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I CENTRAL PACFIG DECISION I I COMPETITION RESTRAINED 4 f I BY SOUTHERN PACIFIC 11 I OWNERSHIP AND CONTROL t ifc 2 -., , JflLjjMCkeTroli TJ Y ITS denial of the Southern Pacific's petition to reopen Itp H' Jrte Central Pacific case the Supreme Court of the United Slates is elimiri-' fflKL -K-. a ted a,s a possible source of relief from the decision separating the Central g ft. w w Pacific from the Southern Pacific. El forts which have been centered on the S-lltS S , Supreme Court to grant a rehearing are now being directed into other Ifcl $ channels in the hope tha?the effect of the decision will be nullified and that the mu" U' Southern Pacific may yet be permitted to do what the Court has forbidden. ww W It is not our purpose to prejudge the result. So many requests have been 1 AT1 received, however, tor a statement of our position that we are attempting to 1IL! M clarify the situation by a series of public statements. j$ K 8 Thcro is abundant evidence that tho besl interests of trols tho southerly route, and receives 100 per cent of the ffi OS Utah and the intennountnin region will bo served if tho sop- compensation for freight transported by its road and water " $ ML 0? aratiou decreed' by tho Supreme Court bo .made permanent. lines. Over tho Central Pacific route it receives but a frao- . I I 1 II is ttcd b' both sidcs ihai nctivo competition is iT f" n I WF i desirable, but it is claimed that a competitive condition now ". TSo, n o Z t ZVf' f8 3 SL! . , . '. f 1 1 1 i i ii n -4-i t :- . cnst' oclt-intercst dictates tho solicitation and procurement S3! 1WT a? exists which would bo destroyed if tho Central Pacifio were ...,. p4i.i..i...i i n o ;, ,,F .,.,.", m xy. i i-i ii n i i n i4 - ot Ireight for tlie longer haul by tho Southern Pacific linos." Of kS freed. Exactly the opposite is true. Competition is now re a j U1,UIU,'U1 x -! uua. . 5 22 Btraincd and on thnt ground the Supreme Court based its Frank admission that this situation exists is found in - $1 H"1 5 decision. "Such combinations" . . . says tho court, "con- tho testimony of Mr. L. J. Spcnce, Director of Traffic of all 'Bj SO Btitnto4 a menace and a restraint upon that freedom of com- the Southern Pacific linos, beforo the Interstate Commerco Ox lm 5 morce which Congress intended to recognize and protect nnd Commission, ns recently as April, 1922. S lu 56 which tho public is entitled to have protected'." iiab). t . ... ,, , ., W ' $& . Question. In connection with tho movement of traffic OJ M XO More spocifienllv the decision recites that: in either direction between tho Atlantic seaboard" states on '0 - 1 "ThoVoof is ample that tho policy of tho Southern "'Tf -f "d th S"lf ?f Vnfk ;C?st States n,ld ' I I M Pacific System has been to favor transportation on its lino " ? tomt,or' " th.P.ot,l,er !,and vrlioro docs tho inter- K v W bv securing for itself, whenever practicable, tho carriage of ,0 ' f.ihc Pcf Jj-m ho movement of that all- - . m freight which would normally move eastward or westward JSJJ," JqJ,0, moont of lt b' mixetl water route w over tho shorter lino of tho Central Pacifio Railroad and its S P s wt k connections, for its own and much longer and wholly owned "Answer. Tho interest lies naturally in tho movement- 0 I1 S v Eouthem route . . . The compelling motive of this course via tho Gulf Route in order to secure tho entire revenue for M "60 of conduct is obvious. Tho Southern Pacific owns nnd con- tho haul of tho traffic." $ "H $ l A circular of tho Southern Pacific Freight Traffic Department issued September 29, 1921, addressed to ""' $& m 0 tnr agents and signed by Q.W. Luce, Freight Traffic Manager, says: m fl 0 "The term 'Sunset Golf Route1 heretofore applying to eastbound routing via Galveston has been discarded v, Oft I "0 . 5V nnd in the future our 100 PER OENTroute will be known as 'Sunset Route.' This route includes the Southern I Pacific rail lines to Gaveleston and Atlantic Steamship Lines (Commonly called Morgan Lino) to New York." ' ' 0 j The circular closes with the direction: 0 j V "f "SOLICIT ACTIVELY FOR OUR 100 PER CENT ROUTE." S I V ' , 58 I 4 ,i We shall furnish additional .: -1, . - p w " " - information from time to time i$ I $ 1 j Union Pacific System 1 1 SALT LAKE CITY ' ,;,.- , 8,1 ' ' ""'",. I s s |