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

half OF which was retained by them
and the other half given To the syndi-
cate to whom the bonds We're sold. ON
the 100000 shares of southern Pa
chic which the Union Pacific purchase
Cd at S5O.6i per share. tho same
banking house received O commission
OF $3.50 share. They received like
commission OF S2,E per share on the
Chicago X Alton stock sold To tho
Union Pacific at $3.50 per share. II
Is Significant that a member OF this
ftrm refused to disclose the extent of
It's interest In these securities.
"Fhe effect of the control OF the
southern Pacific by the Union Pacific
has been to unity and nmalgamate
management OF these two railway COM
panies and their steamship lines and %
eliminate competition between them III
transcontlneutnl business aud IN busi-
ness to and from oriental ports.
The Union Pacific controls the San
Pedro, Los Angeles & Salt Lake rail-
road, the stock OF which Is deposited in
the hands Of n trustee. This lire was
originally intended as an independent
road, extending from Salt Lake. where
It connects with the Union Pacific and
with the Denver & Rio Grande. to Los
Angeles and san Pedro Cal. There u.s.
therefore. no competition between this
line and the Union Pacific and South
orn Pacific.
u. p. HOLDING IN SANTA FE.
ut appears that the Union Pacific
also owns Sl0000,00o par value of the
stock OF the Atchlson. Topeka & Santa
Zee railway company. and about $50 0Ou,-
600 more Is owned by individuals con-
nected with The Union Pacific, making
SAO,oOO.0lO or substantially II per cent
of The eut!re capital stock of the Santa
Ne system. Who owns this stock ont
side of the sio,o00000 Mr.. Hartman de-
clined TO state. Two directors OF the
Union Pacific are also directors of the
Santa Fc company; and there is now
division of the oriental traffic by the
Pacific Mail Steamship company be-
tween the Union Pacific and the Santa
Fe svstems. It appears that there also
has been a division of the fruit traffic
between certain California territory and
the east, each taking a certain per-
centage; and that north of San Fran
cisco the Union Pacific and the Santa
Fe have Joined ana amalgamated their
interests I'm the Northwestern Pacific
railroad, and that n Joint control has
been inaugurated similar to that OF
the Alton.
prior to the acquisition OF the South
ern Pacific by the Union Pacific, the
Denver u Rio Grade system extending
from Denver where II connects with
various lines to the east to Salt Lake
over the Central Pacific. and thereby
practically formed another transcon-
tinental line. Since the amalgamation
of the Union Pacific and Southern
Pacific companies and the construction
OF the San Pedro road, this line has
beer denied equal facilities in the re-
ceipt and transportation of business
over the Central Pacific and the San
Pedro lines. It's business, therefore,
has decreased and It's ability TO conspete
with the Union Pacific companies, has
undoubtedly eliminated competition be-
tween the Alton and the Rock Island
between Chicago, ST. Louis and Kansas
City.
These are conspicuous Illustrations
OF the development OF the theory of
community of interests and harmony
Of management, which Mr.. Hartman
suggested when he demanded represen-
tatton upon the Santa Fe board.
IF the policy OF the purchasing and
controlling stocks In competing lines Is
permitted to continue, II must mean
suppression OF competition.
RECOMMENDATIONS,
''Flrst-The function of a railroad cor
poration should be confined TO the fur
nishing OF transportation. Railroads
should not be permitted to invest gem
orally In stocks. bonds and securities
of other railway and Of steamship
companies, except connecting lines FOR
the purpose Of forming through routes
of transportation, including branches
and feeders. II is in the interest OF
the public TO facilitate the consolida-
ton Of connecting lines. The credit OF
"A railway company Is founded upon the
resources and prosperity OF the country
through which IL runs. Its surplus tunds
and credit should be used for the bet
torment of its lines and in extensions
aud branches 10 develop the country