The Leon reporter. (Leon, Iowa) 1887-1930, 1908-08-13
Going After the Burlington.

OViHy nllSI TIC DuTlIHg IOH.
A committee appointed at the meet
ing of the directors of the Commercial
club Of Des Moines yesterday morning
will investigate the mergers accom-
plished by the Burlington railroad COM
pany in souther Iowa several wears
ago, with view to determining if it is
advisable under the laws to try to dis
solve the consultations, says the Reg
lister and Leader of last Thursday.
Jerry B. Sullivan is chairman of the
committee and B. f. Kaufman and H.
II. Stipp are the other members.
The train service accorded to south
western Iowa towns by the Burlington
company, and the accommodations given
the city Of Des Moines, together with
the dissimilar service and accommoda-
ton given to cities outside of the state
of Iowa were the subject Of an extended
discussion by the club officers and di-
rectors yesterday.
In the meeting the Greater Des
Moines committee members also largely
participated.
1t was the theory Of those discussing
the subject, it is said, that it may be
possible to apply to the southern Iowa
railroad consultations the theory of the
law which applied to the Northern Sc
curities merger involving the consolida-
ton of the Burlington, the Great North
ern and the Northern Pacific lines.
In the Northern Securities case the
courts prohibited the attempted merger
and dissolved the combination so far as
it had become effective.
Several years ago the Burlington
railroad company acquired by purchase
the Keokuk & Western, the Humeston
& Shenandoah and the Des Moines,
Osceola & Southern properties.
The Des Moines, Osceola & Southern
line, which was built by Des Moines
people, principally, parallels the Abba
branch of the Burlington company.
The other two lines parallel the main
line of the Burlington almost entirely
across the southern part of the state.
In his remarks to the state railroad
commission a few days ago relative to
the train service of which there was
complaint, Gels Botsford, secretary of
the Commercial club, insisted that the
| Burlington company operated monop-
oily in southern and southwestern Iowa
In territory of thirteen counties, he
showed that there were but six com.
petitive points and that the people were
absolutely dependent for transportation
facilities upon the Burlington lines
alone.
In the discussion yesterday this state.
ment was discussed and the fact devel
oped that the lines which the Burlington
purchased we're parallel with it's own
In 1902 the legislature of Iowa passed q
bill which came to be known as the
Hubbard merger bill, but which, as
passed, was really a prohibition of mer
gers of competing lines. That is to say
it provided, because of an amendment
injected into it, that while Iowa rail.
road might acquire other roads in states
other than those contiguous to Iowa
heretofore they could not--Iowa com
panies could not acquire parallel lines
But this was passed after the Burling
ton bought the parallel lines in south
ern Iowa which it is claimed has give1
it a monopoly on the business in tn.
southern quarter of Iowa.
Nevertheless, on the general princi
pie enunciated by the courts in tn,
Northern Securities case, the CONNER
cial club committee looks for the basi
LOT an action to dissolve the Iowa mer
gers of parallel lines.
In the hearing at the state house, P
S. Eustis, the passenger traffic manage
for the Burlington company, stated tina
railroad company discharges its dut,
to the public by the operation of sin
gle train each way each day, whethe
IL pays or not; but that beyond that on
train no railroad company owes it t
the public to give service which doe
not pay.
In Wisconsin, however, it has bee
held that the legislature was exercising
a proper function when it passed spe
citic law requiring railroad companie
to maintain specifically described ser
vice whether it paid Or not. There tn
commission undertook to order addi
tional service. The railroad objecte
and refused to give the service, on tn
ground that it was not compensatory
The railroad commission and shipper
interested went to the legislature wit
the matter. and the legislature passe,
the specific law covering the case. TIL
railroads tested it, and the courts sus
tanned the law.
The theory is that the railroads mus
give the public such service as i
needed.
1t was the decision of the Commercial
club yesterday to appeal to the legisla
ture if the Burlington fails to put OF
the service demanded, and which, it i
stated, is needed in southern Iowa.
AS to the demand of the people an
the need for the service, the club ha
directed that a digest Of the minutes q
the hearing at the state house befor
the railroad commission few days age
shall be circulated among the 763 bus
ness men and shippers who form tn
organization.
The testimony included the statement
of many of the southern Iowa peopl
interested in better passenger service
showing the excellent service mair
tanned by the Burlington into Nilsson,
and Nebraska and the unsatisfactory
service maintained north into Iowa.
1t is contended, also, by the club tina
in acquiring the parallel lines in south
ern Iowa it assumed certain obligation
undertaken by those companies whe
the lines we're built, agreements be
tween the companies and the people {
the towns along their lines. These it