The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1922-07-08
CHAMBER OF coMMERcEs
FAvoRs SOUTHERN PACIFIC
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(Contiued from page one)
| trail Pacific and Southern Pacific
companies had but one treasurer.
They built but one set of terminals
for use by two lines and one general
shop at Sacramento, which did the
work for all lines. Locomotives,
which are always confined by rail-
roads to the lines of their owners,
were in this instance used inter-
changeably over all the lines of
both companies. There was no
duplication of plants and hence we
have these lines today standing as
a unit, each part working with
every other part, to the same ex-
tent as though these properties had
been built and owned as a single
unit by a single company.
/ The sum and substance of the
matter is that these railroad lines
have always, in effect, been as
identical in ownership and operation
as they would have been if con-
structed, owned and operated by
a single man or company.
/ From a Fair Viewpoint
| Looking at the matter from the
point of view of ordinary fairness,
does it seem just that the Central
Pacific should now be torn from the
Southern Pacific on the ground that
the lease thus recognized by the
government in the settlement of
the Central Pacific indebtedness,
which lease still had IS years to
run, was in fact, at the time in
valid under the terms of the Sher-
man Antitrust Law?
The Supreme Court must, of
course, make its decision on the
basis of what it finds to be the law,
irrespective of the considerations of
fairness and equity which largely
shape the dealings and judgments of
private citizens in their intercourse
j with one another. If the Supreme
Court finds it necessary, on re-
hearing of this case, to adhere to
the decision heretofore made, the
decision will, of course, be accepted
/ without question by all good citi-
zens. In that event, the matter
must proceed under the provisions
of the transportation Act of 1920.
The public Interest
The Transportation Act expressly
provides that in passing upon ap-
plications of railroads for permits
sion to effect or continue consolida-
tions of their properties, the Inter-
state Commerce Commission shall
act in accordance with what it finds
to be the public interest.
In considering whether the pro-
posed unmerger of the Southern
Pecific- Central Pacific systems would
be in the public interest, | shall
review very briefly the effect which
such unmerger would have on the
service rendered to the public; the
rates charged; the financial stability
of the Southern Pacific and its
| ability to continue to give adequate
and satisfactory service; and the
maintenance of effective competition
between the affected railroad sys-
| TENS.
| Effect of Proposed Uumerger
The tearing of the Central Pa
| cific from the Southern Pacific
would reuslt in two fragmentary
railroad systems trying to render
the service now efficiently per-
formed by single, unified system.
Branch lines would be separated
from their parent main lines. Termi-
mails would be disconnected from
the lines now serving them. Round
about routes would largely be SUBJ
stituted for present direct lines.
Up and down the San Joaquin and
the Sacramento Valleys, also be-
tween other points in California
| and between points in California
and neighobring states, two and
three line hauls would be substitu-
ted for the present single line
haul. Every passenger and every
shipper of freight knows what that
would mean in Inconvenience, de-
lays and deterioration of the SER
vice.
1t cannot be fairly denied that
the unmerging Of these two systems
would result in very serious inn
pairment of the service, both freight
and passenger, now being rendered
by the Southern Pacific TO the peo-
pie of California and adjacent
states.
Effect Of Unmerger
The unmerging would not reduce
rates, either local or trascontinen-
tai. If any change in rates should
result, it would be an increase and
not a decrease, because two line
hauls are more expensive than one
line hauls ande also because Of the
duplicate operating expenses and
the enormous duplicate investments
which would necessarily be made
by these railroads in branch lines,
main lines, shops, terminal facilities,