The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1908-01-26
WANTS BILL IN
EQUITY FILED
BONAPARTE SAYS OWNERSHIP
OF ROADS BY UNION PACi-
FIG is ILLEGAL.
OFFICIAL STATEMENT
OF Attorney General Says Holdings
Of Stocks in Several Corpora
tions BY U. p. Violates
Sherman Law.

Washington, JAN 25.--Attorney
General Bonaparte today directed
that bill in equity be filed to set
aside control by the Union Pacific
railroad company and its subsidiary
corporations OF Southern Pacific and
8 the San PedroLos Angeles and Salt
Lake road: also to have declared
Illegal ownership by the Union Paci-
tic or Oregon Short line of stock in
the Santa Fe, Great Northern and
Northern Pacific, all of said lines
being competitors of the Union Paci-
tic.
The attorney general today issued
an official statemen: 20 this effect in
which he declares that stock holding
Of the Union Pacific and its sub
sidiary company IN other corpora
tons mentioned above is in 'direct
violation of the Sherman act.
"The department regards the suit
as of first Importance, as it is sought
by the means thereof to break up a
substantial monopoly of the transport
business Of the country between the
Missouri river on the east and the en-
tire Pacific coast south OF Portland
on the west"
Aside from the railways above
named, other defendants are the Far
mers' loan and Trust company of
New York, Jacob II. Schiff. Otto Fl.
Kahn, James Stillman Henry c.
Friek, Henry II. Rogers and William
A. Clarke.
The statement reviews in detail
the history Of the combination that
was first formed about the beginning
OF 1901 by II. H. Hartman of New
York, president and chairman of the
executive committee of the Union
Pacific and certain associates, for
the purpose Of obtaining monopoly
of all transcontinental transportation
business" Clarke's connection with
the deal is thus described:
THE San Pedro, Los Angeles and
Salt Lake road was projected as an
Independent line by w. A. Clarke and
his associates to run from San Pedro,
on tidewater in California, through
Los Angeles to Salt Lake City, hav-
ing connections at that point with
the Union Pacific and with the Gould
system. After the work of construc-
tion was in progress, parties in con
troll of the Union Pacific, by means OF
harassing litigation, designed to pre-
vent the acquisition of the necessary
right of way and by threats OF
paralleling the line, If constructed so
as to render the same Improbable.
end by other means, induced Clarke
and his associates to abandon the
scheme of an Independent road and
ioin with the Oregon Short Line, tax
ing over track owned or controlled
by that company in Southern UtaI
and eastern Nevada and giving to the
Oregon Short Line an equal stock in
terest in the San Pedro, Los Angeles
and Salt Lake Road with that held by
Clarke and his associates.
''In addition, traffic agreement and
arrangements were made between
the San Pedro and various corpora
tions included in the Hartman sys-
tenn also called. which deprives the
San Pedro of its independence and
makes 1t in effect one of the same
system
The Santa Fe is a competing line
of both the Union Pacific aud South |
ern Pacific, but Hartman and bis |
associates acquired sufficient interest |
in the Santa Fc so that the two mem |
hers of the Union Pacific board |
Frick and Rogers. became and still |
are directors of the Santa Fe; and |
Union Pacific. as a corporation. pur-
chased and still holds large block
ot Santa Fe stock.
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 in the |
Northern Pacific and Great Northern.
railways. Continuing. the statement
SAYS:
In pursuance of the plans Of Harri- |
man and his associates for acquiring
control of transcontinental traffic.
the Union Pacific, in 1901. secured
majority of the stock Of the Northern /
Pacific which was later turned over
10 the Northern Securities company
When II was held by the srpre@s-
court Of the United States that II
was illegal for the latter corporation |
10 hold stocks of the Great Northern /
and Northern Pacific. distribution
was made among shareholders as
result sf which the Oregon snort /
Line received from the Northern Sc
curities stocks Of both the Great I
Northern and Northern facific. The
latter companies are joint owners of
the Burlington railway. which is an |
active competitor Of the Union Fa9i-
fie through a large territory. and the
Northern Pacific and Great Northern
are likewise competitors Of the Union
Pacific"