Evening star., 1908-01-26
o SET ASIDE CONTROL
Of Southern Pacific and San Pedro
Lines.
TRAFFIC MONOPOLY CHARGED
Effort Made Also to Have Declared
Illegal Ownership of Stock in
Santa Fe and Other Roads.

Attorney General Bonaparte has directed
that bill in equity b. filed to set aside
the control by the Union Pacific Rail
road Company and it's subsidiary corpo-
rations of the Southern Pacific and the
San Pedro, Los Angeles and Salt Lake
road; also to have declared illegal the
ownership by the Union Pacific or tn.
Oregon Short Line of stock in the Santa
Fe. the Great Northern and Northern
Pacific. all of said lines being competitors
of the Union Pacific.
some time ago conducted an extended in
vestigation into the relations existing
between the various lines of road en-
gagged in transcontinental traffic. The
conclusions of the commission after such
| investigation were summed up in a re-
port which. with the testimony, was SUI
mitted to the Department of Justice for
its consideration. From the evidence SO
adduced and from Independent investiga-
| ton the department has arrived at the
| conclusion that the stock holdings of the
Union Pacific and its subsidiary company
in the other corporations mentioned above
is in direct violation Of the Sherman act
Monopoly of Traffic.
1t appears by the testimony in the pos
session of the department that combina-
| ton was formed about the beginning of
the year 1901 by E. II. Hartman of New
York. the president and chairman of the
executive committee of the, Union Pacific.
and certain Of his associates for the pur
pose of obtaining q monopoly of all trans
continental transportation business. The
frs: move made was the acquisition OF
| sufficient stock of the Southern Pacific
Company to insure it's control. That COM
pany owned a line of railroad extending
from New Orleans and points in Texas on
| tidewater through California to Portland
| Ore; also another line from Ogden, Utah,
to San Francisco. The Southern Pacific
had been for years one of the principal
competitors Of the Union Pacific. AS the
result of such control by stock owner
ship the management of the two compa-
nies has been amalgamated, and since
| 1902 a majority of the board of directors
of the Southern Pacific have been men,
bsrs Of the board of directors Of the Union
Pacific Competition between the two
mated.
The San Pedro, Los Angeles and Salt
Lake road was projected as an indepen-
dent line by w. A. Clark and his asso-
ciates to run from San Pedro. on tide
water in California. through Los An
| geles to Salt Lake City. having connec-
ton at that point with the 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 harassing litigation, d signed to
prevent the acquisition of necessary rights
of way and by threats of paralleling the
| line If constructed, so as to render the
same unprofitable and by other means,
| induced Clark and his associates to aban-
don the scheme of an independent road
and to join with the Oregon Short Lire,
taking over certain track owned or con-
! trolled 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 with that held By Clark and his
associates. In addition, traffic agree
ments and other contracts were made be-
| tween the San Pedro and various co-po-
ratfons included in the Hartman system
| so called which deprives the San Pedro
| of its independence and makes it in effect
part OF the same system.
Competition Destroyed.
! AS to the Santa Fe. which is a compel
| ing line with both the Union Pacific and
Southern Pacific. it appears that NJ.
| Hartman and his associates acquired
! sufficient interest in the Santa Fe SO that
| two members of the Union Pacific board
| TO w.t. Messrs. Frick and Rogers be-
came and still are directors of the Santa
| Fe, and the Union Pacific as a corpora
| tion purchased and still holds a la~ge
block of Santa Fe stock. AS the result
| of the close union between these lines.
| competition has to a large extent been
| destroyed. The Oregon Short Line is
| also holder of large amounts of stock
| of the Northern Pacific and Great North
| ern railway companies
| In pursuance of the plans Of Mr. Harri-
| man and his associates .or acquiring CON
| trol of transcontinental traffic the Union
| Pacific. in 1901. secured a majority of thu
| stock of the Mort hern Pacific Railw1,
Company. which was later turned over to
| the Northern Securities Company. When
II was held by the Supreme Court of the
United States that it was illegal for the
latter 60 poration to hold the stocks of
the Great Northern and Northern Pacific
Il distribution was made among its share
holders. as a result of which the Oregon
Short Line received from the North m
Securities Company stocks of both the
Great Northern and Northern Pacific
The latter companies are joint owners of
| the Chicago Burlington and Quincy Pail
road Company, which is an active com
p"titor OF the Union Pacific through q
large territory. and the Northern Pacific
and Great Northern likewise com
petite : Of the Union Pacific
Breaking Up Monopoly.
The department regards the suit as of
| first Importance, as il is sought by means
! thereof to break up a substantial monop-
! oily 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 othe. defe ndants in the suit
! are the Farmers Loan and Trust Com
| pany of New York. which is the d.pos-
| tory % ALI the stock Of the San Pedro
| road under Il contract by which il is re-
| quired to give proxies to such persons as
| may be named by Mr. Hartman and
| NJ Clark for period Of years. There
AT" also the folio wing Individual defend
| ants who are alleged To have conceived
| ard carried out the conspiracy complain
| ed of. To wit: r. II. Hartman. jacob
| II. Schiff. Otto II. Kahn. James Still
| man. Henry {. Frick. Henry III. Rogers
| ard William \. Clark.
The Attorney General has engaged as
| special assistants for the purposes o. this
| litigation Frank B. Kellogg and Corienio
| 4. Severance OF st. Paul who acted as
counsel for the interstate commerce COM
mission in the investigation above re-
| ferred to.
Funeral of Mai Fred Peck.