New-York tribune., 1907-07-14

ton. Mr. Hartman may Journey ny steamship
from Ae,S York 20 Ne-v Orleans. thence by
rail 10 Saa Francisco, across the Pacific Ocean
10 CnTa, ana, -eturu;@g by another route to
the United States. may 60 II Ogden by Any
one of thTee rail lines, AMI thence Kansas
City or Omaha, without leavi2g the deck
platform % carrier which 30 controls, and
without duplicating any 3aEt 6 MS journey."
u is added that MT. Hartman has what "sp-
pears 10 be dominating control IN the Illinois
Central Railroad" Gnd shat within year his
influence has ueen felt ~ tie Las. and tlar at
present the Union Pacific and Oregon Short
o. the Baltimore & Ohio. fer which they paid
S45.4Ge.n6o. and hare invested S1a,63+,324 93 in
stock of the lEew York Central
THE COMMISSIONS CONCLUSIONS
The conclusions which the commission draws
are follows:
The effect of the control os the Southern Pa
cihc by the Union Pacific has been to unity and
amagamatc tho mana cement of these two rail-
way companies and their steamship lines and
TO eliminate competition between them in trans
continental business and fn business to and
from Oriental ports.
The Union Pacific as has been shown con-
trois the San Pedro Los Angeles & Salt Lake
Railroad the stock of which IS deposited in the
hands Of trustee. This line originally in
tended independent road, extending from
Salt Lake, where IL connects with the Union
Pacific and with the Denver & Rio Grando to
Los Angeles and San Pedro. Cal. There is.
therefore. competition between this line and
the Union Pa cific and Southern Pacific.
IT appears that the Union Pacific also owns
S10GO0.Ha par value. of the stock s. the Atchi-
son. Topeka & Santa Fe Railway Company. and
bout S3oo00OC0 more IS owned by individuals
connected with the Union Pacific, making $40,
100000 or substantially Il per cent of the en-
tire capital stock of the Santa Fe company.
Who owns this stock, outside of the $10o0O0O0.
Mr.. Hartman declined TO state. Two directors
IF the Union Pacific are also directors of the
Santa Fe company: and there is now a division
of the Oriental traffic by the Pacihc Mall steam
ship Company between the Union Pacific and the
Santa Fe systems. 1t appears that there has
also been a division OF the fruit tTaIhc between
certain California territory and the East. each
road taking a certain percentage. and that north
of San Francisco the Union Pacific and the
Santa Fe have Joined and amalgamated their IN
terests in the Northwestern Paclhc Raliroau,
and that joint control has been inauSurateu
similar to that of the Alton.
Prior to the acquisition of the Southern IA
,ific by the Union Pacific, the Denver q RIO
Grande system extending from Denver where
Il connects wiz various lines 10 the east to Salt
Lake and ogden. was given equal faculties over
the Central Pacific and thereby practically
formed another transcontinental line. Since the
amalgamation OF the Union Pacific and Southern
Pacific and the construction of the san Pedro
road. this line has been denied equal facilities
in the receipt and transportation OF freight over
the Central Eacc ana me San Stll i444tS- us
business therefore. has decreased and its ability
70 compete with the Union Pacific and Southern
Pacific been impaired. on this account the Gould
lines are aiding the construction OF another line
from Ogden 10 San Francisco.
The 5oint control of the Alton Railway by the
Union Pacific and the Chicago, Rock Island 81
Pacific Railway Company has undoubtedly elm
mated competition between the Alton and the
Rock Island bet---n Chicago St. Louis and
Kansas City.
These are conspicuous illustrations Of the de-
velopment of the theory of community of in
terest' and harmony of management which
Mr.. Hartman suggested when he demanded rep
resentation upon the Santa Fe board.
If the policy of purchasing and controlling
stocks in competing lines is permitted to
tinue, ii must mean suppression of competition.
RECOMMENDATIONS MADE
The recommendations made by the commits
sion are as follows:
~ The function of railroad corpora
transportation Railroads should not be per
and securities of other railway and Of steamship
pose OF forming through routes of transporta-
ton. including branches and feeders. II is in
the interest Of the public to facilitate the con-
railway company is founded upon the resources
runs Its surplus funds and credit should be
used for the betterment Of its lines and in ex-