The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-01-10

about u per cent but it could not be
maintained
statements showing that the Union Pa
cific had prospered greatly in the last
few years and asked If in view of this he
considered the present rates as equitable
Il consider them entirely reasonable. y,
Competition Still Keen.
And the competition between the
Union Pacific and the Southern Pacific
is still keen?''
Just as keen
DO you think this?,
No. know il.
Commissioner Clements asked if the
Southern Pacific owned stock in the
Southern Pacific Express company. Mr.
Stubbs replied he believed ii did. He was
asked II tho Union Pacific held stock i'm
the Wells-Fargo company. The witness
was unable to answer. but the Union Pa
cific attorneys said that the railroad held
about 40 per cent of the express company's
stock p
In response to Mr.. Lone's questions, Mr..
Stubbs declared there is assmuch competi-
ton between transcontinental lines as
there ever was.
would the fact asked Mr. Lane.
that two roads such as the Northern Pa
cific and the Great Northern under one
ownership. have any effect on rates?''
II don't believe it would have particle
of effect said Mr.. Stubs.
s Arrangement With Rio Grande.
In replying TO further questions of Com
missioner Lane. Mr. Stubbs said that
while the Southern Pacific deals preferen-
tally with the Union Pacific 1T had
| reciprocal arrangement with the Denver
& Rio Grande by which the Southern Pa
cific gives to the Denver q Rio Granrie
at Ogden as much traffic as 1T receives
from that line.
Commissioner Clements asked Mr..
Stubs if he would sanction an increase of
rates. without knowing that his competi-
tors were going to, do the same.
81 wouldn't dare do it, replied the wit
ness.
"Then there isn't such thing as an in
dependent line -.
1T is just as independent as any mem
Der of society can be- Every man in the
community is compelled to forego por-
ton of his natural rights for the good of
the whole / see no difference in this
case
'Tf a company said Commissioner
! Clements, lis paying 10 per cent divi-
dends. isn't that ground for reducing
rates?" ,
Remembers the Lean Year.
81 don't know said the witness. that
| ii is eXpedient fer me to give my personal
| the Union Pacific. / would say that il is
we'll TO remember the lean years that the
nion Pacific stockholders have gone
! through. Under the circumstances, /
called for"
Mr. Milburn in commencing the cross
examination, said;
There may be lean years in the fu-
ture, may there not?"
II hope not, but / am afraid there will
| be- The last few years have been very
exceptional in regard TO the railroad busi-
| ness
Mr.. Milburn brought out from Mr..
| Stubs the statement that he considered
the thirty-day notice OF proposed altera-
| tion of rates as directed by the new rate
I law as a distinct benefit. because he be-
/ lieved il would bring about increased sta
bility of rates
Competition Would Still Exist.
Questioned by Commissioner Harlan re-
garding railroad competition. Mr. Stubbs
said that one owner for parallel lines did
not mean the destruction Of competition.
Mr.. Hill" be said. SIS probably the
| leading railroad man in this country and
/ he cannot. IL he would. destroy competi-
! ton between the Great Northern and
/ Northern Pacific. lie must employ vice
presidents and general managers. These
men have their regulations to uphold or to
construct They will work for their own
! line against the other line. and competi-
ton is inevitable. If Nv Hill should take
that spirit out of his men he might as well
I hand their management over to one
hundred-dollar clerk.
Examination of Hannaford.
Mr.. Stubs was succeeded on the stand
/ by J. y. HannafOrd. second vice presi-
dent OF the Northern Pacific who is in
charge of the traffic on that line.
Mr.. Hannaford said that in the pools
conducted prior to 1887 the Union Pacific
! and Southern Pacific were represented as
separate lines. He had always consid
! cred the Southern Pacific and the Union
Pacific. in connection with the Oregon
! Short Line, as competitors of the North
ern Pacific for Portland traffic The
Northern Pacific could not be an active
competitor of the Southern Pacific on
! business from the east to San Francisco.
| because the boat service of the latter
! line between New York and Galveston