The New York herald., 1922-11-05
DEMAND SUNDERING
OF CENTRAL PACIFIC
Union Pacific Tells Commerce
Commission 1t Has No Right
to Continue Merger.
Controlling ROAD FIGHTS
Southern Pacific, at Hearing,
Accuses Rival of Designs
on Line at Issue.

WASHINGTON, Nov. 4.--The application
Of the Southern Pacific Railway for the
right to retain control Of the Central
Pacific Notwithstanding the dissolution
order by the Supreme Court was opposed
before the Interstate Commerce Commits
sion to-day by representatives of the
Union Pacific system
The general hearings. on the petition
are to begin November 81, and to-day
argument of preliminary character was
precipitated by a request by the union
Pacific that the whole matter be dis
missed
"You are asked in this application "a
exercise an extraordinary power II. A.
Scandrett. counsel Tor the Union Pacific,
told the commission, "a power which In
effect is that OF multiplying decisions OF
the Supreme Court"
1T is your position that the commits
sion has not the power. and may not
award temporary control Of the Central
Pacific to the Southern PacificF' asked
Commissioner Potter.
Il think you do not have the power.
Mr.. Scandrett replied. But it Is not
necessary that you so decide in order to
grant our request and dismiss the South
ern Pacific's application"
Unless you say now that the combl-
nation OF the Southern Pacific and Cen
trail Pacific is in accord with your final
plans for consolidation of railroads" Mr.
Scandrett declared, you must now dis
miss this application"
Commissioner Potter asked II the COM
mission could not be considered at lib
erty under the law to grant temporary
relief by holding the dissolution matter
In hz,. ,r~t.s 81. Ill IN.
vestigations proceed.
II think not" Mr.. Scandrett returned
Fred w. Wood, general attorney fol
the Southern Pacific. opposed the Unior
Pacific argument and Fl. w. Prickett ap-
peared as counsel FOR the State of Utah
which seeks continuance of the combina-
ton.
Il am not in the confidence of the
Union Pacific" Mr.. Wood declared. "but
l suspect its representatives are here in
the hope that If the sale of the Central
Pacific is forced under the court decision
the stock will fall into the hands of per-
sens who will not sell it or who would
use its ownership to hold up negotiations
In case the Southern Pacific was in
structed to merge again with the Central
under the commissions plans. / sus-
pect they are here also In the hope
that sale or the STOCK might put II into
the hands of persons friendly TO tn,
Union Pacific"
The joint operation Of the roads had
continued for so many years, Mr.. Wood
contended, that the dissolution now
would disrupt established trade routes
and transportation service. Separation
under the Supreme Court decision. h
declared, would be a long and hazardous
task which ought not to be forced il
the commission intended to recombine
them.
Mr.. Wood declared the union between
the railroads was the only way to avert
danger TO the public service and main
tain financial stability for the corpora
ton. All the Southern Pacific sought,
he declared, was temporary authority
from the commission for the consolida-
ton to continue until 1t is finally de
termined how railroads OF the United
States should be grouped. He stressed
that the commission. in its tentative plaf
for consolidation In the West. had con
sidered continuation of the Southern
Pacitic-Central Pacific merger.