The Birmingham age-herald., 1912-12-19


 disposition of the 46 per cent of stock in
 the Southern Pacific held by the Union
 Pacific as corporation. In 1t he makes
 it clear that the government would con
 sent to giving the stockholders of both
 inc Union Pacific and Southern Pacific an opportunity to buy the stock to be dis
 trib1ted. but was not willing to offer
 the Union Pacific stockholders alone this opportunity
 His statement follows:
 Associations have been pending for several days past between representatives, of the Union Pacific Railroad company and the Attorney General with respect to the basis of a plan for distribution pur-
 sEant to the judgment rendered by the supreme court on December ?. The Union
 Pacific interests claimed that the stock
 holders of the Union Pacific Railroad
 company were entitled to share pro rata
 in the sale or distribution of the stock
 Of the Southern Pacific Railroad company which the supreme court decided was ac-
 quired and held in violation of the Sher-
 man law. The Attorney General declined
 to accede to this contention, although he indicated his willingness to approve a plan under which the stock to be distrib-
 uted should be offered for sale to the
 shareholders of both the Union Pacific
 and the Southern Pacific companies in DfODO1IlOn to lHtli ItSptttlNt boibiii6S dN
 a suitable price and under appropriate restrictions. In view of this difference of opinion, a motion will be submitted to the supreme court tomorrow to determine and specify in the mandate which shall be sent to the lower court what rights in this regard are to be conceded to the stock
 holders of the Union Pacific company" The view of the government Is said to be that by the stock going into tho hands of stockholders of rival, competing corporations, the public would be more likely to procure competition between the two companies than if the stockhold- CTS of one of the corporations were permitted to own controlling interest in
 the other company.
 Will Avoid Delay
 The opinion of the supreme court an- nounced on December g. conferred au- thority to frame the decree upon the district court of Utah, which for the purposes of this case was constituted of four judges of the eighth circuit. The disagreement between the government and the railroad attorneys is regarded as so vital that it would require elabo- rate consideration by the lower judges and then might result only in an appeal | to the supreme court for final decision l on the point The attorneys hope that | the supreme court will decide the point one way or the other by next Monday when adjournment is to be taken until l January 6. That would allow the re- organization to proceed with practically
 no delay.
 It was said tonight that there is little probability of such serious conflict be- 1 tween the government and the railroad | attorneys as would lead the lower court l to appoint a receiver to sell the stock I to the public. The lower court is au- l thorized by the supreme court to take l this step should no plan of disposing 1 of the stock be presented, or if 1t be | rejected by the court within three months | from the time the decree of the supreme
 court is sent to the lower court for ex- l ecution.
 1 The reorganization has been the sub | ject of prolonged discussion in government 1 tai circles. Attorneys for the railroads have consulted with President Taft. and yesterday the entire matter was taken
 up at the cabinet meeting.