Show 1 7 7 v v r r r v v v T f v f w I 1 f r r v v f v v r v r v v v v v v w vv v v f v f v wv V V V V V VV V f VV V VW V V WW W W f v V V yaw VV V V W k t 1 I WWW t tl 11 ia t 1 4 1 I TT abitt itt ss ti ww p 1 a a A a s V UNION q TR mon i ka 4 t 0 L gau Y r V e 4 g specific answers to FIVE REASONS promulgated by the salt lake chamber of commerce nov 7 1922 for retention of central pacific by southern pacific ar 4 j 0 first reason to prevent the domination of this state and intermountain sect section ion by any single transportation agency 7 the independent operation of the central pacific or its control by the union pacific would not create a transportation monopoly because of the existence of oi two paralleling lines the western pacific and denver rio grande western under competitive conditions a monopoly is impossible the omission of any mention of these two standard railroads tends to a conce ament of two of valuable assets no mention is made of the power of the interstate commerce rom commission mission to prevent discrimination in rit even f these s lifeguards wele lacking the investment of capital for the purpose of development would require that a fair return on that capital be earned and this auld be impossible imps sible if rates were unreasonably high an extortionate rate basis would kill the business which tk must be developed no incentive exists to create any line of business for the purpose of destroying it with competition provided by parallel lines protection from unreasonable rates afforded by the interstate commerce commission and a fair return required on invested capital the state of utah need have no fear of rail line domination second reasons reason to hold an open gateway at ogden as an invitation for the west ward extension of other railroads in utah 5 the status of the ogden gateway is made definite and certain by the official announcement of the president of the union pacific system to the effect that the gateway would remain open it would be clearly to the interest of the union pacific central pacific lines to maintain an open gateway at ogden east and west in compi tion w th the western pacific ao also with the el paso route and the santa ft 6 on the south so that all other lines in addition to the union pacific east of hovden would continue to bring traffic to that junction and also receive it there from the central pacific eastbound in other words the central pacific would welcome all the help it could get to meet this competition 1 third 77 rea reasons on to hold against union pacific routes to los angeles and portland territories 11 after the testimony submitted in the union pacific and southern pacific merger un case the supreme court found there was no competition between these routes the t 1 court went vent even further and sp authorized the ir union pacific to acquire the central pacific 0 the southern pacific has never maintained through compe competing tinz rates between utah and or oregon orgon gon nor between 0 utah and southern california via the very much longer route through sacramento the value of economy in transportation por tation being thereby recognized if and when the railways of the united states are grouped as provided by the transportation act into not more than twenty railway systems it will be for the pur pos pow of routing freight over tho the most direct lines in order that the cost of transportation may be kept at the lowest practicable point and that rates shall reflect economies of operation railroad valuations as established by the interstate ter state commerce commission will b ame mme the tf fair ard equitable rates and traffic will be moved wherever practicable by the shortest line between sr am awn wo k J points fourth reason to insure a market competition betlem western and eastern territories for rutih products P IF this argument presupposes that railroad traffic men A can wave magic wands and create a demand for products i where it does not exist traffic moves to points where the demand is as every business man knows and market competition determines the direction of traffic further more there is the western pacific denver rio grande t western competition and the interstate commerce commission ready and willing to remedy rate maladjustments competition would be maintained were the central pacific operated independently yet this important alternative is given slight T th tin on t J position in this matter is set forth in president carl R grays statement of june 10 1922 the rulo pacific Is I 1 willing walls to any the central pacific from the southern pacific if fair and reasonable term terms ran can be he agreed upon but it to I 1 net not seeking to buy the central pacific end and it 1 not earr for er a compliance with nith the th decree et of 4 V the th me court that it should all 11 the th I 1 non will III limit in Is that the tb central pacific Is 1 made an Inder 1 hoe flue to he operated fir As uch such and that it perform its it dutle ai as the union ay pacific Is I 1 performing ite its duclex under tir by nelch zy they wire w re both constructed and that if it it I 1 Is to be merged into jf any etem under plans belne being worked out by the interstate Intent af commerce commission it be merited merged with the union V fc iv with which it torn forms a continuous tran trans continental line conti with all other p the fear is expressed that ogden salt lake and ani 1 provo will become way stations should the union pacific u acquire the central pacific and the denver rio grande Western Western pacific be acquired by some other strong line growing cities like ogden salt lake and provo are destined to become larger and more prosperous for the union pacific to do anything which would retard their development would be a contradiction of its record in the past and contrary to all good business principles for f several years the missouri pacific denver rio grando grande and western pacific v were ere operated as one connected continuous T line from st louis to IS pan isan an francisco likewise the union pacific and central pacific were vere operated as one continuous line from omaha to san francisco it was dur a I 1 As the union pacific views it A railroad has only one commodity to sell transportation por tation the value of the transportation is measured by the quality of the service A railroad is a business concern and when it builds into a section of country and develops that section it establishes a mutual interest in its development with all the people the union pacific has developed idaho it has developed northern utah it is developing southern utah and will if it operates the central pacific develop western utah and nevada and with such development will find markets for the products of the elections served without markets the capital invested would be barren of results competition between utah and the sacramento valley and bay sections of call fornia now exists between the western pacific and southern pacific parallel lines all the way competition will always exist whether the central pacific is operated as an railroad or by the union pacific or by the southern pacific the western pacific is an active and formidable competitor of the central pacific to illustrate the western pacific on its own initiative r reduced educed rates on coal from utah to the pacific coast thus affording a market for thousands of tons of utah coal the central pacific can be operated on a belf elf support ing basis it will be a keen competitor in california and will with the added sol citation by union pacific and lines east cast thereof secure business which is now goine to the southern routes all lines east of ogden and salt lake will be feeders to the central pacific the union pacific has never opposed the ownership and operation of the central pacific as an independent railroad but it has opposed and will continue to oppose its retention by the southern pacific for the very sound reasons set forth by the supreme court in its decision the union pacific will aid the central pacific to operate successfully as an independent railroad to the end that traffic unrestrained shall permitted be to move by the most direct and shortest route where your treasure is there will your heart be also the people of arizona and new mexico are not to be blamed for wanting southern pacific control of central pacific and by the same token the thousands of people in nevada and utah should not be blamed for NN wanting the central pacific to have the business it is entitled to by reason of its constituting the shortest and most direct route from central Cali california fonia to the east H V PLATT general manager union pacific system salt lake city ing these years year that the cities of salt lake ogden and provo had a period of grea greases gr eates tesA development the union pacific is not in the business of tearing down but of building up ok fifth reason to prevent the domination of this western unit federal reserve district by any ak single transportation agency domination of this western unit by a single transportation agency is impossible because of competing lines now existing and which will continue to exist and compete no matter what disposition is made of the central pacific 0 reference is made to the financing bv pacific coast capital of the steel and other industries in utah A change I 1 in ownership of the central pacific line would not prevent 4 the influx of capital from adv section as competitive transportation conditions would exist As far as the steel industry is concerned the union pacific is the only railroad rail roid that is boim anything tan tangible prible to develop it the union pacific is starting to build a 35 mile line from lund to cedar city to get the iron ore and haul baul it to the pring spring ville blast furrs ces it will join with the other lines in on pie pier iron and other manufactured artir leq nut of springs ihal the tb thit tbt t ohp union pacific is trying or would try to stifle the steel industry is untenable and absurd why should it whether capital comes to utah steel or any other industry depends not on who owna a particular railroad but on the bu business imps and prid ability of the proprietors of the enterprise this is elemental if the development of nav v fr n tonii d o 0 whether th ohp central pacific is owned bv by 1 aba won pacific P or by the southern Son thern pacific or is on independently then utah offer offers a poor for the investment of capital in eol t or nr any other industry additional facts considered tonnage f figures show that 62 of southern pacific business to and from california during 1921 moved through ogden it is evident that these figures have been furnished to the salt lake chamber of commerce by tha the southern pacific we have no record of the movement through el paso and no way of verifying the figures if the information is correct it furnishes the best illustration that traffic when permitted to do 40 so moves via the shortest and most direct route and where the best service is obtained if the solicitation instructions of the director of traffic of all the southern pacific lines have not resulted in holding the greater percentage of traffic moving to and from eastern points to the sunset gulf route then it follows that an independently operated central pacific would at once be in a self supporting position the fact is however that as late as april 1922 director of traffic L J spence admitted that the southern pacific was diverting all traffic possible via the sunset gulf route through el paso and tucson regardless of the proportion of the business s whir h is using the aden and el paso gateways the conclusion is inescapable and the supreme court in effect so found that if the re of the el pao tucson line were removed it would divert thousands of carloads carlo adi via utah that are now going through arizona and new mexico it is a matter of record that no line has tins ever come under the control of the union pacific which has not been improved in facilities and service to the public t we W shall chall furnish additional information from time timo to time P acl tic ato S SALT A L A LA LAIC AM 1 I CITY 44 |