Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1907-02-27

next morning because he went TO n
funeral that the executive committee
met late and it was after o'clock p.
m. when the matter was determined
and twas decided to postpone the an
nouncement until the following morn
ing i'm order to give the New York
market an advantage over London.
Mr.. Kellogg devoted much time to
an effort to establish the propositions
that the rates on the Union and South
ern Pacific remained fixed, if they had
not increased. over a period of several
years during which time rates general
~ in the country had been reduced;
that competition had been destroyed I'm
the territory covered by the Union Pa
cific system. that the purchase of
stock i'm the Santa Fe was a move to-
ward naturalization of competition
10y that line and that the vast sums de-
voted to bettermcnts and dividends by
the Union Pacific had been taken by
unfair rates. The witness was not
willing to make any concessions or
material admissions to these conten-
tions. and most of the testimony was
discussed between the lawyer and
witness as to the facts and conditions
involved. Mr.. Hartman declared that
the Union Pacific rates had been re-
duced seventeen per cent since he be-
came president and fell back on the
assertion that the expenditures for i'm
provements had developed the coun-
try and placed the system in condition
to handle the great traffic that has
come to it in later years; that he and
the stockholders are entitled to the
benefits their enterprise had won.
There was an interesting discussion
Of the per ton per mile computation
rates. Mr.. Hartman said the calcu-
lation was faulty because from that
standpoint low rate was adversely
affected by high class freight. Har-
Iimln at first remarked that be did
not think il would necessarily b.
wrong for 4 road To- earn l. per cent
on its capitalization.
Where would you fix the limit?"
asked the commissioner.
with one hundred per cent if You
like" replied Hartman. and quickly
then outlined his views. He said as
long as the road was properly con-
Quoted and gave proper facilities at no
higher rate than that charged by any
other road it was entitled To its earn
ings. no matter what they were. There
was no reason why Stockholders
should not receive benefits resulting
from good management.
What are you going to do with
it?" he asked. Are you going To do
nate it to the government or WHAT"
There are several ways by which
YOU could return it 20 the shippers"
remarked 1Ir Clements to the amuse-
meut Of the room.
Hartman then made a plea for some
form of legislation which would per
nit railroads TO arrange for traffic
handling under the supervision Cf
some such federal body as the inter
state commission To enable them To
handle business lawfully and intclli-
gently. He thought such a iaw would
possibly result in lower rates.
Mr. Lane then began sketch OF the
foremost requirements of the Union
Pacific under Hartman. He began
with the issuance Of S1O0o00.0Co in
bonds and traced the purchases to
Portland aud on to the orient by
steamship lines. back To- san Francis
co. to ogden. to New Orleans. to New
York By steamships. into the Northern
Pacific. into the Alton. the Illinois
Central. the Santa Fe the Baltimore
d Ohio. and the New York Central
He faced the witness and said.
Where is that thing going to stop"
The master operator smiled. then