Daily capital journal. (Salem, Oregon) 1903-1919, 1915-12-27
IS P AND D { MUST
| CONNECT TRACKS
IN LINN COUNTY
State Public Service COnlnliS-
sion Issues Order On Intra
State Traffic
FIRST CASE WAS HARD
FOUGHT FROM START
Ruling Made In Accordance
With Amendment Made by
1914 Legislature

The State Public Service commission
today issued an order compelling the
physical connection Of the Southern
Pacific and Oregon Electric lines at AL
bany and which order promises to be
far reaching in its subsequent effects
as similar case from Salem and one
from Mt. Angel is also pending. The
order requires that the Southern Pacific
and the Oregon Electric railroads in Al
bany connect their tracks within 30
days 80 as to permit the interchange of
freight shipments consigned to other
points within this state.
This is the first order requiring physi-
cal connection Of rival railroad lines
that has ever been handed down in this
state under the law that was passed +
the 1913 legislature. Under the act
authorizing the establishment of q state
railroad commission it was stated that
the commission would have the power
to regulate traffic within the state and
under this act the commission issued an
order practically requiring physical con
nection in the case of the Southern Pa
cific company against Campbell. This
order was overruled in the federal
court by Judge WolvertoD who held
that the terms Of the act were too broad
and interferred with interstate com
merce. Accordingly the act was amend-
ed by the 1913 legislature to give the
commission power to regulate "intfa
state traffic" and the present case
will probably bring test of this pro
vision but the commission considers
that IL has far better case than under
tho previous suit. itrr
The case at Albany was started bv
an individual shipper but the county
and number Of other important ship
pers joined in the complaint and after
an extensive hearing which was fought
out on every point the commission is
sued the order today requiring tho phys
ical connection of the two lines. The
commission order requires, however,
that it must be shown that the neces-
sary volume of business actually exists
and that prospective business cannot be
considered. 1t was held that at ALBANY
a number of the largest shippers would
be accommodated by being able TO shin
from certain points on the 8. r. branch
and main lines to points on the Oregon
Electric lines not reached by 8. p. lines
and to accommodate these shippers the
order was made.
The Southern Pacific was the main
opposition to the order as the Oregon
Electric remained largely "neutral" in
the case though party defendant in
the action. The s. p. ATTORNEYS took
the stand that the territory OF the viii
lamette valley belonged to the s. p r.
virtue Of prior establishment Of line
and that the railroad had built up the
industries of the valley and that the
Oregon Electric was encroaching upon
their territory. The commission held
rather to the opposite that the indrs-
tries Of the valley which grew up be-
cause Of the natural resources had h~'''
up the railroad and that the so.called
territory was not to become the person
nj property Of any particular corpora
tion but the business was TO be the
basis Of competition that should benefit
the shipper.
The Salem case was brought by the
Mays-Goode Brick company OF Donald
and IL was claimed that il was necessary
to reload ears in Salem and to pay extra
drayage and labor expenses that would
be eliminated II the loaded car from one
system could be switched to the other
company's tracks without reloading or
delay.