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Show S. P. DIVORCE AFFECTS I. C. C. Secretary McGinty Says Supreme Court Decision Has Wide Influence WASHINGTON. .Tune 2T Sccre-I Sccre-I tary George U. McGinty Of the inter-' state commerce commission aid lnst) night that tii decision of tho supreme COUrt to the effect that joint operation of the Central and Southern Pacific railroads was In violation of the antitrust anti-trust laws will have a direct bearing on the consolidation of railroad systems sys-tems of the Pacific coast. Producers and .shippers of the Pacific Pa-cific coast maintain that the action of, itho supreme court definitely determines deter-mines t Ii ;j t the inclcaion of the Central j Pacific In the Southern Pacific system In the reorganization consolidation blan of the interstate commerce com-' mission 'would be In drieet violation of all principles militating against mon- opoly. In workng towards the consollda- ) tion of the railroad Into a limited I number of systems as contemplated by j the transportation act. stress will be laid throughoct the entire proceeding; now before the interstate commerce commission upon the requirement that in any such consolidations competition competi-tion shall be preserved as felly as pos- slble i "This Is the Jirst requirement with which the commission must comply in preparing a plan for consolidating the railwa properties into a limited number of systems." said Mr. McGinty. j "The commission's tentative scheme j for consolidation Is for the guidance only of railroads. The tentative plan !vas put forward In order to elicit a 1 lull record upon which the plan to be ' ultimately adopted can rest, and with-' out prejudgment of any matter which i may be pteseiited upon that record. 'The supreme cocrt's decision ell-' vorcing the Central Pacific from the Southern Pacific necessarily will be considered by the commission when evidence Is received pertinent to railway rail-way properties in western territory. The joint operation of these two roads has been declared by the court to bo in restraint of competition. The com- I mission is obliged to aldde by the pro- 1 vision of the law that competition must be preserved, and must recog- nize this prerequisite tj consolidations before re ommonding or approving any groupings to be announced in its final report. "Professor Ripley included the C n-tral n-tral Pacific In the I nion Pacific ion- ; solldation. as he evidently entertains tho opmion tha,t Its proper place with respect to the transportation needs tff i the territory :n question Is in that pro- i posed grouping. W hile the commis- ' sion is not In any way hound to ac- I oept Professor Klpley's plan, as other than suggestive, the commission, as pare of the government, and like any corporation, partnership or Individual must be governed by an ouinlon of the supreme court. Alternative action, however, only may be determined upon by the Commission after .ill parlies par-lies who may deshe to do so have presented pre-sented evidence. Shippers Will have lull opportunity tu be heard t" tore this proceeding la closed." |