Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1907-07-14

IOTUid anu subsequently WIN
it,, constructed the line from San Fran
cisco to Ogden, where 1t connected with
the Union Pacific.
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 (near Sacramento), Cal, to the Ore
the California & Oregon Railroad COM
,pany, organized under the laws of Cali
fornia.
Southern Pacific Owns All
"The California & Oregon Railroad
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 Rose
vile to the Oregon state line. 1t has a
capital stock of $67,375,5 500 par value of
the common stock, and $12,S0O,000 of pre-
ferred stock, all of which is owned by
the Southern Pacific company; and the
Southern Pacific company also has a
lease of it's line. 1t was only the line
from Ogden to San Francisco, however,
which was required by act of congress
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 Southern
Pacific, which has effected substantial
elimination of competition between these
two lines.
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 at such meetings and have
elected the directors and other officers.
For several years past the Union Pacific
and Southern Pacific have had a ma
jority of common directors, the same
president, vice president, directors Of
traffic, director of maintenance and op-
Grafton, secretary, treasurer, comptroller,
auditor, legal department and other chief
officials.
Have Common Agents
whereas formerly the two companies
had separate commercial agents in the
principal cities throughout the United
States soliciting traffic over their re-
spective lines they now have common
agents and solicitors who represent the
Union Pacific and Southern Pacific sys-
TENS. While the Union Pacific through
the Short Line does not own a majority
Of the stock of the Union Pacific, yet
it appears by the testimony that it's
control over 1t Is, for all practical pur-
poses, as absolute as though it owned
every share; and 1t was admitted by Mr.
Hartman that the Union Pacific controls
the Southern Pacific.
Before the acquisition of it's stock by
the Union Pacific the Southern Pacific
company, with its lines of rail and steam
ships. was engaged in competition with
the Union Pacific for traffic moving be-
tween the Atlantic seaboard and the
Pacific seaboard, and between the At
MI rd nd nria oil re
Through their several connections by
rail these lines were also engaged in
competition 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 Pittsburg rates
have generally been the same upon bust
ness destined to the Pacific coast, wheth-
er moving by the all-rail route. includ-
ing the Union and Central Pacific, Cor
moving by rail to an Atlantic port,
thence by water to New Orleans and
Galveston and thence by Southern Pa
ci1c rails to Los Angeles, San francisco
or Portland
Rates the Same
"Rates from this same Atlantic sea.
board territory on traffic moving by the
Southern Pacific steamships and it's raj
connections to Colorado common point:
have likewise been the same as on traffic
carried by rail over the Union Pacif,
to such points and on such traffic there
is a great and increasing volume 1t il
doubtless true the competition which
previously existed was not as complete
as If the Union Pacific had line of IT.
own into San Francisco, instead of turn
| ing traffic over the Central Pacific a
| Ogden. For all this traffic there exists
| at present no actual competition betwee,
| TTpion paot6C and the Southern Pa,
| cific lines.
prior to the enactment of the inter
| state commerce law the Union Pacific
and Southern Pacific belonged to what
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 trans
continental 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 Unior
Pacific and Southern Pacific were parties
and under which all of the traffic west
of the Missouri river and passing through
the gateways of st. Paul, Minneapolis
Sioux City, Omaha Kansas City and
Sabine Pass, to aud from California and
oregon. was treated as competitive trans
continental business.
1.-THE Union Pacific had access, over
the oregon Snort Line ana oregon Kali
road & Navigation company's lines, 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 &
Oriental Steamship line. operated out OF
San Francisco to oriental ports.
Bought Pacific Mail
at also appears that the Oregon Rail-
road & Navigation company has always
had line of steamships plying between
Portland and San Francisco, which has
at times done considerable business OF
certain classes and has been and still
could be made a factor in competition
"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 carrier of oriental traffic to this
country and which has operated a line
of steamships in connection with the
Panama railroad, by which Panama route
traffic in large quantities has moved
from Atlantic ports to Pacific coast
points in competition with the all-rail
carriers, by virtue of the consolidation
of the Union Pacific and Southern Pa
cific Steamship companies all competition
to+uyaaD tbasa etea mshin lines has heer