New-York tribune., 1908-12-15
Z. Il. HARTMAN WINS
NEED NOT MIKE REPLY
To QUESTIONS.
.Sapreme Court Defines Interstate
Commerce Commission Poe
erS of Inquiry.

.Le Cr,--er9e Court Of the United States held to-
6az that the commission IS not entitled under
,l,s interstate commerce law to press questions
relative 10 private transactions. even though
,l-.y Involve dealings in the securities OF inter
e-a-e railroads when the investigation OF which
srch questions are part has been begun on
,re commissions initiative. The opinion of
-ne court was announced by Justice Holmes
s-5 dealt with the refusal Of Messrs. Harri-
- and Kahn 10 reply to questions put by the
,,--,,issfar il the course Of an inquiry
,e--f-r The dealings Of AIr. Hartman presi-
dent Of tie Union Pacific Railroad in the stocks
:. other railroad companies. many Of which are
competing lines.
T-srice Holmes said that the commissions in
-,s-.es should he confined 10 cases in which
cc--rlsinr had been made, and that privacy
sho-.d be properly regarded in proceedings he
--r br the commission for its own purposes
J5e also said that the powers conferred in the
t,-e-sta-e commerce law exceed any others
which have ever been delegated TO an eNecu-
.+rs bo5z bv lawmakers His words on the
limitation of the commissions power OF in
ouiry were IN part as follows:
We ara = opinion that the purposes OF the act
,rr which The commission may exact evidence
e7-hrace on complaints for violation Of the act
- ----as-5ga-irrS hy the commission upon mat
-s-s that might have been made the subject Of
complaint The main purpose of the act was t.
-ra secondary purpose. that for which the COM
mission Vas established. was 20 enforce the
-eEsIs-1o-s enacted. In other words, the power
- require testimony is limited, as il usually Is
In Er-l5sh speaking countries. ats least to the
C7-r cases where the sacrifice Of privacy is
re-=sse-7--hnSe where the Investigations con-
CEN specific breach Of the law
THREE JUSTICES DISSENT.
n dissenting opinion. which was concurred
IN rz Justices Harlan and McKenna, Justice
rsv declared that the effect Of the opinion of
the majority Of the court would be materially
te narrow the scope OF the interstate commerce
lau The three justices took the position that
The questions Of the commission, so far as-they
were sustained by the. United States Circuit
Court for the Southern District Of New York
were entirely proper under the lay~, and should
have been answered by Messrs. Hartman and
Kah1 Justice Harlan went even further, and
he'd that 81 the commissions questions should
have been answered Justice Moody did not
take part II the case.
No surprise vas expressed by the Interstate
Commerce Commission at the decision. 1t IS
z5t feIr b,- the commission that the decision
VII seriously affect its powers Of railroad regu-
lario-- The question passed on by the supreme
Court Is considered by the commission 10 be
Largely academic as the questions put 70 Mr.
Hartman and Nj Kahn did not materially af-
fect the determination Of the so-called 'Harri-
nan cases"
Chairman Knapp said he did not care TO be
osoted concerning the decision as he had not
examined i but he was inclined TO the opinion
t1at i would not detraCt IN any material way
from the powers Of the commission in making
INVESTIGATIONS regarding railway transactions
This opinion was concurred in by other mem
bers OF he commission, some Of whom had eX-
pecred The decision
HISTORY OF THE CASE
TIE case came 70 the Supreme Court on cross
appeals by M Hartman and the government
from tn decision Of the Circuit Court OF the
Ur-e5 States for the Southern District Of New
York holding that Mr.. Hartman should be
compelled 10 reply 10 most OF the questions. L
srose II connection with the order Of the com
mission n November u. 1906 directing an in
quirv INTO the combination Of the Union Pacific
road with such other lines as the Southern Pa
-5fc -he A1chison. Topeka & Santa Fe, III
Northern Pacific, the Great Northern, the HI
Eois Central the Chicago & Alton and the New
York Central This order vas sweeping IN
chs-arre-. and was intended 10 develop the
fsc-s REGARDING the community Of interest De
tween The Union Pacific and other roads, the
tractices and methods Of the roads, the rates
made. etc. i was also hoped that it would
bring OUT -re facts regarding the transfer OF
stock ~ other roads TO the Union Pacific
Whe- 1r. Hartman was put on the stand
n declined 70 say whether he hac owned any
q III Chicago & Alton stock which was pur-
chased Hg The Union Pacific, the price OF Whlch
hzd been sEed by himself; whether portoh o.
th= stock ot the Illinois Central had been ae-
cui-e5 ts- pool II which he was d member
WIN The ,5evg # selling Il t. the Union Pacific
zul whether the Union Pacific directors were
interested in the New York Central stock &C
CURED a.- the I--..l Pacific He also declined
70 say how much o. the stock Of the Atchison'
Topeke {. Santa r. was owned by directors ol
Ire Tron Pacific.
Tre circuit Court directed Ir. Hartman to
answer these questions, and he responded py
sprealiEg 20 the Supreme Court The appear
C The government from the decision OF the court
Vas based on the refusal of the lower court 10
oompe- Mr Hartman to answer question as
10 whether ne had purchased stock IN the Jil'h
Fsc-fo In anticipation Of an increased dividend.
-here va6 also q proceeding against otto II
Kahn q member OF the New York banking
ag-se of Kuhn, Loeb & Co. who were the fnan-
cal agents of the Union Pacific. similar 10
that against Hartman Mr. Kahn refused to
answer questions covering the points on which
Air. Hartman declined 10 enter.
Much interest has been felt in the case be
cause % lis great importance, and the announce
nerr = the courts decision, which was made
b. Justice Holmes. was heard with deep in
'e7est by those present IN the court The opin-
.o1 reversed the decision Of the lower court in
So far as il compelled responses. and affirmed
the -o-tioa in which the court refused To compel
tn response
-he following were the questions IN detail waleh
II Hartman refused 10 answer on ADVICE of his
counsel
'osee 70 nav been purchased SlI5 share. ,...
b. FFs1I Of s1l