THE TIMES-NEW- NEPHT. UTAH S. UNION PACIFIC POSITI ON In Central Pacific Case Specific answers to "FIVE REASONS" promulgated by the Salt Lake Chamber of Commerce Nov. 7, 1922, for retention of Central Pacific by Southern Pacific Firs Reason : To prevent the domination of this state and intermoantain sect loa by any single transportation agency." The independent 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 Western. Under competitive conditions, a monopoly is impossible. The omission of any mention of these two standard railroads tends to a concelment of two of Utah's valuable assets. No mention Is made of the power of the Interstate Commerce Commission to prevent discrimination in rates. Even if these safeguards were lacking, the 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 business 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 Reason: "To hold an open gateway at Ogden as an Invitation for the west ward extension of other railroads in 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 Pacific Lines to maintain an open gateway at Ogden east the gateway would remain open. It would be clearly to the interest of the Union Pacific-Centrand west in competition with the Western Pacific, also with the El 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. In other words, the Central Pacific would welcome all the help it could get to meet this competition. ing these years that the cities of Salt Lake, Ocrden and Provo had a period of greatest development. The Union Third Reason: To hold competition against Union Pacific routes to Los Angeles and Portland terriPacific is not in the business of tearing down but of buildAs the Union Pacific Views It. tories.' ing up. A railroad has only one commodity to sell transAfter the testimony submitted in the Union Pacific and Southern Pacific unmerger case, the Supreme Court portation. The value of the transportation is measured Fifth Reason: To prevent "the domination of found there was no competition between these routes. The the quality of the service. A railroad is a business by western this unit (12th Federal Reserve District) by any Court went even further and specifically authorized the concern and when it builds into a section of country and single transportation agency. Union Pacific to acquire the Central Pacific. Domination of this western unit by a single transpordevelops that section it establishes a mutual interest in The Southern Pacific has never maintained through tation agency is impossible, because of competing lines between nor its rates and all Union between with Pacific Utah the people. The Oregon, development competing now existing and which will continue to exist and comUtah and Southern California via the very much longer has developed Idaho. It has developed northern Utah. It pete, no matter what disposition is made of the Central route through Sacramento, the value of economy in transis developing southern Utah and will, if it operates the Pacific portation being thereby recognized. Central Pacific, develop western Utah and Nevada and Reference is made to the financing bv Pacific Coast If and when the railways of the United States are with such development will find markets for the products capital of the steel and other industries in Utah. A change grouped (as provided by the Transportation Act) into not in ownership of the Central Pacific line would not prevent more than twenty railway systems, it will be for the purof the sections served. Without markets the capital inthe influx of capital from any section, as competitive pose of routing freight over the most direct lines, in order vested would be barren of results. Competition between transportation conditions would still exist. As far as the that the cost of transportation may be kept at the lowest steel industry is concerned, the Union Pacific is the only of economies reflect shall rates and that practicable point, Utah and the Sacramento Valley and Bay sections of Calirailroad that is doinsr anything tangible to develop it. The operation. Railroad valuations as established by the Infornia now exists between the Western Pacific and Union Pacific is starting to build a line from Lund terstate Commerce Commission vrl become the 'basis of to Cedar City to get the iron ore and haul it to the Spring-vill- e Southern Pacific, parallel lines all the way. Competition fair and equitable rates, and traffic will be moved wherblast furnaces. It will join with the other lines in ever practicable by the shortest line between any two will always exist whether the Central Pacific is operated raaonable rate on pir Iron and other manufacmaking points. as an independent railroad or by the Union Pacific tured articles out of Rnringville. The supposition that or by the Southern Pacific The Western Pacific is an the Union Pacific is trying or would try to stifle the steel active and formidable competitor of the Central Pacific. Fourth Reason: To insure a market competiindustry is untenable and absurd. Why should it? To illustrate: The Western Pacific on its own initiative tion between western and eastern territories for Utah Whether capital comes to Utah steel or any other products." reduced rates on coal from Utah to the Pacific Coast, thus depends not on who owns a particular railroad but This argument presupposes that railroad traffic men on the business affording a market for thousands of tons of Utah coal. and ability of the proprietors of can wave magic wands and create a demand for products the This is elemental. If the development enterprise. The Central on Pacific can be a where to operated where it does not exist. Traffic moves points of anv industry in Utah rend upon whether the Central basis. It will be a keen competitor in California and the demand is, as every business man knows, and market Pacific is owned by the Union Pacific or by the Southern of traffic. Furthercompetition determines the direction Pacific, or is operated independently, then Utah offers a with added the solicitation Union will, Pacific and lines by & Rio Grande more, .there is the Western Pacific-Denvinducement for the investment of capital In stpl or poor Comeast secure business which is now going to the therec. Western competition, and the Interstate Commerce other any industry. mission ready and willing to remedy rate maladjustments. Southern routes. All lines east of Ogden and Salt Lake Competition would be maintained were the Central will be feeders to the Central Pacific The Union Pacific Pacific operated independently, yet this important alterAdditional Facts Considered : Tonnage figures has never opposed the ownership and operation of the Cennative is given slight consideration. The Union Pacific's 62 how to and from of that Pacific business Southern tral Pacific as an independent railroad, but it has opposition in this matter is set forth in President Carl R. California 1921 moved Ogden." during through 1922: June 10, Gray's statement of posed and will continue to oppose, its retention by the It is evident that these figures have been furnished raelfle la wtnra mm reaeeaable hay the Ceatral rrin rato re rmm ha terma Southern Pacific, for the very sound reasons set forth by r tf fair the Soathera Tariffs, to Salt Lake Chamber of Commerce by the Southern the mmrmm area. Bat It to mt aeaklaa; ta har the Central Pacific. We have no record of the movement through El mm Pacific It la aat awarr far a eoeapllaaee with tar deeree of in decision. Court its the Union The will Pacific Supreme the I'titen Pacific will aX taa Haprraia Conrt tllat ft aheala!. All aa Paso no way of verifying the figures. If the inforand ba to laeeeaaeat I'M ta that taa Ceatral Paetfle he made aid the Central Pacific to operate successfully as an inaa aaeh. aaa that It perform Ita dattre. aa taa Ualoa mation is mraltl correct, it furnishes the best illustration that which andrr taa laleaielatloa hr raelfle la arrlarailas Ita datlea mm when permitted to do so, moves via the shortest traffic dependent railroad, to the end that traffic unrestrained that If It ta ha merced lata ther am hath eoaatraeted. aar aretem, aader alaaa helaa; w.rkfl oat br the lateratate and most direct route and where the best service is obshall be permitted to move by the most direct and shortCommerce Cemm laatea. It ha marred with the ITaloa Pacific, Uae. with which It forma a eeatiaaeaa tained. If the solicitation Instructions of the Direcwith all there." est route. "Where your treasure is, there will your heart tor of Traffic of all the Southern Pacific lines have not The fear is expressed that "Ogden, Salt Lake and be also." The people of Arizona and New Mexico are not to resulted in holding the greater percentage of traffic movProvo will become way stations" should the Union Pacific ing to and from Eastern points, to the Sunset-Gu- lf route, be blamed for wanting Southern Pacific control of Central then it follows that an independently operated Central acquire the Central Pacific and the Denver & Rio Grande Western-Wester- n Pacific and by the same token the thousands of people in Pacific be acquired by some other Pacific would at once be in a position. The like Lake and Salt cities line. Ogden, Growing fact is, however, that as late as April, 1922, Director of Nevada and Utah should not be blamed for wanting the strong Provo are destined to become larger and more prosperous. Traffic L. J. Spence admitted that the Southern Pacific Central Pacific to have the business it is entitled to by was diverting all traffic possible via the Sunset-Gu- lf For the Union Pacific to do anything which would retard reason of its constituting tho shortest and most direct Route through El Paso and Tucson. Regardless of the their development would be a contradiction of its record In the past and contrary to all good business principles. For of the business which Is using the Ogden and route from central California to the east. proportion several years, the Missouri Pacific, Denver St Rio Grande El Taso gateways, the conclusion Is Inescapable V. II. FLATT, conand Western Pacific were operated as one and the Suoreme Court in effect so found that if the reGeneral Manager, Union Pacific System, tinuous line from St. Louis to San Francisco; likewise the line were removed It would straint of the El Salt Lake City. Union Pacific and Central Pacific were operated as one divert thousands of carload via Utah that are now going continuous line from Omaha to San Francisco. It was dur- through Arizona and New Msxico. al J. 35-mi- le self-supporti-ng er i traae-eeetlaea- tal eoia-petla- a; self-supporti- con-ect- ed Paso-Tucs- It is on a matter of record that no tine has ever come under the control of the Union Pacific which has not been improved in facilities and service to the public. We shall furnish additional information from time to time. Urn af Msitem iractnc ionSALT LAKE CITY a i X X.