Omaha daily bee., 1906-09-20
PROUTY OPENS FIRE
Interstate Commerce Commissioner Trobes
Railroad Mine Ownership Methods.
UNION PACIFIC CHARGED WITH MONOPOLY
Hartman Railroad Owns It's Coal and
Small Competitors squeal.
FORMER PRESIDENT UNBosoMs HIMSELF
kegesth Says Ho BOurht Up Independents
to Throttle Competition.
HEARING UNDER LLMAN-GllLEsPlE RULE
'MrR PRESIDENT uSBosons HIMSELF
HEARING UNDER TILLsAN-GlllEsPlE RULE
First InvestIgRtion West of Alle-
Ehenies, and it viii Ne wide In
Scope, Extending 60
salt Lake.

The interesting facts were brought out
at the afternoon hearing in the Inter-
! state Commerce commission investigation
! Wednesday, one of which threw some light
upon the methods adopted by the Union
Pacific Coal and Railroad companies in
acquiring title to coal lands. The other
was that the Sioux City Rock Springs
Coal company was not averse to turning
| an honest penny In accepting a liberal
commission OF $4,000 in negotiating for the
purchase of quarter section OF land be-
longing to one OF it's employees and turn
ing it over TO Union Pacific people for
$1,000, paying A F. Abbott OF Denver the
So, 200 and pocketins the remainder, and in
the meanwhile bringing about the resig-
nation of Abbott from the Sioux City COM
pany as friendly" act for the Union
| Pacific people because he was a person
non gratia to the Union Pacific.
John N Baldwin, general solicitor OF the
railroad company, caused some interest
when he admitted the Union Pacific rail-
road company owned all the stock of the
Union Pacific Coal company. fact that
did not create great surprise. however.
Prouty Prcsides at Hearing.
The hearing before Interstate Commerce
Commissioner c. A. Prouty, under the
Tillman-Glespie senate resolution relative
to the relation of coal carrying railroads
and the ownership OF mines, which began
in the north federal court room Wednesday
morning, is the first Of these hearings yet
held west Of the Alleghanies and is wide
reaching in its effect. being the first in
which the great railroad systems of the
west are interested. t.s
The specific case under investigation Is
that of the Union Pacific Railroad COM
pany, with the Sioux City and Rock
Springs Coal company as the complainant.
The hearing is the outgrowth OF a claim
made months ago by the Sioux City and
Rock Springs Coal company for trackage
facilities from its mines near the
Union Pacific Coal company's mine at
Rock Springs. wyo., and which the Union
Pacific Railroad company refuses to grant.
Another feature of the suit Is that the
Sioux City and Rock Springs Coal COM
pany has pending against the Union Pa
cihc Railroad company suit for $4,000
damages for refusing: to. afford trackage
facilities that the complainant company
might market it's coal. esss&s Z,
Herring attracts Crowd. r1as
The court room was crowded with promi-
nent coal and railroad men and the utmost
interest is being taken in the case.
The witnesses thus far summoned to
testify in the case are: warwick Saunders,
president of the complainant coal COM
pany. of Davenport. Ia: Erastus Young,
general auditor of the Hartman lines: G.
W. Megeath. president of the Sheridan
Coal company; w. G. Lemst of the c. b.
Havens Coal company: w. r. Brooks of the
| Consolidated Coal company of Fremont;
Henry Newman, coal dealer Columbus.
! Neb.; Dyer o. Clark, vice president and
general manager of the Union Pacific Coal
| company; Frank Brown, local treasurer of
the Union Pacific Railroad company; w L.
Ritter. Arthur II. Doane. Edgar b. Treat OF
the Union Pacific Coal company, A. F.
Abbott of Denver and Randall Brown, coal
dealer of Omaha.
Baldwin and Marchnrd.
| John N. Baldwin, general solicitor of the
Union Pacific, is conducting the hearing
in behalf of the Union Pacific Railroad
company and j. T. Marchard of WASH
ington, general counsel for the Interstate
Commerce commission, represents that
body and e. f. Thomas of Omaha appears
in behalf of the Sioux City e. Rock Springs
Coal company.
Commissioner Prouty and Mr.. Baldwin
arrived in Omaha Wednesday morning
from Chicago, where they had been at
tending the hearing of the Peavey Elevator
! company's case.
Mr., McAuiffe. Official stenographer for
the commission. is reporting the proceed
The first witness was Erastus Young
general auditor OF the Hartman lines His
testimony was to bring out the fact that
as auditor of the Union Pacific Railroad
company he had authorized and audited the
payment of the sum OF $4,000 for the north
west quarter of section 2s township g.
range 102, in Sweetwater county wyoming
He stated that the land in question had
been decided TO him as a trustee Of the
Union Pacific Coal company. and that the
transfer was made some time in 1905, the
transaction being conducted through War
wick Saunders. who had bought the land
from one A. F. Abbott, ostenslbly for the
Union Pacific Coal company.
Mr.. Young's memory little faulty
as to the date of the transaction and the
| amount paid He insisted that he was act
ing merely as trustee. He did not know
what became of the deed.
BALDWIN Makes statement.
1--WE have no hesitancy whatever In CIV
ing testimony in this case" interposed Mr.
I Baldwin at this juncture mo question 10
raised nor is there any notion TO keep from
this commission any information relative
| TO the property. stock and bonds of the
Union Pacific II this information is desired.
The Union Pacific Railroad company owns
all the stock and bonds OF the Union Pa
!
the mortgage sale OF the old Union Pacific
Railway company from the government.
But in this case the Sioux City e. Rock
Springs Coal company has a special grlcv-
ance. which is clearly an independent pro-
ceeding. The Union Pacific has already
filed its answer in the case and this matter
must be fought out before this commits
I SION
Commissioner Prouty said,
I'VE are not here to take testimony on
the part OF the complainant. but to asce--
tain whether the Union Pacific Railrc id
company did acquire all the property OF
the Union Pacific Coal company-did IL ac-
quire the property referred TO in Mr..
Youngs testimony by direct conveyance in
the name Of an individual for the purpose
OF reconveying In the name OF some other
ofncial OF the company
| Attorney Marehand aaid that IL uaa n