| OCR Text |
Show J It ' - .......... . . in. ! t - . ., In. Central Pacific Case I i ' :::: if Specific answers to "FIVE REASONS" promulgated by the Salt Lake Chamber of i if Commerce Nov. 7, 1922, for retention of Central Pacific by Southern Pacific il ' ' -' " ' . ' -: ilii . ' : First Reason: "'"To prevent the domination of this state and intermountain section by any single transportation agency." v .. . -I The independent operation of the Central Pacific or its control by the Union Pacific would not create a transportation monopoly, because of the existence or o;; 4 two paralleling lines, the Western Pacific and Denver & Wo Grande Western. Under competitive conditions a monopoly is P .Jto W "J of tion of these two standard railroads tends to a concealment of two of Utah's valuable assets. No mention is made of the power of the Interstate Commerce ; . 4 SmLion Even if these safeguards were Peking, the investment of capita Jit that a fair return on that capital be earned, and this would be impossible if rates were unreasonably high. An extortionate rate basis w ll must be developed. No Incentive exists to create any line of business for the purpose of destroying it. With V V by paralle lines teebon , r from unreasonable rates afforded by the Interstate Commerce Commission, and a fair return required on invested capital, the State of Utah need have no f ear oi j 'X rail line domination. - oo ;canJ Ronton- "To hold an open gateway at Ogden as an invitation for the west ward extension of 'other -railroads In Utah." v w l The atetuf The status of the Ogden gateway is " , . ft interest of the Union -Pacific-Central Pacific Lines to maintain an open gateway at Ogden east . j; the gateway would remain open Santa Fe on the south, so that all other lines In addition to the Union f il PaclfTtCM Pacific eastbound. ; in other words, the Central ;;t Pacific would welcome all the help it could get to meet this competition. - - .4. ' , . . - ot r I ing these years that the cities of Salt Lake, Ogden and ;;;; . Jit . tl' 'j d am t. u ' m:rt aflW Provo had a period of greatest development. The Union ;; i V3&2Z'u ui !2$2&ifi& ' Ai the Union Pacific View It. , .W-i-,-- H o Afte tn testimon submitted in the Union Pacific A railroad has only one commodity to sell trans- . . " jo - and 8outLrnepIcifiTu?mwgTr caseAhe Supreme Court portation. The value of the transportation is measured fifth Reason: To preTent "the domination of ;j; j ' ll found there wag no competition between these routes. The Dy tne quality of the service, A railroad Is a business jthis western nnlt (12th Federal Reserve District) by any ;o jj Court went ; even further - and specifwally authorized the concern and when it builds into a section of country and , single transportation agency.- ;;;; tt 1 c ' t0 "Ti. ! ZClZ'AA throueh develops that section it establishes a mutual interest in Domination of this western unit by a single teanspor. J j j I - The Southern Pacific has never maintained through u . . . ...... . A TT. Pfl .fi( tation agency is impossible, because of competing lines J, , If competing rates between Utah and Oregon, nor between its development with all the people. The Union Pacific now exIgtInand which will continue to exist and com- ;;;; 0 J Utah and Southern California via the very much longer ha8 developed Idaho. It has developed northern Utah. It pete, no matter what disposition is made of the Central ;o route through Sacramento is developing southern Utah and wiU, if it operates the Pacific ;o portation being the"be1"a' . . Central Pacific, develop western Utah and Nevada and Reference is made to the financing bv f Pacific Coast jj;; 1 wl&tl withsuchdevelopmentwiUfindmarketsfortheproducts , gnt ii oo more than twenty railway systems, it win be for we pur ' of the sections served. Without markets the capital in- the Influx of capital from any section, as competitive y ; . o poM of routing freight over the most direct lines, moraer .... , .... . A transDortation conditions would still exist. As far as the Sat the cost of transportation may be kept .at the lowest vested would be barren of results. Competition between . J practicable point, and that rates shall reflect economies Utoh and the Sacramento Valley and Bay sections of CaU- railroad that is doing anything tangible to develop it. The J; .operation. Sm ' : s fornja nbwjexists. between4the Western Pacific and t Union Pacific is starting to build a Simile line from LHnd oi- - terstete Commerce Commission j n ,e tne " w " T' tr t n v n 1 to Cedar City to get the iron ore and haul it to the Spring- -,.. : I! ; fair and equitable rates, and traffic will be moved wher- Southern Pacific, parallel lines all the way. Competition f It wiU Join with the other lines in J $ J;: ever practicable by the shortest line between any two will always exist whether the Central Pacific Is operated making reasonable rates on pi iron and other manufac- ' o;; points. as an independent railroad or by the Union Pacific tured articles out of Springville. The supposition that ' If ' or by the Southern Pacific. The Western Pacific is an the Union Pacific is trying or would try to stifle the steel ; il- Fourth Reaspn: To insure a market competi- active and formidable competitor of the Central Pacific. . industry is untenable and absurd. Why should it? o,; J 'o tion between western 'and eastern territories for Utah To illustrate r The Western Pacific on Its own Initiative Whether capital comes to Utah steel or any other In- j jo o products." , reduced rates on coal from Utah to the Pacific Coast, thus dustry depends not on who owns a particular railroad bnt o! o" This argument presupposes that railroad traffic men affording a market for thousands of tons of Utah coal on the business integrity and ability of the proprietors of mti wflvp mairic wands and create a demand for products the enterprise. This is elemental. If the development whettSIfSot The Central Pacific can be operated on a self-support- 0f anv Industry in Utah dend. upon whether th Central oil X the demand is as every business man knows, and market ing basis. It will be a keen competitor in California and Pacific is owned by the Union Pacific or by the Southern competition determines the direction of traffic. Farther- added solicitation by Union Pacific and lines . Pacific, or is P J jj j moreVthere is the Western Pacific-Denver & Rio Grande r . . poor inducement for the investment of capital In stp1 or , $ Western competition, and the Interstate east thereof, secure business which is now going to the any other industry. I mission ready and willing to remedy rate maladjustments. Southern routes. All lines east of Ogden and Salt Lake ; : , ! vJfilSS wm be feeders to the Central Pacify Reunion Pacific AJdithnal Factg Considered: Tonnage figures ;j;j I iV?S&twiM The Union Pacific's has never opposed the ownership and operation of the Cen- 8howlhat 62 of Southern Pacific business to and from t position in this matter is set forth in President Carl R. tral Pacific as an independent railroad, but it has op- . California during 1921 moved through Ogden." j:;; Gray's statement of June 10, 1922: posed and will continue to oppose, its retention by the It is evident that these figures have been furnished ;jj X "If tZSmZ """ olVbi?t" m Southern Pacific, for the very sound reasons set forth by to the Salt Lake Chamber of Commerce by the Southern ; ;j j t VtrVi mvo. But it i. hmj tk c.tr.i rnMie. crm rnrt in !t dppision The Union Pacific wUl Pacif ic. We have no record of the movement through El ; ;. , t ::-Vr "-e::, SJr WiriSVtf SuPreme Court m lts deci310vn- The Un'" , Paso and no way of verifying the figures. If the infor- - 1; ; t i: .ptk. c-hr.iprtn- VrV-lrSJ VfcViSui the Central Pacific to operate successfully as an in- mation ig correct, it furnishes the best illustration that I;; X pVur'7owm"m if ihm 7'c deriendent railroad, to the end that traffic unrestrained traffic when permitted to do so, moves via the shortest Jo I IV."-'" Vnw 4 L h w,n.f HJrf W d most direct route and where the best service is ob- Jt shall be permitted to move by the most direct and short- If the solicitation Instruction3 0f the Direc fc; pittas wi'k "u tT.'.V est route. "Where your treasure is, there will your heart tor of Traffic of all the Southern Pacific lines have not I; j il 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 mov- j ; t! iStSSSSSS: beU.mCdforantingSoutfcernP.ci(iccOT,o,(Cefa, i ft Western Western Pacific be acquired by some other Pacific, and by the same token the thousands of people in Pacific would at once be in a self-supporting position. The . X, it strong line. Growing cities lika Ogden, Salt Lke and Nevada and Utah should not be blamed for wanting the fact is, however, that as late as April lQ Vwtor ot jj 11 hTvSX Central Pacific to have the business it is entitled to by VTut fhV Sset-Gu'lf jj ' 1 their JeveloDment would be a contradiction of its record reason of its constituting the shortest and most direct. Route through El Paso and Tucson. Regardless of the L; It in the past and contrary to all good business principles. For route from central California to the east. PIST I- t .I.niflra th Missouri Pacific Denver & Rb Grande TT v pt att e1 Paso gateways, the conclusion Is inescapable I, it KV!lrMoumJeomecMcon- II. V. PLAIT, and the Supreme Court in effect so found-that if the re- ;; It f -nd WC i Sf rrfm i S Z Bu iVstLSS GeMTsi M"' Unlon Pacific S'6tem' straint of the El Paso-Tucson line were removed it would t ll Snac f c Salt Lake City. drt thousands of carload vl, Utah that are now going & It Snuous Une from Omaha to San Francisco. It was dur- J through Arizona and New Mexico. jj ll It is a matter of record that no line has ever come under the control of the Union Pacific which i: ll has not been improved in facilities and service to the public. h j We shall furnish additional information from time to time. jj; ij Union Pacific System . I SALT LAKE CITY ij Is k ' |
