The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-04-03
Rail Merger
Plan Scored
by Lovett
Declares Consolidation Under
Holden Program Would
Bring Unnatural
Alliances"
Combinations Too Large
BY international News Service,

San Francisco, Cal. April 2.-The
plan of Hale Holden! !Spresident of the
Chicago Burlington & Quincy railroad,
to consolidate all railways west of Chi
cago and the Mississippi river into
four systems, recently proposed be-
fore the interstate commerce COM
mission, was attacked by Judge Rob-
ert S. Lovett, chairman of the Union
Pacific system, at a hearing before
Commissioners Hall and Campbell to-
day on the consolidation plan.
Such a consolidation. Judge Lovett
declared, would create many "un-
natural alliances" and would greatly
strengthen the socalled Hill group of
railroads, at the same time greatly
weakening the so-called Hartman
group.
With Great Caution.
The commissions tentative plan.
comprising seven instead Of four sys-
TENS, was characterized by Judge Low
EFT as affording the basis and ground
work which should be departed from
only with great caution. The Holden
plan grouping the Union Pacific with
the Chicago, Milwaukee & st. Paul, he
strongly condemned, the witness ex-
planning that the commissions plan
of placing the Chicago & Northwest
ern with the Union Pacific was the
only logical grouping, the Chicago,
Milwaukee & st. Paul being a com.
petitor and the Chicago & Northwest
ern 4 connection and natural ally.
Should the Hill lines merger be ac-
cepted. Judge Lovett said a remerger
of the Hartman lines, Union Pacific
and Southern Pacific should be au-
thorized to meet the strong combina-
tion which would be effected by the
Great Northern, Northern Pacific and
Burlington. The retention of he
Central Pacific by the Southern Pa
cific with the same conditions i'm
posed by the commission in the re-
cent hearing Is satisfactory to the
Union Pacific. he said, as they protect
with reasonable adequacy the rights
OF the Union Pacific.
Striking Effect.
Continuing. ne added: Another
striking effect Of the way the Holden
plan treats the old Hartman system
appears when after assigning to the
Southern Pacific the Rock Island 1t
also puts with the Southern Pacific
the Missouri Pacific and the Missouri
Kansas & Texas systems with which
tine Southern Pacific does but little
business and with which it would have
occasion to do even less after acquir-
ing the Rock Island, and also the
u X. n.fx til.
the press dispatches report Is about
TO be abandoned; the Missouri, Okla.
homa & Gulf and half interest in
the Denver & Rio Grande Western
and the Denver & Salt Lake. The lat
ter feature is especially significant
because ii would indeed effectually
bottle up or. as Prof. Ripley ex.
dressed it. short circuit the Union
Pacific, since IL would give the South
ern Pacific a line Of its own through
from San Francisco to Chicago by way
OF Ogden and Denver paralleling the
Union Pacific from Ogden both to
Omaha and Kansas City and parallel
ing also the lines allocated 10 the
Union Pacific from Omaha to Chi.
cago and elsewhere east of the Mis-
souri, river"
Constant Menace.
Judge Lovett in opposing the sug-
gestion that all lines in western ter
11tory should be consolidated into
four systems said:
-Four systems comprising from
10000 to upwards of $4,000 miles
each. and each extending from Puget
Sound Or the Pacific ocean to the
Great Lakes, to the mouth of the Mis-
sissippi river and the Gulf of Mexico,
and traversing most of the interme.
date states, makes the combinations
entirely too large for efficient man.
agement and service for the welfare
OF the corporations themselves. their
creditors and stockholders and for the
public good, and present a situation
which probably would be sourcs of
much undesirable friction and In many
ways a constant menace, especially
in case of failure"