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Show LaVT I t-iaaaas Hf' ? --" 1 I UNION PACIFIC'S POSITION r I In Central Pacific Case ,$' i ' ' "-. . :::: :; Specific answers to "FIVE REASONS" promulgated by the Salt Lake Chamber of j Commerce Nov. 7, 1922. for retention of Central Pacific by Southern Pacific I Firtt Reaton: To prevent the domination of this state and intcratountain sect ion by any single transportation agency." ''. I The Independent operation of the Central Pacific or its control by tha Union Pacific woqld not create a transportation monopoly, because of the existence or J; ; ! ',', ; two paralleling lines, the Western Pacific and Denver St Rio Grande Western. Under competitive conditions, a monopoly is impossible. The omission of any men- ; ;; ! ;; ; tion of these two standard railroads tends to a concealment of two of Utah's valuable assets. No mention is made of the power of the Interstate Commerce ; ;. ; ; ; ''ommission to prevent discrimination in rates. Even If these safeguards were lacking, the investment of capital for the purpose of development would require -! I ; ' that a fair return on that capital be earned, and this would be impossible if rates were unreasonably high. An extortionate rate basis would kill the business which ', I; ; i ',', I 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 ; ;; ; o' ; rail lino domination. ' ' - :i 1 Second Reaton: To hold an open gateway at Ogden as an Invitatte for the west ward extension of other railroads in Utah." ;; ! !; ; ' The 3tatua of the Ogden gateway is mado definite and certain by tho 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 '. ', 1 ! ;- ' and west in competition with the Western Pacific, also with the El Paso Route and the Santa Fe on the south, so that all other lines in addition to the Union t, 1 ; ', I Pacific cast of Ogden 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. . ;;; , . , " , r ing these years that the cities of Salt Lake, Ogden and ;;-. Third Reaton: To hold competition against ... Provo had a period of greatest development. The Union Union Pacific routes to Los Angeles and Portland terrl- As the Union Pacific View It Pacific is not in the business of tearing down but of biiild- : torles." .,... ln UP- ' ,; : I :? After the testimony submitted In the Union Pacific A railroad has only one commodity to sell trans- ! ;; ; ; ; and Southern Pacific unmerger case, the Supreme Court portation. The value of the transportation is measured ,..., D . .. . , At . '', ;-X found there was no competition between these routes. The br tn OBrfifw nf tha atkwtnn iim,j i. . w.... . .'" Kea'on: To prevent "the domination of ;;. ! !; I Court went even further and spcclficnllv authorized the Dy the qualIty of the servlcc- A railroad ,s b"iness this western unit (12th Federal Reserve District) by any ':, i !; ; Union Pacific to acquire the Central Pacific. concern and when it builds into a section of country and ng Ie transportation agency." :; J ; ' ! The Southern Pacific has never maintained 'through develops that section It establishes a mutual interest In Domination of this western unit by a single transpor- ; ; ; -.; I competing rates between Utah and Oregon, nor between its development with all the people. The Union Pacific tation agency is impossible, because of competing lines ; ;! ' ',', Utah and Southern California via tho very much longer ha. jv.,-j 1Anr,n .. ... . . . .. ... . .. now existing and which will continue to exist and com- I ;;; route through Sacramento, the value of economy In trans- nas developed Idaho. IthasdevelopcdnorthernUtah.lt pete, no matter what disposition is made of the Central l ; ;. portation being thereby recognized. Is developing southern Utah and will, if it operates the Pacific. ; ; 1 1; I If and when the railways of the United States are Central Pacific, develop western Utah and Nevada and Reference is made to the financing bv Pacific Coast - ' ! :; ; grouped (as provided by the Transportation Act) into not with such development will find markets for the products "P111 of the steel and other industries In Utah. A change u I j;o more than twenty railway systems, it wlU be ifor the pur . in ownership of the Central Pacific line would not prevent ll;; j;o poso of routing freight over the most direct lines, in order or ine sections served. Without markets the capitalin- the influx of capital from any section, as competitive ;; , ,; ; that the cost of transportaUon may be kept ; at the lowest vested would be barren of results.' Competition between transportation conditions would still exist. As far as the ; ' ! , ; practicable.polnt, and that rates shall reflect economies of utah d th gacgnjenf,, V.GV d nttMtnnm n, ra "el industry is concerned, the Union Pacific Is the only ;! ! ; ;; ; operaUon. Railroad valuations as established by the In- n"n JTT Va"ey ndJ Bect,ns of CaH railroad that Is doing anything tangible to develop it. The ' ! ; ;; . tersUto Commerce Commission will become the basis of rnla now exists between the Western Pacific and Union Pacific is starting to build n 35-mile line from Lund : I; ! '": Tvi l?' avd ""c willbe moved wher- Southern Pacific, parallel lines all the way. Competition toftednr City to get V Iron ore and haullt to the Spring- ::; 1 S 5 oohnt?" y ' n"V - " ex,8t whether.theCentral Pacific is oerateS vIHe WaBt furnaces, iu will join with the other lines in : P as an Independent railroad Vn h rti TTnt Slu rnaking reasonable rate on pif iro- nnd other mannfic- : :: : or by th7Xr p17: SL fe U"10" Pacif,c- tured articles out dr SpringviHe. The supposition that I S I ' ( n . .- ,. y ooutnern Pacific. The Western Pacific Is an the Union Pacific is trvlnir or would trv to f!p tli t1 ; .; Fourth Reaton: To Insure Market competl. active and formidable competitor of the Central Pacific. MnhStiStA t? -1 I ; SdiSf" ra T ii,uatrate: western pacif,c n ,ts own initiave wh.fi,. i , ,., 11 . : , ;; ; products. reduced rates on coal from Utah to the Pacific Coast thus a Wh.etherJcnpItal comes to Utah steel or any other In- : : I; ; ' This argument presupposes that railroad traffic men affording a marke1Tfortn0ullnd. nfn.m dustry depends not onwho owns a particular railroad but ; ;; ; 1 1; ; can wave magic wands and create a demand for products rain a market for thousands of tons of Utah coal. on the business integrity nnd ability of the proprietors of Ml I ; where it does not exist. Traffic moves to points where The Central Pacific can be operated on a self-support- lVe enJerPnse. This Is elemental. If the development '', '. y the demand Is, as every business man knows, and market jnjr basis. It will be a keen rnmnptlf or in rnitfn,i- .. a,n,T Industry In Utah d"Tiend upon whether tho Central ', ',', ' '. I competition determines the direction of traffic. Further- Jn . f " W!" 7 , ,? C " , ? CnlIfornIa and c c ,a owned by the Un!on Padflc or bv ne Southern ; ;; ; : I mo there is the Western Pacific-Denver & Rio Grande wl,1 "" tne dda solicitation by Union Pacific and lines Pacific, or is operated Independently, then Utah offers a j ; I !; ; Western competition, and the Interstate Commerce Com- east thereof, secure business which is now going to the poor 1rucfmien or tbe investment of capital in stel or 1 1; ; mission ready and willing to remedy rate maladjustments Southern A nM of ny other Industry. ; ; ; - Competition would Te maintained were the Central ....... . .. . , - ... - . ;;:: Pacific operated Independently, yi this Important alter- will be feeders to the Central Pacific The Union Pacific ;;;; -I ; native is given slight consideration. The Union Pacific's has never opposed the ownership and operation of the Cen- aaamonal tact Contidered: Tonnage figures '', ; posiUon In this matter is set forth hVPresldent Carl R. tral Pacific as an Independent railroad hut u h. ow that 62 of Southe Pacific business to aad from 1 1; ; Gray's statement of June 10, 192: WW Z0"10 " lndePendent raroad, but it has op- California during 1921 moved through Ogden." - posed and will continue to oppose, Its retention by the w w "" fr. h loulhrni Parlfle. If fair M raaaat. tm. .an ba Southern Padf C. for the VCrV SOUnd reason. pfe fnrtn hir u o 1? t 1 i, . 80 f lUrci naV6 been f Umished " ' 1 . ; a.w npaB. Bat it u ot ehfa f. r t. o.tr.i Pa.iti """" " r-""-i or mo very souna reasons set rorth by to the Salt Lake Chamber of Commerce bv th Smithprn . ' ! ! !: : RSy.S-r'c.VrrSWtirrira: r-S!!V!rt'finMn:i the Supreme Court in its decision. The Union Pacific will Pacific. We have no record of the movement through El ! t ; : : IVt . -V, S ".." V.'.t h ."J'-'ri"!.'."-"'": JtV i-Z aid the Central Pacific to operate successfully as an in- Pas and no way verifying the figures. If the infor- ', I; ; :: : aWMa?Sr.fB !rffMJtfA dependent railroad, to the end that traffic unrestrained traffic" whlTLm5 the best iU8atih that : H j; aay mrttm. undrr plana balac rVorkU oat br th. tateralata .... . ' wtu.it umrawaineu iraillC WHCn permitted to do SO, moves via the shortest " ', I-; STCTW:::0: , 8ha b0 Permitted to move by the most direct and short- and most direct route nnd where the best service is ob- 1 '', ', .. p..i-,wiik..i.ker.... est route. "Where your treasure is, there will your heart i .thVScitat,5n lnstruction3 of the Direc- ll;; ; ;J : The fear is expressed that "Ogden, Salt Lake and bo also " The neonle of Arizona nnd New Morfrn nr f i 2,ifJv,CMif a i the So"thern PacIf "ncs have not : : ; 1 1: : Provo will become way stations" should tho Union Pacific ? " t P P ', iZOna nnd New Mcx!co are not to fcsuJtcd ' JoWing the greater percentage of traffic mov- ?! I J ': I acquire the Central Pacific and the Denver & Rio Grande be blamed fr wanting Southern Pacific control of Central J" t0 ,a,Jd1rom Eastern points, to tho Sunset-Gulf route, : ', ! !t;; Western-Western Pacific be acquired by some other Pacific, and by the same token the thousands of people in 1""" f0,0,ws. that an independently operated Central 1 ll- strong line. Growing cities like Ogden, Salt Lake nnd Nevada nnd Utah hnuM nnf , wm f. ,., 1. !u Pc ou'd at once bo in a self-supporting position. The It ; ;: : Provo are destined to become larger nnd more prosperous. NovnUa nnd Utah should not bo blamed for wanting the fact is, however, that as late as April, 1922' Director of ', ' : : For the Union Pacific to do anything which would retard Central Pacific to have tho .business it is entitled to by I raffle L. J. Spence admitted that the Southern Pacific ? ;.;; their development would be a contradiction of its record reason of its constituting tho shortest and most direct iw XL f ic PS8Ibl via the Sunset-Gulf '"' 1 1; ; in the past and contrary to all good business principles. For nuta from centrill -,,,. tn thn pnsf i rouKb E1 Paf and Tucson. Regardless of the : II I J ;: : several years, the Missouri Pacific, Denver & Rio Grande roUt0 fr0m central Calor",a Ttholaat- Koprtion of.tho buslnes8 which is using the Ogden and I; ! ; : I and Western Pacific were operated as one connected con- H v PLAIT, w i'aso gateways, the conclusion is inescnpnblo f ', : tinuoun line from St. Louis to San Francisco; llkewiso the General Manager, Union Pacific System, and .tn. "Kf0,0 S0UrUn effect 80 '"nd that if tho re- : ; I if Union Pacific and Central Pacific were operated as one Salt Lake City. 5r 2 2 5 Paso-Tucson line wero removed it would ' '' ' I ; -ontinuous Une from Omaha tn San Franciico. It was dur- fi thousands of carloads via Utah that are now going '', i I through Arizona and New Mexico. " it ( ' c "., i: It is a matter of record that no line has ever come under the control of the Union Pacific which has not been improved in facilities and service to the public, ? "? cn We shall furnish additional information from time to time. :::: . r,- , , :;:; : Union Pacific System .. 1 SALT LAKE CTY ' ' '" i. i if 1 aaaaaaaaaaaaaaaaaaaa |