Tuesday, April 3, 192.1.'
PAGE TWO
JTIE LA GRANDE EVENING ORSERVER
Mina Taylor House Dresses
and Aprons
The proverbial house dress is now a thing of the past.
IUIN.A TAYLOR aprons and drosses have new frills and
ways of cut to disguise their plebian station. No longer
dull colored, unbecoming and unattractive .are they. Bright
( heclied ginghams, dainty dimities and voiles, bits of lace,
a tricky cut or pocket adjunct make them indeed charm
ing. There are a number of styles, for small, medium and
large figures, priced from $1.2o to ?7..r)0.
PROTEST IS
FIITFRFH RV
II. P. CHIEF
Does Not Favor Grouping
of Western Railroads
On Holden Ijan.
JlDGE LOYETTS
STATEMENT QUOTED
Declares a Re-Merger of the
Harriman System to Be
The Only Fair Basis of
Competition With North
ern Lines.
. Sao Francisco, April 2. 1923
Tonaolldating air railnavs ffwt of
CdIcieo and the Mississippi Kivcr in
four systems as propos-d reoently
the Interstate Commerce Commission
by Hale Iloldon, president nf the ( hi
cago, HiirllnHou Quincy Railroad,
would cri'nic many unnatural alliances
and would aroatly strengthen the so
called Hill group of railroads and
greatly weaken the so-called Harriman
group," laid Judge Robert S. t,oKtt.
cbalnnaii of the Union Pacific .System,
at today's hcnrliiR beforu Interstate
ComincrcB Commissioner Uvnry c
Hall.
i t Tho commission's Innlnllve plan com
prising seven Instead of four hm:.-iiib
was characterized as nfrnrdlim I lie
fcisls ant ground work Which should
ti departed from cniy with crrttt fair-''
tlon. The Holden plan ttroupliiR the
Union Pacific Willi the t'lilcnco, Mil
waukoo ft St, Paul waa gtroiiKly con
demned, tho witness eiplalnliiK ihut
tho commission's pimi of plaelni; the
ChlraRo & Northwestern Willi the l'n
lon Pacific wub Ihe only Indent a roup
Inn, tlie Ohlcnr.o, Milwaukee A Si. Paul
being a compel Hnr nnd the rhhiitai &
Northwestern a connect lou anil nauiral
Wily.
! "Should llio T I ill linos ni"rn r ) Ap
proved." Jhk Kovwt nalil, 'n n-im-i-Sit
of the ilarrlmnn limn, 1'tiinn li
clflo and pmtthmi r.uifU, hlu-iM w
aulhorlMMl to inct the stiunt: rMnMu
etlon vh Irli would 10 pffivlril .y io
Groat Korthom, Nrnttwrn t'.tclnc in 0
Burliimtnn. Tlio vottMitton vt ilu m.
tritl ,4'aetNe Yy tho Moulin i n )..-iru-with
tho fiimo condition iv. oh-.I by
jtb cunmilP:Uu in dm ivruit ltf.iili.K.
Is flatisfai'tory to ttm VnW:i i'u --Hit. j down u Idi lint's wlih wlilrh lh
limy prott with rrauunnMo mUrw u-
tho TlphU cf tho Vnt'Jii Pm-inr.' hi
aid. Continuing ho mUloit: Anmt'v
triking ctUvt of the wy (ho liuhhit
plan trusts tho old Jlarrtnuiu h.mujh
appears vlion nftpp nHsliiiihiK to Um
poiitliern VxvMW tho Jttirk lM;uul, it
Itto puts with tho BnMthorn l'liolih' th
Kilpourl Pm iflc ijr-il tin1 ;ImiH!; i,
Kansas ft Trsim pvptrjns, villi whh
tho Southorn fucifio ihs 1 tit
huRlncHd, nnd with hhh tt u.mii! lmv I Wt-Mi-rn :m. h n
Oixaalon to do own I'ss jutiT m mm in j i.ilt wnti tho lin-
ct: I ' tht Vnh-n Parifir, ew it would
Ftv.- tho Southf-rn Pacific a lino of its
own through from San Fraticleco to
Chicr.RO by way of Opd'-n ninlIcTiv r
aralh-Wnj: hr Pninn Pacific from Op-di-n
iKith to Omaha nnd Kan&js City
and jiarailf-Iin? a!o tho lints nlloratt-d
to ihf I'uion Pacific from Omaha to
Ch:oaco find If -w h."-rr oa?t of the Mis-
' tfitiri rivrr
"The plan If mare kind to the Pania
Ps fy?tt:m, for it takes away from
the t'nion Pacific group. whre tho
Cv;nniif ions tentative plans jdjcoa it,
th ("hicacn fc Norlhwostfj-.n, which in
C' nn'.-ction with the Vnion Paf.ific is
the door and fjtcway ffr r.Kt f (ho
r;.':n;( utton t-ui M t'hic so with the
K.nua IV for 1 "t :if i coaM (rnffr. and
t.irnfs it ovr to tl: P;;ma To to
ft tln r w ith ll.c riiic;.s. St.1 Pai!. Min
iitapoiifi i Oniaha. vhich fs the prin
cijfHl CMincctitin and almost thi solo
reliance of the I'nicn I'ar ific fjr traf
fic coin rip to )tn lire at Omaha from
Si. I 'miiI. MinuKipuhs and that torri-
ttiry. It i b t the Santa Ko the
Canadian Pacific ci-ritrollcd lines, the
Mtnncai"il:s, St. Paul & Sault . S:iint
Mario and tho Spokane International,
Lhen hy taking away iii.fther vuluiihlc
ci unt?ctfnn of ihe I nlon Pacific at
S;-(jl;anc. " .
"ThsiB the plan fiends tho Santa Fn
as fur into lit- northwest tin Spokane,
V. ashiiifMon. Py gohif; through (an
nda titicl Btopjiinc: short of Pujiet Stmnil,
howevrr, its capacity for harm to the
business of oilier lines of tho northwest
wiitild not ho fcrp:'f Tor wlillo alnioi-t
In fduht of the promised land Seattle,
Taconia. Olympia, Portland, it is ivon
no entrance therein, hut la helil safe
ly on tiio pft side of the Cascade
mountains at Spokane. Tho Santa Po
is nlwo given the St. lamia Sontlnvost
orn, tho Chicago &. Kastcru 'Illinois,
the New Orleans, Toxns & Mexico, the
Western Pacific; and a half Interest
tu the ivnvcr & Itio Uruudo Wusturn,
'mmr the 13.Mivor and Salt r.ket'rti
takes away fr.jin the Santa Ke, how
ever, the ( olorndo ami Stnithern and
the Ft. Wnrth and Penver City, which
the tentative plan uf the cmnmiristnu
put with the Santu To oni'olidathin,
and iraiisfiTK (hem to the uroup em
hracin;: the ItnrlinjUon and other
st foils Hill lines."
.Indue I.ovett made it plain that ho
1 wiiere tiny na?V never heen, wnore
! they have no huim i-:3 or connections
land where apparently there is no
; shadow of reason for Ihormto go. Tlio
Union Pacific is sent down into Ten
nessee. Alabama, Lnuisana, Texas,
Arkansas nnd Oklahoma with lines
to New Orleans, Laredo on tho Mex
ican border and to Kl Paso, and apain
into northern Michigan. The Hill Hues,
how ever, are treated very conserva
tively In this respect and the only new
territory in which they venture is from
Fort Worth to Houston, Texas, anc
over the Kansas City Southern and an
other short lino to New Orleans." '
With reference to Mr. Holden's sub
stitution of the Chicago, Milwaukee
St. Paul for the Chicago & North west
ern for consolidation with the Union
Pacific, Judge Lovett pointed out that
I the former is a competitor of the Un
ion Pacific for traffic to and from the
Pup l Sound country, while tho Chlea
!o & Northwestern is a connection. Tho
I substitution would not only disrupt
xistinK routes and channels of trade
j but would run counter to another re
jquiretnent of the law that competition
j be pn -served as fully as possible.
JAsain, tho consolidation of tho Union
Pacific and Chicago, Milwaukee & St.
Paul would he a linking of the two
weakest PtiKot Sound lines, while the
Northern Pacific and Croat Northern,
which are tlio oldest nnd strongest
lines In that territory, would be con
solidated umh r the Holden plan. Such
an alignment would certainly not be
in the Interest of giving tho Puget
Sound country the best competitive
service.
Concluding this portion of his testi
mony Judge I.ovett said, "The consoli
dation of the Hill lines with their sub
sidiaries into a single system would so
far oveiHhiulow its competitors, nnd
any other railroad system proposed in
tho United States in sizo and financial
strength and possibilities that one
mifthl inter that a desire to meet this
nhjretiion had somMhiii to do with 'the.
I ii'de nf fairs but the gentlemen
the combinations entirely too large
toward the welfare of corporations
fiieoutlveii, Ihslr creditors and Btock-
nulders and for the public good, and
, present a situation which probably
would be a source of much undesirable
friction and In many ways a constant
menace, especially In case of failure,
He answered Mr. Holden's argument
i baaed on the fact that the traffic
: handled 1y the New York Central and
Pennsylvania respectively is substan
tially as greaj an that which would be
handled by any oT the four systems,
by pointing out that the problems of
! management In a territory extending
' only from Now York to Chicago and
: St. I-ouis are very different from the
problems of management In new and
rapidly developing territory, extending
all tho way from the Canadian border,
: Puget Sound and the Pacific ocean to
j the (Jrcat lakes, tho mouth of the Mis
sissippl river, the gulf and the Mex
i ican border.
i Judge Lovett also disagreed with Mr.
i Holden's view that each of the Pacific
j const lines should have a line ex
j tending to tho gulf, stating that the
; past and west traffic was the Im-
portant and controlling traffic with
j the transcontinental lines. After point
i ing out various reasons for 'this he
said;
"Hut more Important ntll! and almost
! startling Is the inevitable tendency
I and effect of the Holden plan to
! divert grain from tho trunk lines and
Atlantic seaboard to tho gulf, Hither-
I to tho Clreat Northern, the Northern
Pacific, the Burlington, the Chicago,
! Milwaukee & St Paul, the Chicago &
Northwestern, tho Union Pacific and
! the Chicugo Great Western have been
impartial as between Atlantic and gulf
; ports, us their carriage did not extend
beyond Chicago, Kansas City or St.
Louis, and they interchanged without
preference with tho trunk lines nnd
the gulf lines alike at the usual gate
ways. Hut the Holden plan lies each
one of tho great 'Granger' roads up
with a gulf line of its own, but with
out any line east of Chicago or St
Louis, thus forcing all of them In their
own interest thereafter, through con
trol of car supply and otherwise, to
exert their Influence in favor of move
ment of all export grain over their
own rails to the gulf Instead of being
impartial as heretofore. If such con
solidations are accomplished where
will tho trunk lines and Atlantic ports
get their grain for export? I am not
their advocate, but only wish to point
out this as another revolutionary and
disastrous effect 'to some interests of
the action the commission is asked to
take."
Even If the four-system plan were
adopted, it is Judge Lovett's view that
the systems' should bo constituted In a
much different way than proposed In
tho Hohhm plan. Ho said that If the
Hill lines were to be consolidated, the
Union Pacific and Southern Pacific
should nlso be consolidated, as their
combined strength would be needed to
place, them on a fair, competitive basis
with the northern lines. Again he said
that under a four-system plan the Chi
cago, Milwaukee & St. Pauf instead of
the Chicago ic Northwestern should be
combined with the Santa Fe. Such a
consolidation would put tho Santa Fe
system Into the North Pacific const
territory In competition with the Hill
lines nnd the Union Pacific-Southern
Pacific group instead of stopping the
Santa Fe group east of tho Cascade
mountains as proposed by Mr. Holden.
Ho also stated that tho Chicago, Mil
waukee & St. Paul and Santa Fe con
nect at both Chicago and Kansas City,
while the Chicago & Northwestern has
no lino to tho latter point.
Judge Lnvott dealt at son.S length
with tho history of the Central Pacific
and. Its relationship to the Union Pa,
rifle and thV titutuai dciquili'iira -pi j
these lines on each otlior. He referred
With respeeftO theVe tOlibUUi(luii
Good undoubtedly will coow from :of
solldutlon and legal eolidlflcatlon intc
one company of lines naturally, allieO
and grown together as one system, but
legally held fy numerous different
corporations loosely combined In com
mon control through stock ownership
There will also be consultations of
some lines not at this time under
common control or otherwise related
where the stockholders ure able to
agree upon relative values. Yet, the
consolidation of Independent systems
will not be as rapid or a.s numerous,
I fear, as are anticipated by many,
at least without further legislation by
congress solving many of the problems
that will present themselves even
where the terms of consolidation have
been agreed upon; and there will be
great difficulty .in the stockholders
agreeing upon relative value even not
counting those Individuals who are In
the habit of acquiring a small amount
of stock and posing as an oppressed
minority.
"A great difficulty In this connection
la that there are many unsuccessful
railroads In the United Slates which
ought to bo liquidated. Doubtless there
are owners of these who are looking
to this consolidation law as an op
portunity for themto escape from their
Investments by unloading on the
strong roads. Their properties are un
profitable und failures financially for
one reason or another, and sooner or
later must be dealt with according to
their actual value based upon their
earning capacity, present or prospec
tive, regardless of the capitalization.
I apprehend that financially strong
roads asked by the commission, by the
adoption of Its plan of consolidation
to absorb these roads, will be willing
to take them, If at ail, only at their
actual value, and that if there are any
losses to bo liquidated they must bo
borne .by those who have sustained
them rather than he shifted onto the
stockholders of the successful roads.
"But If tho object of the statute le
accomplished and a plan for the con
solidation of the railroad properties
of the continental United States Into
a limited number of systems Is adopt
ed by the commission and carried out
In full, It will not in my opinion aid
very much in solving the railroad prob
lem. It will not reduce the cost of
transportation, which Is the great prob
lem, or Increase the traffic. Of course
it will not affect wages or the price
of rails or rolling stock or coal or
other materials and supplies, or re:
duce the taxes, nnd It will not help
the credit of the railroads aB a whole;
and we shall still have 'strong nnd
weak' railroads.
"Even If all' the systems to be creat
ed by tho commission plan were given
an even start (which Is impossible)
they will not remain even, for some
will succeed whilo others fall, and
there Is the very great, danger of
permanently welding together incom
patible and Inherently different prop
erties, and isolating trade centers and
traffic routes and relationships which
with the greatest care cannot all now
be foreseen In a situation so vast and
complicated. But it Is the policy of
the government, as declared by con
gress which the commission Is carry
ing out, o,nd It Is our purpose to co
operate to the greatest possible ex
tent we can consistently with what
wo regard as our duty to our stock
holders and employees and the com
munities and traffic we serve."
a -
iWar mav have lessened the density
of Europe's population, but the sur
vivors seem equally (tense.
The ancients used ivory in making"
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the makinp of statutes.
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To Have and To Hold
Power
l.ouls-Knine!:co systems with
Vnlon Pacific, nnd of Ihe Missouri Pa
cific, Toledo, Peoria & Western nnd
the Missouri Kansas &- Texas, and vnr.
ions other lines with the Southern Pa
cific, in order that there should he
other systems c'nual In milcntzo and
investment to the Hill comhlnntion.
tho Rork Island and also the Kalis;
f'lty, Mellon Orient wlilc'i Ih. T. ss
iHsi'Slclics report If about to ai.,in
dotted Iho Missouri, Oklahoma
Gulf and a hair Interest In the licnvct
A Jtlo Grando Western and the 1. ner
and Salt I.aki. The latter fealurn Is n
poclally ilKiilfirant hetauso It void. I.
Indeed effectually 'hottlo up- or as Pro
fuanur Hinley t jpressed It, 'sh.irt cir-'
had no ohjection to the commission's
authorihiR a consolidation of Ihe Mill (however unequal In solidarity, fiuau-Ihi'-s,
Iml that If that were done tho'clal sirenlli and prospects und in
t onimlssicin should al-o authorize tin traffic nnd openttinK relationships."
re ..nsiitutk.n of the Ilarrlmnn Kroup. Judno l.ovoll complimented highly
the t'nion and Southern Pacific, to the manner in which Professor Itiploy
me t tlio strong comhlnntion that and the commission hail worken out
would he effected hy the consolidation for the direction of congress n plan
of ihe Hill lines. for the consolidation of tho railway
The Holden plan, however, does not I properties of tho United States, lie
ceul.'mplale a consoliilat Ion ' of lliojs.ild Hint while there were defects nnd
t'nion nn.l Sculheru Pacific hut lu-j mistakes hero and there, which must
stead weakens holh hy loading them j he corrected If proat Injury to puhllc
as well as private Interests Is to be
avoided, that yet tho tentative plan of
tho commission affords tho hasis and
ground work which should bo followed
and from which departures should be
made only with groat caution. He said
lie doubted whether railroad men
themselves could have formulated a
plan so fair ami worknhlo, because
they c.niM ilot have illvesled them
selves of the!- en ironnieiit and their
affecilon tor liius with which
bad spent many years.
.Indue laoett opposeil tho susgestion
that nil linos In western territory
should be consolidated Into four sys
terns, saying. 'Tour systems, compris
ing tiom th'tty thousand to upward of
have .
no natuval nfiliatlnns and makes them !
compcuho Willi their natural allies, j
notable In the rase of the t'nion Pa
el'le by phi. iln; the ChlcaKO & North
weslern In a rival croup. The Holden
plan also would run counter to the
b clslatlon iiiuler which the Union Pa
ciile end feudal Pacific were eon
.;ru. !.'.! us imm- continuous line by as
slvutm to the Southern Pacific a half
'.nler.st in 1 1.0 IVucr Hio tlramle
and Salt Lake,
of the Itoi k Is
land from t'ol,,r.nl,, Springs ami lien
v. r to the Mlnoiiii river and Chicago
would make it to lie Interest of the
prop;....1. 1 Southern Pacific group to
tear down insicad of build up the
Oitil. ii rente of tho Union and Uenlrul
Pacflc.
"In i;..lltion" hn f.-ild, "holh the
Union I'.i.iiie and Southern Pacific
are s. nt f ir afield iflfi ti:rr""-l..-
iunihlltti: of the International-Great
Northern, Texas nnd Pacific and St. t-0 thc decision of tho supremo court,
Hip ornertng tho tiissoiuiion or tne control
of the Cenlml by tho Southern Pacific
because violative of tho Sherman act.
and to tho recent hearing before the
coniinipelon of the application of the
Southern Pacific for authority to ac
quire control, and tho decision of the
conditions Imposed by the commission
to the granting of the Southern Pacific
application, protected with reasonable
adequacy tho rights of the Union Pa
cific, and that with these conditions
Imposed the Union Pacific would not
object to u permanent consolidation of
tho Southern Pacific-Central raeltic.
Mo said Hint the Holden plan provid
ing for a half Interest by the Southern
Pacific In tho Denver & Itto Grande
Western and tho Denver and Salt Lake
lines would be Inconsistent with those
conditions nnd would bo highly pre
judicial to tho Union Pacific. He also
referred to the testimony already. of
fered In hoaalf of the Union and
Southern Pacific asking that tho Col-1
orndo Hues of the Kock Island be ellm- i
hinted from the proposed Southern Pa
elflo group, ns the ownership of these
lines would bo likewise Inconsistent
with the conditions imposed hy the
commission In fronting Ihe Southern
they J Pacific's application to control the
t'i ntral Pacific.
"Klmilly. to guard ngalnst possible
misunderstanding of my views in stat
ing our purpose, to carry out as far
as we can the tentative plan of the
utirj VlTAjWs
commission with the modifications
thirty-five thousand miles each and j above suggested. I should like to add
each extending from Puget Sound orient ' believe entirely too much Is
the Pacific ocean to the (Treat lakes, J eipectcd Hy some of our statesmen,
to the tnouiti of the Mississippi river and In Mima quarters of public opinion,
and the Oulf of Mexico, and traversing j from this commission's work and tho j
most of tho iptermcdiate states, make I effect of the transportation act of ISJO
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