New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-14
HARTMAN RAILROAD
MERGER BREAKING Up
Directors Not Connected with
u. P. Are Put on Southern
Pacific Board.
JUDGE LOVETT RESIGNS
No Longer the Chief Executive
Head of Southern Pacific
julius Krutschnitt Sue
ceeds Him.

The first real step in the dissolution Of
the Union and Southern Pacific railroad
merger took place yesterday. when the
directors met and made important
changes to conform TO the recent mandate
Of the United States Supreme Court
, Eight directors OF the Union Pacific, who
held similar positions on the Southern
Pacific board. resigned to allow the cleo
tion Of members not identified with Union
Pacific interests. Among this number
were Judge Robert S. Lovett. chairman
Of the executive committee OF both the
Union and Southern Pacific; Otto H.
Kahn, Mortimer l.. Schlff OF Kuhn, Loeb
4 Co. Robert W. Goelct Charles A. Pea
body. president Of the Mutual Life Insur-
ance Company: Frank \. Vandcrlp, pres
ident Of the National City Bank; l.. j..
Spence. temporary, and Marvin TIughitt,
chairman of the board OF directors Of the
Chicago & Northwestern Railway Com
pauy.
TO succeed these the directors elected
James y. Jarvie, T.. i. Swenson. j. y.
Wallace. president of the Central Trust
Company: Clarence II. Kelsey president
of the Title Guarantee and Trust Com
pany. J. Horace Harding. OF Charles ID.
Barney & Co: WaltcrP. Bliss. George II.
Leighton and Cornelius y. Bliss
Judge Bovett also resigned as chairman
of the Southern Pacific executive com
mittec. his place being filled by the cleo
ton OF julius Krutschnitt. otto IL. Kahn
Mortimer l.. Schff and Frank \. Wander
lip also resigned as members OF the
Southern Pacific executive committee the
vacancies being filed 10y Robert W. Goe-
let James y Wallace and l.. +. SVEN
sen. The Southern Pacific protective com
uittea. formed soon after the dissolution
decree was announced, rs represented on
the board of directors by James y. wal
lace and J. Horace Harding. ana on the
new executive committee by Mr.. wallace.
I'm scycr,nS his connection with the
Union Pacific Julius Krutschuiu also re-
signed from the boards OF the oregon
Snort Line and tho oregon Washington
Railroad and Navigation Company HIS
successor. however, has not yet pc'h
chosen. Il is believed that Mr.. krut-
schritt later VIII be made president or
tho Southern Pacific 10 succeed Judge
Iovctt.
Alexander Miller resigned as secretary
~ the Southern Pacific company. Ihis
vacancy has not yet been filled, but 1t Is
likely that Joseph II. HELEN assistant
secretary. Will bee elected To that posi-
,ior M announcement was made after
Yesterdays meeting regarding the exact
,,turc of the dissolution plan, IL being
stated that this matter had not yet
reached a stage where any definite state
mont could be made. There Is hardly any
douht however. that the Union Pacilc
will exchange a part OF its Southern Pa
riac stock for the shares Of the Central
Pacific. but what Wal Street is scratch
ipe, IT'S head over IS the manner In which
this is to Ice done 10 satisfy the At'or-
ncy General
According 10 ono apparently well
founded report circulated I'm wall street
late YESTERDAY afternoon, II has pracu-
callv been decided by the Union ana
Southern Pacific boards that the South
crn shall sell It's Central Pacihc STOCK
including the $4,000 preferred ana Vt
VI, a,1 common II was suggested that 10
hiring about this transaction syndicate
may Ne formed 10 purchase tho stock as
II is realized that a better price could be
oLtaiu.d for the issue through this me-
dunn than would bc possible otherwise.
Very pertinent TO the matter In hand IS
tb. added statement that the ATTORNEY
General is I'm accord with this method OF
dissolution. though he does not FAVOR the
nIau for the Distribution Of the remainder
OF the Sla}.Goo,co0 Southern Paclhc s'ocN
aiming Union Pacific shareholders.
There are others, however. VINO sun
hold in the belief that Union Pacinc
stockholders finally will be allowed 10
sbor. IN the distribution Of Southern Pa
ci0c stock over and above the purchase
rrico Of the Central Pacific. Should thls
No tho case. the amount to be distributor
Ia. Zen estimated at 100000, and II
10 also believed that Il will 20 10 the
T-nior Pacific stockholders at about the
,ycrap. cost price OF So a share equlNa-
Ion, 20 rights" Of about 5000 per snare
90 bolaers Of Union Pacific Railroad COM
man stock subject TO market fluctuations
of IN. southern Pacific Company stock
and In an increase In the outstanding
amount OF Union Pacific common stock
due 10 the conversion Of convertible
bonds.