Los Angeles herald., 1910-02-18
ADMITS THAT S. P.
RULES SEA RATES
RAILROAD MAN TELLS STORY
IN NEW YORK
METHODS OF SOUTHERN PACIFIC
BROUGHT OUT
Kruittschnit Takes Stand and Declares
That Labor Should Take
Hats off to Rail-
roads
rAssocIated Pressl

Associated HreSSl
NEW YORK. Feb. 17-In the con-
tinuation Of the hearings of the gov
ernment's suit to dissolve the Union
Pacific merger today John A. Munroe,
general manager of the company, was
questioned by II. N. Loomis of counsel
for the defense, with respect to the
practicability of the Union Pacific
moving traffic through the Portland
gateways to San Francisco.
1.-The Union Pacific officials" said
Mr. Munroe, from time to time dis
cussed the proposition of opening the
Portland gateways to San Francisco,
but they always came to the conclu-
sion that it was impracticable and
would be Improbable to the Union
Pacific. In the first place, Portland
was the same distance from Omaha
as was San Francisco, and the ques-
ton of delay in transferring freight
and making connections with the boats
was considered. There was only the
San Francisco business to be secured
by this means, as it was determined
that Sacramento and Stockton prom
ised no business for such q route.
".Auother thing that had to be con-
sidered was the attitude of the South
ern Pacific. with which we had con-
nections to San Francisco. Such a
move on Ihe part of the Union Pacific
would be considered hostile by the
Southern Pacific, and it could and
would retaliate by DETECTING from the
Union Pacific that which the Union
Pacific could not get except through
the influence of the Southern Pacific.
Mr. Munroe denied that the Union
Pacific had ever used the Portland
San Francisco boat route as club
to compel better terms from the South
ern Pacific. He said on cross exam
ination that the Southern Pacific had
dominated the rate situation on the
Pacific.
The pro rata division of revenues of
Missouri river business to California
points, Mr.. Munroe said, was that OF
per cent to the Union Pacific and 40
per cent to the Southern Pacific.
Julius Kruttschnitt, vice president
of both the Southern Pacific and
Union Pacific and director of main
tenance and operation of the merged
lines, produced figures to show that
the increase in the cost of labor since
1901 had reached an average of IL per
cent in all classes Of employees. Since
1890. according to figures submitted
by the witness, the power of labor and
commodities to purchase transporta-
tion had increased 43 per cent, Whlle
there had been a decrease of 80 per
cent in the power Of the railroads 10
purchase labor and commodities
The public had saved $154,0O0,O0O
since 1901, Mr.. Kruttschnitt declared,
because his railroads had not raised
freight and passenger rates to meet
the Increased cost of commodities and
labor.
WHAT 1T HAS DONE
AS showing what the Union Pacific
has done to develop the system Mr..
Kruttschnitt gave figures instancing
that in the eight years ending June 30
1909, $121, sos, 900 had been expended for
improvements. He said that in the five
years preceding the reorganization Of
the Union Pacific only $201,00O,OOO was
spent for general betterments, and in
the three years succeeding only $51,-
BAL 900.
In another set of figures for the eight
wears ended June 80, 1901, only $57,722,-
600 was spent by the Southern Pacific
for all classes of improvement in et1-
cheney while in the eight years ended
June 80, 1909, $241, 900 was expended.
On the whole the witness pictured
the merged system as national bene-
factor that had dug deep down in Its
pockets to provide a railroad system OF
the highest efficiency.