Los Angeles herald., 1910-10-13
General Solicitor Of Union Pacific
Argues Before Federal
Court at st. Paul
PORTLAND ROUTE INVOLVED
Attorney Dunno Speaks ironically
of Oriental Business Out
of Oregon
1Associated Press1


ST. PAUL. Mimi. Oct. 12.-In the
United States circuit court here today,
Judge p. f. Dunno, general Counsel OF
the Southern Pacific railroad, con-
cluded his argument on behalf of the
railroad in the governments suit to
dissolve the merger of the Southern
Pacific and Union Pacific railroads.
He was followed by N. H. Loomis,
general solicitor of the Union Pacific,
who urged that the Union Pacific was
forced to secure the Central Pacific,
running from Ogden to San Francisco,
because it was vital to its existence as
transcontinental line, and that the
acts of congress authorizing the con-
struction of the Union Pacific and Cen
tral Pacific contemplated that the lines
should be consolidated, so as to make
through connected route from the
Missouri river to the Pacific coast.
sPooNER Defends RAILROADS
Former Senator John G. Spooner
then took up the final arguments TOT
the railroads. He will conclude to-
morrow. Frank B. Kellogg of st. Paul
will follow with the argument in re-
buttal for the government.
Mr.. Spooners statement Of law ana
fact presented little that had not been
covered by Messrs. Dunno and Loomis,
though once or twice an unexpected
turn occurred that focused the inter-
est of the judges, the assembled law
yers and the. spectators upon the Tor
n1er senator.
One occurred when Mr.. Spooner was
called on to answer q hypothetical
question covering one of the vital
points of the controversy-the alleged
competitive status of the Union Pa
cific and Southern Pacific before the
merger.
Suppose" said Judge Sanborn, that
the Central Pacific from Ogden to San
Francisco were an independent line
independent of all control OF either
the Union or Southern Pacific. 1t fur
nishes the Pacific outlet Of the Union
Pacific. As regards eastern tonnage
by way of Omaha and Chicago, would
you say that the Union Pacific, act
ing with the Central Pacific, was not
competitor of the Southern Pacific? p
'I am not compelled to answer that
question" said the lawyer.
"No, you are not" assented the judge.
LET me restate It,"
LET me say here" interrupted Judge
Dunne that each is operated under a
joint through tariff. !"
RAILWAY COMPETITION ISSUE
"Weu then" said Judge Sanborn,
would you say that the through line,
as transcontinental entity, would not
be a competitor of the Southern Pa
cific, because neither the Central Pa
cif1c nor the Union Paclnc could nx
the rates?'
"How can the Union Pacific be in
real sense a competitor of its connec-
tion?" was Mr.. Spooners answer TO
the question.
"But am 1 to understand" repeated
the judge, "that the Southern Pacific
by virtue of it's ownership of the Cen
trail Pacific had absolute power TO
make rates. and therefore there could
be no competition
Both Judge Dunno and senator
Spooner answered in the affirmative.
Peter f. Dunno, general counsel for
the Southern Pacific, in his argument
again gave special attention to the re-
lations of the Southern Pacific with
the Union Pacific through its Portland
route to San Francisco. His argument
was technical, and tended to show that
the Portland route, except for common
points, was an impossible and wholly
Illogical route.
PORTIAAND'S ASLATIC TRADE
Attorney Dunno treated ironically at
times the Oriental business as handled
from Portland and it's relation to the
Oriental business from San Francisco.
"The bulk of the Asiatic business
moved through the port of Portland
was not great" he said. "Such as
moved over the Union Pacific was
mere incident to the local traffic out
bound for the Orient.
"The wheat and flour of Eastern
Oregon and Washington, if there had
been no ship services out of Portland,
would have been handled by the
Northern Pacific and Great Northern
from Puget sound ports. The naviga-
ton company controlled by the Union
Pacific would have lost this traffic
entirely. Oregon wheat and flour de-
manded an Oregon outlet by water
to the Orient or the Portland mills
would have had to shut down. 1t was
to take care of this business that the
Union Pacific established its boat
line to China and Japan"
After citing that the line had been
CONTINUED on Page seven)