Los Angeles herald., 1907-01-06

r.. T. Jeffery, president Of the Den
yer & Rio Grande and affiliated lines,
including the Western Pacific, was the
first witness today before the ses-
sion of the interstate commerce COM
mission.
Mr.. Jeffery described the Rio Grande
system and it's connections. 1t exA
changed with the oregon Short Line
and oregon Railway & Navigation
company. When the Union Pacific took
control of the Southern Pacific there
was a shrinkage. I'm the amount of
business received by the Rio Grande
from the oregon lines. due, no doubt"
added Mr.. Jeffery, "to the control the
Union Pacific had of the Southern Pa
cific."
Mr.. Jenery next described the West
ern Pacific railroad, which has a line
under construction from Salt Lake to
San Francisco.
The attention of the witness was
called to the letters between E. II.
Hartman and George ]. Gould, read
yesterday in which Mr.. Gould said he
determined to support the building of
the Western Pacific and Mr.. Hartman
replied that he regretted the loss of
Mr.. Gould's advice. Mr.. Jeffery said
Mr.. Gould was largely interested in the
Rio Grande.
Rio Grande Behind Salt Lake
The witness read from recent an
nual report he had submitted to the
Rio Grande stockholders in which it
was stated that Union Pacific control
of Southern Pacific lines had resulted
in unexpected difficulties" and 'un-
looked for impediments" in getting
business through to the coast, and
therefore the building of a competitive
line from Salt Lake to San Francisco
had been undertaken to protect Rio
Grande interests.
Prior to the consolidation were the
Union Pacific and Southern Pacific
competing lines?" Mr.. Severance
asked
"within certain territory" replied
the witness.
within what territory?"
"At Chicago, for instance, the Union
Pacific would compete for business to
the coast as against the Illinois Cen
trail, which sought business to be
handled to the west by way of New
Orleans and the Southern Pacific. Not
all the business was competitive, but
there was competition at a number of
points"
Mr.. Jeffery was cross-examined by
John G.. Milburn, counsel for the
Union Pacific.
Mr.. Milburn asked If it was not true
that the great trunk lines leading west
from New York are just as keenly
competing today for California busi-
ness against the Southern Pacific
steamers to New Orleans as they were
before the Union Pacific obtained con-
troll of Southern Pacific.
Competition Not So Keen
Mr. Jeffery replied that there was
competition but he would hesitate to
say positively that it was as keen as
delivered their California business to
the Union Pacific Some of it also went
to the Santa Fe.
You regard the construction of a
new western line from Salt Lake as not
an unmitigated evil?' was asked.
II believe it to be a good thing for
that great western country, and l was
happy to undertake to build it,
rs it not a fact that if the Southern
Pacific system was torn away from the
Union Pacific business going to the
coast from the Illinois Central, say, and
over the Union Pacific would have to be
hauled over a portion of the Southern
Pacific lines just the same?"
Yes, it would"
us it not a fact that Union Pacific
control of Southern Pacific has not re-
suited in a change of the flow of busi-
ness over the Illinois Central?"
II have no knowledge as to that
The haul from New Orleans to San
Francisco over the Southern Pacific is
2300 miles; from Ogden to San Fran
cisco $50 miles.
Eastern Business Bid For
Mr.. JeffeFy was asked if it was not to
the advantage of the Southern Pacific
to get its business by way of New Or
leans rather than by Ogden. He said
that depended upon the question of the
through rates. He said the eastern
business was bid for by commercial
agents. Mr. Jeffery repeated that the
Rio Grande business had been dimin-
ished by the Union Pacific and Southern
Pacific consolidation and declared be-
cause of the consolidation that the
Western Pacific was decided upon.
But" said Commissioner Lane, "the
Rio Grande would find the Western
Pacific regardless of the consolidation
and even if the other two Pacifics
were separate, would it not?"
Yes"
"The Western Pacific is to be a low
grade line
Mr.. Jeffery in reply to questions said
that when Mr.. Hartman was on the
lIlO NIdIue DOdTQ ne was sure ne acted
for the best interests of the Rio Gran5e
and he felt Mr.. Gould acted for the best
interests of the Union Pacific when
serving on its board.
Were on Road to Millennium
"'That is what Mr.. Hartman calls
community of interests, is it not?"
asked Mr.. Kellogg.
Il believe so," said Mr.. Jeffery: 1--WE
We're on the road to the millennium" ,"
he added, "but did not quite get in."
80 now you are building your own
road to it?" said Chairman Knapp,
amid laughter.
W. r. Cornish, vice president of the
Union Pacific and of several other Har-
riman lines, was the next witness.
Mr.. Cornish would not admit that the
"fOur Pacifics' We're under the same
operating officials. Each company
operates it's own system and has diff
ferent managing officials.
But the financial statements are con-
solidated?" he was asked.
Yes he said.
Mr.. Cornish said he did not know