The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-07-15

1 ing OF all COM etitO-%. became mani
| testify the Hartman policy, which was
! inaugurated in 1901 by the issuance of
| 500, 100000 of convertible bonds by
| the Union Pacific. With the proceeds
| of these bonds the Union Pacific pur-
| chased control OF the Southern Pa
| cif1c company, and a majority of
| the outstanding stock of the Northern
Pacific Railway company, which later
incidentally carried with it control of
| one-half of the stock of the Chicago,
! Burlington & Quincy Railway COM
pany. the stock of which had been
purchased Jointly by the Northern Pa
| cif1c and Great Northern companies
and their collateral trust bonds issued
would have given the Union Pacific
absolute mastery over every avenue
leading to the Pacific ocean within
the United States save that afforded
by the Great Northern railroad on the
northern border of the country and
that offered by the Santa Fe upon the
southern. This plan, if'executed, would
have subjected to a common will and
policy nearly one-half of the territory
of the United States-a comparatively
undeveloped, rapidly growing and ex-
tremely rich territory into which must
necessarily extend the population and
business of the eastern states.
Property Well Cared For.
1t has been, however no part of the
Hartman policy to permit the proper
ties which are brought under the
Union Pacific control to degenerate
and decline; as railroads they are bet
ter properties today with lower grades,
straighter tracks and more ample
equipment than they were when they
came under that control. Large sums
have been generously expended in the
carrying on of engineering works and
betterments which make for the inn
provement of the service and the per-
manent value of the property.
The control of the Northern Pacific
IN OF nv Union l.
fic was prevented eventually by the de-
cision of the supreme court of the
United States in the case of Hartman
vs. Northern Securities company, in
which that court held that 1t would be
in violation Of the Sherman act for the
Union Pacific to control those rail-
ways, as they were competing lines.
The Southern PACIFIC remains within
the control of the Union Pacific.
In all of its acquisition of stock con-
troll in other railroads the Union Pa
cific has either purchased the STOCKS
directly itself or through the Oregon
Short Line railroad company, which 1t
owns and controls, and which for the
purposes of this report will be consid-
cred as the Union Pacific: In the
year 1901 the Union Pacific acquired
$50, 900 shares out of a total of 1,97S,-
492 shares of Southern Pacific COM
pany stock and subsequently acquired
10000 additional shares, making
total of 100000 shares, or 45-49 per
Southern Pacific company. Thereaf-
ter when the preferred stock of the
Southern Pacific company was issued,
the Union Pacific subscribed for It's
proportion, to wit: 10000 shares out
of a total of 395,688 shares; so that at
the present time the Union Pacific
owns 1,OSO,00O shares out of 2,374 $50
shares.
4 Holding Corporation.
The Southern Pacific company is a
holding corporation. 1t was organized
under a special charter of the state of
Kentucky in 1884. and was authorized
to acquire by purchase or otherwise |
the stocks, bonds and securities of rail- |
way and steamship companies. Short |
ly after it's organization it acquired the
stocks of and controlled, and still does
own the stocks of and control a system
of railroad extending from Ogden
ion Pacific-to San Francisco; from
San Francisco to Portland; and from |
San Francisco through California, Art-
iona, New Mexico, Texas, and Louisi- |
ana to New Orleans; and has since ac-
quired line of railroad into Mexico |
1t also owns and controls line OF
steamships from Galveston and from
New Orleans to New YORK ana da-
vana 1t is unnecessary to detail each |
separate railway corporation owning the
sections of the various lines in these
states; it is sufficient to say that
through stock ownership it controls the |
entire Southern Pacific system. COM
monIv known as the Sunset Route OF
some of these lines the Southern Pa
cif1c company has lease and also owns
the stock; of other lines notably the
Texas lines, it is simply a stockholding i
company and controls them in that /
way.
The Controlled Lines.
Among these lines SO owned and con-
trolled is the Central Pacific Railroad
company, organized under the laws of
Utah in July 20, 1899. This company
was originally the Central Pacific Rail
way company, organized under the laws
of California, which, with the western
Pacific company (Which was also or
ganized under the laws of California
and subsequently consolidated with i)
the line from San Fran
cisco to Ogden, where 1t connected with
the Union Pacific. This is the line or
iginalIy known as the Central Pacific,
which was to be operated with the
Union Pacific. 1t subsequently acqulr-
ed the line from Roseville (near Sacra-
mento) California, to the oregon state
line which was constructed by the Cal
ifornfa & Oregon Railroad company,
organized under the laws of California
The California & Oregon Railroad COM
pany of Oregon constructed the line
from Portland to the California state
line, which company stiA owns that
line. The Central Pacific company,
owns the line extending from
Ogden to San Francisco, and the line
from Roseville to the Oregon state line
It has a capital stock of $67 ,275,500 par
value of common stock and $12SOO,OOO
of preferred stock, all of which is own
ed by the Southern Pacific company; |
and the Southern Pacific company also
has a lease of its line. 1t was only the
line from Ogden to San Francisco, how
ever which was required by act of con-
gress to be operated in connection with
the Union Pacific.
Immediately, however, upon the pur-
chase of the Southern Pacific companys