Las Vegas optic. (East Las Vegas, N.M.) 1908-1921, 1913-06-30
PRESIDENT WILSON APPROVES
JANUARY /, 1916, TIME ALLOWED
FOR THE COMPLETE DIsso-
LUTON OF MERGER
ROAD OBJECTS TO PUBLICITY
GOVERNMENT ADVISES PLAN BE
MADE PUBLIC SO PEOPLE
MAY KNOW

4 St Paul, Mimi, June 9O.-The plan
for dissolving the Union Pacific
Southern Pacific merger which At
torney General McReynolds with the
approval Of President Wilson has
agreed upon with officials Of the
railway, was presented here to1ay to
Judges w. II. Sanborn, W'iiam G,
Hook and Walter |. Smith, sirting as
district court Of the united states
for the district of Utah and was
taken under adVisement
G. Carroll Todd, special assistant
to the attorney general. repa esented
the government at the hearing and
n. H. Loomis and H. w. Clarke, the
road, The court took the plan and
suggestions made at the hearing un-
der advisement
The plan presented today allows
until January 1, 1916, for the com
piete dissolution Of the combination
adiudged Illegal by the supreme court.
All previous plans are superseded
by this latest one, which proposed
that The Union Pacific shall exchange
SIS. 100000 Of its $126,0O0.O00 hold
ins in the Southern Pacific for the
Pennsylvania railroads entire hold
ings in the Baltimore . Ohio vfr-
tually an equal amount and that the
remaining sS8,OOO.OOO shall be sold
to the general public through trust
company.
Mr.. Loomis for the road objected
to the suggestion as made by Mr.. Nc
Reynolds that the court direct that
the plan be published, that all who
may be interested, whHher parties
to the cause or not. be given oppor-
tunity to present any objections
which they regard as worthy OF con-
sideration. He also presented to the
court the name Of the central trust
company of new York to act as trus-
tee in the sale to the public Of the
sS8, ,0O0,0 of Southern Pacific stock
held by the Union Pacific. In OBJ
jecting to the publication OF the plan
as suggested by the attorney general
Mr.. Loomis maintained that it would
only cause further delay which would
be unfair to the road Mr. Todd de-
clared that in the opinion Of the at
torney general publication Of the plan
as in the case Of the American To
baceo company would be advisable
in order that any objections might be
presented to the court by interested
parties
No present stockholders in the
Union Pacific continuing as such
might buy shares Of the Southern
Pacific stock SO sold and each pur-
chaser would be obliged to make af
fidavit that he was not acting in con
cert or agreement with any one else
guying Southern Pacific to secure a
new control for the Union Pacific.
Their transaction would begin on
November /. 1918. and If not com
plete by January /. 1916, the court
would direct the disposition Of any
Southern Pacific stock remaining I'M
taken.
Attorney General McReynolds's
statement to the court framed after
a cabinet discussion and conference
with President Wilson. comments on
the exchange Of Pennsylvania and
Baltimore & Ohio stock ana points
out that at present no federal law
forbids one railroad company sr0ri
owring stock in ano.qef non-eom-
pefitiye line. but that ~ interpresa
tion by the courts s c.fferent near
ms may hereafter be gwen to pfes-
ent statutes or rev legislation Gov
ering that point, may be enacted,
On the other hand. the president
and his advisers feel that there IS
apparently no objection now 70 the
proposal OF the railroads under what