The Birmingham age-herald., 1913-06-28
WILSON TO EXAMINE
RAILROAD MERGER
Defers Trip to Cornish to
Consider Dissolution
Agreement

Washington, June 27.-President Wilson
late today brushed aside all plans for
a weeks trip to Cornish, N H., the sum-
mer capitol, to examine Immediately the
tentative agreement reached between At
torney General McReynolds and the rail-
road attorneys for the dissolution of the
Union Pacific merger in order to prevent
II possible the railroad combination from
being thrown into the hands of a re-
eeiyer. Unless a method of dismember-
ing the Union Pacific and Southern Pa
cific satisfactory to the judges of the
United States court for the eighth cir
cult is submitted by July /, the United
States supreme court has ordered the
dissolution of the merger by government
receivership.
Make Supreme Effort
A supreme effort is being made by the
President and the Attorney General to
prevent this drastic alternative by an
agreement on a plan adequate to meet
the demands of the Sherman antitrust
law and the mandate of the supreme
court Officials tonight freely predicted
would present an agreed plan to the court
within the time limit, although it was
stated that the governments approval in
all probability would be qualified In
submitting the plan to the court, it is
proposed to ask the judges to give a
| limited time before entering a final de-
| cree within which objections DISPLAYED
in the light of further study of the prop
ositions may be filed by the government
or any of the other parties interested.
1t is understood that the agreement
VIII incorporate, as one step In the dis
solution, the previously proposed plan for
transferring $4,000, 900 of Southern Pacific
stock held by the Union Pacific to the
Pennsylvania railroad i'm exchange for the
latter's holdings of Baltimore and Ohio.
The remaining $SS, ,000. 900 of the total S12A-
100000 of Southern Pacific owned by the
Union Pacific, it is said, will be placed in
the hands of "A trust company to be sold
within a definite period of time and in
such manner as to insure that no sub
stantial proportion of the stock will be
sold TO shareholders of the Union Pacific
Attorney General McReynolds objected
TO the trusteeship previously proposed by
the railroad to the federal court at 81.
Paul on the ground that 1t was too vague
and did not guarantee that the Union Pa
cific would surrender it's ownership of
Southern Pacific within reasonable time.
These objections have been overcome by
a more definite outline for the disposition
of the stock.
Estimated Result
The exchange of stock between the
Union Pacific and Pennsylvania will re-
suit, according to estimates, in giving
the Union Pacific. with its present hold
ings In the Baltimore and Ohio, 49, pei
cent of the outstanding stock of that com
pany and in giving the Pennsylvania IA
per cent of the stock of the Southern
Pacific.
So important was the situation regard
ed that the proposed plan of dissolution
was considered at the cabinet meeting
today. The President had planned to
leave the city at 5:S5 p. M. but after
studying the intricate question all after
noon decided that it would be inexpedient
for him to take the plan away with him
for examination the train to New
Hampshire. as he had proposed, but that
he should remain In Washington for fur
| ther conferences with the Attorney Gen
| eral.
| Paul d. Cravath. counsel for the Union
| Pacific held "A long conference with the
Attorney General this afternoon and al
| though he had planned to return TO New
| York tonight decided after today's de-
| velopments to remain until the question
| is settled
| The President suspended consideration
| >-------~>--~------~-------