Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1923-04-05

manent consolidation 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 Denver
and Salt Lake lines would be incon-
ststent with these conditions and
would be highly prejudiced to the
the testimony already offered in be-
half of the Union and Southern Pa
cific asking that the Colorado lines
of the Rock Island be eliminated from
the proposed Southern Pacific group
as the ownership of those lines would
be likewise inconsistent with the con-
ditions imposed by the commission in
granting the Southern Pacific's ap-
plication to control the Central Pa
cific.
Finally to guard against possible
misunderstanding Of my views in stat
ing our purpose to carry out as far as
we can the tentative plan OF the COM
mission with the notifications above
suggested" Judge Lovett said, II
should like to add, that l believe en-
tirely too much is expected by sOrl9
of our statesmen and in so.te quar-
tiers Of public opinion from this COM
missions work and the effect of the
! transportation act of 1920 With re
spect to these consultations. Good
undoubtedly will come from. CONSOLE
dalton and legal and qualification in
to one company of lines naturally al
lied and grown together as one sys-
tenn but legally held by numerous
different CORPORATIONS loosely COM
bined in common control through
stock ownership. There witt also he
consultations OF some lines not at
( this time under common colroi or
/ otherwise related where the stock
/ holders are able to agree upon rcla-
/ tive value. Yet the consolidation OF
/ Independent systems will not be as
rapid or IS numerous, l fear as are
anticipated by many, at least without
4 further legislation by Congress solv-
ing many of the problems that will
present themselves even where The
terms of consolidation havs been
agreed upon; and there VIII re erea
difficulty in the STOCKHOLDERS agree
, ing upon relative value even not
counting those individuals who are in
the habit of acquiring a small amount
: ( stock and posing as an oppressed
a minority.
"a great difficulty in his con-
nection is that there are mans un-
successful railroads in the United
States which ought to be Iiquidatei
Doubtless there are owners of these
who are looking to this consolidation
law, as an opportunity for them 10
escape from their investments by IN
loading on the strong roads. Their
properties are Improbable ard fail
ures financially for one reason or an
other and sooner or later plusI he
dealt with according to their actual
value based upon their earning ca
pacity, present, or prospective, regard
less Of the capitalization / aIpre-
bend that financially strong roads
asked by the commission by the adop-
ton of its plan of consolidation to abb
sorb these roads will be willing to
take them, if at all, only at their ;,ctu-
al value and that if there are any
losses to be liquidated they mus be
borne by those who have sustained
them rather than be shifted onto the
stockholders of the successful reals.
But if the object of the statute is
accomplished and plan for the con-
solidation OF the railway properties of
the continental United States inc a
limited number of systems is adopted
by the commission and carried out in
full, it will not, in my opinion, aid
very much in solving the rai'road
problem. 1t will not reduce the cost
of transportation, which is the great
problem, or increase the traffic.
OF course it will not effect wages
or the price of rails or rolling stock
or coal or other materials and sup
lies, or reduce the taxes, and it viii
not help the credit of the railroads
as whole, and we shall still hare
strong and weak railroads Even
If all the systems to be created by The
commission plan were given an sven
start (Which is impossible they viii
not remain even, for some will sue
coed while others fail and there is
the very great danger Of perma uent-
ly welding together incompatible and
inherently different properties and
dislocating trade centers and traffic
routes and relationships which with
the greatest care cannot all no be