The Washington herald., 1907-01-10
FREIGHT FIGHT STOPS
Competition to the Pacific
Coast Thing Of the Past.
HARTMAN AND HILL SUPREME
intcrstHtc Commerce Commission
Gets Important Testimony from
Two Traffic Managers-ETPect to
show How Hartman and Standard
OH Made Millions of Dollars.

Chicago, Jan. 9-CompetiHon between
railroads terminating on the Pacific Coast
is thing Of the past
OF the central western section. Z. j.
Hartman is king. over the northern teT-
rit0ry. James J. Hnl reigns supreme.
The situation was brought out clearly
by Operating Director J. c. stubbs, OF
The Hartman lines, aHd Chief Traffic
Manager J. Nj. Hannafo-d. OF the North
ern Pacific. at the Interstate Commerce
Commission hearing to-day
What Is mole. Mr.. stubbs and Mr.. Han
naford agreed that this is competition
SIr. Hannaford thinks there would sun
be competition If one man owned all the
railroad properties lie denied that Le
spoke for James J. Hn He has gained
al his railroad experience under the
wise arm OF the Northwest" and mem
bers OF the Interstate Commerce Com
mission said that they had no doubt that
the witness mirrors his chiefs views
Mr.. HaHnaford's idea is that compet-
tion would continue through the individ-
UaI efforts Of managers of separate lines
and that the rate question would not en-
ter into the matter. because that has al
ready been settled
What Commission Expects TO show.
Mr Hills lieutenant confessed that his
lire has long given mp the effort to get
San Francisco business, because the
southern Pacihc possesses quicker
route from the East
What the Investigators expect to make
out nest is that out IF the Siloeeo.Vl
used by the Union Pacific to buy stock
in competing lines. S950H0e0 profit went
TO Hartman and the Standard OIL
On the Illinois Central transaction alone,
il is expected to show a 100000 profit
was realized by the money kings at the
Union Pacific stockholders expense.
The Union Pacific purchases, il is as
serted. were made in HaTiman's and the
Standard OiTs behalf by Kuhn. Loeb &
Co, az $50 share. and turned over TO
the Union Pacific at $50 advance.
Mr.. Stubbs told "a hitherto unwritten
story Of railroad and steamship pools and
combinations and OF system which the
prosecutors say makes for economic
waste. business delay. car famiues. and
the slaughter Of competition
Remarkable Freight Routing.
Setting aside the question of rates. the
witness did not try 90 conceal the fact
that Harriman's grasp Of the railroad and
steamship situation is debating The direc-
tion Of rail and water shipments over all
the Southwestern States. and along both
Atlantic and Pacific coasts
After explaining the railroads reasons
for making the New York-Sau Francisco
and Cbicago-San Francisco freight rates
/ Identical he surprised the commission by
remarking that the further West from
/ New York shipment originates the high
/ CT should be the charge 10 san Francisco.
Then he made the admission that
/ freight is taken from as far west as
/ Piusburg. shipped 10 New York. carried
/ by water to Galveston sent by rail "a
/ the Pacific coast. and taken again bv
water up the coast to Portland. at rate
as low as that at which it can be deliv-
/ cred by al-rai shipment
Isn't Hartman president Of all the
companies that go TO make mp the TIVE
/ PaCihc systems - asked Attorney Kel-
I loge.
Il don't know. but believe he is said
/ Stubbs.
Control Competing Express Lines.
Taking UP the subject Of railroad earn.
/ ingE. tie witness said he considered ten
per cent dividends none too high. "You
must allow for the lean years the roads
/ have passed through" ne said.
Traffic Manager Markham, of the Mis-
souri Pacific. formerly with the Illinois
Central. testified that before the Union
and Southern Pacific consolidation. com
petition for Illinois Central business was
| keen.
but there We're no signs Of competi
ton after the consolidation. he added
! while the roads We're separate il wa!
the general belief among railroad mer
! that the Illinois Central got rebates which
made it advantageous 20 patronize tn,
Southern Pacific but after the cous0lida
tion the Central got less for It's share oi
TIC haul on Pacific Coast shipments.
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the least expense, use an Ofte HoJ-watel
! Radiator. Demonstrations 80 9th St NV