El Paso herald. (El Paso, Tex.) 1901-1931, 1914-05-01
s. P. DENIES LAW
VIOLATED; Says
MERGER IS LEGAL
Segregation Of Central From
Southern Pacific Would Be
Detrimental, Is Claim.

Salt Lake City. Utah, May Spec
ific denial OF any violation of the
sherman anti trust laws is the feature
OF the answer filed Thursday by the
Southern Pacific Railroad company in
the United States district court here
in the government suit to divorce the
southern Pacific from the Central Pa
The answer also points out that the
two lines were originally built, oper-
aled and developed as one road, but
that, as far back as 1S9S, the United
states government itself practically
recognized the combination.
IT asserts. that in the Joint opera
ton OF these lines, through trains
have been ru.- by the most direct or
convenient route without reference TO
their ownership. and that any separa-
ton Of the Central Pacific lines from
those OF the Southern Pacific. cannot
now be made without detriment TO
both properties, and without impair
ing and incOnveniencing the public
service and the communities through
which the lines pass.
:. p. An Extension of c. p.
In a brief historical resume, the an
sWer declares:
1st-That the lines of the Southern
Pacific Railroad company were built
as extensions and connections of the
lines of the Central Pacific Railroad
company, and BY the some stock
holders.
2d.-That, as the lines Of the South
ern Pacific Railroad company were
completed, they were directly leased
to the Central Pacific TO be operated
within its lines.
Managed As One Property.
Sd.-That. on April /. 1855. the
Southern Pacific Railroad company,
TO simplify the organization, took over
under lease for 80 years, all the lines
of both Central Pacific and Southern
Pacific, and has since managed and
developed them as one property. con-
sidering only efficiency of service TO
the public, without regard to cOrpo-
rate properties, such as terminals and
branches
4th-That. relying on the terms
under which the Central Pacific's debt
TO the government Of S5S.O00,00 was
settled in 1888, the Southern Pacific
obligations, not only guaranteeing
payment Of this debt, but also guar
anteeing the S10O.000.O00 four per
cent mortgage bond issue OF the Cen
trail Pacific- In this connection, II is
cOntended that the government could
not consistently and with Justice have
Z accepted this settlement, Of which il
did have full knowledge as party
) thereto if the arrangement involved
/ relation between the roads contrary
TO public policy.
Relations Not Previously Disturbed.
1 5rh-InaL. even as late as 1872. N
| the recent. socalled Hartman unmer-
| ger suit. when the United States su-
! preme court ordered the dissolution OF
I the Union Pacific and the Southern
Z Pacific the court, the highest trib-
I unal in the land. found no reason 10
I disturb the relations between the
/ Central Pacific and the Southern Pa
/ cific- The supreme court ordered the
3 dissolution OF the Union from the
| Southern Pacific but as TO the Central
I Southern Pacific relations. said. I'VE
I find no reason to disturb the action
| Of the court below" The court below
| had declined TO disturb the Central
! Southern Pacific relations. although
the facts concerning il were at the
I time brought out
I $. p. Is MAKING LESS MONEY
THAN LAST YEAR. SAYS REPORT
| San Francisco, Calf. Nay The
| Southern Pacific company is operat-
/ ing more miles of railroad in CalifOr-
| MIA this year than last and making
l less money, according TO statement
| issued at the general offices Of the
! company
For the nine months a falling off Of
| S4,S43 1858 is shown in the revenue
| over operating expenses and taxes, as
| compared with the figures for the