New-York tribune., 1909-01-13
OF HARTMAN
MORAWETZ ON STAND.
Tells of Negotiations He Conducted
IN WeStern Railroad Deal.

With the testimony Yesterday Of Victor Mora
wetz who general counsel and until OctooeF
chairman OF the executive committee OF the Atchl-
son. Topeka & Santa Fe Railroad and IS still a
director the story of the activity OF f. II. Harrl-
man, by means OF which H H Rogers and Henry
c. Frick put the board of directors OF the
Atchison which sold prospective connecting INK
. to the Southern Pacific. eliminating competltlon
completed. in the government suit to dissolve
the Union Pacific merger. Edward P Ripley
president OF the Atchison, testified about this deal
In Chicago. but it Mr. Morawetz who con-
Quoted the negotiations
Mr.. Morawetz began with the transaction in
1901, when stock and second mortgage bonds OF
the Santa Fe Prescott & Phoenix Railway were
acquired to get foothold in that territory. He
told OF the building of part Of the Phhnlx & East
ern. and the Atchison's assumption Of control by
purchase. Mr.. Ripley. he said, was opposed
building the line beyond Dudleyville; the witness,
who had disagreed gave in In the summer OF 1872
the Atchison determined TO extend the system west
to San Francisco Bay. and began negOta tons to
purchase stock Of the California q Northern, but
was outwttted by the Southern Pacific, which got
control The Atchson interests then bought the
Eel River Eureka Railroad. owning a short line
out of Eureka AT this time Mr.. Hartman took a
hand obiecting 20 the building Of the Phoenix &
Eastern invasion Of Southern Pacific terri
tory.
Il then drew up agreement upon which 7
willing 20 settle and sell the Phoenix & Eastern,
Southern Pacific onehalf interest in the California
& Northern and the North Shore line distance OF
four hundred miles. We 20 give the Southern
Pacific one-haf interest In the Eel River & Eureka
road. and all lines be opened thereafter to
be open TO the Atchfson."
Mr.. Morawetz said that when Mr. Hartman
learned OF his terms he protested strenuously."
In 1904 Mr.. Morawetz heard that Mr.. Hartman and
OF his associates had acquired 10000 shares
Of the Atchison stock. and this followed by
request from Mr. Hartman for representation
the board OF directors.
I said that l would to representa-
ton" the witness continued. until the differences
had been adjusted. Mr Hartman urged that the
arrangements OF great railway systems should deal
with each other openly, fairly and on the broad
policy OF live and let live I agreed to this
general proposition. and told him that l believed
that many abuses due attempts os rivals
gain advantage by petty methods and sharp
practice. However. did not Ike the idea Of hav-
ing a Union Pacific director our board. Mr..
Hartman then suggested that he be given place
the Atchison board, and offered Inc place in
the executive committee OF the Union Pacific or
Southern Pacific in return
To show how little Nr. Hartman counted in
Atchson affairs despite the large holdings OF him
self and his associates. Mr.. Morawejz said that he
decided increase the Atchison stock TO s9s0ooo.
and that meeting Mr.. Hartman soon afterward.
the latter said he might least have been in
formed Of the fact before II occurred. and be
allowed hear OF It for the first time through the
newspapers Not long after this however. Mr..
IIarriman's associates IN Atchlson holdings. Mr.
Rogers and Mr- Frick, became directors OF the
Atchison.
Mr.. Severance. counsel for the government then
took the witness in hand. and got him say that
the Wickenburg branch had been started before the
Phgnix & Eastern to tap similar territory. This
was 10 show that Mr. Morawetz's testimony that
the Phoenix & Eastern Of no value. anyhow.
could not be OF much weight
When did Mr.. Hartman come to you-before or
after the rock treatment? Mr.. Severance asked.
ferrng 10 alleged attempts to hinder construction
work h. opposition blasting operations
BEFORE" the answer
When he found that you were not to be infu-
enced otherwise. he tried the rock treatment?'
Il remember saying l didn't think such action
would facilitate our coming to an agreement"
Mr. Moraweta admitted that the Phoenix & East
ern would have been link with the California
Coast and with the Gulf 1t was this link that
sold to the Southern Pacific. Mr. Hartman wanted
business to be built up for the Southern Pacific.
The witness said:
NO dc;ht the Southern Pacific wanted 20 buy the
line ard did buy because ii didn't want the Atchi-
son extend into that territory
"Isr't that another way Of saying that they
didn want competiton?
No they bought it because II there was any
thing in the territory from railway point Of view
they wanted it for themselves" answered Mr. Mora
"
Mr.. Severance got the witness to say that the |
Oh ject kill competition and then asked why
of the Phoanix & Eastern was under
taken If he willing to sell. No thought OF |
ceiling was entertained when construction was be |
gun, the witness declared
Not until Mr. Hartman came on TO you and |
Used objection to your being in Southern Pacific /
territory" asked Mr.. Severance
Not until the controversy with the Southern Pa |
cifc," answered MIR. Morawetz.