Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-07-15


purposes of the Union Pacific have been
those of Mr.. Hartman.
MT Hartman may tourney by
steamship from New York to New Or
ieans, thence by rail to San Francisco,
across the Pacific ocean to China and.
returning by another route to thu
uillted states. may go TO Ogden by any
one OF three rail lines. and thence TO
Kansas city or Omaha. without leaving
the deck or platform of carrier which
ne controls, and without duplicating
any part of his journey
ne was further what appeared TO be
q dominating. control in the Illinois Gem
Iral railroad, running directly north
from the Gulf of Mexico to the Great
Lakes. paralleling the Mississippi river;
ana y,oOo miles west OF the Illinois Cen
tral he controls the only line of rail-
road paralleling the Pacific coast and
running from the Columbia river TO to
the Mexican border
W1thin year his sphere of inhlu-
enoe has extended eastward; the Union
Pacific and Oregon Short Line have ac-
CURED 1867 per cent OF the stock of the
baltimore a. Ohio AT cost of S45. 4S6,-
g6O, and have invested $40, 634, 1874 in New
YORK Central aud Hudson river stock.
LAW IN HIS WAY.
That 1t is only the lawwhich prevents
me concentration into Mr.. Harriman's
hahas OF every railroad line lying be-
tween Canada and Mexico Is the frank
admission of Mr., Hartman himself al
the hearing. To get under one head all
existing transcontinental lines, or as
many as possible, and to exclude the
incoming OF al competitors became
naitestly the Hartman policy, which
was inaueurated in 1901 by the Issuance
or slOO,bOO0 900 of convertible bonds by
the Union Pacific. With the proceeds
of these bonds the Union Pacific pur-
chased control of the Southern Pacific
company and majority of the out
standing stock of the Northern Pacific
railroad company, which later incident
ally carried with ii control of one-half
OF the stock of the Chicago, Burlington
d. quincy Railroad company, the stock
OF which had been purchased Jointly
by the Northern Pacific and Great
Northern companies and their collateral
trust bonds issued therefor. Possession
OF these lines would have given to the
Union Pacific absolute mastry over
every avenue leading to the Pacific
coast within the United States save
that afforded by the Great Northern on
the northern boundry OF the country
and that offered by the Santa Fe on the
southern. This plan, il executed, would
nave subjected to common will and
policy nearly one-half OF the territory
of the United States~-a comparative
ly undeveloped. rapidly growing and
extremely rich territory into which
must necessarily extend the population
and business of the eastern states.
IL has been, however, no part OF the
Hartman policy to permit the proper
ties which were brought under the
Union Pacific control to degenerate and
decline; as railroads they are better
property today, with lower grades,
straiyhter tracks and more ample
equipment than they We're when they
came under that control. Large sums
have been generously expended in the
carving on of engineering works and
betterment. which make for the inn
provement Of the service, and perma-
nent value Of the property.
U. p. CONTROL PREVENTED.
The control of the Northern Pacific
and the Burlington by the Union Pa
oific was prevented eventually by the
decision of the supreme court of the
United States In the case of Hartman
vs.. Northern Securities company, in
which that court held that II would be
in violation of the Sherman act for
the Union Pacific to control those rail-
ways, as they were competing lines.
The Southern Pacific remains within
the control of the Union Pacific.
In all of its acquisition of stock
control In other railroads, the Union
Pacific has either purchased the stocks
directly Itself or through the Oregon
Short Line Railroad company which IL
owns and controls, and which for the
purposes Of this report will be consid-
cred as the Union Pacific. In the
year 1901 the Union Pacific acquired
100000 shares out of a total Of l,97S.492
shares of Southern Pacific stock, and
subsequently acquired $50, 900 shares,
making total of 100000 shares, or
10 40 per cent of the total stock issue
of the Southern Pacific. Thereafter
when the preferred stock of the South
ern Pacific was issued. the Union Pa
cifc subscribed for its proportion, to-
wit, 100000 shares out OF a total OF
395,GSS shares; so that at the present
time the Union Pacific owns l,OsO00O
shares out of a total of 2.S7i,1S0 shares
S. p. A HOLDING CORPORATION.
"The Southern Pacific company is
holding corporation. 1t was organ
lied under a special charter of the
state OF Kentucky In 1884. and was au-
thorized to acquire by purchase or
otherwise the stocks, bonds and Sc
curites OF railway and steamship COM
panles. Shortly after its organization
II acquired the stocks of and con-
trolled, and still does own the stocks of
and control a system OF railroad eS-
connects with the Union Paciho-to
San Francisco; from San Francisco to
Portland and from San Francisco
through California, Arizona, New Mex
leo, Texas and Louisiana to New Or
leans and has since acquired line
of railroad into Mexico. II also owns
and controls line OF steamships from
Galveston and from New orleans TO
New York and Havana. II is unneces-
sary TO detail each separate railway
corporation owning the sections OF the
vnrlous lines in these states; II is sutii-
cient to say that through stock 1t con-
trolls the entire Southern Pacific system
commonly known AS the Sunset route.
or these lines the Union Pacific has
lease and owns the stocks; OF other
lines, notably Texas lines II Is simply
a stoclSholding company, and controls
them in that way.
CENTRAL. PACIFIC ROAD.
"Among these lines so owned and con-
troiled Is the Central Pacific Railroad
company, organized under the laws OF
Utah on July 20, 1899 This company
was originally the Central Pacific Rail-
way company, organized under the laws
OF California, which, with the Western
Pacific company (Which was also or
ganized under the laws OF California
and subsequently consolidated with ~
constructed the line from San Francisco
TO ogden, where II connected with the
Union Pacific. This is the line orig
lnally known az the Central Paclnc'
which WAS to be operated with the un,
ion Pacific. II subsequently acquired
the line from Rosevllle lnear sae,a-
mento), cal, To the oregon state line
- ,,.aa ,,nn atrtlrtad nv the california