The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-03-17
HEAVY LOSSES ARE
Being INFLICTED
Union Pacific Stockholders
Already Have Suffered to
Extent of 100000.
is GOVERNMENT HONESTY
Doing Something for Which
Stock Exchange Would Be
Called to Account.
is GOVERNMENT HONESTY
nN rHoMAs c. sMorwELL.

New York. March 16.--Scgregation
of Union and Southern Pacific is now
being carried on For twenty years
the Sherman antitrust law was dead
letter. Politicians found 1T profttabie
10 let II lie unenforced. and business
mon came TO believe that they were
not really violating the law. Their
belief is justified now because even
tho lawyers, who arroGate to them
selves all of the worlds wisdom, can
not agree as 10 what the law means
In the American Tobacco and stand
ard Oil cases the government tried
to make the courts repeal the law OF
supply and demand and to compel COM
petition by persons who do not want
to compete. Angered ut the failure
of this attempt as illustrated In those
two cases. the politicians are now tax
Ing revenge on the public by slaugh-
trrinc the Union Pacific and Southern
Pacific stockholders. AS tho Union
Pacific stockholders furnished the
money to buy Southern Pacific stock,
Justice demands that the Southern
Pacific stock be handed out TO them
without any more formality, The
government. however. will not con
sent TO this. because that Is what was
done in tho Tobacco and Standard OH
eases Some new way must. there
fore he invented.
1t is Impossible that s126.ooO,OOo OF
stock should be sold at fair price
on ninety days notice. The State OF
New York allowed several years for
the insurance companies TO dispose OF
Tho stocks that they were adjudged
TO hold improperly
To force Union Pacific to throw its
Slc6.O0o,o0o Of Southern Pacific stock
on the market at such short notice
looks something like conhscauon on
the part of the government Al the
very least two years should be al
lowed.
This forced sale. il actually con-
summated Will prove disastrous not
only to Union and Southern Pacific,
but to the whole body OF stockholders,
for the entire market will be depressed
in sympathy. Not only Will the nero
sinking OF quotations cause apprehcn-
sion, but the fri.htful injustice of the
act will impair confidence of the en-
tire civilized world in the honor Of
the American government. No Amer
lean corporation can go after that TO
the investors OF Europe and ask for
their money for any American enter
prise.
Until this affair is straishtcned out
il is idle to discuss values OF stocks,
for while everybody knows them to be
selling far under their true value. no.
body cares to purchase outlawed Sc
curities II will be but short time
before little business is outlawcd The
uneasiness now felt by the high finan-
riera will in few months be causing
every little merchant and business man
in thc country to ,remble for the saw
ings that he has accumulated after
Years or hard work
The Union Pacific owns 100000
shares ~ Southern Pacific stock.
Every point decline means loss Of
81 ESQ 600 10 Union Pacific stockhold
IS II has already lost fully ten
points on account OF the peculiar ac-
tons OF the politicians since this Sc
rrcgation has been ordered. so that
Union Pacific has already lost more
man $1,000. GOO. If q New York stock
Exchange house We're TO defraud It Gus
toner out OF half a point on ten shares
al stock the state Legislature would
he in an uproar about it. but Union
Pacific stockholders can he deprived
or si2.o0O.o0O apparently to the COM
pletc satisfaction OF the politicians
II may he that reforms are really
.eeGed in Wall street, but how can a
government that acts thus demand re-
forms? How can a public that APP
plauds the destruction OF property by
the millions demand that anybody.
however culpa BILE. b. reformed? May
TIC the public is honest Maybe the
politicians are honest Everybody be
iieVes the courts 1re honest, And vet
the pecpfe the. politicians and the
courts. in tneir handling of the Cn,pn
Southern Pacific segregation
ere INJECTING most serious losses upon
investors.