Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-12-19
WANT RIGHTS Determined
Union Pacific Stockholders Seek to
Have Their Status Established.
STOCK SALE PLAN PRESENTED
Attorney General Files Memorandum
With Supreme Court Opposing
Counsel's Scheme.

A motion for a more specific decree in
the Union Pacific merger dissolution was
made in the Supreme Court today by At
torney General Wickersham. Chief JUS
tice White stated formally that the court
would take it under consideration.
| Attorneys for the Union Pacific and the
government today joined in a request that
the court determine at once what rights
the Union Pacific's stockholders should
have In the disposal of the Southern Pa
cific stock held by the Union Pacific in
violation of the Sherman antitrust law.
Road Attorneys Explain Method.
The railroad attorneys explained to the
court that they considered the only
practicable method for the stock to be
distributed without irreparable injury
would be for the Union Pacific company
to offer the shares to it's own sharehold-
| ers pro rata, according to the amount OF
their holdings, for purchase at fair price.
or to distribute the same as dividend
! to the holders of It's stock entitled to a
dividend. They declared that the Attor-
ney General was opposed to such a plan.
ITO refuse to allow the Union Pacific
shareholders to participate in such a dis
papers they filed. would expose them
| to serious loss and possible irreparable
injury.
The offering for sale upon the open
market of the Union Pacitic's holding of
Southern Pacific shares. aggregating
1926. CSC. 900. would not only infiict great
injustice and irreparable damage upon
the Union Pacific and it's shareholders.
but also would cause q serious financial
disturbance by over supplying the market
demand for securities of this character,
and consequently depress in the price not
merely of the Southern Pacitics shares
owned by the Union Pacific. but also Of
the shares of Southern Pacific held by
others, and even of the securities of other
corporations dealt In on the market dur
ing and for long period after the Offer
ing of these Southern Pacific shares for
SALE
From exhibits brought into court the
railroad attorneys argued that If the
Southern Pacific's stock owned by the
Union Pacific was distributed among all
Union Pacific shareholders, the 80
called controlling interests would get
only per cent of the total capitalization
of the Southern Pacific Company, or an
''infnitesimal portion
Finally it was argued that the plan ad-
vOcated by the railroad attorneys was in
conformity with the practice in other dis
solutions directed by the court
Wickersham Opposes Plan.
Attorney General Wickersham filed
memorandum with the court In opposi-
ton to the railroad plan, attacking it as
an unwise restriction upon the power
conferred upon the district court to dis
solve the combination and prevent its
newal. He expressed a willingness that
the Union Pacific stockholders should be
permitted to share in the distribution of
the Southern Pacific stock with the
Southern Pacific stockholders.
THE effect of mere pro rata distri
button of the stock among the Union
Pacific stockholders. said Attorney Gen.
| eral Wickersham, is wholly problem
atical.
The stock lists afford but little clue to
the real ownership. 1t is a we'll known
| fact, which an inspection of the stock
list confirms, that large amounts OF stock
stand on the books in the names Of bank
| ing and brokerage houses. It Is true the
stock Is distributed among some 1900
holders. but Mrs. f. H. Hartman, Kuhn,
Loeb & Co., and the directors of the
Union Pacific Railroad Company Gnclud-
ing the Chicago and Northwestern Rail-
| way Company. represented on the board
| of directors by Mr. Marvin Hughtt, to-
gether hold 41.251 900 of its stock; 1874
bankers and brokers each holding 1000
shares or over hold 1872, 7S7. 800. Indeed.
1863 holders together hold stock amount
ing to $196. 209, 500, or 62.5 per cent of the
whole. 1t is only the remaining $119,916-
500 Of stock that is distributed among
nearly 1900 holders
| The Southern Pacific stock aside from
that now held by the Oregon Short Line
Railroad Company. in the hands of the
public amounts to SAG, $50. This
amount Is distributed among upward of
1900 holders.