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

pchh " iO SiBuI ucBIcC hPoh bhc ~C'AN
petftive relations between rail carriers
reaching our Pacific coast ports.
That is further consideration Of ma
tional policy arising out of the history
Of the Union Pacific, the Central Pacific
and the Southern Pacific roads, which
distinguishes a combination of such
roads.
THE Union Pacific and Central Pacific
were born out of national sentiment and
need. The nation felt the necessity for
rail connection to It's isolated Pacific coast
territory, and for this purpose, and to an
unprecedented degree, pledged It's own
credit and donated its own lands to Gre
ate a national highway between the Mis-
souri, river and the bay of San Francisco.
'In the construction of these roads the
people had in view the protection of the
frontier in time of war, the settlement
of great wilderness west Of the Mis-
souri, river and the development Of Its
resources; and to this end 1t was deter
mined to procure the construction of a
transcontinental line and to maintain 1t
as a free, open and continuous line of
communication connecting with all rail-
roads reaching Council Bluffs on the east,
SO that the public should have the bene-
At of continuous line of transportation
from the east to the Pacific coast unham-
pered by reason of the separate owner
ship and control of these lines Of trans
portation.
ut is a fact that most Of these lines of
railway reaching Council Bluffs and
Omaha were constructed with the view of
connecting at these points with the Union
Pacific railroad as the principal trans
continental line to and from the Pacific
coast; and the government has perhaps,
a peculiar obligation to maintain the free
dom of this line.
Spend Much for Development
"In no other portion of the country Is
the federal government expanding sucn
large sums for purposes Of development
as in this great western region tributary
to the Union Pacific and the Southern
Pacific, and in no other part Of the United
States Is the commerce of the country
dependent on so few railroads covering
so vast territory and controlled by so
few men; and in no part Of the United
States could such control have such FAR
reaching effect. The body Of transcon-
tinental and foreign commerce through
these ports has grown to enormous pro-
portions and its encouragement and de-
velopment is of vital interest to the
American people.
at is claimed by the Union Pacific
that the principal reason for acquiring
the Southern Pacific was to obtain the
Central Pacific connection from Ogden to
that this Is desirable connection for
that company; but whether purchased or
not the Central Pacific is required to
form through line of transportation
with the Union Pacific and not to dis
criminate against 1t in the receipt and
transportation of freight and through
traffic The public is entitled to all the
advantages of this line as competitive
line of transportation with transcont-
mental railways.
| 1.-THE various lines which compose the
Southern Pacific from New Orleans TO
| San Francisco were also built under pa
| tronage of the federal government by the
,nation of many millions of acres OF
| government land and'formed an lnoepeh-
| dent and separate route.
| "While congress did not prohibit in eX-
| press terms the union of these great red
| eral railroad systems, 1t Is hardly TO De
| believed that such prohibition would not
| have been imposed had 1t been thought
that in the course of time they would
have been brought under single con-
| troll"
After referring to the requirement by
Hartman of the control of the San Pc
dro. Los Angeles & Salt Lake Railroad
i company, built by William A. Clark and
(, associates, and the making of contract
Il governing rates (recently abrogated on
i account of the California law and an
i agreement not to- invade each others ter
j ritory the report continues:
Issues Volume of Stock
1.-THE Union Pacific Railroad company
Il has not confined its corporate energies
i and powers to the acquisition and man.
agement of lines of transportation, out
II has issued a great volume of stock and
II securities with which 1t has purchased
stocks of other railways.
| s'rThe Union Pacific and it's connecting
and subordinate line, the Oregon Short
Line, have assumed obligations which
are now outstanding amounting to APP
proximately $1S.000000, all of which has
been used in the purchase of stock IN
| other railroads-Southern Pacific, North
| ern Pacit1c, Great NoItHelH' SANTA = g
ETC. .,oooo ooo
! THE control of $50, 900 or $40,00O0OO
of the stock of the Santa Fe by the Union
Pacific, the report says 1t is safe to as
| sumo. has not been without effect on the
relations of these two companies.
1.-THE close affliatlon of the Southern
| Pacific and Santa Fe systems has been
further shown by the recent incorpora-
ton of the Northwestern Pacific COM
many. in which 1t is the owner of one
half capital stock.
prior to the organization of this cor
poration the Santa Fe and the Southern
| Pacific companies owned certain distlnct
| and separate lines OF TdllTOdu hoith VI
| San Francisco bay, those owned by the
| Santa Fe running southerly from Hum
boldt bay and those owned by the South
ern Pacific running northerly from San
| Francisco bay. Both lines were actively
engaged in construction work, each push
| ing into the territory of the other; the
! Southern Pacific lines reaching out fol-
| the great timber district surrounding
| Humboldt bay and the Santa Fe lines
| extending southerly so as to make con-
nection with the main line upon the bay
/ of San Francisco.
Upon the incorporation of the North
western Pacific company all of the lines
owned by the Southern Pacific and Santa
| Fe transferred to this new corporation
and contract by which the lines now
| In existence and the connections between
| the same to be constructed by the North
western Pacific shall be owned by this
new company, and the board of directors
| of the Northwestern Pacific is to be di-
vided between the Southern Pacific and
| the Santa Fe-an arrangement similar to
| that made between the Santa Fe and the
Rock Island as to the control of the
| Chicago & Alton and history in all
essentials parallel with that of the San
| Pedro.