The San Francisco call., 1907-01-30


seouent TO the Withdrawal by the lat
ter company Of its ns-Paclnc service
Prom san Diego. and Payson explained
now the two lines had conspired 10
control the traffic Of the northern coast
over the line 70 Eureka, which Is 70 DC
built and operated Jointly.
Tn the testimony given 20 the COM
mission by John D. Spreckels. IL was
shown that Hartman had employed
lanes smith. head OF the coal trust 70
purchase the only remaining line OF IN
dependent road in the north, and, WIN
the execution Of the Salt Lake road IL
appears that there is no such thlng as
railway competition in California
little by little Attorney Severance
drew from the vice president ano gen
eral manager Of the Pacific Mail steam
shin COu7panv the story Of the division
81 Oriental freight Schwerin was on
the stand all the afternoon. and he VIII
be recalled today. Continuous Quts-
rfouing on the part Of the attorney Tor
the commission gradually brought out
the details Of the arrangement between
the Santa Fe and the Hartman road
hv which the former was allowed 10
have every alternate shiploao OF freight
which arrived from the Orient for
transportation East
The proceedings differed from those
on the first day. in that this was not
set case brought by complaint and
answered by "a single defendant II was
rather an investigation originated pN
the commission itself, i'm which the gen
eral effect Of the consolidation. II any
there be- Of the Union Pacific. the ore
eon Railroad and Navigation Company,
the Oregon Short Line and the Southern
Pacific being inquired into. The pur-
mort 0f the testimony taken yesterday
was TO show that not only Were these
roads acting as one. but that there was
r degree Of harmony between them and
the Santa Fe which amounted 10 a COM
plete monopoly of traflc IN TINS state
T. C. Stubbs was an attentive listener
TO the proceedings throughout the day,
sitting at the table with the two CoUn-
sci for the Hartman roads. Peter f.
Dunno and r. s. Lovett OF New York.
ITe was not called 10 the stand, but in
company with other witnesses who
had been subpenaed he awaited his
turn.
SCHWERIN's TESTIMONY
Tor the first half hour Of Schwerin's
testimony Severance led him gently
through history OF Pacific com
merce, from the time IN 1868 when
the Pacific Mail took the first
cargo Of -four TO China, through
the days when the City OF Picking
Rio de JaneirO and China were
the only boats operated on the line
TO the first voyages OF the Mongolia
and Manchuria The witness testified
that steamship rates were settled by
competition, and went on to admit that
the Pacific Mail acted as agent for the
Occidental and Oriental. and the TOYO
Kisen Kaisha and the Portland and
Asiatfc lines. He said that when he
assumed his present Office the agents
OF the Pacific Mail in New York and
Chicago were officials OF the Southern
Pacific. but he was not aware that there
was any competition between the two
companies.
Were you not aware that the majority OF the
stock was owned by the Southern Pacihct -
after coils p Huntington died. Some time
in the fan 0f 1900
Was 81 formerly owned by Mr. Huntington?
By whom. then?
By some 5000 different stockholders. They
bought Il in the street.
Hartman and HawIey sold them
quite a block short.
That WIS before Hartman got con-
troll OF the Southern Pacific:
Yes.
Who owned the Occidental and Oriental.
Fifty per cent OF it belonged 10 the Union
Pacific The other 80 per cent was owned by
the pac' hc Improvement Company, IN which
lie stanford Croker and HOPKINS estate Lac
each one-Qasrter and Mr.. Huntington owned the
remaining quarter individually Afterward the
Uuion Pacific acquired all except the Huntington
When was that purchase madef
Some time between 1903 and 1908.
AGENT OF COMPETITORS
BY the Commissioner-what year did the
Pacific Mail become the agent for the Occiden-
tal and orientall
1n 1854.
How long have you been representing the
Portland aud Asiatic Company
Since lS94. but that line is independent OF
Yes. D understand that. We viii come to that
later. There was line OF steamers operated
from San Diego in conjunction with the Santa
Yes: the California and Oriental.
That line has been discontinued
DO You remember any conference between
yourself and officials Of the Southern Pacific
and Santa Fe at that time1
] had none.
You were not present at meeting Of Mr.,
-. t1-f----a1 80. 90 - ,4tsc,s-a5. "a
Don't remember Il.
Don't you know that representation
were made TO the Santa Re that ~ II
would discontinue the line from San
Diego the Southern Pacific wouId d.
vide the traffic with itg
had always tried 10 get the SANTA
Ire freight. I told them that we could
handle IL better than any one else.
About this dime did you not repeat
tIis modest sugesttOng
Every time Il saw Paul Morton I told
him he ought 40 give uE the business
nj that time fliis line from San Diego
was abandoned:
II was abandoned because 81 did not
pay.
Does the Santa Re maintain separate agencies
in the Orientt
NO
DIVIDES WITH SANTA FE
How do you divide the freight with them
One ship comes along and we give
the cargo 10 the Southern Pacific. then
the next ship that arrives goes 10 the
santa Fe.
DO you divide 81 equaIlys
That's the way its done. Yes. sir.
How long have you been doing thnt7
7 should say about six months Before thai
time we loaded the cars the dock and tht
railroad did the routing
What is the agreement, them
There was 20 agreement ] tried 10 give tht
Santa Fe the same proportion of inward freight
that they gave as Of the outward traffic. I IN
fimatcd % the Southern Pacific lately that /,
ifhey didn't get their cars along faster ] would
give 81 al 10 the Santa Pc.
How long DO you think the majority stockhold
iers ~ the Pacinc Mail would stand for that in
cline tion your partl
The Southern Pacific never fnterferes
ssfth nay management.
Nou think MIR. Srubbs looks uuou Won