Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-05
HOW RAILROADS
INCREASE PROFITS
Commission Continues Its
Probe in New York.
SIT IN CHICAGO MONDAY
Evidence Showing That the Carriers
Haul by Longest Routes.
WHERE PACIFIC LINES CONTROL
Consolidation Said to Have Lessened
the Volume Of Transcontinen-
tai Business.
WHERE PACIFIC LINES CONTROL

The interstate commerce commits
sion, represented by Chairman
Knapp and Commissioners Lane
and Harlan, continued today at the
Federal building its inquiry into the
so-called Hartman lines" acting
upon its general order for an inves-
tigation of the railroads OF the coun-
try to discover whether or not there
are combinations or agreements ex-
listing which are in restraint of trade
or violate the acts relating to inter
state commerce. Today is expected
to be the last day OF the commits
sion'S sessions in New York at this
time. Adjourning this evening the
commission will meet next Wednes-
day in Chicago, where it expects to
hear the testimony Ct a number of
prominent officers OF the Hartman
companies.
Special Dispatch to The Star.
NEW YORK. January 5.-Frank B. KeI-
logg, chief counsel for the interstate COM
merce commission in the investigation 1t
is conducting into the Hartman railroads,
said this morning before the inquiry was
resumed in room &C. in the Federal build
ing, that with the exception of the exami-
nation of Mr.. Hartman, which has been
postponed because of his ILLNESS. the COM
mission would, he thought, be able today
to finish the testimony which for the pres
ent it is to take in New York city. On
Monday the commission will sit in Chi
cago
E. T. Jeffrey, president of the Denver
and Rio Grande railroad and of most Of
the Gould roads west of Denver, was the
first witness today. He gave his residence
New York city and his business as the
railroad business. He said he was presi-
dent Of the Denver and Rio Grande rail-
road, the Rio Grande Western railroad, the
Western Pacific. the Rio Grande Southern
and other Gould lines. He has been, he
said, in railroading for fifty years. He
started as an apprentice in the Illinois
Central and when he left that road he was
general manager Mr.. c. A. Severance con-
Quoted his investigation for the commits
sion.
Q.-You are familiar with the railroad
situation in the west? Ayes.
Q.-The Illinois Central forms connect
ing link between the Southern Pacific at
New Orleans and the Union Pacific at
Omaha? Ayes.
Q.-What connections has the Denver and
Rio Grande at Denver? A.-Connections
with the Burlington and other friendly
railroads. which exchange business on
equal terms.
Q.-What connections at Salt Lake City
and Ogden? A.-The Oregon Short Line
and the Southern Pacific and the San Pedro.
The witness said that the Western Pa
cifc was constructing line from
Salt Lake City to San Francisco.
Mr.. Gould Interested.
Q.-Is Mr.. Gould interested In the West
Pacific? Ayes
Q.-What interests of the Denver and
Rio Grande and Rio Grande Western was
it necessary to conserve by building the
Western Pacific? A.-Those roads tran
continental business, which had been cut
quired by the Union Pacific.
Mr.. Jeffrey submitted report formulated
by the Denver and Rio Grande's directors,
giving the reasons for the new roads con-
struction. Prior to this Mr.. Jeffrey stated
that there had been general shrinkage in
the Denver and Rio Grande's receipts after
the close alliance between the Southern Pa
cific and Union Pacific.
The witness then read from the annual
report of the Denver and Rio urande for
the year ending on June 30. 1905, how the
project of building independent road
from Salt Lake City or ogden to San
Francisco had been planned because the
Denver and Rio Grande had been disap-
pointed in the hope of getting closer re-
lations with the Southern Pacific, after the
Union Pacific had acquired control of that
road.
Mr.. Severance then continued:
Q.-Prior to the acquisition of the South
ern Pacific by the Union Pacific had the
two roads been competing lines coast
business? Ayes. within certain mits
The business that left Chicago over the
Illinois Central, bound for the coast, had
been competed for by the Southern Pacific
and the Union Pacific, said the witness, as
had also business bound westward from
New York city. and other farther eastern
points. should hesitate to answer that
question also.
OIL gather that the acquisition of the
Central Pacific by the Southern Pacific led
to the construction of the Western Pace
by Mr. Gould? Ayes. that is substan-
TALLY true.
Q.-And Inc building of the Western Pa
cifc railroad isn't considered unmiti-
gated evil? A.-No; consider it a good
thing for the west.
Q-You now that the Central Pacific is