Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-05-30
s. p. MUST give
UP Cont R0L OF
C. p Rail ROAD
United States Supreme
Court Orders Dissolution
in an Opinion Delivered
by Justice Day.
tsS TIE Associated pres..,

Washington, May 29.--Dissolu-
tion of ownership and control OF
the Central Pacific railway by the
Southern Pacific company was or
dered today by the supreme court
in an opinion delivered by Justice
Day. The decision in the case
which was the last Of the railroad
merger suits to come before the
court. held that the two lines were
competitive. Justices McReynolds
and Brandeis, because of their Off
cial connections prior to going
upon the bench. did not partici-
pate. Justice McKenna delivered
short dissent.
The court directed that decree
be entered severing the control by
the Southern Pacific of the CEN
tral Pacific by stock ownership or
by lease, but in accomplishing that
end so far as compatible, said the
mortgage lien on the Union Trus.
company of New York should be
protected.
Terminal Lines and Cut-Offs.
The several terminal lines and
cut-offs leading to San Francisco
bay which have been constructed
or acquired during the unified con.
troll of the two systems for con-
venient access to the bay, and to
the principal terminal facilities
about the bay, should be dealt with
the court declared, 'either by way
OF apportionment or by provisions
for joint or common use, in such
manner as will secure to both COM
panies such full, convenient and
terminal facilities thereon that
each company will be able freely
to compete with the other, to serve
the public efficiently and to &C.
comphsh the purpose of the legis-
lation under which it was con-
structed."
A like course should be pursued
Justice Day added, Gin dealing with
the lines extending from Ser
Francisco bay to Sacramento and
to Portland, Ore"
Case Pending Since 1914.
The case had been pending II
when the United States asked lhe
United States district court ol
Utah to restrain the two railroads
the Union Trust company of New
York, and the directors and Off
cials OF the Southern Pacific unde,
| the Sherman antitrust and tfie
Pacific railroad act. The United
| States asserted that tho lines of the
two railroads constituted competi-
! tive systems and added that the
ownership acquired by the Sou
i thern Pacific of controlling in
| tercst in the Central Pacific be de
| clared unlawful.
| Reviews Roads History.
| A minute review Of the histor
OF the two roads was given by jus
tice Day leading up to what h
termed "the outstanding facts" o
the physical operation of the twl
railroads.
"The Central Pacific, with il
eastern connection at ogden, form
one great system Of transportation
between the east and the west.
the opinion stated. "and the Sou
| thern Pacific, with its roads an,
connections and steamboat lines
forms another great transcontinen
tai system for transportation from
coast to coast. The Central Pacifi'
constitutes some eight hundre,
miles Of transcontinental line o
which it is a part. The Southern
Pacific system has practically lt
own line Of railroads and steam
boat connections to New York vi;
Galveston and New Orleans"
The acquisition of the Centra
Pacific stock by the Southern Pa
cific was held to be unlawful un
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