Omaha daily bee., 1910-10-14
Deals with Various Phases Of Compe-
tition Between Railroads.
SPOONER TALKS WITH JUDGES
Denies System Compelled to Use An
other Road Can Be Competitor.
HYPOTHETICAL QUERY REJECTED
Does Not Admit Through Route IL
Competitor if Il Uses Rails of Iude-
pendent Company for Portion
of Distance.

ST. PAUL, oct 13.-Frank r. Kellogg.
who prosecuted the Standard OIL company
in one OF the most famous legal battles
ever waged in the United states courts is
today presenting the closing arguments of
law and fact in the Union Pacific merger
case which has occupied the attention OF
the entire federal bench Of the judicial
court since last Monday.
When u. X. Watson Of Pittsburg con-
cluded his brief argument for H. c. Frck
the crowd exceeded the capacity Of tho
court room.
Mr. kellogg answered the arguments OF
MIR. Watson, who preceded him, and as
serted that II. c. Frick one of the in
divldual defendents, had in no way been
a party TO the conspiracy alleged in the
bill TO monopoze the transportation ia
Cilities from river terminals to the Pacific
coast.
Takes Up Three Propositions.
Mr.. kellogg then stated that through
his argument he would deal primarily with
three distinct propositions:
The suppression of competition between
the natural competitors as prohibited by
the Sherman antitrust act
Competition between railroads naturally
competitive as the settled policy Of the
nation.
The ownership by one railroad of the
stock or any part of the stock Of a com
peting railroad in suppression of compe-
ttion and therefore in suppression of trade
and commerce.
Senator spooner and Judges Sanborn and
Hook engaged in a colloquy today over
questions asked yesterday during the sena-
tors argument.
Il must confess" said Mr. spooner,
that l did not grasp the hypothetical
question propounded by the court yester-
day. Possibly the infrmites of age are
telling on me. Since then l have had a
transcript of the question made and am
now prepared to answer IT,"
Repeats FOrnIeF Question.
Judge Sanborn then repeated the ques-
ton as to whether II the Central Pacific
from Ogden to san Francisco were owned
by an Independent company and the New
York Central in 1901 carried seaboard
freight from New York to Chicago, that
the through route might not be consid-
cred competitor Of the Southern Pa
cific.
Not necessarily" said the senator.
THE next question, If you had admitted
that competition" said the judge, what
is the difference between that situation
and the situation in this Case?"
Il maintain" said Senator Spooner, the
integrity Of this proposition, that a rail-
road so connected with another that it
cannot reach, say san Francisco, except
over the rails of the other company, has
no power to make competitive rates, and
cannot be regarded ia any sense as a
competitor"
Railroad Presidents Testify.
WASHINGTON Oct 1S.--Two presidents
Of great American railroad systems today
contributed their views, or reasons for, the
proposed advance in freight rates by the
roads In eastern trunk line territory at
the investigation into the proposed tariffs
by the Interstate Commerce commission.
The Witnesses were President Daniel Will
lard Of the Baltimore & Ohio Railroad
company, and President W. c. Brown of the
New York Central lines. Both OF the Of
officials presented, from their viewpoint
reasons in justification Of the advances in
freight rates
Marked similarity characterized the state
ments Of both President Willard and Presi-
dent Brown. Neither placed the RESPONSE
bility for the proposed increase in rates
wholly upon recent advances In wages,
although both asserted that the wage in
crease had been an important factor Presl-
dent Brown declared that improvements
and betterment of railroad properties TO
furnish adequate transportation facilities
could be accomplished only through an
| increase Of the freight income He said
that under present conditions, it had been
shown 20 be impossible 10 obtain the money
necessary to make the proposed improve
ments and apprehended that the impossI-
| bnty would continue until such time az
( the railroads were able to secure what he
, regarded as an adequate return on the in
vestmcnts made in the lines.
/ The hearing, which the commission had
expected would be concluded today will be
/ concluded tomorrow, and perhaps, on sat
! urday
/ President Brown had not been excused
/ from the witness stand when adjournment