The Washington herald., 1919-05-05
Time JUSTIF|ES
HARTMAN VIEW
U. S. Official Now Appre-
ciates His Foresight.
Says Holland.

Pacific Railroad system, II that view
should now be accepted by the gov
ernment railroad executives at Wash
irgton and be recommended to Con-
gress for adoption
Mr.. Hartman was often spoken of
as one of the American railroad lead
ers who was disposed to ignore the
Federal statutes respecting railroad
operation and management
In fact the government through the
Department of Justice caused one
great combination planned and per-
fected by Mr. Hartman to be dis
solved In that way the Southern
Pacific Railroad system and the
Union Pacific were compelled to part
each from the other.
Harriman's Plan.
Mr.. Hartman at one time advocat-
ed. although not in public. the per-
fecting of a true transcontinental
railroad system with its Eastern
terminals at New York and Boston
and its Western at San Francisco.
He was aware, however, that the
government would not permit any
consolidation of railroad systems
holding that 1t would be in viola
tion of the Federal statutes, Mr..
Hartman would have brought. II II
were possible or lawful, the New York
Central system, including the Lake
Shore, presumably the Chicago and
Northwestern or the Burlington and
the Erie Railroad Company into one
thoroughly unified combination
He was not seeking addition to his
wealth His fortune was so large tnat
few weeks before his death he con-
-fessed to the late James Stillman, MS
intimate friend. that he could not tell
within five or six million dollars Wnat
his estate would inventory.
Mr.. Hartman was an admlrer
and a follower of the railroad eco
nomic philosophy which charac-
terized the management and up
building of the Lake Shore Rail-
road under President Newell.
Many times the question was
asked, What is President Newell
spending so many millions of dol
lars upon the Lake Shore system
for?" In the end it became well
known why these expenditure were
made.
The grades were reduced. the
curves as far as possible eliminat-
ed. the road beds so perfected that
there was little wear and tear
occasioned by traffic. The equip
that money could procure.
And then when these improve
ments were completed it was dis
covered that President Newell could
operate the Lake Shore with econo-
mics that justified large dividends
and caused a great appreciation of
the market value of the stock. and
without increasing transportation
charges.
Newell md Hartman
All of the methods and policies
planned and perfected by President
Newell were adopted by Mr.. Harri-
man when he had the opportunity
TO take hold of the Union Pacific
and bring it out of the morass of
bankruptcy. and so increase it's
value as to enable it to earn large
dividends, to cause fine apprecia-
tion in the market value of the
stock and at the same time to aid
in the upbuilding of the vast ter
ritory through which the Union
Pacific penetrated.
IL was due to Mr.. Harrimanrs ex-
perience that he at last became con-
Vlnced that transportation interests
IN the United states would be great
ly benefited and that the people who
would also be benefited if there were
such combinations as would enab,-
trafnc to be carried on with the high.
est economy
IN tact Mr.. Hartman, looking far
INTO the future, was almost persuaded
mat the day would come when the
many railroad systems of the United
states would be brought into combi-
nation so that there would be onIy
three or not more than four railroad
systems in this country.
He believed that great economies
In operation of the roads and there
Iore great advantages to those who
bought transportation would ineyita-
bly, follow if there were wise ann
skliIIuI management of the unified
systems
Intimation came to New York TODAY
that those who represent the govern
Heht In the management of the Fed
eraIlzed railroad systNm are about
10 give. IN fact may han already be-
gun. careful consideration to the rail-
road situation and that their mind.
are gradually but surely centered
upon plan similar in many respects
10 the one which Mr.. Hartman a,,-
yocates.
The experience which has followed
governmental control and direction
OF Inc railroads has taught the peo-
PIE lesson respecting railroad opera
uon-. Yet 1t would have been i'm
possible ten years ago to persuade
the people that a lesson of this kind
was worth learning.
A Few months ago one of the pov-
ernmental railroad executives ven
tured to say in public that he is
now disposed to believe that the
true solution of the railroad nrob-
lem is to be found in combinations
winch would make possible three or
rour strong national sy.bems all
SUBJECTED Of course to government
regulation.
For in that way the greatest nos
sible economies in the operation of
the railroads and the handling Of
transportation could be secured
High wages could be maintained and
nt the same time reduction in the
cost OF operating the railroads could
be secured.
Howard Elliott. one of the ablest
minds among the leaders in the
railroad business of the United
States. in referring to this view said
that while the railroad systems Of
New England might in this wav be
concentrated into a single zone vet
it would be of the highest adyan-
tage IL the New England railroads
We're brought into close alliance or
BEFORE AND Al