The Washington herald., 1914-02-12

PEACE sPURVED,
down COMES AK
Government Files Sait for d.
vorce Of Southern and
Central Paci6cs.
SHERMAN LAW IS CITED
Brief Filed in Utah Court Also De-
clares Combination Violates Old
Post Road Legislation.
SHERMAN LAW IS CITED
spsasi to The w..Aiassoo He.,d.

Spscal to 1he Wsshineton Hoald.
Salt Lake City, Feb. I.-A suit under
the Sherman antitrust law. to divorcs
the Central Pacific from the Southern
Pacific Railroad. was filed in the United
Inent Of Justice. This Il the first big
suit under the Sherman antitrust Law
that has been Instituted by the Wilson
administration since the President de-
ciared his peace policy for big corpora
lions. 1t seems to indicate that the gov
ernment Is prepared to enforce through
court proceedings the Sherman law, ex-
cept in cases whore corporations them
selves readily conform to the views of
the Federal government.
In this suit the Attorney General makes
his application for relief just as drastic
as in the previous suit filed by the VIII
son administration. He calls upon the
court to compel the Southern Pacific
Railroad to dispose Of its holdings in the
Central Pacific, and to cancel and re-
linquish its lease, control, management,
and operation of the lines. He petitions
the court also to decree that the Southern
Pacinc's holdings with the Central Pacific
shall be disposed Of to persons who ARE
not its stockholders or agents not other
wise under its control and influence"
4
stockholders would not be allowed to pur-
chase any of the Central Pacific stock
now owned by the Southern Pacific Com
pany.
Halts stock Dividends.
The petition filed by the Attorney Gem
eral asks. in addition, the following:
That the court adjudge and decree
the lines of railway and transportation
known as the Sunset Route, operated by
the Southern Pacific Company, and those
of the Central Pacific Railway Company
constitute competitive systems, and that
the ownership by the defendant Southern
Pacific Company OF all or a controlling
interest in the capital stock OF the Cen
trail Pacific Company and its lease, con-
troll and operation OF the lines thereof
constitutes a combination IN restraint of
interstate and foreign trade and an at
tempt to monopolize, and, in fact.
within the Sherman anti
trust law.
That pending the sale of the Central
Pacific stock by the Southern Pacific
Company, and the cancellation Of the
leases, the court enjoin 1t from voting
such stock and from receiving dividends.
or any profits. emoluments. reward, or
advantage in any way arising from the
lease, control, management and opera
ton of the Central Pacific lines"
In addition to being in violation of the
Sherman antitrust law, the Attorney
General asks the court TO decree also
that the control Of the Central Pacific by
the Southern Pacific is in violation of
an act of Congress passed July I, 1867,
entitled, An act to aid in the construc-
tior of railroad and telegraph lines from
the Missouri River to the Pacific Ocean,
and to secure to the government the use
OF the same for postal military and
other purposes"
The fling of today's suit Is develop
ment Of the Union Pacifc-Southern Pa
ciflc dissolution The Attorney General
hello that under the decision Of the
United States Supreme Court in that
case, the Southern Pacific must dis
pose OF its holdings in the Central Pa
cifc. but the Southern Pacific refused
to accede to this, and that question
was left open when the arrangement was
made for the sale by the Union Pacific
OF its Southern Pacific holdings
The complaint names as defendants in
the present suit, William Sproule. julius
Kruttschnitt, Robert Goelet. Cornelius n.
Bliss, Walter P. Bliss. Henry w. De For
est. ]. Horace Harding, Charles w.
Henry Z. Huntington. James
NJ. Jarvie. L. F. Loree, Lewis ]. Spence,
f. p. Swenson, James n. Wallace. and
Ogden Mills.