Omaha daily bee., 1906-11-03

laws will show the need of changing the
statutes.
Every alternate section for twenty miles
on either side of the Union Pacific belongs
TO that systems land grant. This is as
IL the black square on a checkerboard
belonged TO the road and the red to the
government subject to entry. There are
almost no country roads through this
region, and the railroad company, being ex-
tremely unfriendly to private development
Of mineral resources, easily finds ways TO
prevent anybody else getting access to the
lands 1t does not own. To get to them it
is necessary to trespass on the railroad
/ land: and that sort of thing is promptly
visited with the heavy displeasure of the
corpora ton. In one case a private owner
came into possession OF two quarter sec
lions which "cornered" on each other The
two other sections which met at this cor
ner belonged to the railroad company. The
private owner tried TO run tunnel across
the corner to connect his two tracts, and
he was promptly warned of his trespass
of a few feet upon the railroad lands ard
compelled to desist He could secure no
concession, and had to give up tine effort
So far as concerned establishing any COM
nunication between them, his two tracts,
although they touched, might as well have
been 100 miles apart. That sort of inter
ference with development of private hold
ings is experienced everywhere. It crops
out In the making OF rates also
Manipulation of Rates.
OF this manipulation of rates an illus
tration is afforded by the case of the mines
at Rock Springs and Hanna, Wyo. For a
long time the Rock Springs were indie
md "a RNa VT
Pacific owned the mines at Hanna, a short
distance east Back I'm 1894, It was de-
veloped. a group OF officers OF the Union
Pacific eonceieed the idea of going into
the coal mining business on their own ac-
count. Among them were General Man
ager Dickinson, ]. +. Markell of Omaha
(Hore recently known to fame for his con-
tract TO feed canal zone employees which
Chief Engineer Stevens denounced ami
which had to be cancelled), and MIR. Ne
geath, then in charge of the coal traffic
of the Union Pacific. Megeath, having con-
troll of the coal rates. raised that from
Rock Springs to the Missouri river, get
ting it by various manipulations 50 high
there was no profit in operating the Rock
Spring mines. The owners were forced
TO sell out, and the group OF Union Pa
cihc people got what they wanted-posses.
were restored 10 such a basis that they
could do business at a profit. Megeath was
put on the stand during the recent in
vesugation 10 explain this operation, and
told a curious story to the effect that he
did this to keep the Colorado Fuel and
Iron out Of the district; that it was the
intention 10 have the Union Pacific road
take over the Rock Springs mine, but the
road went into a receivers hands. and this
became impossible. 50 he and the other
officials concerned did IL The explanation
did not al all satisfy the conductors OF
the investigation. II it was accurate. then
it merely shifted the blame for the con-
spiracy from the officials of Ihe road in
their private capacity TO the road itself
a Case In Utah.
out in Utah another case of the railroad
using It's ownership of alternate sections
TO control the others also developed. The
road leased its lands 70 big cattle COM
! pany for grazing. The lease covered only
alternate sections, il is true; and other
people were az liberty to lease the govern
ment's sections If they liked. But they
couldn't fence the government lands, and
In any case a single section by itself was
OF no value They didn't trespass on the
/ railroad lands. The result was that the
lessons Of the railroad lands got the benefit
OF the grazinB on the government lands as
well, because nobody else could use them.
Thesa are only sample cases. Many
others have been discovered. The greaiest
ingenuity has been devoted 10 ths develop