| Show specific cefic answers to FIVE REASONS RhA SONS p commerce nov 7 1922 f for or the aeten reten first reason ilenson to prevent the domination of this state and intermountain section by any single transportation agency the ind independent dependent epen dent operation of the central pacific or its control by the union pacific would not create a transportation monopoly because of the existence of two paralleling lines the western pacific and denver rio grande IN western estern under competitive peti tive conditions a monopoly is impossible the omission of any mention of these two standard railroads tends to a concealment of two of valuable assets no mention is made of the power of the interstate commerce commission to prevent discriminations crimi nations in rates even if these safeguards were lacking the invest investment of capital for the purpose of development would require 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 must be developed no incentive exists to create any line of busi business nesa 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 reamon to hold an open gateway at ogden as an invitation for the westward extension of other railroads into utah 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 for the reason that 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 competition with the western pacific also with the el EI paso route and the santa fe on the south so that all other lines in addition to the union pacific east of ogden would continue to bring traffic to that junction and also receive it there from the central pacific eastbound cast bound in other words the central pacific would welcome all the help it could got get to meet this competition third to hold competition against union pacific routes to los angeles and portland territories after the testimony submitted in the union pacific and southern pacific merger un uni case the supreme court found there was no competition between these routes the court went even farther and specifically authorized the union pacific to acquire the central pacific the southern pacific has never maintained through competing rates between utah and oregon nor between utah and southern california via the very much longer route through sacramento the value of economy in transportation being thereby recognized if and when the railways of the united states are arb grouped as provided by the transportation act into not more than twenty railway systems it will be for the purpose of routing freight over the most direct lines in order that the five cost of transportation may be kept at the lowest practicable point and that rates shall reflect economies of operation railroad kalua eions as established by the interstate commerce commission will become the basis of fair and equitable rates and traffic will be moved wherever practicable by the shortest line between any two points fourth reason to insure a market competition between western and eastern territories for utah products this argument presupposes that railroad traffic men can wave magic hands and create a denland demand for products 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 furthermore there is the western pa cefic denver rio grande western competition and the interstate commerce commission ready and willing to remedy rate maladjustments competition would be maintained were the central pacific operated Independent independently fy yet this important alternative is given slight consideration the union pacifica position in this matter is set forth in president carl R grays statement of june 10 19 1922 1912 12 the union pacific is willing to buy the central pacific from the southern pacific if fair and reasonable terms can be agreed upon but it is not seeking to buy the central pacific and it is not necessary for a com aliance with the decree of the supreme court that it should all the union pacific will ask is that the central pacific be made an independent line to be operated as such and that it perform its duties as the union ra pa cefic is performing its duties under the legislation by DV which they were both constructed and that if it is to DC be merged into any system under plans being worked out oui by the interstate commerce commission it be merged mercea with the union pacific with which it forms a contin bious tran s continental line competing with all others the fear is expressed that ogden salt lake and provo will wil 1 become way stations should the union pacific acquire the central pacific and the denver rio grande western western pacific pac be acquired by some other strong line growing cities alilce 1 and a ogden salt lake and provo are destined to become larger more prosperous for the railways to do anything which would w retard their development would be a contradiction of their rec od in the past and contrary to all good business principles for and several years the missouri pacific denver rio grande western pacific were operated as one connected continuous line from st louis to san francisco likewise the union pacific pac lc and central pacific were operated as one continuous line from u of cities cl to san francisco it was vas during these years that the salt lake ogden and provo had a period of greatest development de of but railroads are not in the business of tearing down building up fifth reason kt to prevent the domination 0 of f this wester n unit federal reserve district by any single transportation transi agency domination of this western unit by a sing single ie I 1 existing stin agency is impossible because of competing lines now no at and which will continue to exist and compete no matter mat disposition is made of the central pacific the or iw it is is a matter of record that no line has ever conte come under tinder we shall ball furbish UNION PACIFIC by the salt lake chamber of a of central pacific by southern pacific reference is made to the financing by pacific coast capital of the steel and other industries in utah A change in ownership of the central pacific line would not prevent the influx of capital from any section as competitive transportation conditions would still exist As far as the steel industry is concerned the union linion pacific is the only railroad that is doing anything tangible to develop dev eloi it the union pacific is starting to build a 35 mile line from lund to cedar city to get the iron ore and haul it to the springville Spring ville blast furnaces it ft will join with other lines in making reasonable rates on pig iron and other manufactured articles out of springville Spring ville the supposition that the union pacific is trying or would try to stifle the steel industry is untenable and absurd why should it it is evident that these figures have been furnished to the salt lake chamber of Coin commerce merce by the southern pacific we ie have no record of the rno 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 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 lues ines 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 support ing position the fact is however that as late as april 1922 SOUTHERN PACIFIC LINES 0 cre 00 pi mi id joe more 1 13 nail 0 YC LOW be brit alpi ly ORL n anto n a chi or whether capital comes to utah steel or any other industry dl depends not on who owns a particular railroad but on the business integrity and ability of the proprietors of the enterprise this is elemental if the development of any industry in utah depends upon whether the central pacific is owned by the union pacific pacific or southern pacific or is operated independently then utah attah offers a poor inducement for the investment of capital in steel or any other industry AddItIon nI facto tonnage figures show that 62 b of southern pacific business to and from california during 1921 moved through ogden 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 which is using the 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 tucson line were removed it would divert thousands of carloads via utah that are arc now going through arizona and new mexico the e union pacific which has not beetz been improved in facilities and service to the public lit iOnal information from time to time A salt lake city I 1 J |
