Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1910-10-18
HARTMAN MERGER
IN FEDERAL COURT
HEARING IN GOVERNMENTS At.
TACK ON ALLEGED RAIL.
ROAD TRUST.
KELLOGG FOR THE GOVERNMENT
Four Circuit Judges Hear the Evil.
dence-Attorneys Combat In
Legal Fight Of Ma.
tionaI Interest.

st. Paul, Oct. 1l.-Arguments wer>
begun before all the judges Of thu
Eighth judicial circuit, United States
circuit court. sitting in st. Paul, in q
case Of national-wide interest. II IL
part and parcel of the attempts of the
government, begun during the Roose
welt administration, to break coubina
lions 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. Schif. Otto H. Kuhn, James Still.
man, the late Henry H. Rogers, Henry
C. Frick and William A. Clark. are
N. H. LOOMS Of Omaha, general coun.
sci for the Union Pacific: P. F. Dunno
of San Francisco for the Southern Pa
CHIC; David Watson Of Pittsburg for
Henry c. Prick, 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 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-
logg 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 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 stife competi-
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 c. p. Huntington, builder and
former president of the Southern Pa
citic. This gave them a controlling
interest in what is known as the Sun.
set Route" a combined rail and water
route from New York to San Fran.
cisco, via New Orleans, Galveston and
The Southern Pacific, as well as con.
rolling interest in the Central Pacific,
rom Ogden to San Francisco.
The points in law Mr.. Severance is
arguing follow:
Points Of Law in Question:
a. The maintenance of free com.
petition among railways has become
he settled policy of the nation.
CD The Union Pacific and South.
I'm Pacific lines are naturally competi- ,
i've, and, but for the control the form.
r exercises over the latter through
Of stock, would now be com. ,
eting lines. +.
CD The acquisition of the con. ,,
rolling interest in the Southern Pa. :
lfc system by the Union Pacific tend.
to suppress competition, and there. +
ore was in restraint Of trade, also =
ended to monopoly and is in violation .
the Sherman act. :
4) The ownership by the Union =
acific of less than majority of stock I,
the Southern Pacific, Santa Fe, q
orthern Pacific. Great Northern and X
an Pedro lines tended to suppress g
)mpetition and create monopolv 6
nd is inhibited by the Sherman act. r.