Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1913-03-15
new DISSOLUTION
PLAN SOUGHT BY
JUDGE LOvETT
Objection Of California Rail-
road Commission Fatal to
Proposition Advanced by
Hartman Lines.
ny LEASED wir,, TO E,cnIug IIc,aId. !

81 Louis March i5.--Chairman
LoNcu. uf the tnun Pacinc system,
announced in the federal court here
to-day that the modified plan for Tho
dissolution OF the Jnion Pacific
Southern Pacinc had been abandoned
because of the opposition ur the CAL
ifornia railroad commission.
As a result OF the abandonment of
the dissolution plans. II nov IN ncccs-
sary for tho Representatives of the
Hartman interests aud the attorney
general 10 devise new plan thai
shall meet the approval of the judges
OF the eighth federal circuit. who are
sitting In this case as the district
court OF Utah. when the ncW plan
viii bc ready To submit Judge LOVctt
did not Indicate. further than 60 say
that the Supreme court had granted
three months FOR compliance with lts
dissolution decree. As the dissolution
deere, was handed down u tho latter
part ol December. 10 is Thought that
| IA, ucw plan will be- devised within Is
few days. Judge LuVctt said the faii-
ure OF the plan was uu, 90 the oppo-
sition of th' railroad commission ot
California Co the traffic Arrangement
contemplated between the southern
Pacific and the Union Pacific
This arrangement which provided
| for the preferential interchange OF
\ traffic by the two roads In the use OF
the short line between Oakland ana
Sacramento" said Judge Loyctt. u
| addressing The court. applied only 20
interstate traffic. concerning which
| IA, california railroad commission
has NO Jurisdiction.
| However. va order Go satisfy the
French banking Interests. which hold
la f5U,O00.0OU loan against the tcn-
! trnt Pacinc, 70 is necessary 90 lease
| thr Ccutryi Pacific to the Union pa
| cline We recognize thut this lease
! must have approval Ot the Cautor-
iuIu railroad commission in order TO
hv valid. and 'or that reason "a, Op-
position of the california commission
20 the preferential traffic agreement
makes d impossible for the Union Pa.
i Iclnr tu continue with the modified
/ plan.
| Judge Luyctt rccitcd briefly ia" his
tory OF the negotiations between the
Iatturncy general ana the railroad at
turnrys n AN attempt to dcvis, q plan
that would conform g. the dissolution
Idccrcc
| after the plan was presented 10
this court on February a. hc said.
! providing Tor tho lease by th, 'cu-
traI Pacin. 81 thu southern Pacific
short huc. the attorneys for the
ISouthorn Pacific and Union Pacific
lsought so go modify the plan as 20
meet the approval ot the california
lboard
This plan was outlined orally 10
thc attorney general but was not re-
du,cd to writing until late Wcducs'
day night soon thereafter we start
I'd for 81 I.ouis, trusting 60 uud q full
bench h,f, and hoping that the plan
IVould meet the approval oi this
court.
After my arrival here this morn
lug ! received a copy ut Telegram
scut by The California commission q
the attorney general opposing th'
preferential traffic agreement
copy of this telegram was given O.
the railroad attorney m Cahforni,
and from him received IA, informu
uun TODAY.
This opposition makes ~ impussi
blc for the railroads. AT least the Tn
ION Pacific, 90 continue with the pres
) lent plan"
. Presiding Judpr SanDotu askC,
! District Attorney iiouts DO it wcr,
sutisfurtury tu the attorney genera
90 hold the Huul dissolution decree ID
. lubcyancv until e new plan could h
, devised. Mr. Huuts said he had M
word from m, attorney general ul
d that point but that hv, himself, ha'
- no motion tu uncr,
i. Accordingly tho Judges allowed th
il plan to lapse. After court adluuruc
A Judge Lovcu refused positively {
! make any statement tu ncNspupr
, men ar &, the tutur, plans Of th
/, Iruilrund. In upologt2ing tu IN" couI
for his failure tu submit mudiuc
a. Ipluu. n" rNpHIucd tnut IN, asree
D., mcut with the banking syndicate fJ
the floating ot the stock distribuuu
feature ut the dissolution expired a.
(, might aud that th, railroad had hup-
' la .,lta. nm the matter tDuak