The Irish standard. [volume] (Minneapolis, Minn. ;) 1886-1920, 1910-10-15
HARTMAN MERGER
IN FEDERAL COURT
HEARING IN GOVERNMENTS Al.
TACK ON ALLEGED RAIL
ROAD TRUST.
KELLOGG FOR THE GOVERNMENT
Four Circuit Judges Hear the xvi.
dence-Attorneys Combat In: -.
Legal Fight Of Ma ,.5e,s
tional Interest.

ST. Paul, Oct 11-Arguments. were
begun before all the judges of the
Eighth judicial circuit, United States
circuit court. sitting in st. Paul, in a
case Of national-wide interest II is
part and parcel Of the attempts of the
government, begun during the Roose-
welt administration, to break combina-
tons in restraint of trade and COM
binatons in violation of the Sherman
antitrust law. d.
Appearing for the government were
Frank B. Kellogg, noted as "a trust
buster" and his partner, Cordenio A.
Severance.
Noted Lawyers on Hand.
Representing the Union Pacific. the
Oregon Short Line, the Oregon Rail-
road and Navigation, the San Pedro.
Los Angeles and Salt Lake, the Santa
Fe. the Southern Pacific. the Northern
Pacific and Great Northern railway
companies. the Farmers Loan and
Trust company Of New York City,
the late Edward Fl. Hartman, Jacob
II. Schiff, Otto H. Kuhn. James Still.
man. the late Henry H. Rogers, Henry
G. Prick and William A. Clark. are
N. H. Loomis of Omaha. general CONN
sci for the Union Pacific: P. r. Dunno
of Sun Francisco for the Southern Pa.
cific; David Watson of Pittsburg for
Henry G. Frick, and former United
States Senator John c. Spooner, repre-.
senting the Hartman interests. Judge
Robert S. Lovett, who, as trustee Of
the Hartman estate. has become pres,
ident of the Union Pacific and, either
Hartman companies. is an attendant
on the hearing.
Arguments Presented.
MIR. Severance opened for the gov.
eminent. He will be followed by the
attorneys for the defendants. Mr.. Rel.
logg will close for the government on
Thursday. .,t'
Mr.. Severance opened his argument
by tracing. Oh large map the routes
Of the various lines alleged to have
q community of interests. He traced
out how the Union Pacific. by reason
of its connection to Portland, could
dominate the rate situation, and how
lines presumed to be natural competi.
tors. e., the Union Pacific and the
Southern Pacific, the Northern Pacific
and the Great Northern-had since
the "gentleman's agreement was
reached, discontinued all competition
and are now in reality working to
gether for the transcontinental bust.
ness so as to produce the greatest rev.
enue for the consolidated systems.
He insisted the record will show that
SO soon as the Union Pacific obtained
control of As per cent of the stock OF
the Southern Pacific, all soliciting
agencies for both roads throughout
the country were consolidated, and no
further competition was INDUCED.
Railroad Merger Explained.
In 1901 and 1902 the Union Pacific,
in order that it might stitle conipeti.
tion by the Southern Pacific. according
10 the governments case. bought
what amounted to controlling inter.
est in the latter from the widow OF
the late G. P. Huntington. builder and
former president of the Southern Pa,
cific. This gave them controlling
interest in what is known as the "Sun
set Route" combined rail and water
route from New York to San Fran
cisco. via New Orleans, Galveston and
the Southern Pacific, as we'll as a CON
trolling interest in the Central Pacific,
from Ogden to San Francisco.
The points in law Mr.. Severance il
arguing follow:
Points of Law In Question.
~ The maintenance of free com
petition among railways has become
the settled policy of the nation. q
(2.) The Union Pacific and South.
ern Pacific lines are naturally competi.
tive, and, but for the control the form.
er exercises over the latter through
ownership of stock, would now be com.
peting lines. .........a..
3.) The acquisition of the con.
trolling interest in the Southern Pa.
cific system by the Union Pacific tend.
ed to suppress competition, and there.
fore was in restraint of trade. also
tended to monopoly and is in violation
of the Sherman act. ,,s#
a. The ownership by the Union
Pacific of less than majority Of stock
in the Southern Pacific. Santa Fe,
Northern Pacific, Great Northern and
San Pedro lines tended to suppress
competition and create monopoly
and is inhihifad nv the sherman not