El Paso herald. (El Paso, Tex.) 1901-1931, 1913-06-12
MERGERPLAN5
NOW INCLUDE
STOCK TRADE
United States Court With
holds Decision on the S. P.
and U. P. Dissolution.
S. P. MUST SURRENDER
THE CENTRAL PACIFIC

HT PAUL, Mimi, June 12.-UniOn Pa
cific railroad attorneys appeared
before United States circuit judges
Sanbcrn. Hook and Smith today and
explained additional plans for dispOs-
ing of the roads holdings Of Southern
Pacific stock. Attorney general Nc
Reynolds on behalf OF the government,
those plans, which ne said were no
plans at all. but were merely PROPOSE
lions Of something they intended to try
No Decision Announced.
The court adjourned without an
nOuncing any decision / residing JudEe
SanbOrn indicated that no order might
be expected until the attorney general
had decided whether the government
would object to a proposed exchange
of part of the holdings IF Southern
Pacific stock for Baltimore & Ohio
stock held by the Pennsylvania rail-
road.
The new plan proposed was supple
mental to the two plans recently SUP
mitted. The amount OF stock involved
in the exchange represents only "a per
cent Of the total Southern Pacific stock
c-fic in Southern Pacific common stocks
represent about S126 OOO 600
No Guarantee on Plans.
y. Il. LOOMS, CT counsel for the Union
the court He said that the Union IA
Cific diu not guarantee 10 carry OUT
either OF the Two principal plt-llS p- u
posed. even though the court approved
both Of them. If it should be tOun1
that to follow either would involve lCO
great a sacrifice 10 the Union PaclItc
stock holders, the disposition OF the
stocks would be left to the court.
How long a time do you think the
Union Pacific should be given TO as
pose Of the stocks2" inquired judge
4 think the court should be liberal
with US in the matter OF tune because
OF the present condition Of the money
market replied MI LOOMS ne
thought the railroad should have one
year in which to offer the stock and
complete the disposition OF It.
Must Give Up Central Pacific.
Attorney general MCReynOldS, IN OF
posing the plans proposed by the Union
Facific, said that he regretted that the
railroads had been unable 10 erect 2
deal whereby the Union Pacific would
acquire the Central Pacific. operating
from ogden to San Francisco, IN eN-
change for its Southern racine STOCK
He declared that this failure Woulh
compel the government to institute an
expensive litigation to compel the
Southern Pacific TO relnqulsh us holu
over the Central Pacific.
Stay Not Oppose Trade.
Mr.. McReynOlds thought the govern
ment would not object TO the propcseu
change but he wanted to investigate
the holdings Of the various roads be
fore making any definite statement
He said he probably could inform the
court within three or four days
The time has come for the court 10
order something done said the at
tornev general The Union Paclilc
does not guarantee to carry out either
of the two socalled plans now before
the court; il asks a year to try 10 &C
cOmplish one plan, provided mar Aet
conditions will permit such action
without loss to stockholders
The railroad counsel could dispose
of the stocks at the present STOCK
conditions. If loss is incurred it viii
to dispose of the stock within reason
able time Approval Of either propos;-
ton submitted probably would find the
situation just as it is now at the end
Of the year
Judge SanbOrn asked the attorney
general what action he thought the
said the court should either appoint
a receiver to dispose Of the stock or
should itself devise some means u
dispOsing of it
The primary plan provided for lhs
sale Of the stock by popular subscrlp-
ton similar to city bonds, while the
alternate plan provided for placing
and the issuance Of certificates OF IN
terest against It These ceruIlcaLeS
would be exchangeabIe only on the III
ing of an affidavit that the holoer
did not own any Union Pacific STOCK
Judge LOvett. chairman Of the DOal a..
explained to the court that IL would
be impossible TO carry out the Irst
plan at the present time owing 10
market conditions all over the Worlu,
but he thought the second plan couia
be consummated in a much shorter
time.