Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-07-15
DEsERET EVENING NEWS MONDAY JULY - 1907

was determined to procure the con-
structon OF trauscontinentnl line and
TO maintain II as a free. open and con-
tinuous line of communication connect
Ing with all railroads reaching Coun-
ell BUTTS on the east, so that the
public should have the benefit of n
continuous line of transportation from
the east to the Pacific coast, unham-
pered by reason of the separate own
ership aud control OF these lines OF
transportation. II Is fact that most
OF the lines of railway reaching Coun-
ell BUNS and Omaha were constructed
with the view OF connecting at these
points with the Union Pacific railroad,
and the principal transcontinentai line
to and from the Pacific coast, and the
government has. perhaps, n peculiar
obligation to maintain the freedom Of
this line
I'm no other portion OF the country Is
the federal government eSpending such
large sums for purposes OF development
as IN this great western region trih-
utary to the Union Pacific, the South
ern Pacific, and IN no other part of the
United states is the commerce OF the
country dependent on so few railways
covering so vast a territory and con-
trolled by so few men; and In no part
or the United States could such con-
troll have such far-reachlng 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 people
REASON FOR GETTING S. p.
1T is claimed by the Union Pacific
that the principal reason for acqur-
ing the Southern Pacific was to oh.
tain the Central Pacific connection
from Ogden 10 San Francisco. It liz
undoubtedly true that this Is a desir-
able 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 10 discriminate against
II IN the receipt and transportation OF
freight and through traffic The pub
lie is entitled to all the advantages of
this line as q competitive line of trans
portation with transcontinental rail-
ways.
The various lines which compose the
southern Pacific from New Orleans to
San Francisco were also built under
patronage of the federal government
by the donation OF many millions OF
acres OF government land, and formed
an independent 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 such prohibition
would not have been imposed had 1t
been thought that in the course ~ time
they would have been brought under
single control"
S. p, /. A. & S. l.. ROAD.
After referring to the requirement by
Hartman of the control OF the San
Pedro, Los Angeles IL Salt Lake Rail-
read company, built by william A.
Clark and associates and the making
OF contract governing rates Gecently
abrogated on account of the California
law), and an agreement not to invade
each others territory, the report con-
tinues:
The Union Pacific Railroad company
has not confined its corporate energies
and powers to the acquisition and man
asement of lines of transportation, but
has issued a great volume of stock and
securities with which ii has purchased
stocks of other railways.
THE Union Pacific and its connecting
and subordinate line, the Oregon Short
Line, have assumed obligations which
are now outstanding amounting to APP
proNimately SlSl 100000. all of which has
been used in the purchase of stock in
other railroads, Southern Pacific.
Northern Pacific, Great Northern, SAM
ia Fe, etc.
The control of sSDoOo.0Oo or $40Oo0.-
geo OF the stock of the Santa Fee by the
Union Pacific the report says, ''it is
safe to assume, has not been without
effect on the relations OF these two
companies,
''The close affiliation of the Southern
Pacific and Santa Fe systems has been
further shown by the recent incorpora-
ton of the Northwestern Pacific COM
pany, in which 1t Is the owner of one
half capital stock. Prior to the or
ganization of this corporation, the San
ia Fe and the Southern Pacific COM
rfni iasf Inc
arate lines of railroad north of San
Francisco bay, those owned by the San
tn Fe running southerly from Hum
holdt bay and those owned by the
Southern Pacific running northerly
from San Francisco bay. Both lines
were actively engaged in construction
work, each pushing into the territory
OF the other; the Southern Pacific lines
reahhing out for the great timber dis
trict surrounding Humboldt bay and
the Santa Fe lines extending southerly
30 as to make connection with the main
line upon the bay of San Francisco.
Upon the Incorporation OF the North
western Pacific cmpany all OF the lines
owned by the Santa Fe and South
ern Pacific were transferred to this
new corporation and a contract by
which the lines now in existence and
the connections between the same to
be constructed by the Northwestern Pa
CHIC S1ull DE owned by tnls new COM
pany, and the beard OF directors Of the
Northwestern Pacific is TO be divided
between the Southern Pacific and the
Santa Fe-an arrangement similar to
that made between the Union Pacific
and the Rock Island as to the control
OF the Chicago g. Alton. and a history
in all essentials parallel with that of
the San Pedro.
THE ILLINOIS CENTRAL.
1.-THE Illinois Central cannot be re-
garded as competing line with the
Union Pacific; but 1t is a competing
line with the Chicago a. Alton. which
is Jointly controlled, through stock own
ership. by the Union Pacific and the
Rock Island. and Is manifestly n COM
petlng line with the Rock Island.
"Slnce June 30 of last year the Union
Pacific has purchased 20 80 per cent OF
trail. or 2Sl, 23l shares out OF total OF
$50. 400 shares
1T developed during the inquiry that
the Union Pacific Railroad company IN
the year 1908 became the owner Of 103,-
43l shares OF the preferred stock OF the
Chicago & Alton Railroad company.
3 SIN about seven years prior to June
30. 1906. the outstanding capital in
debtedness OF this company was eX-
panded from sS3,95l .407 TO sil4.Gl0,973, or
an Increase of about $50. $50. 900. and
there was expended In actual improve
ments and additions TO the properly out
of this capitalization only about tls-
100000, leaving an Increase of It's stock
and liabilities without one dollar of
confederation Of about S62 geo 00O or