The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-07-01
HARTMAN MERGER
IS BROUGHT TO END

| IS BROUGHT TO END
Continued From First Page)
pany case. calling the attention OF in
terested parties that objection might
be made. but this also was overruled
by the handing down of the decree by
the court.
Decree necessary Now.
we deem decree of dissolution
more necessary at the present time
than any other action" said Judge San
born after announcing the decree.
The government, however, in the
plan presented to-day and approved
by the court, expressly stipulated that
should any illegal conditions arise
! from the exchange of stocks. either
under existing or future legislation or
future Interpretation by the courts of
present statutes. the government would
have the right freely to assail" the
arrangement.
Mr.. Todd. who left tonight for
Washington. and Mr.. Clarke and Mr..
Loomis. who left for New York and
Omaha. respectively. declined to discuss
the decree of the court
When the suit OF the government to
dissolve the Union Pacific Southern Pa
cine merger was filed in the Federal
circuit Court for the District of Utah
in 1905, the Circuit Court for the Eighth
District was composed of Judge Willis
Van Devanter, now on the supreme
bench: Walter II Sanborn, ST Paul,
and William G. Hook Leavenworth.
Elmer II. Adams, st. Louis was an
pointed an examiner TO take testimony.
Witnesses were examined in all parts
OF the United States. the evidence was
submitted 10 the Circuit Court and in
October 1910. the case was argued in
ST Paul
On June %, 1911. majority OF the
court decided that the case of the
government was not sustained but
Judge Hook filed a dissenting opinion.
holding that the member of the two
railway systems was a violation of the
| sherman antitrust law. The govern
mcnt appeals the case TO the Supreme
Court from the decision of the Cir
cult Court, and on December !. 1872
the Supreme Court handed down a de-
cree reversing the lower court, uphold
Ing in the main the dissenting opinion
OF Judge Hook and sending the case
back TO the Federal court for the Dis
trlct OF Utah for enforcement Of
the decree dissolvng the merger
Between the time OF the filing Of
the original suit ,Sid the decree of the
supreme Court. Congress had abolished
the Circuit Court and assigned their
jurisdiction to district courts providing
''he wv 'iiSuil JUICES VINO constitute
the Circuit Court, also should sit as
district judges. 1t is under this law
mat the circuit Judges in this case sat
as the District Court OF Utah.
Meet With Objections.
After the first tentative plan of dis
soiuuon was presented to the court
at st. Louis. February "a, 1913, a. num-
Der OF modes OF procedure providing
Tor untangling the merger were sug-
gested. but objections were raised
against each. The principal point upon
which the government and railroad
representatives were unable to agree
was the disposal OF Union Pacific hold
inGs OF Southern Pacific stock amount
ing TO S126,000O00.
On April 81, 1913, representatives of
the Union Pacific made application to
Judges Sanborn. Hook and Smith. at
81. Paul for an extension OF the time
within which to present plan of dis
solution. The Judges recommended to
the Supreme Court that such an ex-
tension be granted and shortly after
ward the Supreme Court placed as n
time limit July l. 1913.
On June IL. 1919. two dissolution
plans were presented at a hearing
In St Paul. Objections were made
to the plans in part, but out Of the
suggestion made then that Southern
Pacihc stock be traded for Pennsyl-
Vania holdings of the Baltimore and
Ohio came the plan agreed to to-day.
Reflects Attitude Toward "Trusts.n
Washington. June 30.-Scarcely had
publicity been given to the govern
ment- approved plan for dissolution of
the Union Pacific Southern Pacific
Railroad merger at ST. Paul to-day, be-
fore comment was heard upon it's re-
Election OF the attitude of Attorney
General McReynolds towards the
that the plan marked distinct de-
parture in the dissolution Of offending
corporations under the Sherman anti
trust law. Particularly was the plan
compared with the Standard Oil and
Tobacco dissolution DEGREES
Supporters of the administration
pointed out that the plan avoided the
mistakes of the former dissolution de-
crees in that 1t made it impossible for
the stockholders to exert the restraints
on trade forbidden to the corporation.
In the Standard Oil and Tobacco de-
crees, they said, the stockholders were
left free to hold stock in the rival cor
porations. which succeeded the parent
corporation, thus affecting n dissolu
ton only in name, and that what the
OFFENDING corporation did before the
decree the stockholders have been do
ing since the decree. 1t was declared
that the difficulty of the stockholders
acting in unison has not been sufft-
Gent to bring about competition
among the subsidiary companies.