Evening star., 1923-08-14
us. TODROP FIGHT
ON RAIL MERGER
|. C.. C. Sanction of Central
and Southern Pacific Merg-
er to Go Unopposed Further.

The government will not further
contest the authority of the Inter-
state Commerce Commission TO con-
sent to the lease and stock owner
ship of the Central Pacific railroad
by the Southern Pacific railroad as
upheld in a recent decision of the
United States court at St Paul.
Announcement Of the end Of the
dong litigation WHICH resulted in a
Supreme Court decision requiring dis
solution of the two properties. whose
merger was subsequently approved
by the Interstate Commerce Commis-
sion, was made yesterday by .Attor :
ney General Daugherty after several
conferences with President Coolidge
on the administration policies in
volved. The Attorney General, in a
statement, said that in his judgment
the conditions attached TO the com
missions approval of the merger
fully safeguarded the public interest
and that Congress, in effect, by the
uqder which the approval was given
had set UP a new policy for the gov
ernment i'll regard to such trans
actions
Congress Gives Power.
I'm the proceedings at st. PAU to en-
fnEce the Supreme Court mandate, the
court heu that in the transportation
act, Congress had given the commits
sion power TO approve such merger
despite provisions of the Sherman anti
trust law under which the first suit
was brought.
The proceedings at ST. Paul were to
enforce the mandate of the United
States Supreme Court requiring the
Southern Pacific to surrender its own
ersslip of the lease and stock OF the
Central Pacific system. Judges san
born, Lewis and Kenyon decided, how
eYeT. that in the transportation act
which was passed subsequent to the
bringing of the original suit by the
government. Congress had given the
Interstate Commerce Commission pow
or 30 approve such merger despite
pro visions OF the Sherman antitrust
law, under which the first suit was
brop ght.
Attorney General Daugherty point
ed out that the Interstate Commerce
Com mission had attached definite dDo
positive conditions 10 its approval
and consent in the case, and added
that in his judgment these conditions
safeguard the public interest II
they are not complied with, he con-
tinued. the lease and stock ownership
will be subject to termination.
Ends Litigation.
The issue was one OF great admin
istratiVe Importance 70 the country,
Mr.. Daugherty said. and particularly
to that section of the west traVerSeC
by the two great railroad systems in
yolved in the litigation. And with tho
opinion Of the three distinguished cir.
cult court judges and the opinion ot
the Interstate Commerce Commission
before me. i reached the conclusion
that il Is my duty To end the litiga
ton.
The course taken by the govern
ment is the only one that could b'
observed in the public interest. II
view OF the findings by the court an,
the Interstate Commerce Commission
and the opinions arrived at by, myScl
and my associates in the department
especially after | had completed
careful and painstafing survey o'
conditions in the states OF California
Utah. Nevada and oregon traverse
by the two great rail SYST EMS anC
Fthes sentiment in those states for a
termination of the long drawn out
litigation"