The Washington herald., 1912-12-19
.W|CKERsHAM bALKs
RAILROAD PLANS
Attorney General Objects to Methods
of Hartman System Heads for
Distributing Stock Value.
IovETT MAKES STATEMENT

New York, Dec 1S-In a statement is
sued late this afternoon Robert s. Lovett.
chairman of the executive committee of
the Hartman system, says that Attorney
General wickersham has refused to ap-
prove any proposition involving the dis
tribution of the S12s. ZOO par value OF
the stock of the Southern Pacific Rail-
road owned by the Union Pacific to the
stockholders of the Union Pacific in pro-
portion to their holdings, whether by
sale. dividend or otherwise. Mr. Wick
ersham also declared that ne would ap-
peal in the event that the District Court
approved a pro rata distribution.
Judge Lovett's statement is as fallows:
Immediately after the decision of the
Supreme Court on the second inst. in the
case involving the relation OF the Union
Pacific and Southern Pacific. the board
Of directors appointed a special commit
tee composed of r. s. Lovett, NJ. l..
SchIfr and Frank A. Vanderlip to worl,
out and submit a plan for promptly and
fully carrying out and conforming to the
decision of the court and that the matter
was at once taken up with the govern
ment.
Refuses to Approve PIsn.
The Attorney General has refused to
approve any plan involving the distri-
button of the $l26, $4,000 par value of the
stock of the Southern Pacific Company
owned by the Union Pacific Railroad ex-
clusively to the stockholders Of the lat
ter. In proportion 10 their holdings,
whether by sale. divided or otherwise
and has declared he would appeal in the
event the district court should approve
pro rata distribution.
I'VE had nothing in the opinion of the
Supreme Court in this case to warrant
the government to deny to stockholders
of the Union Ilacific the rights en-
joyed by the stockholders of every other
corporation that has been required 70
dispose Of stock held contrary to the
Sherman act. where a pro rata dlstribu-
tion was practicable. as it is in this
case.
Refers TO other Cases.
In the Northern Securities case every
stock holder of the Northern Securities
Company received both Northern Pacific
and Great Northern stock in proportion
to their holdings of Northern Securities
stock; and in this distribution was speCi-
fically approved by the Supreme Court
In the Standard Oil case the decree.
which was affirmed by the Supreme
Court, provided for a pro rata dlstribu-
IlOl among the slOChuOlQeFS OF the STAND
ard Oil Company. In the Tobacco case
an unqualified distribution was imprac-
ticable because OF complications arising
from outstanding mortgages. changes In
plants, &C. and division of the prop
critics by the American Tobacco Com
pauy with two new corporations was
made. but the entire stock OF the new
corporation was sold to the holders Of
the common stock OF the American To-
bacco Company in proportion TO their
holdings.
las the mandate Of the Supreme Court
has not vet been issued We have ar
ranged with the Attorney General not
to make II general for the presentation
of the matter Immediately to the Su-
preme Court.
In view OF the increasing number OF
requests from stockholders as to the
efforts being made TO conform to the de-
cisiOn Of the Supreme ~Court, and the
status thereof. this statement of the sit
uation Is deemed necessary"