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


company still owns that line, The Cen
tral Pacific company, therefore, owns
the line extending from Ogdey to san
Francisco and the line from Hoseville
TO the Oregon state line IT has a capi-
tai stock Of $6I 500 par value of COM
mon stock, and 81, 900 OF preferred
stock, all OF which is owned by the
Southern Pacific company; and the
Southern Pacific company also has
lease of Its line. Ii was only the line
from Ogden 70 San Francisco, how
ever, which was required by act Of Con-
gress to be operated in connection 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 a control over the South
ern Pacific, which has effected sub
stantial elimination OF competition be-
tween these two lines.
HAVE COMMON DIRECTORS.
"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
represented as such meetings and have
elected the director and Other officers.
For several years last past the Union
Pacific aud Southern Pacific have had
a majority of common directors, the
same president vice president, director
of traffic, director of maintenance and
operation. secretary, treasurer, comp
troler auditor. legal department and
other chief officials. Whereas, formerly
the two compariese had separate COM
mercial agents in the principal cities
throughout the United States, soliciting
traffic over their respective lines. they
now have common agents and solicitors
" no
southern Pacific systems. While the
Union Pacific. through the Short Line,
does not own majority of the stock OF
the Southern Pacific. yet Is appears by
the testimony that its control over 1t
is, for all practical purposes, as abso-
lutte as thought 1t owned every share;
and II was admitted by Mr.. Hartman
that the Union Pacific CONTROLS the
Southern Pacific,
Before the acquisition of Its stock by
the Union Pacific the Southern Pacific
company. with It's lines OF rail and
steamships, was engaged in competition
with the Union Pacific for traffic NOV
ing between the Atlantic seaboard and
the Pacific seabpard and between the
Atlantic seahoara and Oriental ports.
Through their several connections by
rail these lines We're also engaged IN
competition for traffic from practically
all points east Of the Missouri river
between the great lakes aud the Gun
of Mexico. From Atlantic seaboard
territory east of Buffalo and Pittsburg
rates have generally been the same up
on business destiued to the Pacific
coast, whether moving by the all-rall
route, including the Union and Central
Pacific, or moving by rail- to an At
lantic port, thence by water To New Or
leans and Galveston and thence by
Southern Pacific rails to Los Angeles
nd
this same Atlantic seaboard territory
on traffic moving by the Southern Pa
cific steamships and its rail connec-.
tons to Colorado common points nave
likewise been the same as on tratic
carried by rail over the Union Pacifc
to such points, and ON such traffc there
is a great and increasing volume IL IS
doubtless true the competition when
previously existed was not rs complete
as IL the Union Pacific had line of It's
own i'm San Francisco instead of turn
ing traffic over 70 the Central Pacific at
ogden. For all this traffic there exists
at present no actual competition pc
tween the Union Pacific and the south
ern Pacific lines.
TRANsCoNTINENTAL POOL.
prior TO the enactment of the inter-
state commerce law the Union Pacific
and Southern Pacific belonged to what
was known as the transcontinentab
pool, in which each was regarded as a
competitor of the other and was ac-
cordingly awarded an allotted percent
age of the trauscontinental business;
and there is on file with this commits
sion contract made In March. 1903,
known as the agreement of the trans
continental freight rate committee, 10
which contract both the Union Pacing
and the Southern Pacific We're parties
and under which all of the traffic west
OF the Missouri river and passing
through the gateways of ST. Paul, MIN
neapolis, Sioux City, omaha. Kansas
city and Sabine Pass, TO and from Cali
fornia and Oregon was treated as COM
petitive transcontinental business.
1.-The Union Pacific had access, over
the OREGON Short Line and Oregon Rail-
way & Navigation company's line, TO
Portland, and thence 1t could enter into
competition with the Southern Pacific
steams ship lines for Alaska oriental and
South sea business. The Union Pacific
also had an interest In the Occidental d
Oriental Steamship line, operated out OF
San Francisco to oriental ports. 1t also
appears that the oregon Railroad Dc
Navigation company has always had
line of steamships plying between Port
land and San Francisco, which has at
times done consldera BILE business of GER
could be made factor In competition.
I'm 1900 the Southern Pacific company
purchased a majority of the stock OF the
Pacific Mail Steamship company. which
has for many years been the largest
carrier of oriental traffic to the coun-
try, and which has operated line of
steamships in connection with the Pan
ANA railroad. by which Panama route
traffic in large quantities has moved
from Atlantic ports to Pacific coast
points In competition with the all-raii
carriers.
STEAMSHIP COMPETITION
KILLED.
by virtue of the consolidation of the
Union Pacific and Southern Pacific
Steamship companies all competition
between these steamship Ines has been
destroyed: and there is some evidence
on the record tending to show the Inn
possibility OF maintaining an indepen-
dent steamship line running out of any
of these ports without the consent OF
and arrangement with all connecting
rail carriers.
"The Santa Fe company formerly
had line Of steamships TO the orient
connecting with lts road at San Diego,
Under an arrangement with the Pacific
Mail Steamship company for division
of the oriental business brought 10 this
country by that company ana the other
steamship lines for which the Pacific
Mail acts as agent uncluding, sins ular-
ly enough, a Japanese line known az
the Nlppin Yusen Kaisha), thls lnde-
pendent Santa Fe line was abandoned.
The percentage OF this oriental traffic
allotted 10 the Santa re and the South