The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1910-02-18
SOUTHERN PACIFIC
PUBLIC BEEFFACTOR
SO Says Julius Kruttschnitt
While Testifying ia Merger
Inquiry
Asserts Roads Have Saved
People SI5+,OOO,OOO by Re-
fusing to Raise Rates

NEW YORK. Feb l7.-That the pub
lie has saved sl5EOOO0O0 since 1901
because the Southern Pacific and Union
Pacific have not raised freight and
passenger rates 10 meet the increased
cost Of commodities and labor was the
testimony OF Julius Kruttschnitt. vice
president Of the merged roads. at the
resumption of the federal inquiry into
tile combine
Nruttschnitt produced figures to show
that the increase in the cost OF labor
since 1901 had reached an avera ge Of
ID per cent i'm all classes of employees
Since lS9o. according TO figures sub
mitled by the witness, the power Of
labor and commodities 10 purchase
transportation has Increased 43 per
cent. while there had been a decrea Sc
OF 80 per cent in the power of the
railroads 10 purchase labor and COM
modites.
AS showing what the Union Pacific
HAS done TO develop the system, Krutt-
schuitt gave figures instancing that in
1he eight years ending June 80, 1903
Sl21. sos, 600 had been expended for i'm
provements. He said that i'm the five
years preceding the reorganization OF
The Union Pacific only S201,0 was
spent for general betterments and in
the three years succeeding only $751;
$4,000.
In another set of figures for the eight
years ending June 80. 1901. only $57,-
G22 600 was spent by the Southern Pa
cifc for all classes OF Improvement in
efficiency, while in the eight years end
ing June 80, 1909, S24l.S44,000 was eN-
pended.
PICTURED As BENEFACTOR
on the whole. the witness pictured
lie merged system as a national bene-
factor that had dug deep down in its
pockets TO provide a railroad system OF
The highest efficiency.
John a. MuurOe, general freight man.
q ger of the company. was questioned by
II. \. LOOMS OF counsel for the defend
ants with respect 10 the pracuca blllty
of the Onion Pacific moving traffic
through the Portland gateways to san
Francisco.
The Union Pacific officials" said
MUnroe. from time to time discussed
the proposition Of opening the Port
land gateways to San Francisco, but
they always came TO the conclusion
that il was impracticable and would be
Improbable to the Union Pacific
I'm the first place Portland was the
Francisco and the question of delay
in transferring freight and making
connections with the boats was consid-
cred. There was only the san Fran
cisco business TO be secured by this
means, as It was determined that Sac
ramento and stockton promised no
business for such a route.
CONSIDERED :. P.'S ATTITUDE
Another thing that had 10 be con-
sidered was the attitude of the South
ern Pacific, with which we had cOnnec-
lions TO San Francisco. Such q move
on the part Of the Union Pacific would
DE considered hostile by the Southern
Pacific and it could and would retail
tate by DETECTING from the Union Pa
ciGc that which the Union Pacific could
not get except through the influence
Of the Southern Pacihc.
Munroe denied that the Union Pacific
had ever used the Portland-San Fran
cisco boat route as club 10 compel
better terms from the Southern Pa
cidc.
There was never any necessity for
the Union Pacific 10 swing such q
club said the witness.
There Were no differences between
AS and the Southern Pacific and we
were entirely satisfied with their treat
ment II we did swing that club il
would be TO as as q boomerang