Daily capital journal. (Salem, Oregon) 1903-1919, 1914-02-04
GOVERNOR PROMISES
TO ASK WILSON 10
DELAY RAIL UNMERG|NG
No Action Desired on S. P. and
c. P. Segregation Until
Pleas made.
FEAR INJURY TO STATE
Dissolution Of Line Would Leave Ore
gon With Railroad Only to Cali
fornia Line, 1t Seems.

A delegation from the Portland
Chamber of Commerce headed by j.
II. Lathrop, chairman of the committee
on transportation interviewed the gov
ernor this morning, laying before him
the matter Of the proposed segregation
of the Central and Southern Pacific
railroad systems. The general govern
ment has signed its intention to un.
merge these two roads, the complaint
being made that the merger is in viola
tion of the Sherman law. The Port.
land Chamber of Commerce has taken
action, and after thorough discussion
of the matter with the governor and
some members of the railroad commits
sion this morning, the governor decided
to also ask President Wilson to refrain
from taking any action until the coast
can present its case.
1t is a Union Pacific scheme to get
absolute control of tile whole north
west and if the segregation is oredred
it will accomplish this
The S. P. at present has, and for 80
years has had lease on the Central
Pacific lines and owns much stock
therein. 1t operates the line from Og-
den to San Francisco belonging to the
Central Pacific, and this is the only
opposition the Union Pacific has be-
tween the Northern Pacific and the S.
P. line by way of Los Angeles and Ell
Paso, Texas. The Union Pacific owns
the Oregon Short Line and the o. w.
R. & ~, and it also owns the line from
Ogden to Los Angeles.
If it can unmerge the c. P. and the
S. p it will also control the former
and thus have the whole coast bottled
up tight.
Cut Off at State Line.
Another feature that makes the seq.
gregation of the roads a danger to the
coast s business is that the s. p. owns
between Portland and San Francisco
anly the road in Oregon; the part in
California being Central Pacific prop.
erty and under lease to the S. p Be.
side this the S. P. has built many short
branches which, while belonging to it,
are connected with Central leased lines
and these would have to be operated
by joint arrangement, and the rates
would be much higher. The arrange
ment between the Central and the
Southern Pacific was made long be-
fore the Sherman law passed. having
been in operation for more than 80
years. Besides the government accept
ed from the Southern Pacific some $5s,
100000 in payment of debts owing by
the Central Pacific and for which the
S. P. took stock in that road, and it
thus became a party to the arrangement
which il is now sought to set aside.
Means Higher Rates.
If the order Of dissolution is made,
the road from Portland to San Fran
cisco will be under two arrangements
and the rates will be materially higher.
Besides this the separating Of the roads
would accomplish the very thing the
sherman law was intended to prevent
and that is it would destroy the compe.
tition now existing between the S. p.
and the Union Pacific and would turn
the whole business over to the Union
Pacific and create a monopoly, where
none now exists.
Want TO Show Situation.
It is for the purpose Of getting the
situation before the attorney.general
at Washington that the delay is asked,
and the request will nc doubt be grant
ed. II would be hard blow to Oregon,
and every community in the state
should take action through its cham
bers Of commerce to present their OBJ
jections to the proposition.
It's hard TO convince a man that ht
ought to work when he doesn't have