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Show SOUTHERN PACIFIC ASKS PERMIT TO LEASE CENTRAL PACIFIC LINE Interstate Commerce Commission in Meantime Could Go Ahead With Plan to Combine Properties and Thus Avoid Disruption Disrup-tion of Traffic, S. P. Pleads U-APHF.VGTOV Oct 18. The Southern Pacific, company Tuesday filed with the interstate commerce commission a petition which it was said, if granted, will preent the separation sep-aration from Its system of the lines of tho Central Pacific although this vL separation was ordered by the supreme su-preme court In a decision several months ago and a rehearing of the rase was subsequently denied by the court. According to the railroad 8 pe-I pe-I tltion, tho commerce commission has power, under the transportation act of I 1 920, to allow the operation of tho I combined railroad system ns one Instl- i tution, even though tho supreme court I declared the situation to ho an example exam-ple of tho merger of parallel and competing com-peting ltnrs which Is forbidden by tho Sherman anti-trust law. MEANS NEW POLICY Tho commission s decision on the issue if affirmative, lawyers asserted, will be the flrt ettlng up of a policy of tranportatlon regulation in dlsn - gard of tho anti-trust laws, which' nine aunsnu uecn uypneu 10 maintain competition in railroad operations as in other Industries The Southern Pacific Pa-cific petition pointed out that tho I Transportation act now specifically al- lowp the commission to comblno evon competing line, when it adjudges the result likely to better, transportation! conditions and cited 'that tentative; plans of the commission fonr general! consolidation of rallraods now underl consideration, provide for a continuation continu-ation of its merger with the Central' Pacific. While awaiting the dcterml-J nation of the commission It was Indicated, Indi-cated, the actual process of prpnrating the two railroad properties aa ordered by the supreme court, will be held in j abeyance I As a method for tho commerce com- mission to follow In applying lis an - thority, the Southern Pacific petitlor j suggested that an order should bo is sued allowing that company to leas the entire properties of the Centra Pacific, which It now operates, or terms similar to those existing at j present with tho exception that the leases should bo terminable at the pleauro of the commission. TRAFFTC niSlUTTION' Thereafter It was proposed the com mission could go forward with the pending Investigation of general construction con-struction plans and at tho conclusion i make final disposition of the entire I matter It was pleaded that a separa-Ition separa-Ition now would cause a disruption of traffic and operation systems, leave the Central Pacific as a partial transcontinental trans-continental line, and raise questions in regard to tho payment of bond Interest In-terest and princ.pal among the security se-curity Issues which are Joint obligations obliga-tions of tho two svstems. Evon wore thl done the Southern Pacific railroad rail-road petition recited there might be a reunion later under tho construe- ! won projori.H wnicn wonicJ make the whole proceeding unnecessary. BASIS FOR ACTION It was further recited that the supreme su-preme court, passing as It did upon an anti-trust Issue In a case begun In 1314, could not and did not take the transportation act permission for construction con-struction Into con?. deration. This act, tho railroad further alleged, "constitutes "consti-tutes a radical change in the pollcv of congress toward tho railroads of the COUBtry" and Justifies the commission :n allowing omethlng Which the supremo su-premo court held Illegal. The Central Pacific runs from Ogden Og-den Utah, to C-.i::f. rnla cities with branches north and scruth in Callfor-nla Callfor-nla and Oregon Since 1870. it has neen operated as an Integral part of I lie South' rn Panl'li CIGARET CASE IS BEFORE CITY COURT The cn.no of the state against the t'nlted Cigar Stores company cam up ln tho city court this morning for arraljniment The corporation 1h charged with furnishing rlgareta to a minor, J. E- Roy. Attorney Joseph B Bates, appearing ap-pearing for the defendant company objected to thfl jurisdiction of the court and Olty Judge D. R. RobertR1 announced that he would take the1 caae under Msempnt until tomor-' row. 00 |