The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-01-06


nete with himself.
'sI think so. myself, saldst the COM
missioner S attorney :. ,r ,,.,
"That opens question:, Mt NIL,
burn reioinel, "upon which we coulo
take a mass OF testimony"
Mr. JefIery repeated tnat nHe hng hg
Grsn1o business had been Diminished
bv the Union Pacific and Southern "a
cifc consolidation and declared be
canse Of the consolidation that the
Western Pacific was decided upon
.sBut,r said Commissioner Lane,
..thc Rio Grsnde would find the West.
ern Pacific advantageous regardless OF
the consolidation and even IL tne 9'ne.
two Pacifics were, separate would IL
notf''
Mr.. .Jefrerv in reply 10 questions
said that when Mr. Hartman was in
rbe Rio Grande boarl he was sure he
acted for the best interests OF the
Rio Grande and he felt Mr.: Gould act
al for the best interests OF the Union
Pacific when serving on Its board
'sThat is what Mr.. Hartman calls
community of interests is it not
asked Mr.. Kellogg,
Did Not Reach Millennium
.I believe So" said Mr. Jeffery.
1--WE were on the Eoad 10 the mile
MUM them he added, "but did not
$50 now You are brilding your own
road to it3' said Chairman Knapp,
amid laughter.
". b. Cornish. vice-president of the
Union Pacific and OF several other
Hartman lines. was the next witness.
Mr.. Cornish would not admit that
the ..four PacifcSf were under the
same operating officials. Each company
operates it's own system and has d1f'
ferent managing officials.
"But the financial statements are
consolidated? he was asked.
"Yes.'' he said.
Mr.. Cornish said he did not know
who owned the stock of the Occidental
& Oriental Steamship company, but
promised 10 find out. He said the San
Pedro. Los Angeles & Salt Lake rail
road. Of which he is director, was
first projected by Senator Clark In
1901. II clashed with the Oregon
Short Line over q certain right.of-way
in canyon on Government property,
After n year of litigation there was
settlement with Senator Clark, in pur-
suance of which some 800 miles OF the
Oregon Short Line was turned over
10 the San Pedro and the latter agreed
to build 10 Los Angeles.
Counsel FOR tho commission put I'm
evidence IN abstract from the minutes
of the executive committee Of the
Southern Pacific IN which IL was stated
hat the action Of Chairman Hartman
va huving - per cent of the stock Of
,he Los Angeles Street Railway COM
ulnv was ratified and confirmed. The
purchase was made 10 prevent the prop
crty falling into other hands.
Purchase of Salt Lake System.
1t was also shown that last year the
Southern Pacific bought three -ffths of
The stock of the Utah Light and Rail
way company in Salt Lake City.
"What was the policy of the South
crn Pacific in buying that street rail
way propertyl' asked Chairman.
Knapp.
company was in a bad way and needed
purchaser The Southern Pacific and
Union Pacific were interested in the city
and thought IT would he good policy to
make the purchase
Vice. President Cornish was questioned
ss 10 what became OF the Sl00,000.O0O
Of convertible bonds issued in March,
1901, by the Union Pacific Railway com
uanv. but he remembered few of the
details IL said he presumed the bonds
were sold at less than par. They were
convertible into common stock, an Is
sue Of 800 100000 being made at the
same time the bonds were authorized.
y
locr, .'were not these bonds issued and
the money used to enable the Union Pa
cifc to speculate in railway stocksi'
Mr.. Milburn of counsel for the Union
Pacific was on mis- feet in an instant,
obiecting to the form of the interroga-
tion.
Getting Below Their Dignity
..It is not up 10 the dignity OF the
examination, he protested.
swell. we viii say To buy and sell
stock answered Attorney Kellogg
Il DON know how | can trace that
money" said Mr.. Cornish. Various
sums came into the treasury and were
used in various ways.
''About this time did not the Union
Pacific bay about $S0,000,OO0 worth of
stock in the Northern Pacific railway!'
~ don't know, 1t was large
block
''It was majority, wasn't it7''
81 believe so.
''Did the Union Pacific have enough
money in it's treasury to buy this stock
without the issue of the bonds2'
81 presume not. y
"Wasn I the primary purpose Of the
bond issue to purchase Northern Pacific
stock?''
"Mv remembrance is that the bond
Issue had nothing 10 do with the North
ern Pacific purchase That was mat
ter which came up later.
Did you ever have anything to do
with the purchase or sale Of stocks7'
Offer to Furnish Details.
Mr. Cornish thought long while and
did not answer, so counsel for the
Union Pacific came forward and said
statement as to what had been done
with the 500, 100000 would be pre-
pared for the commission.
Mr.. Cornish said however, that he
understood the bonds were issued to
paw debts and provide betterments.
Mr. Cornish declared that the region
of ''local competition between the
San Pedro line and the Southern Pa
cifc was confined to southern Califor-
MIA.
w V. s. Tborne, director of pur-
chases of the Union Pacific, the South
ern Pacific, the Oregon Short Line and
the Oregon Railway ayigation com
pany was the first witness Of the after
noon session. He said that contracts
for buying locomotives and other roll
ing stock were all made in the name OF
the Union Pacific railroad, the build
crs being notified later as to the distri
button Of the stock "among the -four
iGcs - (haTgps oro C.