New-York tribune., 1908-01-26
H4RRIM4NS PROBLEM.
No Solution Yet to Separation of
Union Pacific Properties.

special committee of directors OF the Union
Pscinc Railroad Company consisting of the excu-
tive committee and several other members OF the
board, appointed in October 10 prepare a plan
for separating the company's investments from It's
railroad business proper. This committee is still
work the problem, the solution Of which is
understood not Yet TO have been reached 1t IS
the common belief that holding company will
be formed TO take for the benefit of the Union
Pscics shareholders all OF that corporations mold
ings of the securities of other roads. except the
Southern Pacific 1t has from the beginning been
understood that the Union Pacific would resist TO
the uttermost any attempt 10 compel II TO aoan-
its direct control Of the Southern Pacific. the
being that the Central Pacific, controlled
by the Southern Pacific and extending from Ogden
Utah, to San Francisco. is the line by which the
Union Pacific. the western terminus Of which Is
al Ogden. is enabled to get to the coast
AT the inquiry conducted last "4L'et oy my
Interstate Commerce Commission differing opin-
ions were expressed by witnesses who were Ques-
toned as 10 whether not the Union racine eII1
Southern Pacific were competing lines -Jonh "
MiIburn in his argument last April oe1oro t!e
Interstate commission, in defence or the HAITI
man railroad transactions OF the last 1e" Seat
insisted that the two roads were not PA1 GO
and competing" declaring that a purChaso ny
railroad company Of increase in a line OF rali-
way which is parallel and competing 10 NJ
within the fisherman anti-trusD act, ana thas
'the purchase by the Union Pacific OF us inte es'
in the Southern Pacific was not MADE 10 suppieso
competition. but TO protect lis proper! ~
extension of its line in that way TO the facihc
Coast pu
The San Pedro Los Angeles & Salt Lake ha4i
nav originally owned by ex-senator William a
Clark of Montana, few years ago oousht POI !.
of fhe Oregon Short Line. forming poluoh Va
the line between Salt Lake and Los Angeles tne
Oregon Short line Ia Union Pacific suosidlarSp 'hen
acquiring one-haif interest IN the properly anu
the control OF the stock being vested In senator
Clark and Mr.. Hartman trustees Al Hhe IN
Con
agreements were produced which provided tha' the
San Pedro should put in force on all parts OF It's
line leased to the Oregon Short Line ''the lawful
rates tariff classification and charges used by said
Southern Pacific company for the handling of any
local business which may be The subject OF COM
petition between them" Other agreements pro-
vided for the maintenance of rates by the San
Pedro for ninaty-nine years, changes to be made
only with the consent OF the Union Pacific. South
ern Pacific and Oregon Short Line The San Pedro
is alleged to be a parallel and competing line with
the Central Pacific. The ninety -nine-year traffic
agreement with the Southern Pacific was cancelled
last April
The Union Pacihcs ownership of stock in the
Great Northern and Northern Pacific is out
come of the stock market contest which cul-
minated in the Northern Pacific panic of May 9.
1901 which originated in the effort OF the Union
Pacific to secure control of the Northern Pacific
because Of the latter's one-half ownership OF the
Burlington. al active competitor OF the Union
Pacific. The organization OF the Northern Securi-
ties Company followed, and the virtual dssolu-
tion Of corporation after long litigation, the
Union Pacific received, instead OF its original
Northern Pacific stock, large blocks OF both
Northern Pacific and Great Northern stock. These
holdings II has in large measure disposed OF.
It was July. 1906. that the Union Pacific &C
aured its s1o.oooooo OF preferred stock of the At
Gibson. Topeka Santa Fe. President Ripley OF
the Atchison. in January, 1907 testified before the