The Winslow mail., 1923-12-14
COMMISSION CANCELS
LEASE HINDERINC THE
BUILDING OF RAILROAD

The following is released as news
matter by the Arizona Corporation
Com. Breaking down the barriers
which for years have prevented main
line railroad construction into Phoe-
nix and the Salt River valley, the
Arizona Corporation commission to-
day issued an order cancelling that
certain lease held by the Arizona
Eastern Railroad company under
which it has maintained control of
the parallel right of way of the old
Phoenix and Eastern between Phoe-
nix and Mesa.
Holding in effect that the existing
lease arrangement is in the nature
of a monopoly, preventing the con-
struction of other lines, and that it's
continuance is against public policy
and the development of the district
served, the order of the commission
cancels the lease as of June 30, 1928,
but to allow the railroad" time for
readjustment, does not become effec-
tive until March /, 1924.
The ruling of the commission is
considered a sweeping victory for
James S. Douglas, president of the
Tucson, Phoenix & Tidewater Rail
road and his associates, as it will
pave the way for actual construction
of the proposed main line into Phoe-
nix, for which they have been battling
for the last several months.
The order is the outcome of an in
vestigation instituted by the commits
sion on it's own initiative, following
/ the recei~t of a. communication from
the Tidwater road, asking that the
matter be given consideration. The
respondent railroads, therefore, were
cited to appear before the commission
and show cause why the lease should
not be cancelled, and on October 8
the hearing was commenced with all
interested parties represented.
| The testimony brought out the fact
that the Phoenix & Eastern was own
ed by the Santa Fe system until 1907
when it was taken over by the South
ern Pacific Co. 1t was also estab-
lished that both the Arizona Eastern
and the Phoenix and Eastern are con-
| trolled by the Southern Pacific,
through the ownership of practically
all of the stock of the two subsidiary
companies.
There was also an abundance Of
testimony showing that the right Of
way of the Phoenix & Eastern be-
tween Phoenix and Mesa was secured
to a considerable extent through do
nations and contributions of citizens
under the definite promise that they
would be given a competing line with
! the Southern Pacific and eventually a.
main line from Phoenix to the east.
cit is not to be denied" says the
order of the commission, that the
greatest need of this district is main
line railroad service. This has been
promised since the time that right
of way was solicited in 1901 and there
after, and we find the promise reiter-
ated as late as 1913
Continuing the order reads
''The record discloses the fact that
at this time Tempe and Mesa are en-
compassed by a band of steel COM
posing the tracks of the Arizona East
| ern and the Phoenix & Eastern lines,
constituting a very forminable obsta-
Gle to the construction of an indepen-
dent line into those cities. Futher,
that the most suitable river crossings
at Tempe are held by the Arizona
Eastern and Phoenix & Eastern, even
though one of them has not been for
more. than Is years used or useful IN
the handling of traffic of these two
lines.
"We believe that beyond the ques-
ton of doubt the general welfare
of the community served by the Ari-
zona Eastern and Phoenix & Eastern
roads is being jeopardized and injur-
ed due to the fact that by virtue of
the existing lease they are able to
hold the two lines between Phoenix
and Mesa, thus possibly preventing
the construction of other lines, and
therefore, this lease should be can
celled.'