New-York tribune., 1909-01-06
PAUL MORTON WITNESS
IN RAILROAD HEARING
H., Il. s S. f. Director Testifes as
to Western Rate Making.

Paul Morton, president OF the Equitable Life AS
surance Society and a director of the Atchison
Topeka & Santa Fe Railroad, a witness for
the government yesterday in the continuation OF
the suit dissolve the Hartman merger Mr.
Morton has had tfIirty-two years railroad ex--
perience, and a transcontinental trafhc expert
prior TO and after the Union Pacific got controi
in the West in 1901 He told of the various freight
routes TO the Pacific Coast, and said that before
1901 the Atchison was in active competition with
the Southern Pacific. the Union Pacific and all
connecting lines This point the government
wished to establish to show that the merger killed
all competition. On cross examination he testined
that the Southern Pacific had the field practically
to itself and that the real competition was among
its tributaries
The hearing was before Sylvester G. Williams,
special examiner, in the Custom House = a.
Severance appeared for the government asslsteu
by his law partner, Frank B. Kellogg. Johh u
Mburn represented Mr.. Hartman. and ex-Judse
Lovett. ex-senator John C. spooner. MaA"en
Evarts and James NJ. Beck appeared for the rall-
roads Mr.. Morton was the only witness hediu'
He interrogated by Mr.. Severance
Mr.. Morton was led through a maze of railroad
connections with the Southern Pacific anterior TO
1901 The Union Pacific reached the Paclnc- ne
said. by means of proprietary lines. having free
way TO Ogden Utah, only. Other lines tnat went
the Pacific the Atchison, the Northern
Pacific the Great Northern and the Canadian Pa
cifc. They were all more or less IN competltoh-
The principal fight for business was, however east
of Ogden and FL PaSo. The Southern PACING uOlr
mated the situation OF those points All the
published rates were made under the guidance OF
the Southern Pacific. excepting the Atchison and
Southern California. hs said
MORGAN LINE CAUSED FIRST BREAK
The rates were all the same. however Mr. Morton
said. but the first break came when the Morgan
line connected with the Sunset Route. one OF the
Southern PaCifcs lines The cut was Of 10 per
cent differentiaI because OF the water route, but
was later restored There active competition
from all points. the Canadian Pacific for
several years maintaining 10 per cent dinerential
tariff. It went TO Winnipeg. thence to Vancouver
and thence down to San Francisco by boat
Before 1901 the witness said. he had attended
many Transcontinental Traffic Association meet
nRs whore the conditions OF freight traffic were
discussed. The rates were divided. the Southern
Pacific from Ogden to the coast having the field to
itself the other lines getting their share from
ogden east. There were so-called gateways to the
Far West. Chicago was allotted 2 per cent Of
the traffic which left IS per for the lines west
Of Chicago. There was another division of t5 per
cent for the lines east Of Council Bluffs. and
other division between the Union Pacific and South
Pacific
The emigrant passenger business 10 the coast the
witness said was large. and all Western lines
peted it. All lines also after the first class
passenger business which was obtained by means
Of advertising and excellence Of service The rates
Identical. all published in one joint tariff
After Mr. Morton had repeated that the competi-
ton was on lines east Of Ogden, he declared that
the competition Of the Southern Pacific with the
Union Pacific keen before 1901 but admitted
that this chiefly east of Ogden The Southern
Pacific. however he had always looked upon as
more difficult deal with.
E,x-Judge Iovett took the witness. and Mr.. Nor
went into more detail regarding the Atchison's
lines Of the Southern Pacific, he said it operated
eastward the Central Pacific TO Ogden, the
Sunset route to New Orleans and the Morgan Line
steamers to New York. II also had other lines
The Atchison the only other route TO the coast
and the only competitor with the Southern
Pacific south Of Portland. Ore. Here again Mr..
Morton said that the fight for business more
intense among the connecting lines than with the
Southern Pacific. At the same time the Atchison
hampered far that it could make no rates
without the consent of the Southern Pacific. The
latter practically controlled the situation The
Atchson might have gone ahead. but II would not
nave heen wise. Then Mr.. Morton interjected:
The Union Pacific was practically without rate
making power west Of Ogden. It merely
link in the lines.
CANADIAN PACIFIC BARRED FROM COAST
The Canadian Pacific Of the business.
far as coast traffic was concerned. Mr. Morton said
II made an effort get in and the arhi-
ira ted but II not recognized a direrentiaI
line Then it withdrew, and the only thing IT does
now Mr. Morton declared. is tn haul ammunition
for the government 70 the coast which there
were smiles among the lawyers. The witness said
that there was practically no change to-day from
the situation when he In the business far
as the dominance of the Southern Pacific and the
Atchison concerned No rates were ever pub
Ilshed without their consent
Mr Morton in the redirect examination by Mr.
Severance said that he did not know whether the
Union Pacific could protect itself by putting
boats at Portland for the San Francisco trade.
Then a pool was mentioned IN which the Union Pa
cifc Southern Pacific and other lines
Cerned
There was great competition at the meetings of
the pool members" Mr. Morton said with a whirn-
sical smile "a great scrambling get the most
possible when there something to be paid out.
and when something TO be paid in there a
great fight get out OF paying anything in
Mr.. Morton denied again that the Atchison ever
made rates without consulting the Southern Pa
CifC.
Il don't deny that there were secret rates before
there was law against them Mr. Morton said
but they all did It, and this done by the
nections without expecting the controlling roads
give up anything. To some extent II disad-
vantage to have a through line and a
wicked partner In the old days that desirable
when business had to be got in any way possible
Hvn IrAvD ID fTE TDnTTDT