States supreme court are
to be RECALLED with arguments by noted
! attorneys this week concerning the
refused to divulge Information concern
| ing stock transactions of the Union
Pacific Railroad company and the al
legged speculations of its president and
directors.
Should the case be called on election
day, and it now appears that it will
fall on that date. such citizens rs ex-
Senator John c. Spooner. John G. Mil
burn. Robert S. Lovett, Walker ID
ance, and Frank b. Kellogg, members
OF counsel for both Mr.. Hartman and
the government, will lose their chance
to vote
Important Law Points Involved.
Messrs. Severance and Kellogg. the
latter known as the administration
ITuSL DuSlST, dIlu d-SSlSlSlIll W tiiC uS
torney general. will present the case
on behalf of the government, which
seeks to compel Mr.. Hartman to an
swer questions put to him during the
investigation by the Interstate COM
merce commission into the financial af-
fairs OF the Union Pacific during the
winter of 1906. The other attorneys
mentioned are gathering in Washing
ton to fight for the interests of Mr..
Hartman.
Arguments in the case promise an
exposition of some fine points which
involve an Interpretation of an inn
portant part of the law under which
the interstate commerce commission is
operating The final disposition of the
matter which already has been decided
in favor of the governments contention
by the circuit court of appeals at New
York, will settle some hotly argued
views in regard to the power Of the
Interstate commerce commission when
1t comes to investigating financial OPP
erations and internal management OF
an interstate common carrier.
Say Rail Company Can Speculate.
In this instance it is asserted by Mr.
Harriman's counsel that the govern
ment has not the right to go into these
matters. and that whatever speculative
dealings its officers may enter into do
not pertain to interstate commerce.
They maintain, practically, that q rail-
way corporation organized under the
laws of state. altho engaged in inter-
state commerce. can speculate.
The government council Will argue
that congress has the right to provide
against railroad insolvency by requir-
ing regular reports concerning rail-
WAYS financial condition and may
prevent railway companies from buy
ing stocks.
The Interstate commerce commission
started an investigation into the con-
troll of railways by the Union Pacific.
its purchase of stock of various other
lines. and the effect of this practice
upon its transportation rates. When
asked what price had been paid for
Illinois Central stock before its sale to
the Union Pacific Mr.. Hartman de-
clined to answer.
Other Questions Still Unanswered.
He also declined to answer questions
as to his previous purchase and sale
to himself, as president OF the Union
Pacific, of stocks of the Chicago and
Alton, St Joseph and Grand Island.
New York Central, Lake Shore. and
other lines.
Another set of questions was fired
at Mr.. Hartman concerning the in
crease of Union Pacific and Southern
Pacific dividends and the alleged con-
nivance of Union Pacific officials to
keep the raise a secret from the other
stockholders until the officials had
supplied themselves with stock of their
road for speculative purposes.
Mr. Hartman refused to answer the
questions and the entire, matter was
then carried before. the United States
Circuit court of Appeals at New York.
Justice Hough of that court decided
that Mr. Hartman must answer the
questions put to him. Mr.. Hartman
appealed to the United States Supreme
court. He will be required to answer
if the decision of the United States
Court of Appeals at New York is af-