New-York tribune., 1907-01-11
BiG MERGER IN DANGER
s40TERNMENT NAY END TT.
fstsrstate Commissioner Talks ON
Hm7Fp1a. Isscuiry.
Ipy Telegraph 60 -:.s Tribune. I

roirts II regard 20 The same matter.
Que % tbs commissioners who was asked what
ne sIpected the final result Of the ;nyestiea
ton would be. replied:
j would rot be proper for me TO give a s.rect
answer TO that question while this hearing is
pending. l can tell you, however what we did
IN similar case. and you may draw your own
Inference. We investigated the contemplated
merger Of what now the Hill lines in tbe
Northern Securities Company. We found eyi-
dence tending TO show that active competition
in tie Northwest. under the ownership Of the
Burlington, Northern Pacific and Great North
t-fl WAS impossible. We prepared a report re-
evidence we took to the Attorney General That
evidence Furnished the basis for the proceeding
which knocked out the Northern Securities COM
rany. Attorney General Bonaparte, no doubt
get the evidence we are taking in the Har-
r:nan investigation II he wants It. What use
snail be made of 1t after that is Of course for
him 10 determine
There exists an impression that an Immediate
effect Of the inquiry may be a reduction of
freight rates on the Hartman system This is
an altogether mistaken idea. While the COM
mission started the present inquiry to ascertain
what effect the combination of the Union Pa
cihc and Southern Pacific has had and is hav-
ing rates. 1t cannot, under the law make
specific reductions in them except at the in
stance Of complaining shippers and after for
nal hearing
II is expected that further sittings of the
held not only in Seattle. but also in Portland
and San Francisco. probably in Denver and
Omaha and in New York
Charles Knapp. at the commencement Of to-
days hearing. announced that the present hear
ing would adjourn at noon to-day. Mr.. Kel-
losg. the government attorney. said that he
would be able to get in all desired evidence by
o'clock.
L: F. AND s. P. FORMERLY COMPETITORS.
James H Hiland, traffic manager of the Chi
cago. Milwaukee & ST. Paul was the first wit
ness summoned to-day. He said that the Union
Pacific and Southern Pacific were formerly
competitors against each other for Pacific Coast
business.
Mr. Hiland asked IF competition be-
tween railroads would still exist if all the rail-
ioa5s in The country were brought under one
inanag cement
He declared that In all probability conlpeti-
ticn in such would resolve itself into
question of personal rivalry between the sep
crate mana agements of the railroads On the
whole, he considered the edge would be taken
pf the competition and il would, all things con-
sidered,.not be as keen under individual own
ership
Mr. Hiland said that since the consolidation
Of the Union Pacific and Southern Pacific his
road had experienced greater difriculty in
handling certain classes of freight.
On cross examination he asked by John
y. Milburn attcrney for Mr.. Hartman if the
Consolidation itself was the cause Of the in
creased difficulty. He replied very emphati-
caliy-
Yes, sir"
"F4or. does it work against your line"
THE greater part Of the business have men
toned goes by the Southern Pacific, and Is,
presume defected in that direction IN order to
make longer haul than would be TIE case if it
went by the Union Pacific"
Julius kruttschnitt, director Of maintenance
and operation the Southern Pacfc-Cnion
PaHiac system. followed Mr. Hiland.
Nr Kellogg asked Mr.. Kruttschntt a series
Of questions regarding his duties, The substance
Of the answers being that the witness IS in
charge Of operation ali lines OF The Union
Paci7c-Southern Pacific system. except the
ines in Texas. Concerning these lines. he said
ne frequently consulted by Mr.. Hartman
and President Lovett Of the Texas lines.
TELLS OF HARTMAN APPOINTMENT
When asked who had originated the idea of
placing one director in charge of operation
al the Hartman lines except the Texas roads
The witness said he presumed Mr.. Hartman.
He had received his appointment from that
source
F. o. Mccormick, i'm charge of passenger traf-
&c on the Southern Pacffc-UDion Pacific. was
the third witness He was questioned along the
same lines regarding passenger traffic as Mr..
hruttschntt had been concerning the operation
An attempt made to show by Mr.. Nc
cormck that the advertising Of the system was
IN the hands OF one man, but he said that tha
passenger traffic manager OF each line man
aged his own advertisements. subject to the ap
pro9ai Of Traffic Director Stubbs.
J. 4. Munroe. freight traffic manager Of the
Inion Pacific. was then called. The questions
answered by him were along the line of those
put 10 Messrs Kruttschnitt and Mccormick.
On cross-examination Mr.. Munroe said that
IN all essentials the freight conditions between
the Union Pacific and The Southern Pacific have
not been altered by the consolidation of the two
lines He asserted that while connected with
the Union Pacific before the consolidation, he
had never considered the San Francisco route
by Way Of Portland and the sea as in any de-
gree comparable for efficient service to the
route by way OF ogden and the Southern Pa
cihc He was asked If the Portland route could
be utilized by the Union Pacific in offensive op-
erations TO offset unjust rates by the Southern
Pacific from ogden the Pacific Coast. He
said II was of minimum value in such a contin-
gency
Competitive conditions between the Southern
and the Union Pacific. he asserted, had existed
before the consolidation and still exist
But" said Mr.. Severance. "Mr. Stubbs SAID
yesterday that there never had been competition
between them. DO you differ from Mr.. Stubps!
Il think there is competition now
Mr. Munroe said that he did not consider the
Illinois Central-southern Pacific route by way OF
New Orleans TO San Francisco as a competitor
OF The Union Pacifc-6outhern Pacific line by
way Of Ogden He did. however, recognize as