The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1922-09-11
,.,,s s'''aysss. ss.rss, .,siOll
a''''" ..,a.lle Hearing
on Rail Merger
Tentative Plan Coniemplales
Creation Of All Roads of.
Country Into l9
Systems.
BY GRAFTON S. WILCOX.
Omaha B~e Leased Wire,

""eh" bSF if"r'u v"fs
| Washington, Sept. l0-The Inter
state Commerce commission is pre-
pairing for resumption OF hearings on
the important issue of consolidating
the railroads OF the United States into
a limited number OF systems. The
commissions tentative plan contem-
plates the creation OF ~ systems. into
which Would be incorporated all the
railroads OF the country.
With TIE wisdom OF such a con
summation emphasized by the indus
trial conflict which is still waging
members OF the commission are anx-
ious to renew the hearings and TO
get along as rapidly as possible TO a
point where final plan and recon-
mcndations can be prepared.
Henry c. Hall, the commissioner
directly in charge OF the consolda-
ton problem, is now planning a series
OF hearings to be held in the far
west. TO begin next month. The in
itial hearings held by the commission
here dealt with the three consolidated
systems proposed for the southeast
The majority OF the main lines that
would be affected by the proposals
Tor that region either entered violent
protests or suggested different con-
solidations.
Opposition Strong.
As in the southeastern hearings. the
commission will encounter opposition
to lis plan everywhere, it is expected,
but this will not deter the determina-
tion to work out comprehensive
consolidation scheme.
The controversy resulting from the
order OF the supreme court OF the
United States directing dissolution OF
the Southern Pacific and Central Pa
cific properties will be injected into
the hearings to be held by the COM
mission. ..
Advocates OF continuation OF the
merger of the Southern Pacific and
Central Pacific lines and proponents
OF dissolution of the properties and
a merger Of the Central Pacific with
the Union Pacific have waged bat
tie ever since the supreme court
handed down its decision.
California Divided.
The state OF California is divided
into two camps, one urging dissolu-
ton and the other fighting for con-
tnuation of the present arrangement.
An interesting feature of the
situation is that the commission, in
its tentative plan, put the Central
Pacific with the Southern Pacific,
while Prof. Ripley, who prepared |
the report from which the commits
sion made its tentative plan,
thought the Central Pacific should,
be linked with the Union Pacific.
The California Producers and Ship
pers association has been active in
opposition to consolidation of the
Central Pacific with the Southern
Pacific and in urging that the deci-
sion OF the supreme court be car
ried out. This organization has
issued statements from which the
inference has been drawn that it be-
lieves that the Interstate Commerce
commission will be bound by the
decision OF the supreme court and
forced to divorce the Central Pa
cific from the Southern Pacific in
any consolidation plan devised for
the railroads in the far west.
Could Form New System.
Against that point OF view is the
belief on the part OF many that the
act gives the Inter
state Commerce commission the
in adopting plan for
consultations, to disregard the anti
trust statutes on which the supreme
court based its decision in the
Southern Pacific Central Pacific
antitrust case. 1t is conceivable
that the commission could form a
system OF roads in the west which
would include the Southern Pae'iic
and the Central Pacific.
The Union Pacific, through eoun.
sci, has issued statements designed
10 show the advantages that would
accrue to the shipping public Il the
Central Pacific were joined with the
Union Pacific.
Charge Traffic Diverted.
The Central Pacific and the Union
Pacific connect at Ogden aud their
into one system would
make through east and west line
Advocates OF this plan charge that
Inc tendency ni the southern Paelue
/ 10 divert traffic from the Central
Pacific 20 the Southern Paelils.s
southern route IA
Congress has been flooded With
petitions lor and against the con.
.luua,ion 81 the Southern faeiht'
1 cn,rsl ragliic mtrsuf tommsf.
sal organizations III towns anf
.iiits served Is the linton Patiiie !
Il ths western states have iilfa
many el these pet1t0Hsr tom
uFt,,sl anlsaiioBs ia lhe Genital .
aau 81 California haSe Nioplfi
esalul0as ttypfhE a continuation
Il ,bt uttFzeL whllt sunlaf af
sas.ssious ia Bofthegu tahiotHsa
s4ss eaes1 an ssiis5 battle las
I.oFtsmeat 1i he tsHtlAl tali
fum ~ saathFfh ra1tf aua thf
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