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Show THE SALT LAKE TRIBUNE, TUESDAY MORNING, MAY dismissed "without prejudice. The next proceeding waa the present suit, brought In th United States district court for Utah on February 11, 1914, and dismissed on March 9, 1917, In a decision handed down by Circuit Judges Waiter H. and William C. Hook. Judge C. J. Garland dissented from the majority opinion. An appeal was promptly taken by the government to the.suprem court, where the case remained four year upon the doket before being argued on April At the request ef the court It 20, 1921. waa resumed on April 11, 1922. On of th defenses advanced by the company is that the ease waa barred by the statute of limitation, more than five years having elapsed between the development of conditions complained of and th filing of the case. pean Investment circle for a decade, and reeulted In the appointment by foreign stockholders of a protective committee. Transcontinental railroad construction received Its first Impetus In 1852. when California granted the' federal government a right of way across the state. Nine year later. In 1881, the Central pacific was Incorporated to construct a lina across the state. The Pacific railroads law was passed by congress In 1862, end shortly thereafter th Union Pacific wa incorporated to fculld westward from th Missouri river, and tha Central Pacific was authorised to extend Its fines eastward to a junction, which . afterward proved to be Ogden, Utah. of the Central Pacific The promoter were the "big four. who. between 1864 and 1889, completed a line from Ben Francisco hay to Ogden, using In part the vhlch they purchased. In th meantime, or In IMS, the Southern Railroad Pacific rompany had been or ganized by a distinct group of men for the construction of a railroad from San Francisco by way of Ban Piego to the eastern boundary of California, a link In another projected trsnacdnUnental Una, Discrimination Barred. Manipulation Begins. Supreme Court Orders Dissolution of S. P. and 0. P. Railway Amalgamation : i Continued from . ( congress to adjust th Indebt.d-ge- e 2 th Central and Western Faclflc railroad was described In detail, it hay Inf been contended br the Southern Pa' ctfte that the present ownership grew out ' ( that commission and fava It governmental approval. Thia the court oaM that could not be sustained, declaring In a place was there any reference to the proposed acquisition ef the stock Pa-of the Central Paclflo by the Southern cific. The supreme court expressed Its disagreement with that part of the opln ion ad th district court in which th )atter court attached significance to th"S commission's action as In any way sanctioning the control. The commission "did hot thereby condone, or Intend to condone, Justice Day added, "any act which had the effect to violate the Sherman he added, "Mo i "dould this settlement, stop th government from prosecuting an action under the provisions of the act. Referring to the suggestion that the government had been negligent In prosecuting the esse, Justice Day explained that rthe court waa unable to discover that.lachea exists In th failure to more promptly prosecute the suit." get ' The Southern Pacific cane brought to She attention of the supreme court the control by a Kentucky corporation of the Central Pacino ana Southern Pacific ilea, of the Pacific railroads antitrust laws. One and Sherman of Darkest Pages." The government declared In argument It presented that It was "one of the dark's! pages In American railroad history, although the oldest consolidation waa the debt ef the railroad merger eases to bs decided by the supreme court. Originating in 1SS6 with the Southern Pacific, five years before the enactment of th Sherman lew tn 1990, It Is alleged to hav been.1 brought undo tha prohibitions of that law when In 1899 a new leas was roads, which wns converted Into stock ownership in 1899. and u Tbs- - cases presented many unique oral and during Interesting features, th refreshed counsel memory argument lof the court of th heyday of Amarloan and financing, jrallrsad reorganisation when In th late '80'e and early 10' tha , big four, Consisting of Lelamd Stanford, 'Colli P. Huntington, Mark Hopkins and Charts Crocker and other railroad bu (idlers whs had girded the middle and West with Iron bands, contested with IBdward H. Harrlman and other railroad "Napoleons" in rearranging the railroad f , Pa-iclf- ld map. Origin in Utah. t Northern Securities, Ublon Pact fid and Reading consolidations, all 6f later origin, were unmerged by the supreme court while the Southern Pacific merger eras' tediously reaching that tribunal. It wad flrot attacked by the government In 1994 In a bill filed In California to dissolve th combination, but which was Th p.f 0.. Ban-bo- rn Ths dissolution Issue Involved in tha case is whether th Central Pacific and the Southern Pacific are, competing lines or are a single system. The government contended that the Pacific railroads acts of 1862 and 1864. under which the two railroads were constructed with the aid of land grants and bond issues, required that the Central Pactflo should be operated with the Union Pacific as one conwithout discrimination tinuous line, Th agaln- -t or in favor of etch other. Central Pacific and the Soother Pacific, the government insisted, were separately projected, aeiarately aided by land grants and publlo loans, separately owned, Separately based, and prior to 1999 controlled by separate boards of directors. The operation 6f the Southern Pactflo by tho Central Pacific began in 1971 and continued until 1895, counsel tor the company argued, insisting that there was identity of management and equipment, not only In the construction, but also tn the operation of the two( lines as on system. Release Ordered. The Interstate commerce commission ac live amt lmd f seogn ledthatth vigorous competition between th "Ogden and the "Sunset routed, railroad counsel Instated, and the euprem court had. In th Union Pacific decision In 1901, recognised, counsel added, that , sharp, and vigorous competition existed between the two routes. It was the upon finding of the court that such competition existed that It required the Union Pacific to release Its control over th Southern Pacific, railroad counsel pointing out that ths court in That opinion permitted the Southern Pactflo to retain the Central Pacific. Omgreaa, In authorising the secretary of the treasury to carry Into efTeqt an agreement reached by a federal commtanlon which negotiated a settlement of the Central Partite indebtedness, gave legielativ approval, counsel for the Southern Pacific insisted, to the ownership of the Central Pacific by that company. ' The "high financing which th sov- ernment termed "a blot upon th hl- tory of transcontinental railroad construction, It charged, caused American methods to become a byword In Euro. era-w- well-defin- -- f f "1 ri ei V h i'qi&s J ' ,t If i!?v 'It! i'lh if. t r-- V n . ; o, rif$ : deep affection. . They rest not alone on native soil, but in alien lands, some in te I ,1' ' in reverence on this Memorial Day to our heroes, whose sacrifices wo record with competition from the Southern Pacific, they began to acquire th etock of th latter oompany. and by 1885 bad obtained all of It. During the period the "big four were purchaelng th Southern they were alow y feeding out, th government aaaerted, thejr etock In th Central Pacific, until they had only of It whan they completed control of the Southern Pacific. To make a martor the Central Pacific stock th "big ket four" made It attractive, the government charged, by regular liberal dividends and substantial net earnings. When the "big tour had completed the "unloading" of the Central process the "wrecking Pacific wa begun, the government alleged, and then wag written, U stated, th "dark pages In American railroadblot" wa placed upon ing, and the American financial methods. lm A jp: BoW When la 1879 th "big four," owners of the Central Pacific, perceived Impending graves unknown. th Theshock of the world war still abides; yet it cannot dim the deeds of those who, more than half a century" a&o, feave to us liberty and union. . Noble youn&! Revered veterans! Your imperishable felory is a Blowing inspiration to us to serve S. P. Organized. Wh.li the transfer of commitment from th Central Pacific to th Southern Pacific was progressing the big four" In 1884 organised th Southern Pacific a Kentucky cornomlna. Car llJ n 1885 It had aoqulred all th etock of the Southern Pacific Railroad company, and that year leased th Central Pactflo. The original Central Pacific lease carried a guarantee by the Southern Pacific of net a year, with a division of earnings In addition. This lease wa modto a yearly rental of 810,000, with ified a division ft net earnings up to 4 per all ynflttbifld. It is, perhaps, appropriate for our instl tution to record, on this solemn occasion, its sense if responsibility and service to the community. cent. But th Southern Pacific proceeded to assure there would be no net dividends, the government declared, asserting that "they took all the trafflo from the Central Pacific," which did not originate on over that .line, giving preferential rates rout the "Sunset" route, although Its was a thousand miles longer than the Ogden", routs, while of the traffic originating on th Central Pacific ths Southern Pactflo diverted The goernmant contended that In 1893, when the rtow lease of the Central Pacific waa made, the alleged combination had passed beyond the "solemn obligations" of the Pacific railroads act and had become offensive under tho Sherman antitrust law, enacted three year prior in one-ha- y 30, 1922. lf 1890." Wrecking Comes. wrecking' of th CenTho complete tral Paclflo came In 1889, the government aeserted. All dividends on that property had been stopped four year th Impresprior, "probably to rreat that the sion the government stated, too to was poor pay Its debt company It failure to to th United States. meet It obligations to the government caused a commission consisting of ecretary Gage, Interior Secretary Bits and Attorney General Griggs to be appointed to negotiate a settlement For ten year prior to Its esplottatlon" th Central Pacific bad been earning Interest upon Its 3100, 050, OOtofunded Indebtedness, and during mosr of that time dividends upon Its stock. In the reorganisation proceedings th Bnuthern Paclflo company consulted th banking house of Speyer A Co., and was advised s new Issue of Central Paclflo bonds could b floated provided It would guarantee the loan. Treasurer-S- Bakers of Agreement Attacked. Its Ring Time The month of June is inseparably linked up engagement rings and wedding bands. Brilliant, clean gems in the newest style-- , gypsy or basket mountings, white gold or platinum are here for your wd election up with diamond i t $50 ! Beautifully engraved white gold or platinum and wedding rings a number of A U Up exquisite designs are priced at (f1 A We offer honest value in standard, guaranteed merchandise. Our friendly, personal service costs yon nothing. HUBBARD'DENN CQ ,2 tv 21?fSOUTHvy SALT" LAKE- - MAIN ST-- The commission reachtd an agreement In which, the government asserted, "there wa not a tin nor a word that Intimated that the Southern Paclflo was to guarantee the new bonds, or have anything to do with tha settlement." In the report which th commission made to congress not a single word wa said." th gov- arnment Insisted, concerning a guarantee by the Southern Paclflo. The duties of the commission, as defined bv th government, were to settle th debt, and not to formulate a polley. It wks to get the money within a year or foreclose When tha new bonds were distributed It was found they bore the Indorsement of th Southern Pacific company, It may be unfortunate that th commission when It learned that the Southern Pacific, for its own selfish financial reasons, had guaranteed the bonds to get th stock forever In Its power," Solicitor General Beck stated In arguing this most Important phase of the case, "that It did not occur to the members of th oommteslon that they were to pass upon that feature. Let us assume that th government had In mind that thle matter was not In accordance with the antitrust law, and that the lease was made perpetual by th acquisition of the stock. When you are enforcing a great luhllo policy, can It be that, the mere allure to nail attention to th past and continuing offensea against the Sherman law estop th government from enforcing th lawt Doubt Expressed. It was unfortunate that tha Importance of the matter did not Impresa Itself upon the minds of th member of the but there was st that time great Sherman act applied dbubt whether The efficacy of the lew to railroad had not begun to dawn." Two years later, In 1901, the Union Pacific obtained control of th Southern Pacific, but that merger waa quickly broken. Railroad counsel contended that should tha supreme court hold that there had been a violation of th Pacific railroads acta, the remedy would not be by dismemberment, but by Injunction to restrain such violation. The Sherman antitrust set did not n, th. IVe Are Open - Washing Is Hard Work Today Does good food appeal ' to you? t Let Us Do Yours! -- Hiv hunt) BUTTER-KRUS- AMERICAN MAID make It unlawful, railroad counsel argued, for th proprietor of railroad ltnea owned or controlled by hint at the date of the passage of that law, to oontinue their operation, when such lines were not but which could.be roads eo If lvnrced. That th suit waa theoretical In nature was spown, they centlnued, by th complete absence of complaint on the part of shippers or th publlo generally, and In the last analysis" experimental. wa The government did not teek th destruction of a new and unlawfully created condition, they added, which took the place of an old and natural one, but It did seek th destruction of an old and natural condition In order that It may creuntried experiment, a const a new and was no prototype. dition which Th court did "not consider it necesto it pea upon the governstated, sary, ment's contention that the control of the Central Pacific by the Southern Pacific was In violation of th Pacific railroad act of 1882. com-etltlv- e, DECISION SURPRISES RAILWAY OFFICIALS SAN FRANCISCO, May 29. Southern Pacific railroad headquarters hare, taken entirely bv miyprtoe by tbe decision of the United State supreme eourt today sepafrom tha rating the Central Pad fie llnea Boi.them Pacific, declined to make anv efftcial comment until detail of the decision are received. Ptretohe ef track of the Central which are lifted bedlly from the Southern Perl fie br th judgment handei down at Washington Induce: . Main line from Sacramento to Ogden, Utah. Une from Oakland to Sacramento, through Nile Tracy and Btockton. line from Lathrop to Goshen Junction, through rremo and Merced. Fn-cl- fi Line from Mojave to Haaen. New, Owenyd. throughfrom Roemrill to the Oregon state tjn Una. through Marysville and Red Mtufr, and from Weed on the same line to KlamOre ath Fall. Dine- - from Hean, Nev.,,10 Wist wood and Bueanvtlie. It waa pointed out in railroad quarter necessarily that today's derision doe not two mean th separation of th proper act under the since, transportation tie, of 1920, better known as the Each-Cumin law, th Interstate commerce coni- mlmlon has power, regardless of any state er federal law, to authorise consolidation of any railway sj atoms, and that th commission already has tentatively reported that It Is desirable that the Central Pacific system remain An offlcw of tha Southern Paelfl further pomted out that any complete of th two would be impracticable from an operating viewpoint.' and that the supreme court muwt have had this In mind, a was Indicated by reference to the Joint Use of terminal. jyCiW. i wiOiX r5: , Jmndhisj at the Kenyo-n(Cafeteria Ccccnd Couth and Main Y . 815 S. State. 101 Downtown B. 1st 8. Was. 2824 Office 22 E. ind Special Attention to Parcel Post Orders, NEW TtRUt, May 29. OfflcAal of th Southern Pactflo company evidently Were astonished today by tha ruling of tha au- that It could not hold Its firaroa court In th Central Paclflo, but declined to make any comment pending. re- Jthe Jutl teat of th decision.-celpl ofnew recame almost too late Th flection in th atoek market, but Southern pnotfie chare eased With practically all other rails in the heavy realising movement of the last hour. On the ether hand. Southern Pacific-CentrPacific collateral 4 per cent bonda, which are secured by deposit of the entire preferred and almost a l common etochs of the Central Pacific Railway oompany. rose from a fraction over 83, their early price, to K4. la financial circles th belief prevailed al giraKPBg' that as a result of the court declaloh Southern Pacific might entertain an offer for thee bonds from Union Paclflo, on the theory that th latter road eventually would he found in control of Central DISSOLUTION PLAN HELD INADEQUATE WASHINGTON. May 29. A modlflca tton of th dlaeojutlon decree tn the Read Ihg case was today ordered by th s prem court to more effectively divorce th Reading company and th Reading A Iron company. Pointing out that the difficulty In the separation of the interests of the ReadA Ing company and tha Reading Coal Iron oompany lias tn the lien of th general mortgage whioh cover much of the property of th former, and all tha stack and proparty of tha iattar, and la not redeemable until 1997, tb supreme court. In an opinion by Chief Juatloe Taft, directed that th court should, after a hearing of 11 Interested parties, determine the respective values of th properties of th merged Reading company and tha coat company which are subject to lien of th general mortgage. Then th decree should direct," the court continued, that the liability of each on th bonds and th pledg under th mortgage shall be modified as- between tb mortgage and th mortgagors, so that th liability of th Reading company on th bonds outstanding and the lien of the mortgage upon that company to secure them, shall be reproperty an amount proportionate to the duced to ratio of the value of tt pledged property to th value of all the property pledged, company." including that of th coalcoal company Th obligation ef th It upon such bond and th ben upon ad led. It to them, teour property reduced In corresponding proshould be portion. Th amount that each company - la to pay a Interest should be similarly fixed, and apeclflo provisions for foreclosure of these separate liens on default and requisite machinery and ether neceswill sary changes to carry out th result disbe made bythe district coutt ki Us Interthe cretion By this arrangement ests and Joint obligations of the Beading oompany and th coal company will be completely severed and the purpose of this court carried out.I Th dlfltrirt court granted permission to determine what. If any. Injury to th security a modification of the term of th debt and mortgage may be caused, and to compensate for it by such a paymeht to the bondholder by either or both companies as may aetm equltabls and cohvsnlent. The changes Involved In these auggee-tlnn- s may interfere with, or make inappresent plicable, th provlelona of th plan looking to a proper working capital for the Reading company, the supreme court declared. Authority was there for given to th district court to amend th plan In any way which seems wis to leave th Reading company properli financed to meet Us obligations to tb public. RAILROADS CUT-I- N -- TO ACCEPT RATE ORDER NEW TORK, May 19. The 10 per cent reduction In freight" rate 'order by tho ef Acinterstate commerce commission, thirty-seven tive July 1, will be accepted by the railroads of the eastern division, tt was decided at a special meeting of official of these roads today. It .too wa decided to enter A formal tha finding of the protest against and after March 1. 1922. that on on railroad investments, th fair return the transportation art, at provided by ceeit. There wa no eon- per shall be enm-mlsai- U f. GUARANTEED USED ELECTRIC WASHING MACHINES Only $5 Down $5 Month We guarantee them to wash the clothes clean. Walker Electric State." Wa. 4703. 159 Bny One Rent One. tonight th president' conference, said had na ether conference felt th road to the fate Into put alternative except effect without a formal order." Regard Ing th matter of a fair return," he said CntUud a Lores, chairman of the eastern Fag Mile. Manlca Rubenstein will be at Walkers Thursday and Friday, June and 2 1 , to explain the correct uses, for best results, of the Helena Rubemtein Toilet Preparation v I t ; "Tamed the world over And carried hefe exclusively la this territory.' You are cordially invited to come in for a personal consultation with Mite. Rubenstein about your individual requirements. a 4- - (Main Floor) $27 4 m in-t- ct !r BAKING CO. and BUTTER-KRUS- T T Fssrteem V. 1 |