The Birmingham age-herald., 1907-07-14
Elimination of Competitic.

Before the acquisition of it's stock by the Union Pacific the Southern Pacific company with it's lines of rail and steam ships, which engaged in competition with the Union Pacific for traffic moving be- tween the Atlantic Seaboard and the Paclnc Seaboard and between the At lantic Seaboard and Oriental ports. Through their several connections by rail, these lines were also engaged in com petition for traffic from practically all points east of the Missouri river, be- tween the Great Lakes and the Gulf of Mexico. From Atlantic Seaboard terri tory east of Buffalo and Pttsburg rates have generally been the same upon busl- ness 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 it's rail connections to Colorado common points have likewise been the same as on traffic carried by rail over the Union Pacific lines to such points, and of such traffic there is a great and increasing volume. It Is doubtless
 true the competition which previously existed was not as complete as if the Union Pacific had a line of its own into San Francisco instead of turning traffic
 over to the Central Pacific at Ogden
 For all this traffic, there exists at pres
 ent no actual competition between the
 Union Pacific and the Southern Pacific
 lines.
 The Union Pacific had access over the Oregon Short Line and Oregon Railroad
 and Navigation company line to Portland
 and thence it could enter into compe-
 tition with the Southern Pacific steam
 ship lines for Alaskan, Oriental and South
 Sea business.
 The Union Pacific also had an interest in the Occidental and Oriental steamship
 line operated out of San Francisco.
 In 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 car Tier of oriental traffic to this country and which has moved from Atlantic
 ports to Pacific coast points in competi- ton with the all rail carriers.
 By virtue of the consolidation of the Union Pacific and Southern Pacific Steam- ship companies all competition between these steamship lines has been destroyed; and there Is some evidence on the record tending to show the impossibility of main 
 ming out of any of these ports without the consent of and arrangement with a connecting rail carrier.
 The Santa Fe company formerly had a line of steamships to the Orient, connect ing with it's road at San Diego, Cal Under arrangement with the Pacific Mail Steamship company for division of the oriental business, brought to this country by that company, this independent Santa Ee lina was abandoned.
 It is a matter of large significance that our trade relations with the newly ac- uuired territory of Hawai- and our Philippine depencies to say nothing what ever of the newly awakened lands on the other side of the Pacific ocean, must depend to no slight degree upon the com petitve relations betwen rail carriers reaching our Pacific coast ports.
 There is a further consideration of na- tonal policy arising out of the history of the Union Pacific, the Central Paciho and the Southern Pacific roads, which distinguishes a combination of such roads. The Union Pacific and the Central Pacihe were born out of national sentiment and need. The nation fell the necessity for rail connection to its isolated Pacific coast territory and for this purpose, and to an unprecedented degree, pledged its own credit and donated its own lands to ere ate a national highway betwen the Mis- souri river and the Bay of San Francisco. In every statute passed by Congress, af- fecting these roads, there Is to be 1ound proof of the existence of such policy. Un- der the act of June 20, 1874 they were to be built toward each other-one from the east and the other from the west-and were to form one continuous line. which was to remain for all time available to the business and governmental necessities of our people.