The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-06-12
Circuit Court
Approves Merger
of Railroads
Decision Is Said to Uphold
Present Consolidation Plan
Covered by the Act
Appeal Is Still Open.

st. Paul June 11.-Approval of the
interstate commerce commissions ac-
ton in authorizing the Southern Pa
cific railroad to acquire control of the
Central Pacific road was announced
today by the United States circuit
court of appeals.
Walter II. Sanborn, senior judge of
the court, announced that the court
had concluded the interstate COM
to authorize and approve the control
by lease and stock ownership of the
Central Pacific railroad by the South
ern Pacific company"
This conclusion, in eject approving
provisions of the transportation act
of 1920, is deciqro1 of far reaching
Importance, in that 1t tends TO uphold
the present i,....4Su consolidation
plan covered by the act.
No Opinion Filed.
There will be no opinion filed now
but counsel for the department of
justice annd for the Southern Pacific
were notified today to present argu-
ments here Monday on the form the
counrts decree shall take. Appeal to
the supreme court still is open to the
government.
The court, which, in addition to
Judge Sanborn, includes Judges Will
liam s. Kenyon. Fort Dodge, Ia, and
Robert S. Lewis, Denver, has before
it the proposed decree of the rail
road company. permitting the control
under the conditions laid down by the
interstate commerce commission.
Will Move Acceptance.
Counsel for the railroad on Mon
day will move acceptance of this
form for the decree, and the govern.
ment will have an opportunity to sug-
gest such amendments as il wishes,
or may serve notice of intention TO
appeal to the supreme court.
The courts decree will be under
the mandate of the supreme court
issued October II. 1922. directing the
circuit court of appeals to enter a
final decree requiring the Southern
Pacific to divest itself of any control
Of the Central Pacific company.
The supreme court had held the
Southern Pacific control of the Cen
trail Pacific was in restraint Of com.
petition and in violation of the Sher-
man antitrust act, and the govern
ment sought a decree entered carry.
ing out the terms of this decision.
Not Under Sherman Act.
To the contention of the govern.
ment that approval of the interstate
commerce commissions order author.
izing the Southern Pacific control con-
tinued would i'm effect nullify the
Sherman antitrust law. the railroad .
counsel replied that the commissions
action. taken after the supreme courts
decision, was under the transporta.
tion act, which expressly is relieved of
all provisions of the Sherman act.
The railroad attorneys further con.
tended that the supreme court never
had had occasion to consider the
transportation act in connection with
the antitrust action against the roads,
as the action which antedated the
passage Of the transportation act.
solely concerned the Sherman law.
Action by the interstate commerce
commission, railroad counsel contend.
ed, showed no disrespee Sfor the su.
preme court, ais government counsel
declared, because the commissions or.
der was under the terms of later leg.
islation, specifically fixing its au-
thority.