New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-03-18
California Commission ChagrinS
Railroad Officials.
TO WORK ON NEW PLAN
Will Start Afresh and Prepare a
New Scheme by May 10,
Says Judge Lovett.

officials OF the Union and Southern Pa
ciic railroads. who have returned from
their fruitless journey to st. Louis to
present their modified dissolution plan 20
the United States Circuit Court were
so perplexed yesterday by the plans re-
lection by the California Railroad Com
mission that they were unable to give
definite information regarding the nature
of any new proposal Robert :. LoVctt
chairman of the Union Pacific executive
committee said ne did not know what the
next step would be- but added that every
effort would be put forth 10 evolve some
plan ;hat would he approved by May TO-
the expiration Of the three months pc
Rod allotted by the Supreme Court. Judge
Lovett issued the following statement re-
gardng the action Of the California com
mission:
The original agreement for the acquisi-
ton Of the Central Pacific by the Union
Pacific contained reciprocal provisions FOR
the Joint use of certain tracks and ter
mnals in California As a condition Of it,
approval of such provisions the California
Railroad Commission requires that these
tracks and terminal facilities should hc
| opened to the use OF other lines which
| had TO interest whatever therein. upon
such terms as the commission itself
should fix and the commission imposed
other conditions which neither the Union
Pacific nor the Southern Pacific could
accept.
| But negotiations were resumed and
both parties earnestly cndca vorod 10 work
out some modified plan which would sub
stantially accomplish the results desired
| In way just 10 all interests involved.
and that probably would be- acceptable
both TO the court and the California com
mission. Many difficulties were cncOun-
tered and several times negotiations were
practically abandoned as hopeless But
on Thursday evening, the 18th instant, an
agreement was reached which eliminated
| the provisions OF the previous agreement
for trackagc rights and joint terminals,
respecting which conditions had been i'm
posed by the California commission.
Provisions were inserted FOR inter
change Of traffic. and these were limited
TO interstate traffic, over which the cali
fornia commission has no jurisdiction.
There remained for approval Of that com
mission only the disposition Of the lines
north Of Tehama and the lease of the
Central Pacific TO the Union Pacific,
which from the previous opinion of the
commission and expressions of its mem
bcrs We had no reason To doubt the com
mission would approve.
This We promptly submitted 10 the com
mission through Geographic instructions
to counsel in San Francisco on Thursday
and the same evening We left for ST.
Louis to present the matter to the court
on Saturday morning. since the synd-
cate would expire and the whole plan fail
if not acted upon that day. ON arrival at
St Louis on Saturday morning We re-
ccived a copy Of the opinion of the Cali
! fornia commission in the form of a telc-
| gram to the Attorney General which dis
cussed at length. but failed to decide.
| the questions necessary to make the plan
! effective While finding no objection to
the leases submitted for it's approval. the
| commission declared its purpose to with
/ hold it's approval OF the leases if upon
examination Of the traffic plan, which, as
| already stated, was limited to interstate
! commerce, and therefore beyond the juris-
diction of the commission. IT found the
mean time II Icfraned from making any
order. The nOn-action Of the commission
made il useless for us to present the plan
TO the court and with the expiration OF
the syndicate it was abandoned"