The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-01-05

The executive committee Of the Union
Pacific authorized Mr.. Hartman ana
three assistants to enter INTO u con
tract with W. b. Leeds OF the Cnlcag3'
Rock Island & Pacific railway, by Wnich
-be stocks held in the Chicago Alton
nv the Union Pacific and the hock
Island should be pooled and deposlted
with the Central Trust company or New
York. >, so;d
Mr.. kellogg, was TO maintain lolnt con
troi of the Chicago & Alton; tho Union
Pacific 10 have control one year anu
The Rock Island the next year alter"
natelv The Leeds party deposited 90
COO shares of preferred stock ana oo.'
600 shares of common stock The con;
life of ten wears. II is admitted 10
be in full force at the present time.
,'How did the Union Pacific. obtain
rhe funds 10 buy this Chicago Alton
stockfN Secretary Millar was asked.
-" do not know unless 1T was out of
the current assets.
stoek''
eyes
Mr.. Nfillar said he had served one
wear as secretary OF the Chicago Il Al.
ton railway, during which time the 9th
er officers were practically the same as
those of the Union Pacific.
Salt Lake Route Agreement,
Counsel for the commission intro
duced IN evidence copies of stockbols'
ing and rate agreements between che
Union Pacific and the San Pedro, Los
Angeles & Salt Lake railway, executed
by e. II, Hartman and W. a, Clark as
representative of the two systems, Mr.,
Kellogg read from the traffic agree
ment, which had life of ninety-nine
wears. and in which the San Pedro com
panv agreed 10 maintain the same rates
as charged BY the Southern Pacific
company.
Commissioner Lane expressed surprise
that the contract should be for such
long period.
"And YOU must remember, reioined
Mr.. Kellogg "that the rates to be
maintained are those of the Southern
Pacific railway, which, so far as known,
does not own share OF stock IN the
San Pedro company.
William Mahl, controller of the Har
riman lines, was called jus, before the
luncheon recess and asked some techni-
cal questions as TO his various duties.
Mr.. Mahl said the majority of the
stock Of the Pacific Mail Steamship
company and the bne between Calves
ton. New Orleans and New York is
owned by the Southern Pacific com
pany." The Union Pacific railway
owns the steamships Manchuris and
Mongolia - he said "The Oregon Rail,
way & Navigation company owns no
ships, hut owns the Portland and Asi-
attic Navigation company. with char
tered steamships, - the witness said.
''What has become of the line of
steamships that was operated between
Portland Or. and San Francisco?' the
witness was asked.
81 read in the newspapers that the
boats belonging to that line were
sunk.
Large Stock Purchases.
Resolutions passed by the Union Pa
cihc company 20 the effect that the Ore
gon Short Line aud the Oregon Rail
way & Navigation company were not
competing and parallel lines were put
IN evidence. after they had been identi
fed by Secretary Millar.
After the recess Mr.. Mah identified
statement showing purchases of rail
way wreck by the Union Pacigc and
Oregon Short Line since July l last
The statement showed that the Union
Pacific had bought $2S. l2s, 100 worth
of stock of the Illinois Central railway
out of 8 total issue of $95.000.0O0 the
Union Pacific s holdings being 29.55
per cent Of the whole. The Union Pa
ci6c also bought more than $1,000 900
Of St. Joseph & Grand Island common
first and second preferred stocks. these
holdings amounting to S7.37 per cent
Of the whole capitalization of the road.
The Oregon Short Line during the
last six months bought S32 ,0O0.0 of
the common stock and S7.o00.000 of
the preferred stock of the Baltimore &
Ohio Railroad company. the two pur-
chases representing 1862 per cent Of
the road s capitalization. The Oregon
Short Line also bought 1000, 900 of
New York Central and Hudson River
1Nr..,.
Purchases also were made of large
blocks Of stock in the Atchison. To
peka Santa Fe amounting TO 7.6l per
cent of the total; of Chicago MiIwau-
kee q 81. Paul amounting to 342 per
cent Of the whole and OF the Chicago &
Northwestern amounting 10 332 per
cent of the whole.
Chairman Knapp asked for the exact
date of the Illinois Central purchase
but Mr.. Mahl could not give it. He
said he thought some was bought in
July and some in September or Octo-
ber.
MIR. Lovett of counsel for the rail.
roads said he wished il understood that
of the S2e 900 Of Illinois Central
stock down on the statement as belong.
ing 20 the Union Pacific. $500, ,O6G
was really held by the Railroad Securi
ties company, the stock of which is
Where They Got the Money
Mr.. Mail was asked where the Tn
ION Pacific. got the money TO buy the
stocks related.
He said the report Of June 30th last
showed a surplus Of SOL 100000,
Where did the Oregon Short Line
get the money 10 make its purchases! =
Current assets. / think. -
Did either The Union Pacific or In,
Oregon Short Line borrow money tc
make the purchases?'
ono, / think not
- Did the Oregon Short Line declare
dividend OF 30 per cent on its stocI
held by the Union Pacific and thcreb,
nearly wipe out It's Sl6,o0o,O0s sur
plusin
THAT was an accumulated dividend
aud the surplus was surplus OF opera
tlons-not from the sale Of securities.
The witness said the Union Pacifi,
held stock in the Pacific Mail Steam
ship company.
He was asked whether Mr.. Stubbs
director Of traffic AT Chicago for th
Union Pacific railway did not also ac
for the Southern Pacific, the Oregon
Short Lime and the Oregon Railway 4
t.,1f ft,y