New-York tribune., 1913-06-18
Head of Road Declares Some
Interests Are Trying to
Prevent Approval Of Dis
solution Scheme.
LOBBYISTS" OFFERED AID
Promised to Secure Desired
Legislation if Union Pacific
Would Employ Certain
Lawyers, Says
Judge.

Charging a conspiracy by certain in
terests TO prevent the approval Of a
plan for the dissolution Of the Har-i-
man lines as we'll as a desire TO create
false impression with the public.
Judge Lovett. chairman Of the Union
tcrday the various rumors which have
been circulated recently that pow wcrful
Wall Street bankers were cndeavoring
TO obtain control OF the Pennsylvania
Railroad and the Baltimore & ohio
were preposterous and absolutely with
out foundat p.
Judge Lovett said that on each occa-
sion when "A dissolution plan had been
presented to lie proper authorities tor
their approval he had been approached
bv individuals who aycrred that II the
Union Pacific would employ certain
lawyers TO h. udle the legal end OF the
transaction they would be able TO eet
legislation at Washington which they
maintained the railroad would be un-
able 20 secure.
They also asserted that their inhu-
cnce at the Capitol was 50 great that
a satisfactory divorce Of the Union and
s uthcrn Pacific companies could cas-
ily be brought about.
Refused TO Negotiate with Them.
The head Of the Union Pacific stated
he had refused absolutely to negotiate
with any of these persons and did not
believe they could procure the results
they professed 10 be able to bring
about.
The sole purpose OF Union Pacihc's
making the trade Of Southern Pac!hc
stock for the Baltimore q ohio STOCK
owned by the Pennsylvania" cont!n-
ued Judge Lovett. was 10 dispose or
S3S. 10000 Of stock which Is practi-
cally in the custody Of the court We
cannot either sell II or vote 1t or give
II away: nor can We get dividends
(. ON it,
There il no desire to control the
Baltimore & Ohio, as we have no other
trunk line in the East, although we
have traffic connection with many
companies tapping Eastern territory.
The control g the Baltimore y Ohi)
NAV result from this purchase event
ualIv. as the deal gives us. with stock
already owned. about 3S per cent OF
the roads stock.
"The Pennsylvania, on the other
hand. which now holds 20 per cent OF
the Baltimore a. Ohio's capital, is anX-
ious 10 dispose of its holdings. as there
has been more or less criticism or us
holding stock in a company when IN
some ways is competing line.
THE offer which has been made TO
the Pennsylvania affords 1t an oppor-
tunity Of disposing Of its Baltimore
Ohio stock for stock with substantially
the came amount of income. This pro-
nosed arrangement gives the Pennsyl-
yania an opportunity 10 market us
$40 600 900 Of Baltimore Ohio STOCK.
,hiIe at the same time II affords
channel for the disposition Of S3S.VD,-
OOO of Southern Pacific stock, render
ing Il unnecessary to place either OK
the stocks on a .arket, which is not IN
a very receptive mood.
sob.n,e to Create False Impression.
THE Pennsylvania Railroad is not
tod up with any banking house, as IT
has over 1881. $3.50 shares Of capital
stock. including reserve for convertible
bonds and over 100000 stockholders
scattered all over the world. NO sim
gle banking house could control it, AMI
anv report that Kuhn. Loeb & Co. is
seeking 10 do so is absurd. l cannot
ir,agine anything more preposterous.
and believe that it is a deep lald
scheme TO create a false impression
with the public"
Judge Lovett also categorically de-
Continued on .eco-d page, fourth column.