The San Francisco call., 1907-06-16
Events of a Day in Four Counties About the Bay
EXPLAINS THE CHICAGO
AND ALTON AGREEMENT
Director of Union Pacific
Road Denies Story of
a Contest
NEW YORK. June ia director Of

NEW YORK, June ia director Of
- TTrion Pacific railroad company,
speaking Of the abrogation OF the Chi
cago and Alton agreement today. said:
.aThe suggestion In today's papers
That there is to be contest for the
control OF the Alton is absurd. clear
majority of the Alton stock IS owned
by the Rock Island interests and has
been owned by that interest for nearly
three years. The right Of the Union
Pacific to own stock in the Chicago and
Alton is not open to question. since
their lines are in no wise parallel or
competing. The Union Pacific could
lawfully hold all of the stock, but
the Rock Island owns a line between
Chicago and Kansas City parallel with
the line OF the Chicago and Alton, and
il there Is any doubt about the agree
ment being legal 1t is due entirely to
the competitive interest OF the Rock
Island company. Instead Of being re-
srrictive. the effect OF the agreement
was obviously intended to be and abso-
1utely has been the contrary. 1t was
entered into in October, 1904, when
the Rock Island owned a clear majority
OF the road and the Alton soon would
have become subject to the control OF
a parallel competing line.
TERMS OF AGREEMENT
by the agreement control was post
poned for two years and thereafter the
interests were entitled to control only
In alternate years The effect was to
Inevitably relieve the Alton and pre-
serve it's absolute independence OF con-
troll by a competing company every
alternate year. 1t is very difficult
therefore to see how the agreement
would be regarded as In restraint OF
trade. Mr.. Hartman testified before
the commission that the main induce
ment for the Union Pacific to enter
into the agreement was the under
standing that the Rock Island road
would use the Kansas City Chicago
line for it's through traffic and the
Union Pacific would use the Kansas
City-St. Louis line for it's eastern con-
nection out OF Kansas City, and that
with both systems using the Alton the
latter would serve the needs OF the
two. and prove profitable to the stock
holders and conserve the public inter-
est But the Rock Island never car
ried out the plan thus contemplated.
and hence one OF the main purposes OF
the management as far as the Union
Pacific Is concerned has failed, and, as
the Rock Island desired to abrogate
it, the Union Pacific acquiesced, being
still of the opinion that the public
disfavor into which the agreement has
DSeQ DrOuSQL Is Qu6 10 mlSCOncSp-
tion OF it's terms and effect The Alton
now, by abrogation of the agreement,
comes under the absolute control OF
the Rock Island with it's great COM
petitive interests.
SATISFACTORY RESULTS
"The fntfmation in the morning
papers that the very satisfactory re-
suits OF the operation OF the Alton for
the year about closing is due to any
change in the mana cement is without
foundation. While under the voting
agreement the Rock Island interest
was given one more director, making
a majority OF the board at the election
in 1906, the management continued
without any change. Mr.. FELTON,, tho
president, and his entire STAFF have con-
tinued in the actual management of
the property, and the results achieved
are due entirely to the improvements
in the property inaugurated under
Mr.. Harriman's control and continued
to this date"