Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1907-07-14
The Long Threatened Report of the Inter-
state Commerce Commission
The Great Railroad Magnate Regards the Findings As
Merely Accumulated Evidence of the Presidents
Peevishness Toward Him.

to which the bonds were sold. OF the
0.OOO shares of the Southern Pacific
which the Union Pacific purchased at
$5061 per share. the same banking
house received a commission of $3.50
a share. They received a like commits
sion on the Chicago and Alton stock
sold to the Union Pacific at $3.50 per
share. 1t is significant that a MEM
ber of this firm refused To disclose the
extent of its interest i'm these securi-
ties.
The effect of the control of the
Southern Pacific by the Union Pacific
has been to unity and amalgamate
their railways and their steamship
lines and to eliminate competition be-
tween them in ns-continental busi-
ness and business to and from orien-
tai points. The Union Pacific con-
trolls the San Pedro. Los Angeles and
Salt Lake railroad the stock of which
is deposited in the hands Of a trustee.
This line was originally intended as
an independent road, extending from
Salt Lake. where il connects with the
Union Pacific and the Denver and Rio
Grande. TO Los Angeles and San Pc
dro. California. There is therefore. no
competition between this line and the
Union and Southern Pacific.
1t appears that the Union Pacific
also owns S1O.000.00O par value stock
of the Santa Fe and s30.0OO.0O0 more
is owned by individuals connected
with the Union Pacific. making si0,-
OOO. 900 or substantially Il per cent Of
the entire capital stock Of the Santa
Fe system. Who owns this stock out
side Of the $4,000, 900. Mr.. Hartman
declined to state.
Two directors of the Union Pacific
are also directors of the Santa Fe and
there is now a division OF oriental
traffic by the Pacific Mail Steamship
company between the Union Pacific
and Santa Fe systems. 1t appears that
there has been a division of the fruit
traffic between certain California ter
ritory and the east. each taking n cer-
tain PERCENTAGE ard that north of San
Francisco the Union Pacific and San
ta Fe have Joined and amalgamated
their interests in the Northwestern
Pacific railroad and that a joint con-
troll has been inaugurated similar tn
that of the Alton.
HTlOT 10 lNc dCQulSItlOil ol lHt
Southern Pacific by the Union Pacific.
the Denver and Rio Grande system
was given equal facilities over the
Central Pacific and thereby pracH
cally formed another rans-continental
line. Since the amalgamation OF the
Union Pacific and the Southern Pa
cific and the construction of the San
Pedro line. this line has been denied
equal facilities in the receipt and
transportation Of business over the
Central Pacific and San Pedro lines.
Its business therefore has decreased
and its ability to compete with the
Union Pacific and the Southern Pa
cific companies has undoubtedly elm
mated competition between the Alton
and the Rock Island between Chicago
St. Louis and Kansas City.
These are conspicuous Illustrations
of the development of the theory Of
community of interests" and "har-
mony of management" which Harri-
man suggested when he demanded
representatives. upon the board. If the
policy of purchasing and controlling
stocks in competing lines is permitted
to continue. 1t must mean the suppress
sion Of competition.
LAMENTATIONS.
l. The function of railroad should
H.. to fcIf .,f