Daily capital journal. (Salem, Oregon) 1903-1919, 1909-01-11
UNITED Press Leased Wire. }

roads for 1908, although $164,464,.
941 less the gross earnings for 1907,
were $9S,S75,470 in excess of the
gross earnings for 1906 and $342,-
1921 in excess of he gross earn
ings for 1906 and that the net earn
ings for 1908, although $111,051,
006 less than for 1907 and $59,349,- :
1873 less than for 1905, we're $37,-
65S,504 In excess of those for 1905.
| In h. II. Hartman VS.. Interstate
Commerce Commission, decided by
the supreme court OF the United
States. the court held that the appe-
liant could not be compelled to an
swer certain questions propounded
to him by the commission. This de-
cislon has a somewhat important
bearing upon the work OF this body
which congress should understand.
The commission had instituted up
on its own motion an inquiry into
railroad consolidation and combina-
tions which had been prosecuted
with special reference to the opera
ftions of Hartman in connection with
the Union Pacific, Southern Pacific
and allied interests. In course OF
investigation II came out that Union
Pacific, In which Hartman was the
dominant factor, had purchased of
the Chicago and Alton and Illinois
Central certain very large blocks of
stock and he was asked whether he
had personal interest in the stocks
of these companies purchased by the
Union Pacific. II appeared what the
price paid by the Union Pacific, was,
and Mr.. Hartman was also asked in
one instance to state in case he
owned any OF the stock, what price
he had paid for the same. These
questions he declined to answer. This
refusal is now sustained by the court.
This commission has ruled that It
might inquire TO the fullest extent
into the operations of railroads and
the officers OF railroads. The Union
Pacific Is not private enterprise
II is a public servant. In the opin-
ion OF this commission when Harri-
man assumes control OF the Union
Pacific railroad he ceases to be a pri-
vate individual to that extent and
can no longer claim protection, which
as private person he might insist
on. II was our opinion that he
might properly be required to state
whether as an individual he had
sold TO the Union Pacific stocks be-
longing to himself and II so that he
should further be required 10 state
what profit he had individually made
out OF the transaction. If this gen
tleman is allowed TO accumulate
from maniuplations of these public
agencies vast sums OF money which
must finally come from the body OF
the people, we think he is so far a
trustee OF the people that he cannot
object to stating the manner in which
these aceumulations have been made.
The supreme court, however, is OF
the contrary opinion and the commits
ion can, OF course, only suggest TO
congress that II there is TO be any
full investigation by federal author
tiles OF these financial dealings some
action must be taken by congress.
During the year that the 1904
complaints, formal and informal have
been filed with the commission relat- !
ing 10 rates and practices of sub
stantially all railroads In the United
States. The number of formal cases |
and investigations instituted during /
the year was 554, or an increase OF
33h per cent over the previous
year. In 1908, 5T4 hearings and in
vestigations of alleged violations of
the act to regulate commerce have
been had.
Attention is called to a case in
which the commission has recently
held that a rule in official classified
tion territory prohibiting the consol-
dation at carload rates OF shipments
to different individuals
IS unlawful. The carriers secured /
from the circuit court an injunction
the order of the commits
SION during the pendency of suit
% determine it's lafulness. Carriers
n southern and western classified :
ion territory have not in the past {
prohibited such consolidation but 3
lines have now filed
ariffs establishing the same rule eff 7
ective January 1. The comm ssion {
S in receipt of earnest protests from I
hippers against such action. 1t is q