New-York tribune., 1907-01-06
WANT ". ROCKEFELLER
S. Z. STOCK TRANSFER.
Subpoena Ont for Oil Man-Harri-
man and Western Pacific.

The Interstate Commerce Commission. which
is investigating the Hartman railroads. contin-
ued its hearing yesterday in the Postofbce
Building before Commissioners Martin A. Knapp,
Franklin X. Lane and James 5. Harlan. Frank
B. Kellogg and c. A Severance represented the
government and ex-Judge Robert S. Lovett and
J. G. Milburn the Hartman roads
Just before the adjournment of the hearing
to Chicago. where it will be continued on Tues
day Mr.. Kellogg applied for and obtained
subpoena for the appearance of William Rookie
feller al the next meeting Of the commission in
this city. MIR. Rockefeller's was brought
into the inquiry when Alexander Millar.
secretary of the Union Pacific. said that Mr..
Rockefeller, from March 80 November II,
1903 held 30o,00o shares Of Southern Pacific
stock under arrangement with f. H Harri-
man
The stock was purchased from the Oregon
Short Line by Mr.. Rockefeller at 511a Mr. Mil
lar said, and bought back eight months
after at the same price. There agree
ment that the Short Lire should buy back the
stock within a year the same price plus
per cent interest and a commission. 1t
taken back. he said. at the request of Mr. Rookie
feller, who. in consideration of the fact that a
full year had not elapsed, reduced the commits
sion TO five-eghths of 1 per cent which made
the amount s1S7.0e0.
Mr.. Severance had the witness read from the
minutes of a meeting of the executive committee
of the Oregon Short Line. held on March 81
1903, a resolution which stated that the chair
man (E. H. Hartman lin pursuance of author
ity had sold the 100000 shares to Mr. Rookie
1eller. Asked If there was previous resolution
granting such authority he looked over the rec
ords but could find no such proceedings.
Mr. Millar testified that on April s. following
the executive committee meeting the Oregon
hort
mon stock OF the Southern Pacific. He said he
did not know of any reason for selling the
100000 shares to Mr.. Rockefeller or why il
should have been bought back
All know said the Witness lis that l took
the stock to Mr.. Rockefeers office turned it
over and received in return check"
HEAD OF GOULD LINES CALLED.
E. T. Jeffery president of the Denver & Rio
Grande Railroad and nominal head of most of
the Gould Western lines was the first witness
10 be r. yesterday. In answer to the ques-
tions o. Mr. Severance, he told how the business
of the Denver & Rio Grande had been cut into
by the consolidation of the Union Pacific and
Southern Pacific lines To regain the lost traf-
hc was the reason, he said, why George j. Gould
: began the construction of the Western Pacific
line TO San Francisco President Jeffery said
that the Union and Southern Pacific lines had
been competitors before Mr. Hartman took con-
strol of them, and that up TO that time the
Gould lines had been able to secure advan-
tageous tariff rates, but that after the consoIi-
dation they had been at a disadvantage.
M Jeffery, AT the request of Mr.. Severance
read into the record a report made at the annual
meeting Of the Denver & Rio Grande in June,
: I9oo which explained the reason for the con-
q ~struction Of the Western Pacific. Among other
: thlnss, this report stated that it had been ex
pecting closer relations would be established he
tween the Denver & Rio Grande and the South
efh7Faclhc' but this expectation was not realized
becanse of the acquisition of the control of the
latter road by the Union Pacific. Then. because
OF the increase of traffic to Japan and other
countries in the Far East it was decided 70
build the Western Pacific.
me ILLINOIS Central was not competitor Of
2 the Union Pacif1c?' asked Mr. Severance
1t was not" replied President Jeffery
x 6sesldeht Jenery went on TO say that the Illi-
Tr6s Central and the Southern Pacific connetAd
Tor Pacific Coast business. He was then asked
about the relations Of the Union Pacific and the
Southern Pacific prior to their consolidation. and
said that their rates from Eastern points u-era
the same.
Pacific and the Southern Pacific competing
lines?" Mr.. Severance asked
Within certain territory. yes"
Within what territory"
AT Chicago, for instance the Union Pacific
would compete for business to the coast as
against the Illinois Central Not all the business
was competitive, but there was competition at a
number Of points"
COMPETITION NOT DESTROYED
John q. Milburn, Of counsel for the Union Pa
clhc, cross-examined the witness. He was asked
IL II was not true that the great trunk lines lead
ing west from this city Just as keenlv
competing to-day for California business against
the Southern Pacific steamers to New Orleans
as they were before the Union Pacific control of
the Southern Pacific The witness replied thar
s there was competition, though whether it was as
keen as formerly he would hesitate TO saw.
The competition to-day is under maintained
rates. Outside OF the question of rates. there +,
!. no reason why there should not be cornpetition
the same as there twenty years ago" Pres
fdent Jeffery said.
Q,-Is It not fact that If the Southern Pacific
system was torn away from the Union Pacific
business going the coast from the Illinois C'an
tral, say and over the Union Pacific would have to
BE hauled over portion of the Southern Pacifics
sQ-Is it not a fact that Union PaciNc control y,
Southern Pacific has resulted in a change of tha
flow of business over the Illinois CentraiS g Hg
s have no knowledge TO that.
Then Mr.. Severance asked questions which
brought out the fact that formerly the Union
= Pacific and Southern Pacific had separate agents
in Pittsburg.
o.-Do you think that the competition in Pitts
burg is as keen to-day with only ona agent there?
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