Show I COMBINATIONS OF COMMON CARRIERS S Interstate Commerce Commission Commission Commission Commis Commis- sion Reports on How They Tiley Should Be Controlled FOR FREE COMPETITION or I. I Harriman and Associates Criticised Criticised for Investments at J Remote Points Itra Washington a loll July 13 I Declaring r S that hint 12 g II Harriman and amid his huts asso- asso lales have violated tho tIme fc federal al elal law Jaw nd the time of nearly ever every bite tato through ought which thick their railroads ia ass in iii acquiring control of oC parallel meg lines nex and amid eliminating competition the time tate Inter Commerce commission ion in I its on combinations of mf r curriers 5 which was wag mantle mall public mIle tOIa today finds rinds That lima If I time the policy 1011 C ot of purchasing md stocks stock I in III competing life lino l he S permitted to continue It ii must mean mean lon of or competition tion t. j That Thul railroads should nut not be u p po 1 ed tell to Invest t generally sen rally In him the stock bon and amid securities of If f other r nd steamship companies except for Cor forie forlie I lie ie of or If forming through rout routs routes s of f transportation by connecting lines That the time surplus funds should be lie for or 01 the betterment of oC It Its Ilg lines a anti and the d of or the time country countr contiguous to toto o 0 U. U That railroad securities must be madu L safe and anti conservative COU i f Investment In t for forie forlie forthe the lie ie people 11 by eliminating s ich risks as the lie 10 Investment of ot funds In iii another tuii timer company thereby tho endangering mm g the bo of the Investing Inventing road That so long lone as it Is la the tho policy of ot Lime lie general government and amid ot or tic tho tales mites to maintain competition naturally competing lines the tho ownership owner owner- ship hip of or any uny stock by hy ono one railroad q m n a competing railroad should 1 not not be i per S That competing lines lino ot of should iv be prohibited from having any common directors director und antI That regulation should once be he Imposed upon the ito securities by railroads engaged ti In Inflation nt of y 5 That old A Axt nu i c should be luc rf r- r for f n J lii liol II oter M run row In Nevada which finally reunited resulted In a LI Joint agree agree- ment f fA A t. t rule rate agreement C was entered limb into I the Pacific un l the I tau Kan Pedro to which h the JQ 1 takes The Tho Southern Souther-II I i cl lm d that aunt time the rate mate agreement r Tf- Tf lisLe only emily to th tho ho Within tho thoI time tho state stall of ur Ca California 11 COllI In The is commission ou do does doO OP not miot believe It can cun be so construed con con- I struell but as us It has hus since Ince been aZure abru- gated nothing nothing- will be b done dOll about It fl Time The report gives g a a. most detailed hIstory history history his his- tory of oC the OJ Jho and Alton Allon den deal li ll 5 various rich In lii of uC r of f indefensible First came canto the time profits to o this the ers era out u of it selling themselves X VM 9 of hOll bonds s at 63 13 which they retailed cl within a a. row fow ow years for 01 82 to 91 II Then the they helped d themselves to a 30 per cent dividend dl Lla based ed on omm Amounts expended for Cor Improvements A from IIi Income ome fourth turn of or this sule SUI fortune wheel converted 1 shares I of or railroad railroad- ra company com com- I Ji rummy puny stock into shares of or railway r j of or which w went nt to lo corn company puny stock stoel part pai the l Union at g MY a share The TIme M syndicates syndicate's share In Iii the Chic suits sale sul of C f of or bonds lit t CU CO fi was waR II- II naIl nally there a fco o of l to 0 Mi Mr Hardman for showing them how to todo do doIt I It S Time Tho commission calls callY attention Inci Incidentally dentally to I tho lie enormous profits a and andrich rich rewards which went to Kuhn LOeb Ix L eb b und anti Co The Tho report recites some of o their th h commissions including ln G GO on omi the time y sale of tie of or Union convertible eon bonds one halt of oc which commission sion was retained by them nod r half given l to the syndicate to whom tho they sold The Time report says Otto DUo Kuhn A Aa a member of or the tIme firm refused e 1 to dt diE diE- lf- lf close the extent of 01 the tho firms firm's Interest In iii 1 these securities securities- f The Time report the tIme la- la their railroad for or New York Cen- Cen Central Central A funds In iii stocks H like the time ew and other roads which have only a n. i emote connection with the time territory 1 in which the time Union Pacific s system Is hi 1 located It calls attention to the fact act i that lint there thero arc are about square miles l' l I of if territory In iii the tho lie state of or Oregon Olegon surrounded sur- sur rounded by the time lines of oC tho the Oregon th ou Short Line Railroad company nn and the he Oregon Railroad and Navigation com com- I n which are not nol yet yot developed Here are arc some of or the tue truisms which Mr air Lane lano Incorporated In his hla report TIme The function of ur a railroad 1 lion should bo be l to lO tIme the furnish furnish- In ing imig of ot transportation v It is to 10 tho the Interest of or tho the public to facilitate the time consolidation of oC c Ins InS' Hues I 5 x It Is a serious to lo the time olal condition of the couRtry to large railroad by H Lena nil full to to to snout their obligations or on or go Jute the tha hans hands of or receivers els j It U Is contrary to lo public t policy as U well as ns s unlawful for CUI railroads to tu 1 acquire Continued on Ull Page Pago FIve i f I COMBINATIONS OF COMMON CARRIERS Continued from rom One On control In tho the of or parallel and competing lines Ines construction o of new lines of or railway developing developing- new territory men will w not invest their mone money t and take the risk for tor small rates of interest Railroads should b be encouraged to extend their systems and develop the country AVill Will Make Mako Great Fight Tight New York July 13 Being Being apprised this evening e at ac his home In Arden that the thc Interstate Commerce had road finished Its Inquiry Into commission his railroad rail rall- operations and I that newspapers had been supplied with advance af of f the decision Mr Harriman asserted copies that the whole plan was a I political attack at- at at 1 tack on him rim He Ile declared that the report re- re re port Jort throughout is a n mass mas J of ot erroneous J I statements and s-iiri s v o i h t r I c ui 0 AlU iu to make a great fight Tho The report which criticizes nearly every everyone one of oC the Harriman railroad methods makes no comment on the advisability of ot punishment pun pun- for COr him but copies have been sent to President Roosevelt and the tho department department de de- of oC Justice which would act oct either cither criminally or lII ci civilly It It finds In the report I |