OCR Text |
Show i New Jersey Case j Cited by Sproule To Support Lease I. C C. Established' Precedent, S. I. President Avers, in Holding Opposite View to . That of U. S. Court PAN KRANOISCO. Oct. U. The following fol-lowing statement was limed by William Wil-liam Hpmule. president of the South-, ern Pacific company. In connection with the ft llnar of the application to the Interstate commerce commission fori authority to lease the Central Pacific: "The action of the Southern Pacific, under the railway transportation act of 1910, In applying: today to the interstate inter-state commerce commission for authority author-ity to lease the . Central Pacific. Is merely designed to bridge a period of uncertainty until the Interstate commerce com-merce commission shall reach a final determination as to what shall he done with the Central Pacific. The Central Pacific haa been ordered separated from the Southern Pacific under the Sherman natltniat act of H0. The new transportation act of 1920 lve the Interstate In-terstate commerce commission affirmative affirm-ative power to authorise the consolidation consoli-dation of railroads without regard for antitrust acts. The new policy of the government looks to the power of regulation regu-lation and government control to protect pro-tect the Interests of the public In connection con-nection with railroad operations Inatead of antitrust legislation such as the Hherman act of lnu. In connection with questions of aaaoclatlon or consolidation consolida-tion of railway companiea. Th ault decided by the supreme court against the Southern Pacific wae begun under the antitrust act In lilt, before the passage of the railway transportation (Continued on page S.) NEW JERSEY CASE. (Cnntinued from page 1) act of 1920. and this lat namd ct wai not considered In the decision, of course, because no action of the commission com-mission had yet born taken except to nerve on the carrier its tentative plan for the consolidation of the various nystema under which the Central Pa-ctfic Pa-ctfic was consolidated hy the commission commis-sion with the Southern Pacific. Until a final conclusion is reMChed by the commission, nothing: permanent as to the relations of the Centra I Pacific and Southern Pacific can t determined. No other rallr'wd could buy the property without the consent of the Interstate commerce commission: I'nder the law the commixxion has lart-e powers over questions of Joint use of terminals and the like. It is the policy of the United Klates, as dectrtred by the tranMportation act of 1920, to arrange for the consolidation of the railroads of the country into a limited number of large systems, and manifestly the Central Cen-tral Pacific in the end must belong; to one of these. If the application be granted by the Interstate, commerce commission. It simply means therefore that there will be no disruption until the question Is finally and definitely determinei as to where the Central Pacific Pa-cific shall go. EASTERN CASE CITED. -A similar situation exists with respect re-spect to the ownership of the Reading railroad of the Central railroad of New Jersey. This was found by the su-prt-me court in violation of the .Sherman .Sher-man antitrust act and tho Heading was ordt-rt'd to dispose if the property. In I the tentative plan that the Interstate ! commerce commission made for the 'consolidation of railroads In August. LiltSLJLJfOWGVL-r. iuLlittL'iaiUsiLjiuii. I road of New Jersey and the Heading together. This It deemed being In the t public interest undnr a proper and wise i construction of the derision. Hale of the slock of the Central railroad of New Jersey has therefre ben post-ismed post-ismed until the problem could be definitely def-initely settled. -So obviously Is It In the Interest of the public not to have a temporary separation that there should be no objection to the approval of the lease hy the interstate commerce commission. commis-sion. And If any opposition comes it will be from those having selftnh Interests In-terests to serve and who are afraid of what the interstate commerce commission com-mission may ultimately rule In the matter. The ultimate outcome will not be affected by this le.se. hince the Interstate commerce commission will reserve the riht to allocate the Central Cen-tral Pacific to some other system if It deems best, and unlesg It chooses to make the lease final, then to cancel can-cel it. TERMINALS ENTWINED. !'A great gain to the public and the railroad companies in this temporary j arrangement hi maintain a status quo lies In the fact that tremendously ex ! pensive and what may prove to be wholly needless changes will not have to be undertaken pending a final determination de-termination of the question. It must be remembered that these two companies, com-panies, the Southern Pacific gnd Central Cen-tral Pacific, developed and operated iis omi Inca 1ST0 nro closely Inlf r- twined with many terminals In part owned by each, with tracks of one on th? real estate of the other, with the terminals of one being used more largely by the other than by tn owner, with shops so located as to serve unified system, but out of place to serve two separate systems; with division points, train terminals and train runs all now worked out harmoniously, but whioh would be wholly upset by the separation. Separation Sep-aration means a change affect inf seriously seri-ously a great many thousands of employes, em-ployes, both as to their work and their places of employment, and therefore there-fore their homes. It also means a very large, expense for new facilities because of the dislocation of those ; that now serve under one slng'e ; tern. Why should this railroad service serv-ice be upset while a condition of un certainty exists? "It should b kept In mind that this Is not the bringing in of a new line, but simply the most difficult dismemberment dismem-berment of an existing single system Its tearing apart and placing under two managements where one has served. "Tho ffnancisl Interrelations of the two companies are no less involved than the physical and operating inter relations. There are outstanding n arty ar-ty $200,000000 of Interrelated obligations. obliga-tions. In connection with which the stocks nd bonds of the Southern Pacific Pa-cific have been pledged to the extent of nearly $150,000,000 as security. This situation should not be disturbed un der any temiorary measure, bu only If the final determination should make It necessary. We feel, therefore, that we are entitled to and will have the wholehearted public support In avoiding avoid-ing the confusion, disruptions of service, serv-ice, and perhaps unnecessary expense Incident to a separation which, if it took place at this times might, after all, be only temporary and would not reach a final determination in any event until the tinal conclusion of the interstate commerce commission. |