The Fallon standard. (Fallon, Nev.) 1920-1958, 1922-10-25
Southern Pacific Asks
for Temporary Control
Apply TO Interstate Commerce Com
mission for Authority to Lease
Central Pacific

The Southern Pacific company has
made application under the proyis-
ions of the Transportation Act of
1920 for authority from the Inter-
state Commerce Commission to lease
the Central Pacific Authority for
the lease is designed to bridge per
iod of uncertainty until the Inter
state Commerce Commission reaches
a final determination as to what
shall be done with the Central Pa
cific.
The Central Pacific has been ord
cred separated from the Southern
Pacific under the Sherman Anti
Trust Act of 1890. The new Trans
portation Act of 1920 gives the In
terstate Commerce Commission af-
firmative power to authorize the con-
solidation of railroads without re
gard for antitrust acts. The new
policy of the government looks to
the power of regulation and govern
ment control to protect the interests
of the public inconnection with rail
IOdu VI tht anti
trust legislation such as the Sher-
man Act of 1890 in connection with
questions of association or consoli-
dation of railway companies. The
suit decided by the Supreme Court
against the Southern Pacific was be-
gun under the Antitrust Act in
1914 before the passage of the Rail
way Transportation Act of 1920, and
this last named act was not consid-
cred in the decision, of course, be-
cause no action of the commission
had yet been taken except TO serve
on the carriers its tentative plan for
the consolidation of the various sys-
TENS under which the Central Pa
cific was consolidated by the COM
mission with the Southern Pacific.
Until a final conclusion is reached
by the commission. nothing perma-
nent as to the relations of the Cen
tral Pacific and Southern Pacific can
be determined. No other railroad
could buy the property without the
consent of the Interstate Commerce
Commission under the law. The
commission has large powers over
questions of joint use of TERMINALS
and the like II is the policy of the
United States as declared by the
Transportation Act of 1920, to ar
range for the consolidation of the
railroads of the country into a limit
ed number of large systems, and
manifestly the Central Pacific in the
end must belong to one of these.
II the application be granted by
the Interstate Commerce Commits
sion IL simply means that there will
be no disruption until the question
is finally and definitely determined
as to where the Central Pacific shall
go. A similar situation exists with
respect to the ownership by the
Reading Railroad of the Central
Railroad of New Jersey. This was
found by the Supreme Court in vio-
lation of the Sherman Antitrust act
and the Reading ordered to dispose
of the property. In the tentative
plan that the Interstate Commerce
Commission made for the consolida.
tion of railroads in August, 1921, il
however put the Central Railroad oi
New Jersey and the Reading togeth.
er, this it deemed being in the pub.
lie interest Under a proper and
wise construction of the decision
sale of the stock of the Central Rail
road of New Jersey has therefore
been postponed until the problem
could be definitely settled
The ultimate outcome will not be
affected by this lease since the In
terstate Commerce Commission viii
reserve the right to allocate the Cen
tral Pacific to some other system i
1t deems best. and unless 1t chooses
to make the lease final then to can
eel it. A great gain to the public
and the railroad companies in thi
temporary arrangement to maintain
a status quo. lies in the fact tha
tremendously expensive and wha
may prove to be wholly needless
changes will not have to be under
taken pending a final determination