The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-07-14

| CtSSilS lQI rail- connection 10 It's isolated
PaciIIc coast territory, and for this pur-
pose, ana to an unprecedented degree,
pledged Its own capital and donated its
own lands to create a national highway
between the Missouri river and the bay OF
San Francisco.
I'm the construction of these roads the
people had in view the protection of the
frontier in time of war the settlement
of great wilderness west of the Missouri
/ river, and the development of it's re-
sources; and to this end 1t was deter
mined to procure the construction of a
| transcOntinental line and to maintain 1T
as a free, open and continuous line of
communication connecting with ali rail-
roads reaching Council Bluffs on the east.
fit of continuous line of transportation
from the east to the Pacific coast I'M
hampered by reason of the separate own
ership and control of these lines of trans
portation- 1t is a fact that most of the
lines of RAILWAY reaching Council Bluffs
and Omaha were constructed with the
view of connecting at these points with
the Union Pacific railroad as the princi-
pal transcontinental line to and from the
Pacific coast; and the government has,
| perhaps, a peculiar obligation to MAIN
tain the freedom of this line.
People vitality Interested.
In no other portion of the country is
! the federal government expanding such
! large sums for purposes of development
| as in this great western region tributary
| to the Union Pacific, the Southern Pa
cific and in no other part of the United
! States is the commerce of the country
! dependent on so few railways covering so
vast territory and controlled by so few
! men; and in no part of the United States
| could such control have such far-reach-
ing effect. The body of transcOntinental
| and foreign commerce through Pacific
| ports has grown to enormous proportions
| and its encouragement and development
| is of vital interest to the American peo-
pie.
1T is claimed by the Union Pacific
/ that the principal reason for acquiring
| the Southern Pacific was to obtain the
Central Pacific connection from Ogden
/ to San Francisco. 1t is undoubtedly true
| that this is a desirable connection for
/ that company; but whether purchased or
| not,~ the Central Pacific is required to
/ form a through line of transportation
with the Union Pacific and not to dis
| criminate against 1t in the receipt and
/ transportation If freight and through
/ traffic. The public Is entitled to all the
| advantages of this line as a competitive
| line of transportation with transconti-
mental railways.
| The various lines which compose the
Southern Pacific from New Orleans to
| San Francisco were also built under pat
| rOnage of the federal government by the
donation of many millions of acres of
| government land. and formed an indepen-
/ dent and separate route. While congress
| did not prohibit, in express terms. the
| union of these great federal railroad
| systems, it is hardly to be believed that
:
| imposed had it been thought that in the
course of time they would have been
/ brought under a single control"
Control Now Abrogated.
After referring to the requirement by
Hartman Of the control of the San Pedro
Los Angeles & Salt Lake Railroad COM
pany. built by William A. Clark and as
sociates and the making of a contract
governing rates (recently abrogated on
account of the California law. and an
/ agreement not to invade each others ter
ritOry, the report continues:
THE Union Pacific Railroad company
has not confined its corporate energies
and powers TO the acquisition and man
agement Of lines of transportation, but
has issued great volume of stock and
securities with which it has purchased
stocks of other railways.
THE Union Pacific and its connecting
and subordinate lines, the Oregon Short
Line, have assumed obligations which
are now outstanding amounting to ap-
prOximately SlSl 10000, all of which has
been used in the purchase of stock in
other railroads. Southern Pacific, North
ern Pacific, Great Northern, Santa Fe,
etc.
THE central of s3O.OOO.OOO or s4OooO.0Oo
of the stock of the Santa Fe by the
Union Pacific, the report says, it is safe
to assume. has not been without effect
on the relations of these two companies.
Combination With Santa Fe.
THE close affiliatiOn of the Southern
Pacific and Santa Fe systems has been
further shown by the recent incorpora-
ton Of the Northwestern Pacific company.
in which it is the owner of one-half cap
itaI stock. Prior to the organization of
this corporation, the Santa Fe and the
Southern Pacific companies owned certain
distinct and separate lines of railroad
north of San Francisco bay, those owned
by the Santa Fe running southerly from
Humboldt bay and those owned by the
Southern Pacific running northerIy from
an hqN lot limos
lively engaged in construction work, each
pushing into the territory of the other:
the Southern Pacific lines reaching out
for the great timber district surrounding
Humboldt bay and the Santa Fe lines ex-
tending sOutherly so as to make connection
with the main line upon the bay of San
Francisco. Upon the Incorporation of the
Northwestern Pacific company all of the
lines owned by the Santa Fe and South
ern Pacific were transferred to this new
corporation and contract by which the
lines now in existence and the connec-
lions between the same to be constructed
by the Northwestern Pacific shall be
owned by this new company, and the
board of directors of the Northwestern
Pacific is to be divided between the South
ern Pacific and the Santa Fe-an arrange
ment similar to that made between the
Union Pacific and the Rock Island as to
the control of the Chicago e. Alton, and
a history in all essentials parallel with
that of the San Pedro.
The Illinois Central.
The Illinois Central cannot be regard
ed as a competing line with the Union
Pacific: but it is a competing line with
the Chicago & Alton. which is Jointly con-
trolled, through stockownership, by the
Union Pacific and the Rock Island, and
is manifestly a competing line with the
Rock Island
Since June 90 of last wear the Union
Pacific has purchased 1888 per cent of
the capital stock of the Illinois Central, or
2S1. 231 shares out of a total of 95O,400
shares.
TT developed during the inquiry that
the Union Pacific Railroad company in
the year 1903 became the owner of 1O3,
431 shares of the preferred stock of the
Chicago & Alton Railroad company.
In about seven years prior to June 80, |
1906. the outstanding capital indebtedness
of this company was expanded from S33,-
951, 407 to $114 61O,973. or an increase of
about $50, 66O, COO and there was expended |
in actual improvements and additions TO /
the property out of this capitalization only /
about SIS 600 600, leaving an increase of its |
stock and liabilities, without one dollar of
of about $62 sec, 900, or S66 100
per mile on the 1865 miles of road owned /
by the company on June 80. 1906
Alton Bond Deal.
For the purpose of taking up the mort |
gage bonds on the road amounting to 1
about SS,5OOO00, the making of improve !