Omaha daily bee., 1922-06-11
up. Would Buy c. P.
If Terms Agreed on

ton OF the acts under which the
entire line was built, and observed
that "the obligation to keep faith
with the government continued. as
did the legislative power OF con-
gress concerning these roads, not
withstanding changed forms OF own
ership and organization.
"And the government proceeded,
by the suit decided last week, to COM
plete the job of making the first
transcontinental line formed by those
two links entirely independent, and
free from rival control, which had
only been partially accomplished by
the decision in the Union Pacific
case
Interest Was Recognized.
Although there was a clear recog-
milton by the supreme court of the
special interest OF, the Union Pacific
in the Central Pacific, as the owner
OF one-half OF the line built under
the Pacific railroad acts, with the
aid OF government bonds and land
grants, the Union Pacific, and no
withstanding the policy of the
Southern Pacific to favor the south
ern route. as stated by the supreme
court decision, the Union Pacific
has refrained thus far from taking
any part in the litigation between
the government and the Southern
Pacific.
But we have been apprchensive
that in the case the supreme court
should decide in favor of the South
ern Pacific, it would yield to the
temptation to route even more of
this San Francisco and central Cali
fornia traffic in favor of its long
haul, and via the longer route
through El Paso, against the short
direct route through Ogden, which
affords it a smaller division of the
through rate.
Apprehension Is Increased.
"This apprehension has been very
greatly increased by the tentative
consolidation plan promulgated by
the Interstate Commerce commission,
which, while leaving the Central Pa
cfic with the Couthern Pacific, pro-
vided for the merging of the Rock
Island with the Southern Pacific, thus
giving the latter 100 per cent haul
over its own lines. via El Paso, even
to the middle west, as we'll as to the
Atlantic seaboard, via New Orleans
and Galveston, which, quite natural
ly, it would be inclined to favor, as
far as it could control the traffic, as
against the short and direct haul
through Ogden.
Such an arrangement the Union
Pacific obviously would be interest
ed in opposing to the last resort, and
might be expected to take all neces-
sary measures for the vindication OF
its rights under the Pacific Railroad
acts.
Should Live Up to Act"
"The interest and right of the
Union Pacific is to see that the west
erly half of the federal railroad sys-
tenn from the Missouri river to the
Pacific ocean, of which the Union
Pacific is the easterly half, shall per-
form its share of the duties imposed
by the Pacific railroad acts, which
provide for the operation of the said
system as one connected continuous
line without discrimination of one
against the other by whomsoever op-
Grated. Now that the supreme court
has cancelled the lease and enjoined
the ownership of the stock of the
Central Pacific by the Southern Pa
cific, and decreed the independence
of the Central Pacific as competi-
tor, in connection with the Union
Pacific and its connections. of the
Southern Pacific, via its Ell Paso
route, the Union Pacific is directly
concerned in the treatment and dispo-
sition of the Central Pacific. to the
end that the through transcontinen-
tai line which together they consti-
tute, shall, in the language of the
supreme court, be able freely to COM
pete with the Southern Pacifics
southern line to serve the public ef-
ficiently, and to accomplish the pur-
pose of the Legislation under which
it was (they were) constructed"
U. P. Willing To Buy.
The Union Pacific is willing to buy
the Central Pacific from the South
ern Pacific if fair and reasonable
terms can be agreed upon. But it is