The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1913-03-15
new PLAN TO UN-
merge RAILROADS

terms of the revised proposals of the
Union Pacific to govern the unmerging
of the Hartman lines within the state
of California from Judge r. s. Lovett,
the California Railroad commission
gave contingent statement of the
attitude which it will assume.
The answer is contingent upon the
commissions findings regarding rep.
resentations by counsel for the Union
Pacific, these points respecting prin-
eipally the rights of competing roads
ON the Benicia cutoff, and upon the
attitude of the attorney general of
the United States and the Federal
courts upon the sale of the entire Cen
trail Pacific stock to the Union Pacific.
The commission declared itself
positively in favor of the attitude
originally taken relative to the BENZ
Ella cutoff, namely, that equal privi-
leges should be allowed competing
lines in the use of that branch,
should the Union Pacific operate
from Sacramento to Oakland via
Benicia.
The commission stands where it
did in the original opinion that the
Union Pacific could gain its outlet to
the coast by the leasing of the Gen.
trail Pacific line from Ogden to Sac
ramento, and thence to San Francisco
via Stockton and Niles. 1t still be-
lieves this is all that is necessary to
carry out the will of the Supreme
Court in completing the unmerging.
Claims No Jurisdiction Over Stock.
At the same time, the commission
claims no jurisdiction over the sale of
the Central Pacific stock by the
Southern Pacific to the Union Pacific.
That is admitted to be a matter en-
tirely in the hands of the attorney
general and the United States courts,
and if they see fit to compel or permit
the sale of the Central Pacific stock
to the Union Pacific. it would in eff
feet give the Union Pacific the sub
stance of what it is asking the com
mission now to approve. As Chair
man J. M. Eshleman expressed it, the
railroad commission would not be
disposed to adopt "dog in the man
ger attitude. -
In brief, the new proposal of the
Union Pacific is request that the
Southern Pacific lease the Central Pa
cifc, which IL owns, to the Union Pa
ci,e, to cover all of the property of
the Central Pacific in California. ex-
cept the lines north of Tehama, which
the Southern Pacific would retain on
a lease.
Sticking Clause Temporarily Cut Out
The clause in the original proposal
in regard to the exclusive joint use
of terminals and industry tracks by
the Southern Pacific and Central Pa
cifc has been cut out by Judge Low
EFT, but it is understood that apph-
cation will be made later, when it
will be dealt with by the commission
upon the basis indicated by the orig
inal decision, which would give COM
peting lines the right TO participation
in these facilities.
Amended Plans.
The amended plans were submitted
to the California Railway commission
at 9 O'Clock Thusday night by counsel
representing Robert s. Lovett, chair
man of the Union Pacific executive
board From authoritative sources of
information, it was learned earlier
that the Union Pacific would avoid
difficulties by seeking permission for
an agreement to reach San Francisco
bay over the Southern Pacific IS al
ternate line, via Stockton and Niles.
In general, the modified proposals
were understood to include the fol
lowing specifications: Lease by the
Central Pacific of the line from Te-
hama north to the Oregon boundary.
Lease by the Central Pacific to the
Union Pacific of all its California
lines. except the line from Tehama
northward, specified above; sale of
the Central Pacific to the Southern Pa
cifc of the branch line from Weed,
Cal. to Klamath Falls, Oregon.
None Affects Sale of Central Pacific.
None of these specifications affects
the sale of the Central Pacific to the
Union Pacific, which, in its national
and interstate aspects is conceded by
the commission to be a matter outside
its jurisdiction. These provisions, it
was believed, would be found to in
elude substantially the amended plans,
and the intimation was that they
would be acceptable TO the railroad
commission. The Western Pacific was
asked to send representatives to the
hearing.
The new plan, as outlined by Julius
Kruttschnitt chairman of the South
ern Pacific company, substantially
provides for traffic agreement with
ont traekage privileges to the Union
I Pacific and Central Pacific.
Traffic Agreement.
/ In brief, the Southern Pacific is
willing to carry Union Pacife-Ientral
4 Pacific traffic over the Benicia cut off
and its California ereminals, instead
of allowing those roads direct use of
I this cut-off and Southern Pacific ter
minals.
Incidentally, though this was not
referred to by Chairman Kruttsehnitt,
acceptance by the Federal authorities
and the California commission of
these provisions effectively would bar
the Western Pacific road, which has
asserted its right to the use Of the
Benicia cutoff and Southern Pacific
terminals.
S1,250,OOo at Stake.
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