The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-06-16
EXPLANATION Of
THE ALTON DEAL
Union Pacific Director Comes to
the Defense of +. H.
Hartman.
SAYS AGREEMENT HAS
BEEN MISC0NSTRUED
Rock Island Did Not Stand by
Compact; Harriman'S Man
agement Was Success.

NEW YORK, June IA director
of the Union Pacific Railroad Company
speaking of the abrogatiop of the Chi
cago and Alton agreement today, said
1.-The suggestion in today's papers
that there is to be contest for the
control of the Alton is absurd A clear
majority of the Alton stock is now
owned by the Rock Island interests
and has been owned by that interest
for nearly three years.
"The right of the Union Pacific to
own stock in the Chicago and Alton
is not open to question, since their lines
are no wise parallel or competing, The
Union Pacific could lawfully hold all of
the stock, but the Rock Island owns a
line between Chicago and Kansas City
parallel with the line of the Chicago
and Alton and if there is any doubt
about the agreement being legal, 1T is
due entirely to the competitive inter
est of the Rock Island company.
Instead of being restrictive. the eff
feet of the agreement was obviously
intended TO be and absolutely has been
into in October, 1904. the Rock Island
thus the Alton would soon have be-
come subject TO the control Of a paral-
lei competing line. BY the agreement,
control was postponed for two years
and thereafter the interests were en-
titled to control only in alternate
years. The effect was TO inevitably re-
lieve the Alton from and preserve It's
absolute independence of control by
competing company every alternate
year.
What Agreement Intended.
II is very difficult, therefore, TO see
how the agreement world be regarded
as in restraint of trade. Mr.. Harrl-
man testified before the commission
that the main inducement for the Union
Pacific to enter into the agreement was
the understanding that the Rock Island
wonld use the Kansas City.Chlcago line
for its through traffic, and the Union
Pacific would use the Kansas City-St.
Louis line for it's Eastern connection
out of Kansas City and that with both
systems using the Alton, the latter
would serve the needs of the two and
prove profitable TO the stockholders and
conserve the public interest. But the
Rock Island never carried out the plan
thus contemplated, and hence one of
the main purposes of the management
as far as the Union Pacific is concerned
has failed and as the Rock Island de-
sired to abrogatc it, the Union Pacific
acquiesced, being still of the opinion
that the public disfavor into which the
agreement has been brought is due 10
mlsconception Of its terms and ef-
feet. The Alton now, by the abroga
tion OF the agreement, comes under the
absolute control of the Rock Island
with It's great competitive interests.
''The intmation in the morning pa
pers that the very satisfactory results
Of the operation Of the Alton for the
year about closing is due to any change
in the management, is without founda-
tion. While under the voting agree
ment the Rock Island interest was
given one more director. making a ma
jority of the board at the election in
1906, II continued without any change
whatever the management Of the road
as ii existed since the syndicate took