The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1909-01-12
HEARING OF THE
UNION PACIFIC
Witnesses Examined in Gov
eminent Suit to Dissolve
the Alleged Merger.
BIG DEALS TALKED OVER
MIR. SCHiFF KNEW MUCH. BUT
NOT ALL ASKED OF HIM.

VIEW Oth JAN III NJ NJ
phy, president of the Phoenix & East
ern Railroad company, was again on
the stand before United States Special
Examiner Sylvester q. Williams. here
today as a witness for the government
in the suit to dissolve the Union Pa
cific merger.
In reply to questions by c. A. Sever
ance, government counsel. he said that
the Phoenix & Eastern ran through a
district in which gold, silver, copper aud
iron were mined, but the mines are not
worked much now.
Before the Southern Pacific took
over the connecting lines" he said, the
ore was smelted at a smelling plant
not far from the mines, but after the
transfer the Southern Pacific naturally
preferred to have the ore sent to FL
Paso for smelling"
Statements Promised.
Mr.. Murphy promised counsel for the
defendants to produce at a future hear
ing statements as to the amount If
freight shipped over the Phoenix &
Eastern railroad prior to the merger.
In reply to questions as to the status
of the AtchisOn, Topeka & Santa Fe
with regard to transcontinental traffic
Mr.. Murphy said that everything was
in readiness for the building of the line
from Begal. Colo, to San Francisco.
George NJ. Hughes, president Of the
New Jersey, Indiana & Illinois railroad
who said he had charge of booking
freight for the Singer Manufacturing
/ company, testified that the Union Pa
eific and the Southern Pacific still COM
peted for New York shipments
J. r Ranupru1au of the Otis Sav-;,, q
Machine company gave similar evidence
AFFECTING bids for eastern traffic.
Jacob H. Schiff of Kuhn, Loeb & Co.
fiscal agents for the Union Pacific rail-
road, was a witness today
Schiff on the Stand.
Mr. Schiff is a co-defendant in the
case. He identified the plan Of reorgan-
ization of the present Union Pacific
company under which # took over the
property and commenced business IN
1888. Mr.. Schiff said he was a menu
Der Of the board of directors when the
company took over the property. and
that s1e0, coo 900 was issued to put the
company in funds to pay for Southern
Pacific stock, and perhaps the Oregon
Short Lines interest. When the Great
Northern purchased the Chicago. Bur
lngton q Quincy railroad, he said he
thought there were one or two differ
ences between Mr.. Hartman. Mr.. Hill
and himself. Mr. Schiff added:
Mr.. Hartman objected to the Chi
cago, Burlington & Quincy passing into
the hands of the Great Northern. He
said that he was satisfied as to con5i-
tons, and thought they should not be
disturbed, but that if the purchase
should be made the Union Pacific
should share in it,
Hill Declined.
Mr.. Schiff said he Thought Mr. uuI
declined the suggestion. The witness
said that Kuhn, Loeb & Co bought a
large part of the Northern Pacific stock
in 1901. and sold it to the Union Paci6c
and Oregon Short Line.
Had you talk first with Mr. Harri-
MANI"
Not until after our first purchase"
what was the purpose of the Union
Pacific and Great Northern in securing
the stock Of the Northern Pacifcg"
Mr.. Hartman can answer that n1Ies-
ton better than I could. But I believe
1t was TO maintain the status quo Of the
Chicago, Burlington & Quincy. a sort
or haif interest. Mr.. Hartman did not
know what havoc the passing Of con-
troll OF the Burlington to another rod
or roads might work for the Union Pa
eific''
you did not want the Northern r,s6s
to Gomez
Things worked out differently. hut
we wanted to hold on to the situation
as it then existed"
Mr.. Schif said he knew the western
terminus of the Northern Pacific al
Portland was the same as that or inc
Union Pacific and subsidiary lines.
Atchison Directorate.
Mr.. Severance then questioned the
witness about a conference i'm which /
MIR. Schif said that Mr. Rockefeller I
II. II. Rogers, Mr. Hartman. James
stillman, Mr.. Ripley, Mr.. Morowe-z
and himself took part. Mr.. Schff said /
they wanted representation on the
Atchison board Of directors because /
they had made large purchases OF tnf
common stock of that road. and the
laws of Arizona gave them the rity7 1
to have two members on the board. I
Mr.. Rogers and Henry C. Fricl- W. >
chosen. Mr.. Severance asked whether
Mr.. Harriman's name was suggested I
as a director and whether Mr. Ripley /
objected, but Mr. Schin said he I'D
not recall any such incident.
MIR. Hartman has testified that ths 4