The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-08-15

ing ratio of expense. 1t is up to the
roads and to the people whom they
serve TO devise some means of more
economical operation if returns are TO
be continued to shareholders or if rates
are even to be maintained on their
present basis
Mr.. Hartman. your officials here
and throughout the intermountain
country as well as other railroad men
say they cannot get men,
Il will say this in regard to labor
conditions-labor is a factor of In
creased cost the railroads cannot es-
cape from, whatever their economies,
as it is not only directly employed by
them but enters into every item of con-
struction, equipment and establishment
of terminal facilities
What about rates." he was asked.
Rates will have to remain at their
present level for some time and in some
quarters of the country they will have
to be raised, was the quick and deci-
sive answer and further questioning
along that line proved fruitless.
"All the roads want is a~square deal
from the public. Last winter you had a
coal shortage and you had it because a
year ago when we offered you special
inducements to lay in your coal supply
before winter you refused, but waited
until our lines were busy with the
heavy fall traffic and then wanted your
coal on short notice. There will have
to be more cooperation"
What do you believe has been re-
sponsible for the granting of rebates
and other concessions" was asked.
They have arisen largely from de-
sire on the part of the traffic managers
of the big systems to serve the people
who furnish them business. Railroads
are doing their best to eliminate their
improper favOrs, for economy in oper-
alton is the one thing we strive for, and
this is not to be gained in giving special
favors to the few at the expense of the
many"
Federal interference.
During the talk Mr.. Hartman re-
ferred several times to the cooperation
of the national government in bringing
about a solution of the problem, and
when asked what specific governmental
enactment would help the railroads to-
ward more cooperation with each other
and the public he said quickly:
Recognize by federal statute the
making of enforcea BILE agreements be-
tween railroads for a distribution of
traffic and have such agreements bind
ing for given period of years. such
agreements for the distribution of traf-
fic would stop consultations between
the different roads right away. For
instance if we could have made an
advanta geous agreement with the Cen
trail Pacific in 1901 whereby we could
have developed that property and at
the same time obtained the outlet II
afforded to the coast, the Union Pacific
never would have acquired the South
eTn Pacific.
Northern Securities Company.
THE same thing may be said of the
Northern Pacific acquisition. We went
into that because it appeared that the
Burlington acquisition in. the interest
of the Northern Pacific and Great
Northern was going to shut us out of
important territory where he needed to
be We thought we had worked out a
solution of the situation in the North
ern Securities company whereby the
rights of all parties would be con-
served. but that couldn't be. So then
came the redistribution of the stocks
which left the Union Pacific with a LOT
of Northern Pacific stock which the
supreme court had said it couldn't
keep.
ct was necessary for the Union Pa
cific to divest itself of this stock and
i'm The reinvestment of the proceeds OF
its Northern Pacific and Great North
eTn il looked to two things, first to Sc
cure a greater income return. and. sec
ond, to acquire holdings that would be
beneficial to the road. So it turned &c
connecting lines where its influence
would operate TO bring it business.
mention this because it shows the way
in which the Union Pacific's position
has developed by virtue, primarily, OF
the fact that it was unable in 1901 &c
make such agreements with other rail-
roads as would have enabled it anC
them to reap a mutual advantage by
an economical division of the traffic.
4 am opposed to the idea
of railroad consolidation which
seeks to eliminate the stock
holder by making him creditor
of the road. The road needs his inter
est lust as it needs the interest of its
patrons. and in return the stakeholder
is entitled to fair remuneration fol
the investment or risk of his money.
Investors Are Timid.
But 4 general timidity such as has
been engendered by the agitation
against the railroads that has beer
sweeping the country operates to hurt
both the stakeholder and the public
II makes the railroad. IN tne HFSl pldCe
paw more for the money needed Tor It's
development than it would have to pay
under ordinary conditions, putting that
additional charge upon the earning ca
pacity of the property, and in the sec
ond place it cTipples the railroad IL
endeavoring To equip itself 10 render
service.
THAT is the reason why I have
Dointed recently TO the fact that the
Union Pacific system has spent $500
COO 900 in Improvements and extensions
since 1900. has laid 800 miles OF new
track and replaced altogether $4,000 on
Il. OGO miles of track.
..Those things are indications of the
service rendered in building up the
country, and l want to do what L can
TO develop such d feeling OF cooper
alton between the people and the ran