The sun., 1910-01-12
RAILUOADMEN'S TALK TOTART
TOLD HIM HE COULDN'T WIN
TIE ANTI-HARRTMAN SUIT.
Agreement Reached to Look Int" Basis
OF LOVett's. sDOOnCr's and BVartsr
Assertions That the Union PaCltc-
Southern Pacific Merger wRs Legal.

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WARRINGTON, Jan. ll.-Robert Scott
Lovett. president of the Hartman lines;
ex- United States Senator John c. Spooner
and Maxwell Evarts. counsel for the Har-
riman system, told President Taft yes
terlay that the United States Government
could not win the suit which il began
under the sherman antitrust law to dis
solve the merger Of the Union Pacific
and Southern Pacific railroad systems.
II became known on high authority
to-day that this was the basis Of yester-
days White House conference, at which.
in addition to Judge Lovett. Mr.. Spooner
and Mr.. Evarts. there were in attendance
President Taft. Attorney General Wicker
sham and Frank B. Kellogg. the leading
trust buster Of the Government. The rail-
road men made no offer, it was said, TO
dissolve the merger and be good here
after, as was reported from New York
to-day, Instead they attempted to show
the Administration that there was no pos
sible chance for the Government to win
its suit. While they met with no encour-
agement on the abstract proposition that
the Department Of Justice could not
obtain a dissolution of the merger under
the Sherman antitrust law. they did get
the President and the Attorney General
to agree 20 an investigation Of their
assertions.
This inquiry, it was said. will be insti-
tuted at once. G. A. Severance OF st.
Paul, a law partner OF Mr.. Kellogg and
one OF the attorneys who has represented
the Government in the dissolution suit,
will reach Washington tomorrow. He will
20 over the merger case with the Attorney
General. Later both Mr.. Wickersham
and Mr.. Kellogg will listen to the con-
tentions of the railroad men. They intend.
it was said, to go into the merits Of the
case at length and will examine all the
testimony that the representatives OF the
Hartman system wish TO submit.
After hearing all the proffered evidence
Mr.. Wickersham will make a report to
President Taft either for or against the
dismissal of the suit and it is the belief
here that the President will act in con-
formity with that opinion. Neither the
Attorney General nor the President, il
was said. have formed any opinions as
to the advisability of dismissing the suit.
ing to decide it solely on the merits of the
evidence presented to them. Ii is not
believed that Mr.. Wickersham and Mr..
Kellogg can complete their investigation
possible. The railroad men as was stated
in dispatches to THE Sun yesterday will
return to Washington soon.
The chief contention Of the railroads
was that the merger Of the Union Pacific
and Southern Pacific was not a consoli-
dation OF competitive lines within the
meaning OF the Sherman law. The rail-
road men told the representatives Of the
Administration that the Union Pacific
had obtained control OF the Southern
Pacific because it had been found abso-
lutely necessary to buy up the Central
Pacific. which runs from Portland.
to San Francisco. They had done this
to obtain an outlet to the Pacific at the
California port.
The railroad men believe also that one
part OF President Taft's special interstate
commerce antitrust message might alb
solve them from any wrongdOing ON
this matter so far as controlling a COM
petitor was concerned. In Mr.. Taft q
message it was agreed what there a rail-
road held a majority of the stock Of q
competingl line il should be allowed to
purchase the rest OF that stock. This
| provision was adopted as a means OF
| protecting minority stockholders who
otherwise, the President feared. might
| find no market for their holdings at all.
The railroad men, il was asserted.
thought that this provision would apply
to the Union Pacific-Southern Pacific
case. but they were disillusioned by Mr..
Wickersham and the President. No
railroad company which had previously
acquired it's ma jority holding OF a COM
be exempt because OF the new amendment
nor was .he law to operate TO authorize
or validate the acquisition through stock
ownership or otherwise OF a competing x
line or interest therein in violation OF the
antitrust or any other law.