[496] Ibid., August 23, 1896.
[497] The relations between the Southern Pacific Company and the proprietary companies were governed by what was known as the “omnibus” lease, under which the Southern Pacific agreed to operate and to maintain the properties of the proprietary companies, to pay all fixed and other charges, including interest on bonds and floating debt, and to divide the surplus net profits between the parties to the agreement in stipulated proportions. In 1896 the percentages for division of profits were as follows: Southern Pacific Railroad of California, 44 per cent; Southern Pacific Railroad of Arizona, 10 per cent; Southern Pacific Railroad of New Mexico, 6 per cent; Louisiana Western Railroad Company, 7 per cent; Morgan’s Louisiana and Texas Railroad Company, 23 per cent; Southern Pacific Company, 10 per cent.
[498] In later years the lumber business of the Southern Pacific developed, but the coal business has always remained small.
[499] Cf. Annual Report of United States Commissioner of Railroads, 1883-84.
[500] Report on the Internal Commerce of the United States (Treasury Department, 1884), sup. cit.
[501] United States v. Southern Pacific, p. 155, testimony of Schumacher; p. 942, testimony of Chambers; pp. 1028-29. testimony of Spence.
[502] San Francisco Examiner, October 24, 1895.
[503] San Francisco Examiner, February 25, 1896.
[504] United States v. Southern Pacific, pp. 328, 338, testimony of Connor.
[505] Ibid., p. 199, testimony of Sproule.