Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-06-28
Unless Terms Are Agreed
Upon by July l. Road Must
Go Into Hands of Receiver
for Final Adjustment,
ADMINISTRATION MAY
FIND A WAY OUT
Attorney General Now Turns
Whole Matter Over 10 Chief
Executive Of Nation to De-
fine Governments Position

fay MORNING JOURNAL SPECIAL tFAsro wiRti
Washington. June 21.-president
Wilson brushed aside late today all
plans for weeks trip 10 Cornish. y.
1.-THE summer capitol-to examine
Immediately the tentative agreement
reached between Attorney General
McReynolds and the railroad attor-
ncys for the dissolution of the Union
Pacific merger 10 prevent II possible,
the appointment of receiver. Tn
less a method Of dismcmbering the
Union Pacific and Southern Pacific.
satisfactory to the judges of the Uni-
ted States court for the eighth cir
cult, is submitted by July /, the Unit
ed States supreme court has ordered
the dissolution Of the merger by gov
ernmcnt receivorship.
4 supreme effort is being made boy
the president and attorney general to
prevent this drastic alternative by an
agreement on a plan meeting the de-
mands Of the Sherman antitrust law
and the mandate of the supreme
court. Officials freely predicted to-
night that the government and the
railroad would present an agreeable
plan to the court within the time linz
il. although II was stated tbe govern
mcnts approval in all fprobabllity
would be qualified. In submitting the
plan to the court, Il is proposed 20 ask
the judges TO give limited time before
entering a final decree within which
objections displayed in the llsht of
further study of the propositions may
be filed BY the government or any of
the other parties Interested Il Is
understood that the agreement will
incorporate as one step in the disso-
luton, the previously proposed plan
for transferring S3S000. 600 Of South
ern Pacific stock held by the Union
Pacific to the Pennsylvania railroad
in exchange for the latter's holdings
Of Baltimore and Ohio The remain
ing SSS,000.000 Of the total St2G, G,O0O.-
600 Of Southern Pacific, owned by the
Union Pacific, 1t is said, will be plac-
ed in the hands of a trust company 20
be sold within a definite period of
time and in such manner to insure
that no substantial proportion Of the
stock will be sold to the shareholders
Of the Union Pacific Attorney Gen
cral McReynolds objected to the trus-
teeship previously proposed by the
railroad to the federal court at ST.
Paul, on the ground that ii was too
vague and did not guarantee that the
Union Pacific would surrender its
ownership of Southern Pacific within
"a reasonable time These objections
have been overcome by a more defin-
tie outline of plan for the disposi-
ton Of the stock.
The exchange OF stock between the
Union Pacific and PENNSYLVANIA will
result. according to estimates in Civ
ing the Union Pacific with its pres
ent holdings in the Baltimore and
Ohio, 3S.S per cent of the outstanding
stock of that company and in giving
the PENNSYLVANIA IA per cent of the
stock Of the Southern Pacific. So
important was the situation regarded
that the proposed plan of dissolution
was considered at the cabinet meeting
today.
Paul Cravath. counsel for the Un-
ion Pacific, held a long conference
with the attorney general this after
noon, and although he had planned to
return to New York tonight. he de-
cided after todays developments to
remain here until the question is set
tied.