Imperial Valley press., 1922-06-14

Pacific has been the actual owner OF
the entire capital stock of the reor-
ganized Central Pacific for % years, or
since 1899.
"The decision of the supreme court
is that both these transactions are in
violation of the Sherman act, although
the Sherman act was not passed until
1890, five years after the Central Pa
cific was leased to the Southern Pa
cific Besides all this, the official rec
ords prove that the two have been
under common control and manage
ment for so years, or since July, 1872.
"The result has been the growth of
single railroad system under two
corporate names, each of them neces
sary to the other for effective service
to the public for whose service the
system was created.
"The supreme court now decides III
effect that the lease became void when
the Sherman act passed, because of
the Sunset route through Texas on the
south competing with the line through
Ogden on the north. If the work had
been ,ioue by either inc Southern
Pacific or the Central Pacific there
NOuil HbNC OCCH lO Sull IuC
Sherman act. Hence the essence Of
the matter is that this vast work, af-
ter having public approval, violates the
Sherman act in having been done by
two companies instead of one under
single control.
1.-The decision of the supreme court
turns upon the Sherman act because the
suit was brought by the government in
1914 under that act. But in this eight
years interval a World War has been
fought, because of which every bust
ness is operating under new conditions
and the transportation act Of 1920
passed by congress and approved by
the president February 2S, 1920, is
now the governing federal law for the
railroads of the United States to meet
the new conditions. Under that law
the Interstate Commerce commission is
empowered to authorize in appropriate
cases that which the Sherman act,
standing alone, might otherwise for
bid. The interstate commerce commits,
sion can thus take up the chain of
events. Following the mandate in the
transportation act of 1920 it has al
ready prepared u plan for consolidat-
ing the railroads into limited nun.
Der of systems. In this tentative plan
the Central Pacific and Southern Pa.
cific remain together.
''There can be no doubt that all the
public tribunals and responsible Off
GERS of government concerned have
common desire to do that which will
be practical and wise and with least
disturbance to all the parties concern
ed. But the positive support of public
opinion is needful in working out the
problem to such constructive con.
clusion as will allow this railroad
system to remain at the service of the
public for whom it was designed as
built. The public has nothing to gain
by breaking up these properties; they
stand only to lose by the complications
that would follow.
There seems to be proper motive
for direct appeal to these commissions
to the end that the power lodged in
the interstate commerce commission
under present law which is the trans.
portation act of 1920 be exercised to
maintain the operations Of this trans.
portation system as a unit Justified by
the general experience of the people
served; and it necessary for this pur.
pose new power might well be ere.
ated by appropriate legislation.