OCR Text |
Show UNION PACIFIC'S, POSITION In Central Pacific Cas Specific answers to "FIVE REASONS" promulgated by the Salt Lalce Cham ber of Commerce, Nov 7, '22, for retention of Central Pacific by Southern Pad FIRST REASON: "TO prevent the domination of this state-anlntennountala section by aiiywlngto trsuispwrtadoa ' ajen jr." The independent operation of the Central Pacific or Its control by the Union Pacific would not create a transportation monopoly, because ot the existence of two paralleling line, the Western Pacific and Denver ft Rio Grande Western, Under competitive conditions, a monopoly to impossible. The omission of any mention of these two standard railroads tend to concealment of two of Utah's valuable assets. No mention Is made ot tho power of the Interstate Commerce Commission to prevent discrimination In rates. Even it these safeguards were lacking, the Investment of capital tor the purpose ot development would require that a fair return on the capital be earned, and this would be Impossible ot rates were unreason ably high. An extortionate rate basis would kill the business which must be developed. No incentive exists to create anl line ot business tor the purpose ot destroying it With competition provided by parallel tinea, protection from unreasonable rates afforded by the interstate Commerce Commission, and a fair return required on infested) capital, the State ot Utah need have no tear of rail line domination. d "To hold an open gateway at Ogden as an invitation for the west ward extension of other railroad ta Utah." SECOND REASON: The status ot the Ogden gateway to made definite and certain by the official announcement ot the President ot the Union Pacific System to the effect that tho gateway. would re main Pacific Lines to maintain an open gateway at Ogden east and west In competition with tho Western Pacific, also open. It would be clearly to the Interest of the Union so that all other lines in addition to the Union Pacific east ot Ogden would continue to bring traffic to that Junction; and also rewith the El Paso Route and the Santa Fe on the south, to meet this competition. ceive it there from the Central Pacific eastbound. In other words, the Central Pacific would welcome all the help it could get Pacific-Centr- THIRD REASON: "To fic routes to Lo. Angel hold competition against Union n Portland territories." al PaciA the service. ev-e- n ac- people. The Union Pacific has developed Idaho. ed northern Utah. being in transportation thereby recognised. ducts that section It It has develop- Ne-va- da of the sections served. Without markets the capital Competition In- between Utah and the Sacramento Valley and Bay sections of California now exists between the Western Pacific and Southern Pacific, lines all the way. Competition par-all- el will always exist whether the Central Pacific is operated as an independent railroad or by be- .."To insure a market competition tween western and eastern territories tor UUh product" men can This argument presupposes that railroad traffic whero it wave magic wands and create a demand for products Is. demand the where does not exist. Traffic moves to points determarket competition and as every business man knows, Is the Westmines the direction ot traffic. Furthermore, there and the Western competition, Grande Rio ern to remedy Interstate Commerce Commission ready and willing rate maladjustments. were the Central Pacific Competition would be maintained alternative is given operated Independently, yet this important in this matter slight consideration. The Union Pacific's position June 10, is set forth in President Carl R. Gray's statement of FOURTH REASON: t s "The Union Pacific is willing to buy the Central fic from the Southern Pacific. It fair and Paci- ?'ie tral Pacific, and it not necessary tor a should Ml the the decree ot the Supreme gout that it Pacific be.made Union Pacific will ask la that the Central , an independent line to be operated g Pacific to perform Us udtles, as the Unionwhich forming they duties under the legislation by u and that if It is to be merged Into any Commerce Interstate the out worked by der plans being Pacific with Commission, it be merged with the Union comwhich It forms a continuous transcontinental line, others." peting with all Is ;"JJt Provo wlll The tear is expressed that "Ogden, Bait Lake and -become way stations" should tne unwn rciu some Pacific be acquired by Rio Grande Western-Westre- n like Ogden. Salt Uke and cities other strong line. Growing For Provo are destined to become larger and more prosperous. detheir retard the Union Pacific to do anything which would the in past record velopment would be a contradiction of its and contrary to ail good business principles. Tor several years, Rio Grande and Western Pacithe Missouri Pacific. Denver from St fic were operated as one connected continuous line Cenand Pacific Union the likewise Louis to San Francisco; from Omaha line tral Pacific were operated as one continuous ot to San Francisco. It was during these years that the cities , FIFTH REASON. To prevent the domination of ttda weaU era unit (Twelfth Federal District) by any single trans porta tlon agency." X. It is developing Southern Utah and will, if vested would be barren of results. - 1922: when and with such development will find markets for the pro- between any two, points. er It and it operates the Central Pacific, develop western Utah and are grouped If and when the railroads ot the United States more than not the' into Transportation Act) (as provided by of routing twenty railway systems. It will be for he purpose In order that the cost ot freight over the mist direct lines, transportation may be kept at the lowest practicable point, Railroad and that rate shall reflect economies ot operation. Commisvaluations as established by the Interstate Commerce and rates, and equitable sion wUl become the basis ot fair shortest line traffic will be moved wherever practicable by the Pacific-Denv- railroad is a business concern establishes a mutual interest in its development with all the competThe Southern Pacific has never maintained through and Utah nor between and Utah Oregon, ing rates between route through Southern California via the very much longer the value ot 'economy A builds into a section of country and develops quire Sacramento, . transportation. The value of the transportation is measured by the equality ot Pacific and SouAfter the testimony submitted in the Union Court found there thern Pacific unmerger case, the 8upreme Court went was no competition between these routes. The Pacific to Union further and specifically authorised the the Central Pacific. railroad has only one commodity to sell Salt Lake, Ogden and Provo had a period ot greatest development. The Union Pacific la not In business of tearing down but of building up. tho Union Pacific or tho Southern Pacific. The Western Pacific is an active and formidable competitor of the Central Pacific. To illustrate: The Western Pacific on Its own Initiative rates on coal, from Utah to the Pacific Coast, thus duced a re- afford- - ing a market for thousands of tons ot Utah coal. The Central Pacific can be operated on a basis. It will bo a keen competitor in California and will, with the added solicitation by Union Paciflc and lines east thereof, secure business which is now going to the Southern Routes. t All lines east of Ogden and Salt Lake will be feeders to the Central Pacific. The Union Pacific has never opposed the ownership snd operation of the Central Pacific as an' independent railroad, but is has opposed and will continued oppose Its retention by the Southern Pacific, tor the very sound reached set forth by the Supreme Court in Its decision. The TJnion Pacific will aid the Central Pacific to operate successfully as an independent railroad, to the end that traffic unstrained shall bs permitted to move by the most direct and shortest route. "Where ot your treasure is, there will your heart be also." The people Arizona and New Mexico are not to be blamed tor wanting Southern Pacific control of Central Pacific, and by the same token the thousands ot people in Nevada and Utah should not be blamed for 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 California to the east. H. V. PLATT General Manager, Union Pacific System Salt Lake, City Domination of this western unit by a single transportation agency la impossible, because ot competing lines now existing and which will continue to exist and compete, bo matter What, disposition Is made of the Central Paclfla. Reference is made to the financing by Pacific Coast capital of th esteel and other Industries in Utah. A change In ownership of the Central Pacific line would not prevent the Influx ot capital from any section, aa competitive transportation conditions would srt.ll lexist Aa far as the steel industry la concerned, the Union Pacific-- is the only railroad that is doing anything tangible to develop It The .Union Pacific Is starting to build aS line from, Lund to Cedar City to get the Iron ore and haul it to the Sprlngville blast furnaces. It will Join' with the other linse in making reasonable rates on pig iron and other manufactured articles out ot Sprlngville. The supposition that the Union Pacific Is trying or would try to stifle the stes Industry la untenable and absurd. Why should Hf Whether capital comes to Utah steel or any other, industries depends not on who owns a particular, railroad hat on the) busW ness integrity and ability of the proprietors ot the enterprise. This is elemental. If the development of any industry in Utah depends npon whether the Central Pacific, or is operated independently, then Utah offers a poor Inducement for .the Invest mont ot capital In steel or any other industry. Additional Facts Oooaldered: "Tonnage figures show that 't ea per cent of Southern Padnc bosiaeaa to and from Cattfor ala during; 1921 moved through Ogdea.M It Is evident that these figures have been furnished to tha' , " , verifying the figures. If the Information la correct. It furnish es the best Illustration that raffle when permitted to do so) moves via the shortest and most direct route and where tha best service is obtained.. If the solicitation instructions ot th Director ot Tariff ot all tha Southern Pacific lines hare) not in holding the greater percentage of traffic moving to tho ... t W route, then It fofr lows that aa independently operated Central Pacific would at once be In position. Tha tact , Is, ho waver, that aa late as April, I, Director of Traffic, L. J. Spenea and from Eastern points, " re-suit-ed Sunset-Gu- lf " : It. ad-itt- ed that the Southern Pacific was diverting all raffle possi- ble via SunsetrOult route through El Paso and. Tucson.- - ot the proportion of the business which is using tha Ogden and El Paso gateways, the conclusion is Inescapable and the Supreme Court In effect so found that If the restraint of the El Paso-Tues- oa Una were removed It would divert thous- ands ot carloads via Utah that ara.now going through Arisona and New Mexico. of the control under come ever has line no that record of matter is It a Union Pacific which has not been improved in facilitie.9 and service to the public. We shall furnish additional information from time to time. Union Pacific System SALT LAKE CITY lt v-Sa- Lake Chamber of Commerce by tha Southern Pacific. We hare no record ot the movement through El Paso and no way of , i ' |