River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1910-10-13
HARTMAN R. R. CASE
HEARING IN GOVERNMENTS At
TACK ON ALLEGED RAIL
ROAD TRUST.
KELLOGG FOR THE GOVERNMENT

KELLOGG FOR THE GOVERNMENT
Four Circuit Judges Hear the Evil
dence-Attorneys Combat in
Legal Fight of Ma
tionaI Interest.
st. Paul, Mimi. - 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 intel est. 1t is
part and parcel of the attempts of the
government, begun during the Roose-
welt administration, to break combina-
tions in restraint of trade and COM
binations in violation of the Sherman
antitrust law.
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 H. Hartman, Jacob
H. Schiff, Otto H. Kuhn, James Still
man, the late Henry H. Rogers, Henry
G. Frick and William A. Clark, are
N H. Loomis of Omaha, general coun-
sci for the Union Pacific; P. F. Dunno
of San Francisco for the Southern Pa
cif1c; David Watson of Pittsburg for
Henry G. Prick, and former United
States Senator John G. 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 other
Hartman companies, is an attendant
on the hearing.
Arguments Presented.
Mr.. Severance opened for the gov
eminent He will be followed by the
attorneys for the defendants. Mr.. Kel.
1ogg will close for the government on
Thursday.
Mr.. Severance opened his argument
by tracing, on large map the routes
of the various lines alleged to have
a community of interests. He traced
out how the Union Pacific, by reason
of it's connection to Portland, could
dominate the rate situation, and how
lines presumed to be natural competi-
tors-i. 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 stifie compete
ton by the Southern Pacific, according
to 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 well as CON
trolling interest in the Central Pacific.
from Ogden to San Francisco.
The points in law Mr.. Severance is
arguing follow:
Points of Law in Question:
ID The maintenance of free com
petition among railways has become
the settled policy of the nation.
Cd 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.
CD 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.
(4.) 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 a monopoly
and is inhibited by the Sherman act.
DAILY MARKET REPORT.