Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-02-16
MERGER HEARING RESUMED.
John C. Stubs Gives. Testimony in
Government Suit Against PacificS.

Now 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 Pacllic-Southern Pacific railway
systems since the merger of the two
roads In 1901 was brought out today
with the resumption of the hearing In
the suit OF the federal government to
dissolve the merger.
John c. Stubbs. 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, Mr.
Stubbs admitted, on cross examination
by c. a. Severance of counsel Tor the
government, that the Union Pacific
held stock ownership OF the Oregon
Short Line. which gave the former
road a direct line from the Missouri
river to Portland
80 that all the AsatIc business
moved from the Missouri river to Port
land would be handled by the Union
Pacific alone?' asked Mr.. Severance.
''Yes: that is so" the witness replied.
on request, Mr.. Stubbs produced fig-
ures showing the decrease In New York
freight over the Sunset line from ~
per cent of the total in 1891 to 80 per
cent in 1901. the year OF the mer7
ger The government contends that
only small part of this loss was due
to n legitimate competition,
MT Stubs was taken by counsel for
the defense over the early history Of
western railroad systems. Incidentally
Mr. Stubbs described the Southern Pa
cific as an Intermediary carrier which
depended largely upon Its connections
with the Central Pacific.
Coming down to more definite mat
N .I,a, hnt fnr
Union Pacific to make a rate to San
Francisco by way of Portland was i'm
practicable and against the interests of
the company. This was because the
distance 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 haul and certainly would lengthen
the time In transit.
No shipper he declared, would use
this route unless he got compensation
I'm reduced rates, which the competitors
OF the Union Pacific would not permit
He had never known the Portland-San
Francisco wator route to be operated
as a through route. he said, except
possibly systematically. Mr.. Stubbs de-
clared the Central Pacific officers cer-
tainly would resent an effort of the
Union Pacific to establish the Port
land-San Francisco water route and
would retahatc on II.
THE Central Pacific could make II
hot for them and In a local way. so
that the Union Pacific would be sorry
1t had n line of boats out of Portland
was the witness declaration. Tho
Union Pacific officers know 1t and II
would not take any clalrVovant to read
their minds on the subject
Mr.. Stubs said he did not think
there was enough business to justify
| tho Great Northern. the Northern Pa
cinc and the Canadian Pacific In or
ganizlng 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 py
other means. The success OF the water
rail- line of the Sunset route. he SAID
was largely because 1t had the Immense
| business OF New York city to draw
| upon.
There was n sentimental reason. de-
| cIared Mr., Stubbs, why these water
routes were impracticable and that was
because of the regard In which the
| people of California held the Southern
| Pacific.
The Southern Pacific" said MT
Stubbs. lis Californias baby. 1t pets
| that baby more than any one else ana
| it spanks II, too. sometimes