The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1922-06-16
GRAY REVIEWS
ATTITUDE OF up.
PRESIDENT OF SYSTEM ISSUES
STATEMENT REGARDING THE
CENTRAL PACIFIC RAILROAD.

OMAHA, Neb., June 10.---President
c. r. Gray of the Union Pacific sys-
tenn said today that in view of the
widespread discussion of the recent
decision Of the supreme court holding
| illegal the control of the Central Pa
eific By the Southern Pacific, and the
frequent reference to the Union Pa
cific in this connection, il seemed
timely TO make statement of the i'm
terest of the Union Pacific in the situ-
ation resulting from that decision. He
said:
Both the Union Pacific and Cen
trial Pacific, constituting the first
transcontinenta line, were construct
ed under Pacific railroad acts of con
| gress, passed in the sixties, which
provided for a continuous line of rail
road from the Missouri river TO the
Pacific ocean, and provided further
that they should be operated and used
for all purposes Of communication,
travel and transportation as far as
the public and government are con-
cerned, as one connected, continuous
line.
Shortest Line Formed.
"The Union Pacific lines we've con-
structed westwar1ly from he Mis-
sour river at Omaha and Kansas
City, about 1000 miles, while the Cen
trail Pacific was constructed eastward
lly from San Francisco and Sacramen-
to about 500 miles, the two linft
Injecting near Ogden, Utah. They nre
Essential to each other and constitute
the shortest and best line across the
continent between San Francisco and
the east, But they have never been
commonly owned, or under common
control, except during the period from
; 1901, when Mr.. Hartman, for the
Union Pacific, bought control of the
Southern Pacific, to 1913, when the
supreme court decided that the con-
troll by the Union Pacific of the South
ern Pacific was in violation of the an
thrust law, and required release.
Justification Sought.
The Union Pacific in that case
sought 10 justify its control upon the
ground that il had to buy the South
ern Pacific in order to get control of
the Central Pacific, and prevent dis
elimination against il by the Southern
Pacific in favor of the latter's south
erly line via New Orleans and Gal
weston, but the supreme court held
this defense insufficient, and pointed
out that under the Pacific railroad
acts, discrimination against the Union
Pacific, the owner of the line from
; Ogden TO the Missouri river, by the
westerly end of the line. from Ogden
TO San Francisco, would be violation
Of the acts under which the entire
. line was built, and observed that the
obligation to keep faith with the gov
ernment continued. as did the legisla-
tive power of congress concerning
these roads. notwithstanding changed
forms Of ownership and organization
And the government proceeded by the
suit decided last wee kto complete the
Job of making the first tranacontinen-
tai line formed by those two links en-
tirely free AMI independent and free
: from rival control, which had only
been partially accomplished by the de-
cision in the Union Pacific case.
Litigation Avoided.
: Although there was a CLEAR recog
milton by the supreme court Of the
special interest Of the/Jnion Pacific
; in the Central Pacific as the owner Of
one-haf Of the line built under the
Pacific railroad acts with the aid of
: the government bonds and land
grants, the Union Pacific, notwith-
standing the policy Of the Southern
Pacific "a favor the southern route, as
: 5, ated by the supreme court decision,
has rcfrained thus far from taking
any part in the litigation between the
government and the Southern Pacific.
but we have been apprehensise, that
In case the supreme court should de-
eide in favor Of the Southern Pacific
II would to the temptation TO route
! even more Of this San Francisco and
central California traffic in favor of
its long haul and via the longer route
Through III Pnso against the short di-
rect route through Ogden. which af-
fords il smaller division Of the
through rate
Vindieaiion Sought.
This apprehension has been very
greatly increased by the tentative
consolidation plan promulgated by the
interstate commerce commission,
which. while leaving the Central Pa
cifc with the Southern Pacific, pro-
vided for the merging II the Rock Is
land with the Southern Pacific. thus
giving the latter a 100 per cent haul
ever it, own lines via FL Pasc, even
70 tho middle west As Wei as 10 the
Atlantic seaboard via New Orleans
and Galveston, which. quite naturally.
it would bc inclined 20 favor, AZ FAR as
il could control the traffic, as against
the short and direct haul through 0g-
den. Such an arrangement the Union
Pacific obviously would be interested
in opposing 10 the last resort. and
might be expected 10 take all meas
tres necessary for the vindication Of
its rights under the Pacific railroad
acts.
The interest and right of the Tn
ion Pacific is TO see that the westerly
half of the federal railroad system
from the Missouri river to The Paeinc
ocean. of which the Union Pacific is
the easterly half, shall perform It's
sbare of the duties imposed by the
re ;l,,,l a~+s which DroVide