The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1908-01-26
TO SET ASID
R. R. COK,zROL
A Bill IN Equity IS
gs<d.
UNION PACIFIC UP AGAIN
WM Try to Have Ownership De-
elared Illegal.
Attorney General Benaparte Takes .
Hsnd in Control % Southern
Paciac By Harriman ana
His Corporations.


eral Bonaparte today directed that .
bill In equity be nled to set aside the
control by the Union Pacific Railroad
Company and its subsidiary corpora
tons OF the Southern Pacific and the
San Pedro. Los Angeles and Salt Lake
roads also to have declared illegal the
ow nership BY the Union Pacific OF the
oregon Short Line OF stock IN the Santa
Fe. the Great Northern and Northern
Pacific, all Of said lines being compete
tors Of the Union Pacific.
The Attorney General today issued
an oifacial statement to this ,effect and
after referring to the extended inves-
tigation by the Interstate Commerce
Commission into the relations existing
between the various lines Of roads en-
gagged In trans-conkinentaI trnlfIc. says:
From the evidence 80 adduced and
from independent investigation. the de-
partment has arrived at the conclusion
that the stockh oldings OF the Union
Pacific and its subsidiary company in
the other corporations mentioned above
y In direct violation Of the sherman
act.
THE department regards the suit as
Of flrst Importance and It II sought BY
means thereof to break up suhstan-
tial monopoly Of the transportation
business OF the country between the
Missouri river on the east and the en-
tire Paciac coast south % Portland. on
the west. s4
other Defendants.
/ aside from the railway companies
above mentioned the other defendants
in the suit arc the Farmers' Loan and
Trust Company % New York. which Is
the depository OF all the stock Of the
san Pedro roed under contract by
which Il u required 70 give proxies to
such pereonn a. may be named Nv Mi.
Hartman and Mr. Claxk Tor ! nkriad
Of years. There are also the follow
ing lndtviduat dsfendanta who are al
legged TO hAve conceived and carries
out the cousptracy c1llN ietnn6 of ~
8. Ae.ElmAa. xesoh = eehiA. Otto e
Henry ~ nobors And VIA. 4. clark =.
while nanzing tbs indfytduai d.
fen1apfas the ntAkafuon< snnlaS III k.S.h4
zion Of any intention 30 pra8aui,ka any
p THESE pfhciale personally III any
criminal nfQoeeding.
The abatement. continues:
1t appears by the testimony IN sha
possession OF the department. that 4
commission was formed about the be-
ginning Of the year 1901. by Mr.. z. II
Hartman OF New York. the PresidavSt
and Chairman o. the Executive Corn !
mittee OF the Union Pacific ana cer-
tam % nis associates. for the purpose
OF obtaining q monopoly OF All trana-
continental transportation businara.
Ine nfst move made was the acauisi-
ton or sufncient stock OF the solifhern
ractac Company to insure its confroI.
Inar company owned line Of raiIroa.g
extending from New Orleans and point a
N Texas on tidewater through Calf
fornia TO Portland. Ore, also another
cisco.
The Southern Pacific has bean for
years one OF the principal corlpeti.
tors OF the Union Pacific. AS the re-
suit OF such control BY stock owner
snip me management OF the two COM
panies had been amaIgamated ana
since 1902 q majority OF the board 81
directors Of the Southern Pacific have
been members OF the board OF dfree
tors Of the Union Pacific. Conpsti-
ton between the two companies has
been substantially eliminated.
"As to the Santa Fe, which IL n
competing line with both the Union
Pacihc and Southern Pacific, 1t appears
that Mr.. Hartman and his associates
acquired suflicient interest In the San
ia Fe so that two members or the
Union Pacific board, TO wit: Messrs.
Frick and Rogers, who became ana
still are directors Of the santa Fe and
the Union Pacific as q corporation pur-
chased and still hold a large block OF
Santa Fe stock.
Competitisn Destroyed.
''As a result Of the close union be-
tween these lines competition has to
a large extent 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.. Hartman and his associates
for acquiring control OF trans-conti-
mental trafiic the Union Pacific in 1901
secured q majority OF the stock OF the
Northern Pacific Railway Company,
which was later turned over 70 the
Northern Securities Company. When
1t was held by the Supreme Court OF
the United States that 1t was illegal
for the latter corporation to hold the
stocks of the Great Northern and
Northern Pacific, distribution was
made anon gifts shareholders as q re-
| suit of which the oregon Short Line
received from the Northern Securities
Company stocks of both. the Great
Northern and Northern Pacific. The
| latter companies are join owners Of
the Chicago. Burlington and Quincy
Railroad Company which is an active
| competitor OF the Union Pacific
through a large territory ana the
Northern Pacific and Great Northern
are likewise competitors OF the Union
Pacific.
as special assistants for the purpose
az this litigation Messrs. Frank b ).
Kellogg and c.. a. Severance OF st
Pau1 who acted az counsel for the
1ntaTstate Commerce Commission In
t---,a,tt0afton ahoya raferrad 80 ~