New-York tribune., 1921-10-22
Southern aciGc
And Rock Island
Strong System Il
Group Would Give Santa F.
and Union Pacific PLENTY
of Competition: Makes
an Interesting Experiment

This is the fifteenth Of se,5c, ~
daily articles onaivzing the proposals Of
The Interstate Commerce Comm ;sssOn 10,
the consolido ton OF the railroads Of u.
country into nineteen major systems.
The seriss is based on data obtcined il
Interviews with railroad ,,scn ard bank.
ers- The sirteenth article lgu oppssr
in the financial section to-morron--
Financial Editor
AS competitor Of the Atchisos
Topeka & Santa Fe system, the Inter.
state Commerce Commission builds u
System No. IT by combining the South.
ern Pacific. the Chicago, Rock Island
& Pacific, the El paso &. Southwestern
San Antonio & Aransas Pass the
Trinity & Brazos Valley, the Midland
Valley, the Vicksburg, Shreveport L
Pacific and the Chicago, Peoria & St
Louis.
This system has distinct advantages
from the point Of view of operation
1t gives the Southern Pacific whics
itself runs from New Orleans along
the Gulf and the Mexican border to
southern California and from, there to
Portland, Ore, also a line from Fl
Paso via the Ell Paso & Southwestern
and the Chicago, Rock Island & Pa
cifc to Chicago. Through the forma-
ton Of this system, rs in the fofnla-
ton Of the Santa Fe system, the Union
Pacific would have to face new and
intensified competition.
The Southern Pacific and Rock Isl
and now have joint passenger service
to California from Chicago. but the
Southern Pacific is at disadvantage
in soliciting freight from Chicago, as
compared with the Union Pacifc-Chi-
cago & Northwestern. With its own
lines in Chicago, however, and with
the Union Pacific deprived of the Cen
trail Pacific, so that its Western ter
minus would be Ogden, the Southern
Pacific would have distinct advantage.
Would Be Strong Group
Professor Ripley, in his report on
railroad combinations, Gays Of the
Southern Pacific Rock Island conso,
dation: "Such a combination would
derive strength from its composits
origin. The Southern Pacific has an
unparalleled extension throughout Can,
fornia. Many of its advantages coula
never be duplicated by competing
roads. On the other hand, the RoeA
Island is firmly intrenched IN the terri
tory between Kansas City and Chicago
1t possesses the shortest line between
Chicago and Des Moines and Chicago
and FL Paso, as also the shortes'
line from ST. Louis to Kansas ei.s
and TO FL Paso. II also hiss the snor'.
est line from Kansas City to Denver
and from Kansas City to St Paul. Bu5
its great strength in branches AnS
feeders throughout Kansas. Nebrssss
and Iowa is greatly enhanced oy w.
unusual terminal facilities at Chicago
Some years ago, when the Eces
Island went into receivership, tners
was widespread discussion among RAJ.
road men and bankers as TO what "ss ss
the trouble with the road. IL was ls,.
that a property which had advantages
such as those enumerated by Froisss'
sor Ripley and which had been eohs,u ~.
cred fifteen years before one OF .as
strongest of the Southwestern roaa''
ranking in possibilities Of deveiopmsa..
with the Northwestern roads, oughs ~ -
have done far better than 1t did.
paper the Rock Island - s,to..
road actually it is probable that 'asss
are a great number Of operating az
culties that might under Soutne..
Pacific or Santa Fe management nsrs srs
been sroothed out years ago. 80
which for lack of capital expenoi'-,..
make the property expensive 70 ops''"
Interesting Experiment
It would be most interesting
pertinent in railroading on X
scale to give the Rock lslanc, % m
commission suggests. to the ovusns "nrs.
Pacific, and to see the practical M sr.
ing out Of the Southern Paclhc ,,sr p's
agement OF the Rock Island proo,,;;ss
AS it is now the Santa Fe, compsr s.g'
with the Rock Island. IS far tne ss'y yss
er Of the two. The Rock lsitna S'f
q long distance behind. Opinions, fss
fer as to why this IS, ana pia@'Ips Ipss.ifc
Rock Island under Southern .se,.
management "ouid efe ;n urss-
dented opportunity TO test on. ~ srresss
tice how large factor IN tne s;nar;lg
Of railroad property extraoi0'
good railroad management "a IN tbs.
1t is universally ackno"isok-ksbl
the Southern Pacific Is relus raI-
we'll managed and stronss
road, both physically ana mt wish
Would a change in manaseH core
such operating advantages couthers
IIUh pssis se SehsSif9i Sufficient ito to transform y
Rock island from a weak rosa =
strong one w. <. II.
r nsxndeffd