The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1922-10-14
SOUTHERN PACIFIC TO
LOSE CENTRAL PACIFIC
Supreme Court Refuses Re-
hearing and 5. p. Now
Hopes |. c. c. VIII
Reverse Order

Washington. Oct. s.-The Supreme
Court to-day denied q rehearing Of
the case brought by the United States
In which 1t directed the Southern Pa
cihc Company to divorce itself OF
ownership and control over the Cen
trail Pacific railroad.
The court at Its last term rendered
an opinion which reversed the United
States district court for Utah and
held that the ownership and control
of the Central Pacific by the South
ern Pacific was in violation OF the
Sherman antitrust act, on the ground
that the two systems were competing
under the law.
The decision resulted In numerous
petitions being presented to Congress
by commercial and other organise
lions, some urging and others oppos-
ing the enforcement Of the decision.
The refusal to reopen the case will
result In the issuance Of a mandate
to the district court in Utah to give
effect to the decision.
6PROULE MAKES STATEMENT
San Francisco, Oct. 9.-President
william Sproule Of the Southern Pa
cinc Company issued the following
statement to-day:
The decision of the Supreme
Court to-day that q rehearing would
not be allowed In the Southern Pa
ciic-Central Pacific merger case
leaves us In the same position that
we were when the decision was made
on May 20 last.
THE court was good enough to
grant sixty days in which to make an
appeal for a rehearing. but evidently
has found nothing new In connection
with the Sherman antitrust act. un-
der which the decision was made, to
modify its conclusions. OF course no
new testimony could be submitted.
The decision will now be handed
down to the district court. and the
Attorney General will presumably
suggest a proper form of decree.
UP TO COMMISSION
at is quite obvious that the Gen.
trail Pacific problem should be de-
termined for once and for all, and
that any piecemeal dealing with the
situation would be very destructive
to the interests of the public and the
Southern Pacific and Central Pacific
railroads.
Congress in 1920 passed the rail-
way transportation act, six years af-
ter the suit against the Southern Pa
cifc was begun to force 1t to sell the
Central Pacific. This act directs the
Interstate Commerce Commission to
prepare plans for the consolidation of
the railroads of the United States
into q limited number Of groups. 1t
further specifically exempts the rail-
roads entering into such ~consolida-
ton from the provisions of the Sher-
man antitrust act. under which the
Supreme Court has ordered the Gen.
trail Pacific stock to be sold by the
Southern Pacific. Therefore, through
constructive action. relief from the
separation can be had by action Of
the Interstate Commerce Commission
IL the commission finds 1t In the in
terests of the public to maintain the
association of the Central Pacific and
the Southern Pacific.
GROUPED IN L. G. C. PLAN
I'm August, 1921. the Interstate
Commerce Commission served the
railroads with its tentative plan. un-
der which the Central Pacific and the
Southern Pacific are kept in n sys-
tenn. Public announcement has been
made OF a hearing upon this tenta-
tive plan to be held within a few
months. 1t Is reasonable to suppose
that, In order to dispose Of this sub
ject finally without confusion. there
will be coordination Of Government
efforts.
I'VE believe the overwhelming in
terest Of the public is In behalf of
the continued operation of the South
ern Pacific and the Central Pacific as
one system, and that the weight of
facts will be found to be such as to
wholly justify maintenance Of the
present situation. under which these
companies. managed and operated as
one C for afty-two years, will
be continued In their present rela-
tions."
-rcwr~