New-York tribune., 1908-01-26

Tn+.rstate Commerce Commission that years
before Mr. Hartman and his associates had pur-
chased $50 10000 of the stock. following which H
H Rogers and H. c. Frfck. directors of the Union
Pacific, entered the Atcnlson Doaru Oh "i4ioA 'oy
are still members.
Among the Investment stocks" of the Union Pa
cfc systarn held June 90 1907, the close of the
last fiscal year. Sl0.0o.0oo Atchison, Topeka
e. Santa Fe preferred. held by the Oregon Short
Line: s. o3s 400 Great Northern preferred and s36l4
ESQ Of the same stock go per cent paid), both held
by the Oregon Short Line; A,l62so Northern Pa
clo common and s., 491 600 of the preferred Qz1s
per cent paid) both held by the Oregon Short Line
and 100000 Southern Pacific common. slSooco
preferred and a62Oo00o preferred Go cent paid
held by the Union Pacific.
Intination that the government would bring q
suit In equity compel real distinction in con-
troll Of the Hartman lines. which are nominany
competitors was made at the office of the Attor-
uey General In Washington January 9. just
after the return from Europe of Cordenio U. sew
erance of counsel the Interstate Commerce COM
mission In the Hartman inquiry. At that time
fl was announced that the bill would be fled with
in thirty days in the United States Circuit Court
in Salt Lake CITY, as both the Union Pacific Rail-
road Company and the Oregon Short Line are IN
corporated under the laws OF Utah The southern
Pacific company is Incorporated in Kentucky.
A week later Judge Hough. in the United States
Circuit Court in this city, ruled that Mr. Hartman
and Mr. Kahn must answer the questions put TO
them by the Interstate Commerce Commission IN
its efforts TO find whether or not the conlinu-
nifty of interest existing between the Hartman
lines tended to defeat the purpose OF le
commerce regulation.
When the inquiry was held in this city, about
year ago. MI Hartman fatty refused to tell the
commission about the participation of himself ana
his associates in the purchase and sale Of large
blocks of stock by which it was generally supposed
they had handsomely benefited
Mr. Kahn, who is a member OF the firm OF Kuhn,
Loeb & Co.. which acted stock depositaries. also
declined to tell what he knew about stock invest
nents Of the Union Pacific and the Southern Pa
cIfc and pleaded the sacredness of the relation
existing between banker and client Judge Hough
overruled all the objections put forward by ex-
Judge r. s. Lovett, ex-senator John c Spooner
and John q. Mburn. counsel for the defendants.
but said they need tell whether not they had
proited by investment IN Union Pacific stock just
prior to the famous 10 per cent dividend declaration
Of August, 1876
II the opinion OF the governments attorneys
that great victory had been scored by Judge
Hough's clear cut declaration that Congress had
the visitatortsl power over state corporations en-
gagged in interstate commerce when the state itself
could not control check the pernicious practice
OF the child Of its making. 1t generally
expected that following this decision the govern
ment would hasten the bringing OF the suit in
equity.
Although Mr.. Milburn and ex-Judge Lovett de-
cared that appeal would surely be taken 10
the United States Supreme Court to test Judge
Hough's decision and sustain Mr.. Hartman and I
Mr.. Kahn in their attitude that it of
the business of the Interstate Commerce Com
mission how they managed the finances of the |
railroads far stock investments con-
cerned. Mr. Kahn said last night that the question
OF taking an appeal had not yet been decided. |
Mr.. Kahn expressed surprise at yesterdays |
from Washington OF the plans to |
bring suit in equity, hut would discuss the |
matter
Naturally. until the complaint is filed" said
Mr.. Kahn, there Is nothing to be said in reply |
to the governments allegations" The question |
OF counsel TO defend the suit, he said had not |
even been considered.