The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1922-06-15
GRAY REVIEWS
IT, P. SYSTEM
Southern Pacific Con.
troll of Central Pacific
is Illegal


decision of the supreme court hold
ing illegal the control of the Contra
Pacific by the Southern Pacific, ant
the frequent reference to the Union
Pacific in this connection, it seemed
timely to make a statement of the
interest of the Union Pacific in the
situation resulting from that de.
cision. He said:
Both the Union Pacific and
Central Pacific, constituting the first
transcontinental line, were con.
structed under Pacific railroad acts
of congress, passed in the sixties
which provided for continuous line
of railroad from the Missouri river
to the Pacific ocean, and provided
further that they should be operated
and used for all purposes of com.
munication, travel and transporta-
ton as far as the public and govern
ment are concerned, as one con-
nected, continuous line.
Shortest Line Formed
"The Union Pacific lines were
constructed westwardly from the
Missouri river at Omaha and Kansas
City, about 1000 miles, while the
Central Pacific was constructed east
wardly from San Francisco and
Sacramento about 500 miles, the
two lines meeting near Ogden, Utah
They are essential to each other and
constitute the shortest and best line
across the continent between San
Francisco and the east. But they
have never been commonly owned
or under common control, except
during the period from 1901, when
Mr.. Hartman, for the Union Pacific
bought control of the Southern
Pacific, to 1918, when the supreme
court decided that the control by the
Union Pacific of the Southern Pacific
was in violation of the antitrust law
and required it's release.
Justification Sought
1.-THE Union Pacific in that case
sought to justify it's control upon the
ground that it had to buy the South
ern Pacific in order to get control
of the Central Pacific, and prevent
discrimination against it by the
Southern Pacific in favor of the
latter's southerly line via New Or
leans and Galveston, but the
supreme court held this defense in
sufficient, and pointed out that under
the Pacific railroad acts, discrimina-
ton against the Union Pacific, the
owner of the line from Ogden to the
Missouri river, by the westerly end
of the line, from Ogden to San
Francisco, would be a violation of
the acts under which the entire line
was built, and observed that the OBJ
legation to keep faith with the gov
eminent continued, as did the .'s
ing these roads, NOTWITHSTANDING g
changed forms of ownership and Or
ganization.' And the government
proceeded by the suit decided last
week to complete the job of making
the first transcontinental line
formed by those two links entirely
free and Independent and free from
rival control, which had only been
partially accomplished by the de-
cision in the Union Pacific case.
Litigation Avoided
"Altho there was clear recogni-
ton by the supreme court of the
special interest of the Union Pacific
in the Central Pacific as the owner
of one-half of tie line built under
the Pacific railroad acts with the aid
of government bonds and land
grants, the Union Pacific, notwith-
standing the policy of the Southern
| Pacific to favor the southern route,
as stated by the supreme court de-
cision, has refrained thus far from
taking any part in the litigation
between the government and the
Southern Pacific; but we have been
apprehensive that in case the SUI
preme court should decide in favor
Of the Southern Pacific it would
yield to temptation to route even
more of this San Francisco and cen
trail California traffic in favor of it's
long haul and via the longer route
thru Ell Paso against the short direct
route thru Ogden, which affords 1t a
smaller division of the thru rate.
Vindication Sought
"This apprehension has been very
greatly increased by the tentative
consolidation. plan promulgated by
the interstate commerce commits
sion, which, while sleaving the Gen.
trail Pacific with the Southern Pacific
provided for the merging of the
Rock Island with the Southern
Pacific, thus giving the latter 100
per cent haul over its own lines via
Ell Paso, even to the middle west as
we'll as to the Atlantic seaboard via
New Orleans and Galveston, which
quite naturally, 1t would be inclined
to favor, as far as it could control
the traffic, as against the short and
direct haul thru Ogden. Such an
arrangement the Union Pacific OBJ
viously would be interested in op-
posing to the last resort, and might
be expected to take all measures
necessary for the vindication Of its
rights under the Pacific railroad
acts.
1.-THE interest and right of the
Union Pacific is to see that the west
erly half of the federal railroad
system from the Missouri river tt
the Pacific ocean, of which the
Union Pacific is the easterly half
shall perform it's share of the duties
imposed by the Pacific railroad acts
| which nrOvido FOR tho narration nj