The Evening standard. [volume] (Ogden City, Utah) 1910-1913, 1910-10-12
ARGUMENTS
ON MERGER
Attorneys Review Gov
ernment Case Against
up. and S. P. Roads


ST. PAUL. Mimi, Oct IL Before
: the United States circuit court here
today the argument OF the govern
menTs case. i'm which a dissolution
Of the merger OF the Union Pacific and
the Southern Pacific railroads Is
sought. was continued, and Judge p.
F. Dunno. general counsel for the
Southern Pacific, began argument FOR
tho railroads.
BY agreement the railroad side of
the case will be continued tomor-
row.
c. 4. Severance concluded tho gov
ernmcnts arguments today Mr.. Sew
cranCe's main contention was that the
merger OF the two roads had increas-
ed rates. while the service had dcte-
rioratcd He maintained that Colo
rado was the only territory touched
by the vast Union Pacific system
where there was genuine railroad
competition.
Were Connecting Lines Prior to the
Merger.
Judge Dunne's argument was di-
rected principally 70 prove that the
Union Pacific and the Southern Pa
clhc were connecting lines prior TO
the merger and were not in any direct
or substantial sense competing. He
based this contention upon the origi-
nal act Of congress passed In 1862,
authorizing the construction OF the
Union Pacific and upon subsequent
acts amcndatory thereto. 1t is agreed
by the parties that unless an actual
and constant competition existed at
the timc the merger was effected tho
llcgality Of the combination as vio-
lauon of the sherman antitrust act
probably cannot he sustained.
Citing from the acts of congress,
Judge Dunno said IT was the inten-
tlOn of the government at the time
the Union Pacific was authorized that
the line should be built from the Mis-
souri, river TO the Pacific coast and
should be operated as one connected
OF continuous line.
Terminus Should Be at Ogden.
II is said considerable stress was
laid upon the word connected The
Union Pacific was constructed west Of
Ogden when it met the tracks of the
Central Pacific. and in 1869 il was
provided that the common terminus
of the Union Pacific and the Central
Pacific should be at ogden, where the
rails should meet 10 form one con
tinuouS line.
After citing the leasing of the Cen
trail Pacific by the Southern Pacific,
Judge Dunno said:
The Southern Pacific was under no
obligations to make a traffic agree
ment with the Union Pacific so far as
the Central Pacific was concerned.
1t could have made the same agree
ments with the Denver &c Rio Grande
and cut the Union Pacifc TO a strict
ly local line doing business between
interior points with no coast ter
mlual
Could Have Closed Western Gateway.
The Southern Pacific could have
closed the western gateway to the
Union Pacific and kept It entirely out
OF the seaboard and Interior transcoR-
tinental business. 1t did not, because
the roads were neither actually nor
constructively competitors
The Southern Pacific and the I'm
ion Pacific have been partners in ey-
cry ton Of freight that left the east
crn terminals for California. They
have been united against their com
mon enemy. the Santa Pc. That Is
why the Southern Pacific. controlling
the situation at Ogden, has been will
ing that the Union Pacific should car
~ transcontinental freight to eastern
markets
Why S. p. Should Receive the Trade.
Judge Dunno took occasion 10 eN-
plain the reasons why the Southern
Pacific received IS per cent of the ORR
entail castbound freight received on
Pacific Mall boats controlled by the
Southern Pacific and the Santa Fe.
its acknowledged enemy. receives %
per cent
"A long time" said Judge Dunno.
the Santa Fe maintained trans-Pa-
cfiic steamship connection from San
Diego IL was abandoned and IL has
been openly said that the Southern
Pacific, In return for this recession on
the part OF the Santa Fc. is voluntar-
lily giving it 25 per cent OF the Orl-
entail business
Santa Fe Receives Oriental Trade.
The fact Is that the Santa Fe
steamship was a losing proposition
and was abandoned for that reason.
The Santa Fe has been carrying CON
siderable freight TO San Francisco
and sending II over the Pacific mail,
and it is in Justice TO this situation
that the Pacific Mail turns over a
portion Of its castbound freight to
the Santa EC"