Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-01-05

tween Ogden and the coast? Ayes.
Q.-Have you any knowledge Of the plan
of the Illinois Central business to the coast
having been lessened because of the Central
Pacific's acquisition by the Southern Pa
cihc? Al have no knowledge on that
subject.
Q.-what Is the haul from Nee Orleans
BY water to the coast? Al think 1900
miles.
Q-And from Oregon TO the coast! A.
Eight hundred and fifty miles. l believe.
Over Longer Route.
Q-Woud It not be to the advantage OF
m. Southern Pacific to get the haul from
New Orleans to San Francisco rather than
the haul from Ogden to San Francisco, I'M
less conditions were such as to equahze the
reyenue derived from the two hauls! A.
That depends on the character OF the mer-
.,bandtse Perishable merchandise. for IN
stance. would naturally be carried over
the shorter route.
Q-But when O railroad had Two onei
ont routes between two points. would IL nat
urally prefer to carry the business over the
LONGER line? Ayes. that Is the way
should conduct my own business.
Mr.. Severance here took up the examiha-
ton.
OFF you had a long haul Of $500 miles
and a short haul Of 800 miles, "ouio YOU
endeavor to divert traffic to the long maui
OF the short haul? A.-To the long haui'
Oft would be to the interest OF your
oomnanv to lessen competition against the
2sOO-mile haul, would 1t not? Suppose, Tor
Instance, you owned the Union r aoiiio' 'oO
would do this. wouldn't you!
O For many years before the Southern
Pacific was acquired by the Union PACING
The rates on all business bound west from
the Atlantic coast and from points as far
west as Pittsburg were the same over the
Southern Pacifc's rail and water route ana
over the Union Pacfics all-rail route!
A. Yes. sir.
O. And those two lines were competing
lines for such business? A. Yes, sir
The Oriental Business.
The witness testified that the Southern
Pacific and the Union Pacific had competed
on business that was bound through for the
orient.
John G. Milburn on behalf Of the Union
Pacific asked the witness if the New York
Central the Erie, Delaware, LackaWanna
and Western, Pennsylvania and Baltimore
and Ohio railroads were not IN active COM
petition against the steamship lines and the
Southern Pacific. He replied In the az
firmative
BY Mr. Milburn:
O. Where do the lines running from the
Atlantic seaboard to Chicago and St. Louis
connect with the Union Pacifef A. AT
Missouri river points and also with the
Atchison, Topeka and Santa Fe.
O. You believe, do you not, that the COM
petition is the same today between these
roads running from the east to Chicago
and St Louis and from there west as 1t
IT,,ja Do off had
or ownership of the Southern Pacific and
the Morgan line? A. My opinion Is that
they compete as actively as before except
that the competition is under maintained
rates.
Il am directing my inquiry not so much
into rates as into the question of owner
ship" said Mr. Milburn, who then repeated
the last question in changed form Wit
ness declared that he would hesitate to
answer.
BY Mr.. Miller:
O. There is nothing in the acquisition Of
the Morgan steamship line by the Southern
Pacific and the acquisition of the Oregon
short line by the Union Pacific that affects
traffic over such lines as the New York
Central the Delaware. Lackawanna and
other such eastern lines?
Ayes. certainly; 1t would be my duty to
the Union Pacific.
Q.-The through business of the western
roads Is usually secured through agents of
these roads in the east, is it not? Avery
largely.
Routing of Freight.
$50 that the routing of freight Sc
cured In the east is In the hands of these
men? A.--Yes.
o.-And they control the routing when
the freight gets to Missouri river points ?
Ayes. sir.
Q.-Taking such case as Pittsburg. which
originates more freight than any city in the
east-the Union Pacific and the Southern
Pacific have the same freight agents there
would you think that competition is as
strong there 1t was before the Southern
Pacific acquired by the Union Pacific?
A.-Well, no. sir.
Q.-It Is difficult for a man to compete
against himself, in other words? Ayes.
sir.
ships operating between Portland and San
Francisco that carried freight, was there
not? A.-So l understand.
Q. The Union Pacific reaches the Pa
ciic coast over the Oregon Short Line and
the Oregon Railway and Navigation Com
pany? a. Yes.
Mr.. Milburn then asked the witness ques-
lions to bring out how freight was routed
that originated In the west but east of the
Union Pacific. The Information ELECTED
was that the Illinois Central transported
freight originating on IT'S lines directly 10
the Union Pacific at Omaha, without inter-
mediate lines, to the Southern Pacific at
New Orleans, according to the section Of
the country in which 1t originated.
No Traffic Agreement.
Mr.. Milburn argued taking for an ex-
ample freight originating the Illinois
Central line bound west, that the Union
Pacific only competed with the Southern
Pacific from Omaha to Ogden.
Freight originating at the Illinois Cen
trail and bound for San Francisco must
reach San Francisco IN one of two ways"
he said Either It must go from Omaha
to Ogden the Union Pacific and from
Ogden TO San Francisco over the Central
Pacific, which Is the Southern Pacific, 1t
must go from New Orleans to San Fran
cisco. haul which Is entirely controlled
by the Southern Pacific
BY Commissioner Lane:
Odd the Gould lines have traffic
agreement with the Southern Pacific be-
fore the Southern Pacific and the Union
Pacific consolidated?
The witness replied that there had been
no such agreement
BY Chairman Knapp:
Q.-You say that the consolidation of the
Union Pacific and the Southern Pacific has