Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-01-05
.J[FF[RY DECLARES
MERGER HURT line
Harriman's Control of -Four
Pacitics" Diverted Business
From Denver 4 Rio Grande
COMPETITION WAS IMPOSSIBLE
President of Western Road lmportant
Witness Before Commerce Hearing
Conditions Moved D. & r. G. to
Undertake Construction Of New
Coast Line-BIock Signal Inquiry.


New York, Jan. 5.--The interstate
commerce commission, represented by
Chairman Knapp and Commissioners
Lane and Harlan. continued today at
the federal building it's inquiry into the
so-called "Harriman lines," acting up-
on it's general order for investigation
OF the railroads of the country to dis
cover whether or not there are COM
binations or agreements existing which
are In restraint Of trade, or violate acts
relating to interstate commerce. Today
is expected to be the last day OF the
commissions session In this city at this
time. The commission will meet next
Wednesday in Chicago, where 1t ex-
pects to hear the testimony OF NUM-
her OF prominent officers Of the Harri-
man companies, which, 1t was develop
ed Yesterday, consists chiefly of the
Union Pacific. Southern Pacific. Oregon
Short Line and Oregon Railway and
Navigation Companies. For the con-
yenience of the hearing, these four
companies have been grouped under
the term the -Four Pacifics The
commissioners are somewhat disap-
pointed over the inability of e. II. Har-
riman to appear as a witness at TINS
time. but his attorneys declare 1t Will
he two weeks yet before he is fully re-
covered from the effects of the recent
operation.
g. T. Jeffery, president Of the Dem
yer &. Rio Grande railroad and affili-
ated lines, including the proposed
Western Pacific railroad, was the fiist
witness before the commission today.'
He said he was we'll acquainted with
the railroad situation in the west. He
described the Rio Grande system ana
its connections. 1t exchanged business
with the Oregon Short Line and Ore
gor Railroad & Navigation Company.
When the Union Pacific took hold OF,
the Southern Pacific, there was
shrinkage in the amount of business
receiN ed by the Rio Grande from the
Oregon lines due no doubt" added
Jeffery. ito the control the Union Pa
elf: lad Of the Southern Pacific.
Jeffery next described the Western
Pacific railroad, which he said, has
line under construction from Salt
Lake City to San Francisco.
TIE witness read from the recent
annual report he had submit
ted to the Rio Grande stockholders, in
which it was stated that Union Pacific
control of the Southern Pacific lines
had resulted in unexpected difficult
ties" and "unlooked-for impediments,
in getting business thru to the coast
and therefore the building of COM
petive line from Salt Lake to San
Francisco had been undertaken TO pro-
ect the Rio Grande interests.
prior to consolidation, were the I'm
ion Pacific and Southern Pacific COM
petiting lines?"
within certain territory. yes" re-
piled the witness.
''At Chicago, for instance, the Union
Pacific would compete for business to
the coast as against the Illinois Cen
trail, which sought business to be hand
led to the west by way of New orleans
and the Southern Pacific. Not all bus
iness was competitive, but there was
competition at number of points
found"
Explains "competition."
Jeffery was ross-examined by John
G. Millburn, of counsel for the Union
Pacific. Millburn asked if it were not
true the great trunk lines leading west
from New York, like the New York
Central. Erie, and others, are just as
keenly competing today for Califor-
mia business against the Southern Pa
cific steamers to New Orleans as they
were before the Union Pacific secured
control of the Southern. Jeffery re-
piled there was competition, but he
would hesitate to say positively that 1T
was as keen as formerly, as the trunk
lines ultimately diverted their Califor-
mia business to the Union Pacific. Some
OF it also went to the Santa Fe. Com
petition today" continued Jeffery, "is
under maintained rates. outside of the
question of rates there is no reason
why there shouldn't be competition the
isn't it fact that competition is as
great?"
"I would hesitate to answer that"
"You regard the construction OF
new western line from Salt Lake as not
an unmitigated evil?"
Il believe it to be good thing for
that great western country and was
happy to undertake to build it,
rs it not a fact that If the Southern
system was torn away from the Union
Pacific. business going to the coast
from the Illinois Central, say, and over
the Union Pacific would have to be
hauled over portion of the Southern.
lines just the same?"
eyes, it would"
Jeffery said that eastern business
was bid for by commercial agents at
Pittsburg. For instance, the Union
and Southern Pacific formerly had
their separate agents.
DO you think" Jeffery was asked
sthat competition in Pittsburg il as