Mountain Home Republican. [volume] (Mountain Home, Idaho) 1915-1946, 1923-04-14

roads up with a gulf line east of Chi
cago or st. Louis, thus forcing all OF
them in their own interest thereaf-
ter through control of car supply and
otherwise to exert their influence in
favor of movement of ali export
grain over their own rails to the
Gulf instead of being impartial as
heretofore.
''If such consultations are accom-
plished where will the trunk lines
and Atlantic ports get their grain
for export? l am not their advocate,
but only wish to point out this as
another revolutionary and disas-
trous effect to some interests of the
action, the commission is asked to
take"
Even if the four system plan were
adopted, it is Judge Lovett's view
that the systems should be cOnsti-
tuted in a much different way than
proposed in the Holden plan. He
said that if the Hill lines were to
be consolidated, the Union Pacific
and Southern Pacific should also be
consolidated as their combined
strength would be needed to place
them on a fair, competitive basis
with the northern lines. Again he
said that under a four system plan,
the Chicago, Milwaukee, and St.
Paul instead OF the Chicago & North
western should be combined with the
Santa Fe.
Such a consolidation would put
the Santa Fe system into the North
Pacific coast territory in competi-
Union Pacifc-Southern Pacific group,
instead of stopping the Santa Fe
group east of the Cascade mountains
as proposed by Mr.. Holden. He also
stated that the Chicago, Milwaukee
and st. Paul and Santa Fe connect
at both Chicago and Kansas City
while the Chicago e Northwestern
has no line to the latter point.
Judge Lovett dealt at some length
with the history of the Central Pa
eific and its relationship to the I'm
ion Pacific and the mutual depend
ence of thise lines on each other. He
referred to the decision of the SUI
rene Court ordering the dissolution
of the control of the Central by the
Southern Pacific as violative of the
Sherman act and to the recent hear
ing before the commission on the
application of the Southern Pacific
for authority to acquire control ana
the decision of the commission to the
granting of the Southern Pacific APP
plication protected with reasonable
adequacy the rights of the Union
Pacific and that with these condi-
tions imposed the Union Pacific
would not object to permanent con-
solidation of the Southern-Central
Pacific.
He said that the Holden plan pro
viding for a half interest by the
Southern Pacific in the Denver and
Rio Grande Western and the Dem
yer and Salt Lake lines would be
inconsistent with these conditions
and would be highly prejudiced to
the Union Pacific. He also refer
red to the testimony already offered
in behalf of the Union and Southern
Pacific asking that the Colorado lines
of the Rock Island be eliminated
from the proposed Southern Paelhc
group as the ownership of these lines
would be otherwise inconsistent with
the conditions imposed by the COM
mission in granting the Southern
Pacific's application to control the
Central Pacific.
FINALLY to guard against possible
misunderstanding Of my views In
stating our purpose to carry out as
far as we can the tentative plan of
the commission with the modiiica-
tions above suggested" Judge Low
EFT said, 81 should like to add, that
| believe entirely too much is ex-
pected by some of our statesmen and
in some quarters of public opinion
from this very commissions work
and the effect of the transportation
act of 1920 with respect to these
Good undoubtedly
will come from consolidation and le-
gal and qualification into one COM
pany of lines naturally allied and
grown together as one system but
loosely combined in COM
legally held by numerous different
mon control through stock owner
ship There will also be consolida-
tions of some lines not at this time
under common control or otherwise
related where the stockholders are
able to agree upon relative value.
Yet the consolidation of Independent
systems will not be as rapid or as
numerous, fear as are anticipated
by many, at least with out further
legislation by Congress solving many
Of the problems that will present
themselves even where the terms OF
have been agreed up
on; and there will be great difficulty
in the stockholders agreeing upon
relative value even not counting
those individuals who are in the hab-
It of acquiring small amount OF
stock and disposing as an oppressed |
minority.
"A great difficulty in this connec-
ion is that there are many unsue-
,essful railroads in the United States
which ought TO be liquidated Doubt |
ess there are owners of these who |
ire looking to this consolidation law
IS an opportunity for them to escape |
rom their investments by unloading /
IN the strong roads. Their proper
Ties are Improbable and failures
for one reason or another
md sooner or later must be dealt |
With according to their actual value
BASED upon their earning capacity,
present or prospective, regardless of
he capitalization. I apprehend that
financially strong roads asked by the
commission by the adoption of its