Show BlAZES WAY TO COMPETITION So Says Western Pacific Counsel Counsel Counsel Coun Coun- sel in Statement on California California California Califor Califor- nia Commissions Commission's ons on's Rejection of the U. U S. P.-S. P. P Lease DECLARES JOINT US USE OF CUTOFF NECESSARY Decision Does Not Affect Governments Government's Governments Government's Gov Gov- Plan for Dissolution Dissolution Dissolution tion of Merger Declares At Attorney Attorney At- At torney General Wickersham SA SAX QAN FRANCISCO l Feb eb 25 Why Why Li the California railroad commission commission commis commis- sio sion felt compelled to disagree with Attorney e General Ie 41 Wickersham 1 f 41 why 1 it J 1 1 JI 11 j 1 1 v. v 1 U J riman sJ system tem for dissolving the Union Union Pacific-Union Pacific merger as Ide- Ide de decreed creed by the United States supreme court after those plans bad a been approved ap ap- ap- ap proved nd by the department of justice and the commission ion desires were I set forth more fully toda today in a n supplementary supplementary supplementary sup sup- op opinion nion Attention to the supplemental findIng findIng finding find- find Ing was first drawn dran by Charles S. S Wheeler r. r counsel of ot the Western Pacific Pa Pa- ettie who opposed the plan Insofar as asIt asIt I It applied to Cal California when first Southern Pacific and Union Pacific of officers officers officers of- of made macle application on tho the part of the Central Pacific to the commission lIlon for COl an exclusive lease running years of ih the short line owned b by the Southern Pacific an and co constituting In ing the most toast direct transcontinental outlet to the Pacific coast Essentials of OD Mr It Wheeler er Quotes from the fin finding as follows The Tile eS essential l elements of th the plan planor of or the thc supreme supreme court n as added a ded t to b by bythe the attorney general gener l are arc f TI 1 vale tl of ot raw rn r- r stock lock by br tho Union Pacific Second the securing b by th the Union Pacific of or an nn outlet to tho the coast over the Central Cont-al Pacific line Hue and Third the surrender b by tho thia Southern Pacific company compan of ot so much of or the Central Pacific lino line as Is necessary to to- I prevent the said Southern Pacific compan company com corn pan pany front from controlling a n line hue de designed to compote with the l il El l Paso route With the Ute first lr t requirement we the commission have hn no direct or official concern but we Invite In the attention of tho the attorney general to th tile tho contention of the tine Western Pacific nail Railway a compan com company com coin pany pan that the s syndicate formed b by Kuhn Loeb 1 Co tho the Union Pacific bankers Is In It effect accomplishing b by Indirection what hut the supreme court refused ed to permit to be accomplished directly viz The purchase h hy by tho stockholders O 01 me tilO union 01 ot the Southern Pacific stock It Is urged that this banking inS inS' house houte and the 5 syndicate formed for it arc alo controlled b by tho the large c stockholders rs of or orthe the Union Pacific Pacific- and nd that b by making the Southern Pacific stool stock an nn undesirable undesirable able Investment nt tho the stockholders of or tho tine Pacific will be deterred from buying and the Union Pacific controlled syndicate will wUl thereby secure control of or this li stock thus titus lea ln leaving the tho Union Pacific an and Southern Pacific controlled b by the same stockholders an arrangement arrange ment which the supreme court has al already already al- al ready condemned In his statement Mr lr Wheeler 1 goes oes into what he hc Is lH necessary cc to accomplish actual competition between Continued on Page 7 Column 1 I. I BLAZES LINE lNE OF REAL COMPETITION I s So Says Western Pacific Counsel Counsel Coun Coun- r sel of Decision Against U- U U. U P S P P. Lease Continued From Pa Page PARC e J 1 1 k i railroads and nd insists that Joint use K of Industrial tracks and Ind terminal facilities facil- facil S 'S r lUe is an absolute He says as a's J that where here one road rOAd controls a short shortS S i direct route route- to the thc exclusIon o of other ther K ln but but decides to extend a D tor to r that thal road to nn any particular line lne It t for r tho the benefit of or tho the whole hole traveling public of t th the th United States State privileges the h extend the same ef upon same Ame m terms to any oth other r 1 i road BH t. t J The effect of oC the unanimous ii K ton Iton lon of the n railway commission slon of Call Cali- Cal Cal- I- I Mr 11 Wheeler heeler concludes conclude Is to tn tolay lay lay down n do the principles nep les to which I 1 II IV I V have hae r referred Absence of competition ton I fe And nd discrimination in rates rate naturally I i i-e i rise to public dissatisfaction ke Discriminations anti and rates are now no through tie the I inter inter- K fAir fairly under control mate commerce commission and the th railroad commissions o of the several leveral lites and h by h- the decisions of or the 1 court But the remedies which will wil bring about due competition on the oth other r hand aTe are only Just JUt now making t their appe appearance ranc and the significance J h ot of the decision of th tile th railroad commission compile commis sion glon Ion of or California 1 Is that It blazes K what hat la Is 3 believed ed to be the true line Une lineK lineon K on which the competition program Is Isto j to b be solved No statement was forthcoming ln today l 1 front from 0 the tho office of or President nt Sproule of ot otI If fl th the Southern Pacific company compan nor did didI I I Charles H H. ck vice president of or r tho the Western estern Pacific and its Us chief r witness win wit wit- wi- wi n ness fleas s before the tho commission lon cae care to discuss the ruling of or the commission slon Planned 1 Gobbling Up Stockton F Feb b. b 25 Th The plans plane b by which the Union Pacific and Southern Pacific JJ railroads had Intended d to dissolve dis solve lol e were so excellently o I I prepared pr d according to a statement made b by Railroad Commissioner Max X Thelen this afternoon that the they would have left the Union Pacific railroad In Incomplete complete control control t I 1 have hac no doubt said Thelen that ithe the Union n Pacific intended to gobble 1 up th the fou Southern p Pacific and It I would voul havo n been enabled enabled to do so under the decision of the attorney general hadnot had hadL d. d L not the state railroad commission of or California taken the action It I did last The evidence adduced at th the learIng In In San Francisco showed hoed that I er every ef effort effort erfort er- er fort was made to weaken the Southern Pacific Sf so that It could have been noth noth- lug fc hut but a servant of ot th the greater reater Union Pacific Th The Southern Pacific stock tock in New ew w York wa was hammered down to a aj alow alow j low rate so o that the stockholders er in ina i. i a that corporation would become frightened fright fright- ened ned ed whereupon the Union Pacific through h I its purchasing ln syndicate would r have ha e become the actual owners owner i of or the Southern Pacific In granting the request t for disco disso lution under utter the the plans lane of ot the thc attorney general peral 1 the tho railroad commission line hRS imposer imposed conditions condition which will i practically t. t cJ cally make the dissolution as 30 proposed impossible Ai Pt St T Louis ml Poh b 25 Th of nf th th tho a r Cat California r iro-r r railroad ro commission sio d denying I l L the application of tit Union Pacific i railway wa for a i n year nr lease leasE of the f cut off between Oakland nd Cal and Sacramento will wi not affect the thA thep p plans for fol the dissolution of or the tho Union Pacific Sou thorn Pacific 4 merger r. r A Attorney torne General f la said aid toda today The California decision said ald Mr fr Wickersham is a I local matter and nd the government O plan for tor the dissolution tion Uon will Il not be bf chan changed ed I solution Other Othor attorneys case torn before who wio th the tho argued rJ cd federal the court dissolution die dis dl- dl for the tit district of or Utah h here re yesterday et refused to discuss Hj the mat matter r John G. G coun counsel 1 for the Union Pacific however stated that the thA matter would not again come before the mater court thereby there there- therl- therl by indicating th that t the thin Union Pacific would not submit an amendment to Its plan Is The dissolution plan le s no now under undo consideration b by th the three circuit rou court t judges who heard the arguments yesterday Sa Says Plan toes Goes b bv y Hoard Doard New 11 tr-Tork tr York Feb Feb- 3 Julius chairman nit of the Southern Souther Pacific company compan said aid tOIJa today that the Union Pap Pa- Pa Pa- Pa p Southern chIc Pacific dissolution plan would go bO I b by the board bOrd and anti that a t new plan elan would have to be he p ol t should hould the courts uphold the decision of oC the California state slate railroad alro com corn mission lon rendered at t San Francisco tt 0 t da day yes yes- ut If I n ti th tho decision of the tho California state railroad commission o lon is upheld by bv the circuit court COUTt at St. St St IotUs Loub read k a formal statement nt Issued bv by Mr Ir US the Unton South Pacific r erp v board r Pacific and dissolution plan plait goes o b bv liv tho the 1 negotiations will wil have hwe to beI bo ho I be begun ln all al over from rom th thu beginning In a p. word i an entirely new plan will have to be evolved e The commissions commission's wil deci- deci hL e cl- cl don Includes mal many matty conditions which the Unon p Pacific ciri ha J hag long been unable JonE if to tl accept and whIch the Southern Souther Pa Pa- ete mc in Its is turn has hs found impossible also alo of or |