The evening world. [volume] (New York, N.Y.) 1887-1931, 1908-12-14
HARTMAN RIGHT
IN KEEPING MUM
ON STOCK DEALS
High Federal Court Rules He
Need Not Tell Union Paci-
tic's Secret Holdings.
GOVERNMENT GAGGED.
Interstate Commerce Boards
Railroad Inquiry Halted
by Decision.
GOVERNMENT GAGGED.

WASHINGTON, Dec. I-ln an oHin-
ION by Justice Holmes. the supreme
Court of the United States to-day held
latter New York banker. should not
be required to answer the Interstate
Commerce Commissions questions con-
corning dealings In stocks between the
Union Pacific and other roads to which
they refused TO make response when the
subject was under !nvestiga alton in New
York.
Constituting the decision of tho court
n a dissenting o,inion, Justice Day ex-
PRESSED the opinion that the construc-
ION given the Interstate Commerce law
'='kes frolu It all power Of investisa-
non.
The case came to the Supreme Court
ON cross appeals by Hartman and the
Government from the decision of the
Circuit Court OF the United States for
the Southern District Of New York,
holding that Mr.. Hartman should be
compelled to make response TO most of
the questions. II arose In connection with
the order Of the commission of Nov. 10.
1906. directing an inquiry into the COM
bination OF the Union Pacific Railroad
with such other lines as the Southern
Pacific. the Atchison. Topeka and Santa
Fe, the Northern Pacific. the Great
Northern. the Illinois Central. the Chi
cago and Alton and the New York Gem
trail.
n,,s la
This order was very sweeping in
character and was intended to develop
the facts regarding the community of
interest between the Union Pacific and
other roads the practices and methods
of the roads. the rates received, &c. 1t
was also hoped that it would bring out
the facts regarding the transfer Of stock
of other roads TO the Union Pacific.
When Mr.. Hartman was put on the
stand he declined, in response to q
question, to say whether he had owned
any Of the Chicago and Alton stock,
which was purchased by the Union
Pacific, and the price OF which had
been fixed by hi,nse (; whether por-
ton of the stock of the Illinois Gen.
trail had been acquired by 3 pool OF
which he was a member, with the Wow
of selling II to the Union Pacific, and
whether tho Union Pacific directors
were interested In the New York Gem
trail stock which was acquired by the
Union Pacific. He also declined to
state how much Of the stock Of the
Atohison, Topeka and Santa Pc was
owned by directors OF the Union Pa
cino.
The Circuit Court directed Mr.. Harri-
man to reply to these questions. and
he responded by appealing to the Su-
preme Court The appeal of the Gov
eminent from the decision of the court
was based upon the refusal OF the
lower court to compel Mr.. Hartman
TO answer a question as to whether he
had purchased stock In the Union Pa
cific In anticipation of an increased div
idend. There was also a proceeding
against Otto H. Kahn. a member OF
the New York banking house Of Kuhn
Loeb & Co, who were the financial
agents OF the Union Pacific, similar TO
that against Hartman. Mr.. Kahn re-
fused to answer questions covering the
points upon which Mr.. Hartman de-
cined to enter.
Big Victory for Hartman.
Much interest has been felt in the case
because OF It's great importance, and the
announcement OF the courts decision,
which was made by Justice Holmes, was
listened to with deep interest by those
present In the court. The opinion re-
Nersed the decision OF the lower court,
In so far as II compelled responses, and
affirmed the portion In which the court
refused 10 compel such response. 1t
was sweeping victory for Hartman
and his associates.
Mr., hartman said In reference to the
de lis.on OF the Supreme Court at Wash
inston to-day that he had always been
confident Of such an outcome. That
personally he had never had any obtec-
ton to answering the questions asked.
ON the other hand. he would have been
rather glad To have done SO II Il had
been proper. but his relation To his cor
porations forbade his disclosing their
ssardsness, except In lawful way.