The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-05-26
TEXAS FORBIDS THE DEAL,
ROCK ISL tNI)-SOJTHERNP ACIFI(
AGREEMENT BARRED.
Railroad Commission Says joint OMrer.
ship and Control. as Proposed. Arc In.
constitut iOnal--SOuth Pacific Folks
Here Don't Seem to Care Nuch.

| ship and Control. as Proposed, Are n.
cOnstltui iOnal-SOuthern Pacific Folk
Rere Don't Seem to Care Nuch.
AUSTIN, Tex, May % The Railroad
/ Commission to-day issued an order resus-
| ing To sanction the contracts submitted
! on MAY IA by the Rock Island for the Joint
! operation Of the tracks of the Houston
! and Texas Central, the Houston East and
! West Texas and the Dallas Sabine line If
| the Texas and New Orleans and the track
| of the Galveston Houston and Northern
| by the Houston and Texas Central
| The order il signed by commissioners
Allison, Mayfieid and o. b. Colquitt Chair :
| man l.. j Storey disscnted from he views
| OF the ma jority of the commission The
| following are the principal points of re-
! jec;ion;
first-Ihat tho ownership of tn. stock Of
| the Houston and Texas Central the Houst ON.
! East and West TeNi>, and of tho DLila.
Saline branch of the Texas and New Orleans
! Railroad in equal amount. by The southern
| Pacifi" Company and by tho chicago, r., Il
/ Island and Gulf and Runway Company, upon
: an agreed ba>i, OF control and mana ecn,ent
i'elnivaent 20 a con~olidat ion Of these prop
critics under one nanagement and -ubicc, (,
Said separate Texas railroad 'orporntioi.s
| IN common control contrary to a provision
of the State Constitution
/ S"coni That u consolidation of the..
several propertis. mas been effected by a
| private sale Of stock
Third That Hailc it does not aprear Srnyn
I tn" frackage contracts or arrocu,nuts that
, there H. to he a common and consolidated
management Of these properties il - y,dent
from tho statement of Robert Mather vice
president nj the Rock Island, Tint there ..
another contract or aar"emen; that has beo,l
entered into between these compunie. which
has NOT been submitted to the Railroad
Commissions
Fourth That tho Rock Island under its
Texas charter. has not authority to purchase
the stock Of other railroad corporations,
and II 1t has such authority the Raiirond Com
mission declines 10 sanction such policy
Ffitb--That the agreements mean thu est an
shrent o; community nf interest bet H,,en
, the Rock Island and the Southern Pacific,
so f"r "a affects their operation ard business
in TeSns. and rreclndes competition between
them
IT is not known what effect this decision
on he part Of the Railroad Commission
VIII have on the plans of the Rock Island
as to It's affairs in Texas. It is stated that
the order is to be strictly enforced
DALLAS, Tex. May IS A bulletin from
Austin tonight says thar representatives
Of the Rock Island railroad say that com
pany is going to disregard the decision Of
the state Railroad Commission in diSap-
proving the contracts with the Southern
Pacific Company for the control Of cerr ain
lines in Texas and will test the matter in
the courts, both State and Federal. if nece--
sary.
4 man interested in the Southern Pacific
end of the deal said last night that If tho
decision was as repored il was Of com
rarative unimpcrtance. "If il seems worth
whils." IL said, the illegali'ics can be
rectifed and the rams acton easily made
right. II i Tlite possible however, that
If the commission has ron, q -et! this dnc-
sion. no attempt will b" made to carry the
meter through.
"Tnthe Southern Pacific it is meter of
Indifference whether or no. the deal is
declared off. II is neutral IT was as we'll
satisfied with affairs before the pa-itio
OF the Houston Central with Rock Island
az 1t has been since that event and q return
to the former status would not harm any,
thing.
1T is true that the arrangements had been
Concluded, hut they can easily be rescncied,
and the control Of the road placed where
It was, If it Is worth while, Of course.
the matter, will be 50 arranged as to come
within the law