Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-01-10
Witnesses Refuse to Admit
That Consolidation of Rail
roads Has Abolished Com
petition. for Business,
MAGNATES CANNOT STOP
RlVAtRY OF EMPLOYEES
Missouri Pacific Official Dis
agrees With Hartman and
Hill Road Representatives
Regarding Coast Business.

Regarding Coast Business.
IBy Morning journal Special Leased Wire.
chicago. Jan. 9.-Two attorney,
representing the government, mad'
determined efforts today to induce twt
traffic nag of transcontinenta
railways to admit that a concentration
of ownership means the sitting 81
competition in railroad traffic. The
attorneys ere Messrs. Severance ans
kellogg, ana the traffic manager.
we're j. c. Stubs, of the Southeru
pacific Union Pacific system. and j
M. Hannaford, of the Northern Pacific
railroad. Both men contended that
despite the consolidation OF Interests
that has taken place between the
Union Pacific and the Southern Pa
cific and bet Neen the Northern Pa
cific and the Great Northern, compe-
tition between the lines which are un-
der The same ownership is as sharp
today as ii ever was.
The examination of Mr.. Stubs COW
cred all points connected with the his
TORY and traffic arrangements Of the
southern Pacific. Union Pacific and
many Of the allied lines which are
now under the control Of f. Fl. Harri-
man. Mr.. Stubbs asserted from first
to last that the Union Pacific had
never been an active competitor of the
southern Pacific in California BUSH
ness, for the reason that it had no
outlet beyond Ogden over its own
rails direct to California. Such COM
petition as had existed between the
Two roads in the past, is still in eN-
istence.
The Union Pacific, he claimed, is
but a Link in the transportation be-
tween the Missouri river and Caiifof-
I aA1 Loo ~
dent line. In his opinion it never had
occupied tho latter position 50 far as
through traffic was concerned.
When asked if he did not believe
that a railroad which has a large sur
plus and is paying 10 pen cent divi-
bends is not in Il position to faYOr the
public with lower rates than in effect
atsthe present time, Mr.. Stubs, with
considerable feeling. said that If the
Ution Pacific yJas the road under con-.
sidtration he ~ouldeurge the hfefrbers
oht the interstate commerce commits
sion and their attorneys to remember
that while the United States may be
prosperous now, its Stockholders had
experienced any -" e years. ana
that there is no human guarantee that
the present satisfactory conditions IN
railway traffic throughout the coun-
try would be Indefinitely maintained
UDOn the subject Of sitting cOmpe-
tition. Mr.. Stubs declared that it waA
not possible for this to be done. no
matter who owned the parallel lines
under consideration. SubOrd1nates-
with regulations to make or to sustain,
would work for the interests OF their
lines against all other lines, and com
petition must therefore Follow. tie
asserted that James J.. Hill, while
probably the leading railroad man ot
the country, could lot abolish com
petition between the Northern PACING
and the Great Northern because OF
The personal spirit of the men ne ems
plays.
Mr.. H~annaford expressed similar
views regarding the Sitting of compe-
tition.
Mr.. Stubs. in answer TO questions
OF Mr.. Kellogg, said that prior TO
1901 the Union Pacific and the South
orn Pacific had separate solicitors IN
various cities seeking the same Pa
cific coast business.
rAre not transcontinental rates
about 10 per cent higher than before
the consolidation? ?" was asked.
%All the transcontinental lines tried
to- advance rates about 10 per cent
bat it could not be maintained.
In esponse to Commissioned Lane
questions, Mr.. Stubs declared there IS
as much competition between trans
Continental lines as there ever was.
In replying to questions of Com
missioner Lane, Mr.. Stubs said that
while the Southern Pacific deals pref
erentially with the Union Pacific 1t
had a reciprocal arrangement with the
Denver & Rio Grande by which the
southern Pacific gives to the Denver
& Rio Grande at Ogden as much tfal-
iic-as il receives from that line.
III a company said Commas
sioncr Clements, "is paying 10 per
cent dividend. isn't that a ground for
reducing rates."
II don't know. said Mr.. Stubs.
that ii is %eXpedient for me to give
my personal opinion on that. If you
are referring to the Union Pacific,
would say that it is well to remember
the lean years tbat Union Pacific
stockholders have gone through. I'm.
der the circumstances. l should nos :
say thai reducod rates are called for.
Nh. Milburn brought out from Mr.. /,
Slthtbs the statement hat he consid-
cred the thirty day notice of the pro-
posed alteration of rates as directed
by the new rate law a distinct benefit
because he believed e would bring
about Increased stability Of rates.
Questioned by Commissioners Harlan
regarding railroad competition. Mr.
Hupbs said that one owner for paral-
PEI lines did not mean the destruction (
or competition.
MT. Stabbs was succeeded on the 7
stand y John Hannaford. second
tl'e president Of the Northern Pacific
liuc
Iie Fhd That In the pools conducted
nr io 1857 the Union pacihc and
'0nihefu Pacific were represented as
'iiio lines. Tie bad HlNAys cone
.'rl ihr southern Pacific ana ihf
NINn Pacific DOB connection Nith ine
econ short Zine Hs competitors nt
Nnfihern Pacific fpT Portland
Tho Northern lHrinr fHllt
i Nn 10 active connection nf fN"
'In rRrint Ou husinrs ffHW
lN m Francisco NflNH INf
lN Nf lNn ilii.I N0fNH0
NNI Galveston. lNNII NN N
HfNHH Nf. IItH
ItHNlaf lli Ni