The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1910-02-16
SOUTHERN PACIFIC
CALIFORNIA; BABY
Petted and Spanked Sometimes,
Too, Says ]. c. Stubs at
Merger Hearing
Evidence Presented Showing the
Practical Control of Freight
for the Orient

NEW YORK. Feb. 15.-Evidence of
minimized competition and practical
control of the Asiatic freight traffic
moved west from the Missouri river to
Portland and to San Francisco by the
Union Pacihc-S Southern Pacific railway
| systems since the merger of the two
roads in 1901 was presented today at
/ the resumption of the hearing in the
suit OF the federal government to dis
solve the merger.
| John C. Stubs, general traffic man
ager of the Hartman lines, occupied
| the whole days session as a witness
before Sylvester C. williams, special
examiner conducting the inquiry.
During the course of his examina-
ton Stubs said
1.-The Southern Pacific is California 8
baby. 1t pets that baby more than any
one else. and 1t spanks it, too, some
! times
| Stubs admitted, on cross examina-
ton by c. A. Severance, of counsel for
the government, that the Union Pacific
had stock ownership of the Oregon
Short Line, which gave the former road
direct line from the Missouri river to
Portland.
so that all the Asiatic business
! moved from the Missouri river to
| Portland would be handled by the
Union Pacific alone?" asked Sever
ance.
Yes, that is so,' the witness re-
| piled.
SHOWS FREIGHT DECREASE
| On request, Stubs produced figures
showing the decrease in New York
freight over the Sunset line from 10
per cent of the total In 1891 to 80 per
cent in 1901, the year of the merger.
The government contends that only a
small part of this loss was due to a
legitimate competition.
Stubs was taken by counsel for the
defense over the early history of the
western railroad systems. Incidentally
Stubs described the Southern Pacific
as an intermediary carrier, which de-
pended largely upon its connections
with the Central Pacific.
Coming down to more definite mat
tiers, Stubs said that for the Union
Pacific to make rate to San Fran
cisco by way of Portland was imprac-
ticable and against the interests of the
company. This was because the dis
lance to Portland from Omaha was
greater than that from Omaha to San
Francisco, and for this reason water
transportation from Portland to San
Francisco would not serve to cheaper
the time in transit.
No shipper, he declared, would use
this route unless he got compensation
in reduced rates, which the competi-
tors of the Union Pacific would not
permit. He had never known the Port
land-San Francisco route to be operated
as a through route, he said, except
! possibly spasmodically.
CONFLICT WOULD RESULT
Stubbs declared that the Central Pa
cific officers certainly would resent an
effort of the Union Pacific to establish
the Portland San Francisco water route
and would retaliate on it.
THE Central Pacific could make it
hot for them, and in legal way, so
that the Union Pacific would be sorry
it had a line of boats out OF Portland"
was the witness declaration THE
Union Pacific officers know that, and
1t would not take any clairvoyant to
read their minds on the subject.
Stubs said he did not think there
was enough business to justify the
Great Northern, the Northern Pacific
and the Canadian Pacific In organizing
separate lines of steamships to get to
San Francisco by water. They would
have to do this, he said, because of
their competitive interests and their
inability to reach San Francisco by
other means. The success of the water
rail line of the Sunset route, he said.
was due largely because 1T had the i'm
mense business of New York city to
draw upon.
There was a sentimental reason, de-
clared Stubs, why. these water routes
were impracticable. and that was be-
cause of the regard in which the peo-
pie of California hold the Southern
Pacific.
Electric Lines Endangered