The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1907-07-14

The Lane report does not ask that
anything be sent 10 the Department Of
Justice; It demands no prosecutors.
It's conclusions and recommendations
follow;
Commissioner Lanes Report.
The effect Of the control OF the South
ern Pacific by the Union Pacific has
been to unity and amalgamate the man
agement Of these two railway companies
and their steamship lines. and TO elimi-
nate competition between them in trans
continental business and in business TO
and from Oriental ports.
The Union Pacific. as has been shown.
controls the San Pedro. Los Angeles AID
/ Salt Lake Railroad, the stock Of which
IS deposited in the hands Of a trustee
! This line was originally intended as an
1 independent road, extending from salt
/ Lake. where Il connects with the Union
Pacific. and with the Denver and RIO
Grande. to Los Angeles and San Pedro,
! Cal. There is therefore no competition
between this line and the Union Pacific
] and Southern Pacific.
Owns II Per Cent on Santa Fe.
1t appears that the Union Pacific also
owns $10.000Oc0. par value. OF the stock
Of the Atchison. Topeka and Santa Fe
Railway Company, and about so, 50J, GO
more Is owned by individuals connected
with the Union Pacific. making $1,000
| 900, or substantially II per cent Of the
! entire capital stock OF the Santa Fe
] Company. Who owns this stock, outside
OF the 100000 Mr.. Hartman declined
TO state. Two directors of the Union
Pacific are also directors OF the Santa
- - a. HE--H
| sion Of the Oriental traffic by the Pa
| cidc Mail Steamship Company between
tie Union Pacific and the Santa Fe
| systems.
It appears that there has also been q
division OF the fruit traffic between GER
tain California territory and the East
| each taking a certain percentage; and
that north Of San Francisco the Union
! Pacific and the Santa Fe have joined
and amalzamated their interests IN the
Northwestern Pacific railroad. and that
Joint control has been inaugurated
similar to that OF the Alton
Western Competition Stifed.
Prior 10 the acquisition Of the South
ern Pacific by the Union Pacific, the
Denver ard Rio Grande system. extend
| ing from Denver. where il connects with
q
various lines 20 the East 10 salt Lake
and Ogden, was given equal facilities
over the Central Pacific. and thereby
/ practically formed another transconu-
mental line. Since the amalgRmAtiOn
| OF the Union Pacific and Southern Pa
cific. and the construction Of the San
PEDRO road. this line has been denied
equal facilities In the receipt and trans
portation OF freight over the Central
Pacific and the san Pedro lines It's
/ business, therefore, has decreased, and
its ability TO compete with the Union
Pacific and Southern Pacific impaired.
/ on this account the Gould lines are
aiding the construction OF another line
from Ogden TO San Francisco
The Joint control OF The Alton rail-
way by the Union Pacific and the Chi
cago. Rock Island and Pacific Railway
! Company has undoubtedly elimlIated
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 com
munity OF interest and harmony o.
management" which Mr.. Hartman sug-
eested when he demanded representation
upon the Santa Fe board.
II the policy OF purchasing and con-
! trolling stocks in competing lines IS
permitted 10 continue, 1t must mean sup
preston OF competition
Function of Railroads.
The Junction OF a railroad corporation
should be confined 10 the furnishing OF
/ transportation. Railroads should not be
permitted 10 invest generally in stocks.
/ bonds. and securities Of other railway
and steamship companies. except con-
Meeting lines. for the purpose OF forming
IDEDCONAT Dido