Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1912-12-19
MORE SPECIFIC
DECISION WANTED
ON THE y. P.

States took under advisement com.
bined motion Of the government and
the Union Pacific railroad, attorneys
fer more specific decree as to the
riqhts Of Union Pacific stockholders
! in the ordered distribution of 1926
100000 worth of Southern Pacific
stock owned by the Union Pacific
railroad company. The railroad at
torneys want the Union Pacific stock
/ holders exclusively to be allowed to
buy the stock. The government is oa-
posed to such an exclusive privilege.
Washington, D. c., Dec. IA mo-
tion for a more specific decree in the
Union Pacific merger dissolution was
made in the supreme court today by
Attorney General Wickersham. Chief
Justice White stated formally that
the court would take it under consid-
GRAFTON. Attorneys for the Union Pa
cihc and the government joined in a
request that the court determine at
once what rights the Union Pacitic's
stockholders should have in the dis
posal of the Southern Pacific stock
held by the Union Pacific in violation
of the Sherman antitrust law.
The railroad attorneys explained to
the court that they considered the
only practicable method by which the
stock could be distributed without IL
reparable injury, would be for the
Union Pacific company to offer it to-
its own shareholders, pro-ratta, &C
cording to the amount Of their hold
ms, for purchase at a fair price, or to
distribute it as dividend to its share
holders entitled to a dividend. They
declared that the attorney general
vas opposed to such plan.
10 refuse to allow the Union Pa
clic shareholders to participate in
such a distribution. declared the at
torneys in the papers they filed,
would expose them to a serious loss
and possible irreparable injury
The offering for sale upon the open
market of the Union Pacifics holding
of the Southern Pacifics shares, ag-
sregating $l2G,650000 would net only
infiict great injustice and irrepIrab'e
damage upon the Union Pacific ANA its
shareholders, but also would cause
serious financial disturbance by over
supplying the market demand for Sc
curities of this character and conse-
quently depressing the price, not
merely of the Southern Pacific's
shares of Southern Pacific held by
others, and even of the securities of
other corporations dealt in on the
market during and for long period
after the Offering Of these Southern
Pacific shares for sale.
e Attorney General Wickersham filed
a memorandum with the court in op-
position to the railroad plan attack
ing it as an 'unWise restriction upon
the power conferred upon the district |
court to dissolve the combination and |
prevent it's renewal. He expressed a
willingness that the Union Pacific
stockholders should be permitted to
share in the distribution of the South .
ern Pacific stock with the Southern .
Pacific stockholders.
The effect of a mere pro-rata dlstrl .
button of the stock among the Union .
Pacific stockholders" said Attorney .
General Wickersham, is wholly prob
lematical The stock lists afford but
little clew to the real ownership. 1t .
iG a we'll known fact, which an in
spection OF the stock list confirms,
that large amounts of stock stand on
the books IN the names of banking and
houses. 1t is true the stock
is distributed among $4,000 stock
holders Mrs. Hartman, Kuhn, Loeb
4 Company. and the directors of the
Union Pacific Railroad company, Tin
cludng the Chicago e. Northwestern
Railway company represented on the
board of directors, by Mr.. Marvin
HughitD, together hold $61,510,000 Of
its stock: 1Gl bankers and brokers
each holding 1000 shares or over
s132, ,0S7 500