Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-03-15
Declares PROPOSE
ton by Chairman Loyetl
Fails to Be Specific in State
ment of Details,
SUPREME COURT ORDER
NOT COMPLIED WITH
Southern Company Stands to
Lose More Than Million Dol
lars by Midnight Unless
Terms Are Agreed To,

tBy Morning journal Special Iensed wIre.l
san Francisco, March ii-Lacklng
information upon which 60 base a final
opinion. The California railroad COM
mission is skeptical Of the good faith
In which the Union Pacific submits
plans for dissolution OF the Hartman
merger In obedience TO the decree OF
the United States supreme court. IN
telegram 10 Attorney General MeRey-
nolds. the commission wrote. today
THE supreme court wants these
lines to be unmerged and We will
prevent. lf we can, combinations In
such unmerging
For want Of fuller data. the COM
mission withholds lis approval Con
tnuing lis opinion, the commission
wrote
I'VE cannot understand why. in
fairness TO this commission. the new
traffic agreements were not disclosed
to us when tbs matter was presented
We assume. Of course. that these
roads acting in good faith. expect to
comply fully with the directions of
the constitution and statutes Of Cali
fornin su far as applicable TO their af-
fairs and 1t may be that our fcnr with
reference to this matter. is unfound-
ed n. as matter of fact. the design
of the proposed now traffic agree
monts. the terms of which we do not
know is not to eircumveut the prev-
Gus decision of this commission, then.
Of course. what We have to say here-
in viii not at all interfere with the
unmerglng plan as amended.
If. on the other hand the design
Is to eVade the effect of our former
conditions, then we think we should
prevent the new plan from being con
summated. IL it is within our power
20 do 50.
I'VE cannot understand why ahso-
lutely open and frank dealings can
not be had with reference 70 these
matters We cannot conceive any fea-
son why The Southern Pacific ana the
Union Pacific. in keeping with the
mandate Of the supreme court can
not actually unmerge and why there
should be any attempt TO reserve to
the Union Pacific an advantage or pre-
ference which II would not be given II
II were dealing, so 10 speak, az arms
length. with the southern Pacific
The matter on which the commits
sion does not feel itself fully inform
3D. IL still the use to be made Of the
Benecin short line. owned by the
Southern Pacific, between Oakland
and Sacramento. at which point the
Central Pacific system terminates. In
this connection the modified appliea-
tion telegraphed by Robert $ Lovett
chairman Of the executive board Of
the Union Pacific SAID
"a leasc Os deslred) by the Central
Pacific company to the Union Pacifie
company in the form proposed In the
application filed with the commission
Of February t9th. which covers all
the property Of the Central Pacific
except the lines north OF Tehama. The
modified agreement will eliminate all
provisions as to the Joint use Of the
Benecia line, the Joint use of terminals
and traekage and running rights from
Newark to Redwood and from Red
wood to San Francisco. The lease of
the Central Pacific to the Union Pa
cifc does not supersede the sale Of
the Central Pacific stock, but Is re-
ouired in addition thereto. IN order
4 a. Af
the French banks"
The original agreement mentioned
was for trackage rights Between
trackage rights and traffic agree
ments. however. the commission sees
a difference which II maintains has
not been satisfactorily explained.
Continuing It's opinion, the commits
sion says
I'VE have absolutely no objection
to traffic arrangement whereby the
Union Pacific traffic is turned over to
the Southern Pacific and conveyed
thence 10 san Francisco over the Be-
necia lire and the same may be said
for the Union Pacific traffic origlnat-
ing at bay points. Yet. If such an
agreement is desirable from the stand
point Of the Southern Pacific, certain
lv IT should lie willing to perform a
like service for the Western Paeliic
Ga Could line), or any other conpet-
ing line for like payment, ana the
Union Pacific desiring only that the
service be performed for it for the
stated compensation of course, can
have 40 interest IN preventing the
Southern Pacific from making more
money by performing for another line
a like traffic service for adequate con-
sideration.
"As d condition 20 any approval
which We may give TO any matter for
which our approval Is required by
law, the substance Of our conditions
respecting the Benecia cutoff and the