The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1908-04-11
Denies MONOPOLY
,,,MAN SAYS SYSTEM Is NOT
AN UNLAWFUL COM.
BINATlON.
syer Filed in Federal Suit at Salt
,ke to Dissolve Union Pacific
Merser-Union Pacific Only a Link
:, Through Line-Other Answers
Also Filed.

Also Filed.
Calf Lake, Utah, April THE
answer of the defendants in the suit of
the United States to dissolve the So
ouod Hartman system of railroads,
~ monopoly in restraint of trade,
u,ore filed in the federal court here
yesterday. The answer makes gen.
orol denial of the allegations of the
,,ovornment. Besides the answer of
n. Hartman, signed by himself
and Farley L. Williams, the solicitor
and counsel in Salt Lake, answers
u,nro filed by Senator w. A. Clark,
nrosident of the Salt Lake route; the
farmers Loan & Trust Company of
New York, H. c. Frick, the Union Pa
cifc Oregon Short Line, Oregon Rail-
road & Navigation Company and
Southern Pacific Company. To cover
certain allegations of the government,
ioint answers were also necessary,
and these were also filed.
Mr. Hartman in his answer denies
that he. with Jacob Schiff, Otto H.
Kahn, James Stillman or others, has
owned or controlled a majority of the
stock of the Union Pacific. He ad-
mits that he is president and the other
men were directors. Schiff and Kahn
resigned in 1906 and Stillman in 1908.
Not Fiscal Agent.
He admits that Schiff and Kahn were
members of the firm of Kahn, Loeb &
Co. and that this firm bought stocks
and bonds of the Union Pacific and
Oregon Short Line, but it is denied
that the company was fiscal agent"
of the Union Pacific. He denies that
he and the other defendants con-
spired to restrain trade among the sew
eral states and foreign countries or to
restrain competition among the defend
ant steamship and railroad lines, or to
deprive the public of advantages of
trade and commerce through indepen-
dent competition, if any there was, or
to effect consolidation with the idea
of monopolizing or restraining trade
and commerce.; admitting, however,
jority of the capital stock of the vari-
GUS lines and steamships. He denies
in each instance that the acquisition of
the stock was to kill competition or
monopolize trade, commerce or bust
ness.
Admitting that the directors OF sew
eral different companies are identical,
he denies that the Union Pacific has
control in management or operation of
the affiliated lines.
Union Pacific a Link.
He AYERS that in the transcOntinen-
tai lines of railroads reaching the Pa
cifc coast south of Portland the Union
Pacific is but link about 1000 miles
in length-an intermediate carrier
without any power to make rates upon
such traffic; that the Southern Pacific
owns and controls lines between Og-
den and the coast with no power to
make rates on business east 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 while the
Union Pacific and it's constituent COM
panles separately owned connecting
INES operated as single system from
tne Missouri river to Portland, Or,
and operated certain small steamships
between Portland and San Francisco,
yet such a route via Portland was not
only impracticable as a competitor of
the Southern Pacific, but any attempt
70 use it as such would have greatly
injured the Union Pacific, because the
southern Pacific would thereupon have
preferred the rivals of the Union Pa
CHIC IN routing and interchange OF
Traffic at Ogden and the business in
image and revenue thus lost would
nave greatly exceeded the total vol
ume OF business received ever such
oil lmpracticable route in competition
With the Southern Pacific.
No Competition.
Mr. Hartman denies that the rail
me OF the Southern Pacific between
oan francisco and Portland was in &C
1--WE competition with the ships of the
oregon Railroad & Navigation Com
pany between the two points named,
@no explains that such competition
was lmpracticable. He denies that
snips operated by the Portland & ASH
aue Steamship Company between Port
lano and Asiatic ports in connection
WIN the rail lines of the Union Pa
zinc were ever in competition with the
Iacihc Mail Steamship Company. He
uenles that any competition ever ex-
.S'ed between the system Of railroads
1no steamships owned by the Union
racine Railroad Company and the
southern Pacific, or, if any such COM
peuuon did exist, it was not substan-
aal' or that it included large volume
VI traffic of any kind.
ne admits that the Union Pacific, In
'ohnection with the Central Pacific, is