New-York tribune., 1908-04-07
U. P. ANSWERS FILED
GENERAL DENIAL MADE.
Hartman Says System Docs Not
Kill Com petition.

Salt Lake. Utah April s--The answers Of the de-
PENDANTS in the suit of the United States TO dis
solve the Hartman system OF railroads as oei's
a monopoly in restraint of trade were hled IN 'ne
federal court to-day. The answers make a eehsi'h
denial of the allegations of the government De
sides the answer of E. H. Hartman signed oy
himself and Farley L. Williams. his solicitor ana
counsel In Salt Lake City. answers are hled oS
Senator w. A. Clark. president of the San Pedro
Los Angeles & Salt Lake Railroad; the Farmers
- oap Trust COMPANY OF New York: II. c. Fricb
the Union Pacific Railroad, the Oregon Snort Line
the oregon Railway Navigation Company, ana
the Southern Pacific Company To cover certain
allegations Of the government. joint answers were
also hleti.
Mr. Hartman in his answer. denied that he
with Jacob Schn otto II. Kahn. James Stilln1an
or others. has owned or controlled majority OF
the stock Of the Union PACING Railroad he aoini's
that he is president. and that the other men were
directors Schir and Kahn resigned IN 1870 ana
Stillnan In 1898. He admits that Schin and hahn
were members of the firm Of Kuhn LOEB & Co.
and that this firm bought stocks and bonds of the
Union Pacific Railroad and of the oregon snort
Line hut IL s denied that the company was d
FISCAL asent'' OF the Union Pacific Railroad
Hartman denies that he and the other defeno-
ants conspired to restrain trade among the sew
eral states and foreign countries or 10 restrain
competition among defendant steamship anu ran
road lines or to deprive the public Of ADVANTAGES
of trade and commerce through Independent COM
bnation, if any there vas. or 20 erect d CoISo4i-
datou with the idea of monopolizing or restrain
ing trade and commerce; admitting. however tnat
the Union Pacific acquired majority OF the cap!-
tai stock of the various lines and steamship sys-
TENS He denies in each instance that the acqulsl-
ton of the stock kill competition or nlonop
olize trade, commerce or business
Admitting that the directors of several defenoant
companies are identical. he denies that the Cnion
Pacific has control in mana cement or operation or
the affiliated lines. He AYERS that in the trahscon-
tinentaI lines railroad reaching the Paclhc coast
south of Portland the Union Pacific is only INK
about thousand miles long an intermediate car
rier without any power to make rates upon sucn
traffic; that the Southern Pacific owns ana coz
trolls lines between Ogden and the coast "iIl io
power TO make rates of business cast OF ogden:
that no rates could be made from the Missouri
River to the coast without the joint consent OF the
Southern Pacific and the Union Pacific; that WhAe
the Union Pacific and its constituent companies
separately owned connecting lines opera'eo as a
single system from the Missouri Rivs 10 Port
1ord ore and operated certain small steamships
between Portland and San Francisco. vet such d
route via Portland was not Only HnpldC'ioaOi7
as a competitor of the Southern PaCtnc put any
attempt to use it would have greatly injured the
Union Pacific because the Southern Paclnc Wou!d
thereupon have preferred the rivals of the Union
Pacific in routing and interchanging trafnc at oS
den and the business in tonnage and revenue mus
lost would have greatly exceeded the total volume
of business received over such an lhlprdct4eaO-0
route in connpetition with the Southern Pacific
Mr. Hartman denies that the rail lire o1 tHe
Southern Pacific between San Francisco ana Fo1'-
land is active competition with the shps Vi 'ii1
Oregon Railroad & Navigation Company between
the two cities, ard explains that such competition
is impractcable He denies that the ships operated
by the Portland and Asiatc Steamship Company
between Portland and Asiatic ports, and connected
with the rail lines of the Union Pacific, were ever
in competition with the Pacific Mail Steamship
Company. He denies that any competition ever
existed between the system of railroads and steam
ships owned by the Union Pacific Railroad Com
panv and the Southern Pacific. or. if any such
cor1petition exist. il was not supstah'ld VI
did not include large volume Of tranlc OF any
| kind.
He admits that the Union Pacific. IN connecuion
| with the Central Pacific is A competitor OF 'he
Atchison. Topeka & Santa Fe for a Iarse Noluiile
! of traffic to and from the Pacific Coast.