The Washington herald., 1913-07-01
court APPROVES
DISSOLUTION
Plan as O. KID by Attorney
General Receives judi
cial Appreciation.
PAPERS ARE SIGNED
Trust Company to Act as Custodian
of $4,000 Of Stock, Pending
Further Orders.

Special to The Washington Herald-
st. Paul. June 3o.-The plan of dissolu'
ton of the Union Pacihc-Southern Pa
cific merger agreed upon by President
Wilson. the Attorney General Of the
United States. and the attorneys for the
interested roads. was approved late TO-
day by Federal Judges Saborn. Hook,
and Smith, thus bringing to an end the
famous Hartman combination of trans
continental railroad lines.
The decree becomes effective when It Is
fled in the Federal court at Salt City.
Utah. which is expected to take place
Wednesday or Thursday OF this week.
The plan was filed this morning, and
the announcement OF the court late to-
day that 1t would enter a final decree
at once came as a surprise to the law
yers here, who had not expected such
action for several days.
After announcing that 1t had entered
the decree approving the plan as pre-
sented, the court named Louis c. Kraut-
hon. OF New York, as a commissioner
OF the Federal Court to see that the let
ter and spirit of the plan be carried out.
Mr.. Krauthoff was directed by the court
to report TO IL from time to time.
Provision is made for the exchange or
100000 of the litigated Southern Pa
cific stock for si2.0Oocoo of the Pennsyl-
vania's holdings in the Baltimore and
Ohio. The Attorney. General approves
this. part of the plan on the condition
that the court specify that acceptance Of
II by the Department OF Justice shall not
prejudice any action against any of the
parties to the exchange for illegal condi-
TONS. not now expected. which may ap-
pear in the future as the result of the
transaction. Mr.. McReynolds also de-
mands that Congress shall not be pre-
vented from enacting legislation affecting
tie combinations which will result from
the exchange on the plea that the United
States has entered into an adjudication
by accepting the proposey decree.
1t is provided that the remaining $751;
10000 shall de disposed of under the truss
teeship plan.
Summary of Plan.
The Attorney General suggests that be-
fore approving the plan submitted. the
court direct that 1t be published and that
opportunity be given the Department of
Justice or other interested parties to
present to the court any objections which
may be regarded as worthy of consider
alton. Here is the summary Of the dis
solution plan given out by the Depart
ment of Justice:
Il They withdraw the plans hereto
fore proposed. These had been objected
to by the Attorney General
90 They ask permission to sell SO. &c.
900 Of such Southern Pacific stock to the
Pennsylvania Railroad Company and to
accept in exchange s42574.e 200 Baltimore
and Ohio Railroad stock. this being all
of such stock owned by the Pennsylvania
Railroad Company or any of its SUBJ
salaries.
a. A trust company shall be appointed
to receive and hold, as custodian and
depositary Of the court, and subject to
its further orders and DEGREES, the re-
naming SIS, 10000 of said Southern Pa
cific stock which petitioners will then
hold. and that they must also assign
to the trustee the unpaid dividends there
on. commencing with the .one due April
l. 1913. This stock will be registered in
the name OF the trustee. but cannot be
voted except by direction OF the court.
"a. Prior to November 1. 1873 the petit
TONERS shall offer pro rata to all stock
holders Of the Union Pacific Company
the right to subscribe to certificates Of
interest, to be issued by the trustee. rep
resenting the Southern Pacific shares
to II, together with any ac-
cumulated dividends thereon, at price
which they shall specify payable SIS per
share at the time or subscription. re-
mainder within year. with per cent
interest. Negotiable receipts shall be
given for part payments. Neither the
petitioners nor any one acting for them
shall acquire any of such certificates;
but, II necessary. IN underwriting syn
dictate may be formed 20 take any not
for BY the stockholders
"5 The trustee shall execute and Is
sue negotisble certificates, according to-
: prescribed form rspresenting TIE