Show I I I 1 I COURT UPHOLDS RAILROAD LAW LA LAIN IN G P ACTION Arguments to Be Heard Heardt at t St. St Paul on F Form onn of Decree to Approve Control Control Con Con- by Southern Pacific WASHINGTON June Jun 12 The The Southern Pacific Pacific- Pacific Central Central Pacific cue caGe will again go tp the th th supreme sup mo moco co court rt dep department of f justice officials ff- ff daIs daIs' indicated d today Th Tho government will appeal the decision sion of f Ute the circuit court of aj ap- ap p pe peals peals' ls' ls at t t. t St St. St Paul M Minn inn holding folding that hat the interstate commerce commissions commission's corn com coin missions mission's order permitting the tho two roads pads to remain united 13 Is valid despite despite de- de spite tho supreme court mandate directing directing di- di the roads to dissolve as constituting constituting con- con a combination suppressing competition officials said ST. ST PAUL Minn June 12 Ar Ar Arguments will be heard In the United states court of appeals here next Monday on the form the courts court's decree decree de do- de- de cree shall take In Sn approving approving- the ac acquisition ao- ao of ot control of the Central Pacific railroad by he Southern Pacific Pacific Pa Pa- road under lease leMe and stock ownership The courts court's action under which the he Interstate commerce commission commission commis commis- sion ston has authority to authorize and approve this control arrangement arrange arrange- ment Is declared in effect to hold constitutional the transportation act of ot 1920 under which extensive consolidation of ot United States rail railroads roads is planned 7 HEARING JUNE 18 Notification was sent Yeste yesterday day dayto to counsel for Cpr the hearing on June 18 simultaneously with the announcement announcement announcement an an- that the court had reached these general conclusions That the United States supreme court which ordered of ot the railroads holding them In re restraInt restraint restraint re- re o of competition In violation of the Sherman antitrust act did not consider the transportation act That the interstate commerce commission Is specifically vested with authority to 6 approve this acquisition ac acquisition ac- ac of control by the Southern Pacific under the transportation act whose provisions relieve the act from operation o of or the Hie Sherman antitrust law NO DISRESPECT That there was no disrespect for fox forthe forthe the supreme court in tn the commissions commission's commissions commission's commis commis- sion's slon's action as cia s the supreme courts court's decision was based o on prior legislation legislation legisla legisla- tion and initiated before the passage of ot the transport transportation act i and as the commissions commission's action was waa based on this later legislation it was wan unrelated to the te supreme courts court's action The decree of the circuit court 01 ol appeals will be under the mandate in the separation separation separation of the of-the tho supreme court tion case which directs the circuit court court of ot appeals to enter the tina fInal decree in accordance with the supreme supreme su su- su- su preme preme courts court's finding and t the e laws law of the United States Federal Circuit Judge Judg-e Walter Valter H Sanborn St. St Paul William S S. S Kenn Kenyon Ken Ken- yon n Fort Dodge odge and Robert S Lewis Denver heard the case sit sit- as the circuit court of ot appeals appeal for the Eighth Judicial district |