The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-03

, sim that the question of whether they
were competitors was not TO be decid-
ed entirely as matter Of fact gov
erned by testimony. but was partial
Iy a question OF law. AS matter OF
law. 1t was held that the two coulc
not be competitors. because the Union
Pacific had to depend upon the Soutn-
ern Pacific TO get from Ogden TO san
Francisco and upon Independent rail-
roads TO bring freight and passengers
from the East 10 il at Kansas city
and Omaha. In so finding, the court
concluded the Union Pacific's line from
Ogden through Portland to San Fran
cisco was impracticable.
Weight was given by the majority
of the court to the testimony for the
railroads that the purchase was made
not TO throttle competition, but to pre-
vent the Union Pacific being bottled up
at Ogden. 1t was said that Mr.. Harri-
man. acting for the Union Pacific, first
tried to purchase from the Southern
Pacific the old Central Pacific Line. eX-
tending from Ogden to San Francisco.
In this he failed. Then he entered
into negotiations with c. z. Hunting
ton for the purchase OF a large block
of the Southern Pacific's stock. In
that. too, he failed. After MIR. Hunt
ington died, efforts were renewed. The
Gould interests were said to have been
rival bidder. This time Mr.. Harri-
man was successful. The motive OF
the Union Pacific, ii was insisted, was
merely to have a friendly outlet TO
san Francisco.
Complaint Of Government.
The government also complained
that the two systems, the Union Pacific
and the Southern Pacific, were COM
petitors for business from Atlantic
Seaboard and interior points OF the
country. on the one hand, to Portland.
ore; on the other, between the At
lantic Seaboard, on the one hand. and
Colorado and Utah common points on
the other; between Portland on the
one hand and Utah, Colorado and Ne
I vada common points on the other be-
! tween San Francisco on one hand AMI
Portland on the other; between San
: Francisco on the one hand and Mon
tana and Idaho common points on the
other; between New York and interior
common points on the one hand and
the orient on the other.
/ In each Of these subordinate COM
I plants. the majority OF the court found
that the business Of each Of the rail-
roads TO the respective areas in ques-
ton constituted so small a percentage
OF their total traffic that It would not
be taken as a basis for a substantial
restraint on interstate commerce.
Denounced by Judge Hook.
The test which the majority applied
IN the subordinate complaints and in
the test determining whether the rail-
roads were competitors was denounced
by Judge Hook as probably allowing
the Union Pacific to purchase lawfully
control OF all the great parallel rail
road systems Of the United States
Another complaint was addressed 10
the construction Of the san Pedro. Los
Angeles and Salt Lake Railroad Com
pany. Defendant Clark and his ssso-
ciates started 10 build n road to con-
meet Los Angeles and Salt Lake City.
and so did the Union Pacific. Because
OF the alleged imprscticability Of con
structing two lines through the canyon
known as Meadow Valley Wash" one
road was built. the court found. each
group Of promoters taking one-hslr
the stock. The entire court found
nothing violative Of the sherman anti
trust law in the Union Pacifc's CON
troll ~ this road.
The government complained OF the
purchase by the Union Pacific OF con
trolling stock in the Northern Pacific
Company. The court declared IL was
only necessary to say the Union Pa
cifc had sold thet stock
san another complaint was the
purchase in 1905 by Defendants Har-
rlman. Rogers. StiIlTnan. Schin. Kahn
and William Rockefeller Of $4,000. 900
IN face value 81 the stock % the
Atchis0n. Topeka and santa Re Rail
WY Company. and the Investment in
iees by the Union Pacific IN s per cent
~ that stock The court found no
proof that any control wa, thus Oh
taired over the rival santa Pc
Thus defeated IN the Circuit Court.
the government brought the case -
the supreme Court Attorney General
WIckcrshan. Frank n. KeiioEg and
Co-denIo A Severance appeared for
the government 4 long list % attor-
news. headed BY p =. Dunno. Of San
I--.---lrrn ,rd y IL Looms. Of Omaha.