The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-07-14

lines, notably Texas lines. it is simply a
stockholding company, and controls them
in that way.
Central Pacific Road
Among these lines so owned and con-
trolled is the Central Pacific Railroad
company, organized under the laws OF
Utah on July 3, 1889. This company was
originally the Central Pacific Railway
company, organized under the laws of
California, which. with the Western Pa
cific company (Which was also organized
under the laws of California and subse-
quently consolidated with it,, constructed
the line from San Francisco TO Ogden.
where ii connected with the Union Pa
cific: This is the line originally known
as the Central Pacific. which was to be
operated with the Union Pacific. 1t sub
Sequently acquired the line from Rose
vile (ncar Sacramento), California to the
by the California q Oregon Railroad
company, organized under the laws of
California. The California & Oregon Rail-
road company, of Oregon, constructed the
line from Portland to the California state
line, which company still owns that line.
The Central Pacific company, therefore,
| OWNS the line extending from Ogden to
San Francisco and the line from Rosevills
to the Oregon state line. It has a capital
stock of $67 800 par value of common
I stock and $l2, 10000 of preferred stock
cific company; and the Southern Pacific
| company also has lease of its line. 1t
was only the line from Ogden to San
Francisco, however, which was required
My act Of congress to be operated in con-
nection with the Union Pacific.
Immediately, however, upon the pur-
chase of the. Southern Pacific company's
stock the Union Pacific began the uni
| ficatiOn of the two organizations and the
/ exercise of control over the Southern
/ Pacific, which has effected a substantial
Nr1Tr
/ two lines.
Have Same Officials.
THE Union Pacific and Oregon Short
! Line have at each annual meeting of the
stockholders of the Southern Pacific since
| 1902 voted a majority of the stock repre-
/ sented at such meetings and have elected
! the directors and other officers. For sew
| eral years last past the Union Pacific and
/ Southern Pacific have had majority of
| common directors, the same president,
| vice president. director of traffic, direc-
/ tor of maintenance and operation, secre-
/ tary, treasurer, comptroller, auditor. legal
/ department and other chief officials.
| Whereas, formerly the two companies had
! separate commercial agents in the princi
/ pal cities throughout the United States,
soliciting traffic over their respective
| lines. they now have common agents and
| solicitors who represent the Union Pacific
and Southern Pacific systems. While the
! Union Pacific, through the Short Line.
I does not own a majority of the stock of
| the Southern Pacific, vet it appears by
! the testimony that its control over it is.
| for all practical purposes as absolute as
! though it owned every share; and it was
admitted by Mr. Hartman that the Union
Pacific controls the Southern Pacific.
Former Competitors.
| Before the acquisition of its stock by
| the Union Pacific the Southern Pacific
company, with its lines of rail and steam
ships, was engaged in competition with
| the TTnfpp Papifip traffic ha-
/ tween the Atlantic Seaboard and the Pa
/ cific SeaboaTd and between the Atlantic
! seaboard and Oriental ports. Through
their several connections by rail these
/ lines were also engaged in competition
/ for traffic from practically all points east
/ of the Missouri river between the great
| lakes and the Gulf of Mexico. From
Atlantic seaboard territory east of Buff
| falO and Pittsburg rates have generally
/ been the same upon business destined to
/ the Pacific coast. whether moving by the
all-rail route, including the Union and
] Central Pacific. or moving by rail TO an
Atlantic port, thence by water to New
! Orleans and Galveston and thence by
Southern Pacific rails to Los Angeles.
San Francisco or Portland Rates from
! this same Atlantic seaboard territory on
! traffic moving by the Southern Pacific
steamships and its rail connections to
Colorado common points have likewise
been the same as on traffic carried by
rail over the Union Pacific to such points,
and on such traffic there is a great and
oN---A-s7 70 1888 -
the competition which previously existed
was not as complete as If the Union Pa
cific had line of its own into San Fran
cisco, instead of turning traffic over to
the Central Pacific at ogden. For all
this traffic there exists at present no
actual competition between the Union
Both in the Pool.
''Pricr to the enactment of the inter
state commerce Jaw the Union Pacific
.Y71 Con- Irr-, Do of &. hoI1~ -hs.f
was known as the tranScontinental pool,
in which each was regarded as a COM
petitOr of the other and was accordingly
awarded an allotted percentage Of the
transcOntinental business; and there is on
file with this commission contract made
in March, 1893, known as the agreement
of the transcontinental freight rate COM
mittee, to which contract both the Union
Pacific and the Southern Pacific were
parties and under which all of the traf-
fic west of the Missouri river and pass
ing through the gateways of St. Paul, |
Mime apOis. Sioux City, Omaha. Kansas
City and Sabine Pass, to and from Cali
fornia and OrePOn. was treated as COM
petitive transcontinental business.
'The Union Pacific had access, over
the Oregon Short Line and Oregon Rail !
road * Navigation companys line, to
Portland, and thence it could enter into |
competition with the Southern Pacific |
steamship lines for Alaska, Oriental and !
South Sea business. The Union Pacific |
also had an interest in the Occidental & |
San Francisco to Oriental ports. 1t also /
appears that the Oregon Railroad & Nav |
igatiOn company has always had a line /
of steamships plying between Portland /
and San Francisco, which has at times /
done considera BILE business of certain 1
classes and has been and still could be /
made a factor in competition.
Control of Steamsh ips.
"In 1900 the Southern Pacific company |
purchased a majority of the stock of the I
Pacific Mail Steamship company, which /
has for many years been the largest car
rier of Oriental traffic to this country. |
and which has operated line of steam
ships in connection with the Panama
railroad, by which Panama route traffic
in large quantities has moved from At
lantic ports to Pacific coast points in
competition with the all-rail carriers.
BY virtue of the consolidation of the
Union Pacific and Southern Pacific
Steamship companies all Competition be-
tween these steamship lines has been de-
stroyed; and there is some evidence on
the record tending to show the impossi-
bility of maintaining an Independent /
steamship line running out of any OF
these ports without the consent of and
with all connecting rail car
riers
THE Santa Fe company formerly had
a line of steamships to the Orient con-