Iron County record. [volume] (Cedar City, Utah) 1893-1982, 1922-09-15
NEW HEARINGS
ON RAIL MERGER
INTERSTATE COMMERCE eoARr
TO RESUME SESSIONS ON PRO.
POSED CONSOLIDATION
Controversy on Dissolution Of s. p.
and c. p. Lines Likely to 30
Reopened; Nineteen sys-
TENS Proposed

Washington.--The interstate com.
MERGE commission is preparing for re-
sumption Of hearings on the import.
ant issue OF consolidating the rail-
roads OF the United States into a
limited number OF systems. The COM
missions tentative plan contemplates
the creation OF nineteen systems, into
which would he incorporated all the
railroads OF the country.
Henry c. Hall, the commissioner dl.
rectly In charge of the consolidation
problem, is now planning q series OF
hearings to be held in the far west.
to begin next month. The initial hear
ings held by the commission have dealt
with the three consolidated systems
proposed for the southeast. The ma
joity OF the main lines that would be
affected by the proposals for that
region either entered violent protests
or suggested different consultations.
The controversy resulting from the
order OF the supreme court OF the
United States directing dissolution OF
the Southern Pacific and Central Pa.
cific propeties will be injected into
the hearings to be held by the com
mission.
Adyocats for 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 battle
ever since the supreme court handed
down its decision.
An interesting feature OF the situa.
ton Is that the commission, IN Its
tentative plan put the Central Pacific
with the Southern Pacific, while Pso-
lessor Ripley, who prepared the re.
port from which the commission made
its tentative plan, thought the Cen.
trial Pacific should be linked with
the Union Pacific.
The California Producers & Ship.
pers' association has been active In
opposing consolidation OF the Central
Pacific with the Southern Pacific and
Is urging that the decision OF the su.
preme court be carried out. This
organization has issued statements
from which the inference has been
drawn that II believes that the inter
state commerce commission will be
bound by the decision OF the supreme
trail Pacific from the Southern Pa
cific in any consolidation plan devised
for the railroads in the far west.
Against that point of view is the
belief on the part OF many that the
transportation act gives the interstate
commerce commission the authority
in adopting a plan for consultations
to disregard the antitrust statutes OF
which the supreme court based Its
decision in the Southern Pacific Cen
trail Pacific antitrust case. II Is con
ceivable that the commission could
! form a system of roads In the West
which would include the Southern Pa
cific and the Central Pacific.
The Union Pacific through counsel
has issued statements designed TO
show the advantages that would &c
crlle to the shipr 'ng public IL the
Central Pacific were Joined with the
Union Pacific. The Central Pacific
and the Union Pacifl connect at Og
den and their consolidation into ont
system would make a through east
and-west line. Advocates of this plaI
charge that the tendency OF the South
ern Pacific Is to divert traffic from
the Central Pacific TO the Southern
Pactfic's southern route.
Commercial organizations in towns
and cities served by the Union Pa
ciflc in the western states have flet
many of these petitions. Commercial
organizations in the central part o
California have adopted resolutions ia
vo,ing a continuation OF the merger
while similar organizations in north
ern California have wIged an act,v
battle for divoro, ment Of the Contra
Pacific from the Southern Pacific ant
the linking of it with the Union la
ci;ic.