Arizona republican., 1914-05-01
Southern Pacific Company Files Answer i'll Govern ment Suit to Divorce It. self from the Central Pacific
GENERAL, DENIAL
 IS ENTERED
Points Out Both Roads Were Originally Operated as One and Government Recognized Combination as Wholesome
ASSOCIATED PRESS DIsPArCHJ

SALT LAKE CITY, Utah. AP'' on rho Southern Pacific company filed today in the United States us trict court it's answer in the soN orrrnent suit to divorce the Cehtrai pacific from the Southern Pacllle' Tho answer. after specifically dehH ino all allegations that the sherman antitrust law has been NioA"teu' points out not only that 'ne
 iines were originally built, operated land developed as one roau' put '. as far hack as 1898, the Ohite" states government. itself, practlcdhH recognized the combination.
 | If asserts that. in the joint opera tion of these, lines, through tralis have been run by the most direct oi convenient route without reference 10 their ownership, and that ans .enaration of the Central Faclll' I1,ras from those of the Southern fd- cific cannot now be had without detriment to both properties, ana ,,-ithout impairing and inconvenience ing the public service and the com munities through which the liiies pass .o the
 In q brief historical resume the answer declares:
 First-That the lines of the south ern Pacific Railroad Company were
 built as extensions and connections oc the lines of the Central Pacitie RailroaS Company, and by the same
 stockholders the sacond-That as the lines of the : cartbarr Pacific Railroad Company ] were completed, they were ulrectN
 leased to the Central Paclflc to De Ioperated within its lines.
 | Third-That. on April l, l6S9, the Q Southern Pacific Railroad Company = to simplify the organization. took t over under lease for ninety-nlne If years. all the lines of both Central : pacific and Southern Pacific, and q has since managed and developed it thme as one property, conslderlhs is onh. efficiency of service to the = nnblic without regard to corporate r. properties. such as terminals ah' m branches
 l. Eo,,rth-That. relying on the term ly under which the Central Paclllc ly debt to the government of SoS'oVo' $, 900 was settled in 1898, the Southerl L. financial obligations. not only guar i- anteeing payment of this debt, pu nd lalso guaranteeing the slO0,0Oo,ooo D. ner cent. mortgage bond issue o1 tn he Central Pacific In this connection -a it is contended that the goVernnen or could not consistently and with jus ed lice have accepted this settlement,
 which it did have full knowledge ,t- partv thereto if the arrangement 1T ,ta volyed a relation between the roa' nv contrary to public policy
 .an Fifth-That even as late as lsl ta in inc recent. so-called Harrima uo unmerger suit when the Unit' .t States supreme court ordered u
 dissolution of the Union Pacific al .o the Southern Pacific. the court, U - highest tribunal in the land, toul
 no reason to disturb the relauo 'o between the Central Pacific and | Southern Pacific. The supreme cot 0S ordered the dissolution of the uni uA from the Southern Pacific but as
 the Central Southern Pacific rel ''e tions. said, We find no reason
 disturb the action of the court
 low" The court below had decllr
 to disturb the Central southern PS pe- fife relations, although the facts ct that aa,.,,i,,o if were at the time brou, oi out
 eing Conomantinq on the fact that they lines were in one ownership um- were managed and developed as pro- property. the early part of the bout wer points out that, because Of cred fact little heed was given as , at which corporation should hold 5e at title t terminal properties ,cted branch lines. Accordingly. bra
 lines from points on the Cen . Pacific were built and owned by
 Southern Pacific railroad comp
 these branches having no connec
 with the main line of the Soul
 Pacific railroad company ex 111 through Central Pacific lines. .I important points the entire title
 valuable terminal properties
 taken and held in the name of
 Central Pacific railroad company
 . other points the titles to tern .i properties was held by the Sout
 Al, Pacific railroad company. even Hs n,
 fife lines from the Southern P; lines, it is asserted, cannot nov I. had except with great detriment ts at .t )n all W ''h signed ''., .,1 trough ios VI ''v reeted VI lol 'liu e--- -.eo. ny D - e--1--
 Continued on Page Seven.