The Montgomery advertiser., 1907-07-14

the Pacifc mali tine Ylying between San Francisco and Panama and the Morgan line of treight and passenger carriers, operated between New York , city. Havana. New 0riaaAs and Calves ton. 5.. steamer from New York to New Or leans, thence by yau to san Franeisco. across the Pacific Ocean to China, and, returning by another route to the Uni- ted States. may sgoY to O6den by any one of the three rail lines and thence to. Kansas City or Omaha without ieav- ing the deck or platform of . car which he controls and without duplicating any part of his journey.
 He has further what appears to be . dominating control in the Illinois Gen. tral RailroAd, srunRing directly north from the Gulf Of Mexico to the Great Lakes, paralleling the Mississippi rtv- CT; and 1000 miles west of the Illinois Central he controls the only line of railroad paraileiing the Pacific coast and running from the ColuWbia river sto the Mexican border.
 Within . year his superior influence has extended eastward: the Union Pa cilc and Oregon Short Line have ac- quired iS.s2 pea cent of the stock of the Baltimore and Ohio. at . cost of 345.4ee.9S0 and have invested $l9.S2l.- s24.ss in New York Central and Hud- son River stock.
 That 1t is only the law which pre- vents the concentration into Mir. Har- riman's hands of every railroad line lying between Canada and Mexico. is the frank admission of MT: Hartman himself. made at the hearing. Ques- toned by the Commission as to~ where his policy of acquisition was to stop. Mir. Hartman said:
 "T would go on with if. If I thought we could realize something more than we have got from these investments. would so on and buy more things. The report here cites a part of the testt- mony adduced.
 To gather under one head aH exist ing tfanscontinental lines or as many as possible and to exclude the ineom- ing of all competitors. become mani festly the HarrisnAn policy. which was Sico. .6oo, ,ooS of convertible bonds by the Union Pacific. With the proceeds of these bonds the Union Pacific purchas- ed control of the Southern Pacific Com pany and . majority Of the outstandins stock of the Northern Pacific Railroad Company, which latter incl dentally carried with 1t control of one half of the stock of the Chicago. Bur lington and Quincy Railroad Company, the stock of which had been purchased jointly by the Northern Pacific and Great Northern Pacific and Great Northern companies and their collateral trust bonds issued therefor.
 Possession of these lines would have given to the Union Pacific mastery over every avenue leading to the Paci fic coast within the United States save that afforded by the Great Northern Railroad on the northern border of the country and that offered by fSe Santa Fe on the southern. This plan, if executed, would have subjected to . common will and policy nearly one half of the territory of the United rapidly growing and extremely rich territory, into which must necessarily extend the population and business of the eastern states.
 It has been, however, no part of the Hartman policy to permit the proper. ties which were brought under the Union Pacific control to degenerate and decline; as railroads they are better properties today, with lower grades, straighter tracks and more ample equip ment than they were when they came underfhat control. Large sums have been generously expended in the carrying on Of engineering works and bettefments. which make for the improvement of the service and the permanent value of the property.
 The control of the Northern Pacific and the Burlington by the Union Paci- fic was prevented eventually by the de- cision of the Supreme Court of the United States in the case of Hartman vs. Northern Securities Company, in which that court held that 1t would be in violation of the Sherman act for the Union Pacific to control these rail- ways as they were competing lines. The Southern Pacific remains within the control of the Union Pacific.
 Control of Southern Pacific.
 In all of its acquisition of stock. con- trol in other railreads. the Union Paci- fife has either purchased the stocks di- rectly or through the Oregon Short Line Railroad Company which it owns and controls and which for the purpose of this report will be considered as the Union Pacific. In the year 1901 the Union Pacific acquired 750,000 shares out Of total of I.S7S.49: shares of Southern Pacific Company stock and subsequently acquired. 150.00o addition al shares. making a total of 100000 shares of 45.49 per cent. of the total Company. Thereafter, when the pre- ferred stock of the Southern Pacific Company was issued, the Union Pacific subscribed for its proportion, to wit: 1S0.000 shares out of a total of S95,sS shares so that at the present time the Union Pacific owns 1,oso,00o shares out of Q total of 2.374.100 shares.
 A history of the acquisition of var ious roads and resent policies are here given:
 Elimination of Competition.
 Before the acquisition of its stock by the Union Pacific the Southern Paci- fic Company, with its lines of rail and steamships was engaged in competition with the Union Pacific for traffic nov ing between the Atlantic Seaboard and the Pacific Seaboard and between the Atlantic Seaboard and Oriental ports. through their several connections by rail. these lines were also engaged in competition for traffic from practically all points east of the Missouri river between the great lakes and the Gulf of Mexico. From Atlantic Seaboard. territory east of Buffalo and Pittsburg rates have generally been the same up- on business destined to the Pacific coast, whether moving by all rail route, including the Union and Central Paci- fife, or moving by rail to an Atlantic port, thence by water to New Orleans and Galveston and thence by Southern Pacific raiis to Los Angeles, San Fran cisco or Portland. Rates from this same Atlantic Seaboard territory on traffic moving by the Southern Pacific Colorado common points have likewise been the same as on traffic carried by rail over the Union Pacific lines to