Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-04-14
LOCAL STOCKHOLDERS GET
HARTMAN r. r. SYSTEMS
DISSOLUTION PLAN OF BIG

Hawaiian stockholders IN the three
big railroads that compose the "Har.
riman merger SYSTEM" have received
from headquarters in New York the
proposed plan for the dissolution of
the company, together with a state
ment of the financial deals involved.
As told in recent news dispatches by
cable, the Hartman officials declare
that the California state railroad COM
missioners have blocked the dissolu-
ton plans, while the encouragement
of the United States is emphatic in
stating that the plans will go forward.
The financial statement says:
ITO stockholders Common and Pre-
ferred) of the Union Pacific RaIi-
road Company, and Stockholders
of the Southern Pacific Company:
with the approval of the attorney
general of the United States, the Union
Pacific Railroad Company has adopted
q plan, which has also been assented
to by the Southern Pacific Company
in so far as action on its part is re-
quired, for complying with the terms
of the decree to be entered in the
government suit in accordance with
the recent decision of the. United
States supreme court, which plan in
cludes the following:
THE Southern Pacific Company has
agreed to sell to the Union Pacific
Railroad Company the entire capital
stock of the Central Pacific Company,
and to cancel or assign the existing
lease of the railroad and other prop
erty of the Central Pacific Company,
thus transferring to the Union Pacific
Railroad Company the beneficial own
ership of the railroads and other prop
erty of the Central Pacific Company,
subject to certain leases, reciprocal;
contracts for the joint use of railroads
and terminals, and other arrangements
intended for the mutual protection of
the two companies. 1t had been e1-
pected that the Union Pacific Rail-
road Company would pay for the Cen
trail Pacific property by surrendering
or transferring $84,675, 500, par value,
of the stock of the Southern Pacific
Company now held by the Oregon
Short Line Railroad Company, by the
cancellation and surrender OF $5,44J,-
600, face value, of the four per cent.
Central Pacific stock collateral bonds
of the Southern Pacific Company now
owned by the Union Pacific Railroad
Company, and by the payment of $14,-
065, AL in cash. But there being doubt
as to the right of the Southern Pacific
Company to acquire its own stock. It
has been decided to sell the entire
Oregon Short Line Railroad Company's
ira boil ,fr In fhra Cr1ff h
ern Pacific Company, aggregatfng
S126, $50, 600, par value, and it has been
agreed that the net proceeds of the
sale of s84,675,500, par value, of said
stock, shall be paid to the Southern
Pacific Company in lieu of such con-
templated surrender to it of said
amount of stock. - ...... r ~.
Accordingly the privilege is offered
to stockholders, registered on the
books of the Union Pacific Railroad
Company and the Southern Pacific
Company (excluding, however, the
Oregon Short Line Railroad Company
and its nominees), respectively, at
the close of business on February %,
1913. to subscribe on or before March
81, 1918, for such stock of the South
ern Pacific Company in the proportion
of one share of Southern Pacific stock
for each four shares of Union Pacific
stock, preferred or common, and Of
one share of Southern Pacific stock
for each three shares of Southern Pa
cific stock held by others than the
Oregon Short Line Railroad Company
and it's nominees. $3.50.
'The price of subscription is 800
for each share of 500 par value
equivalent as of the date of subscrip-
tion to 1857 per cent. and accrued
dividendl payable either in full on
March 81, 1918, or in four instalments
of s25 each on March II, July and
October l, 1918, and January 2, 1914"