The Birmingham age-herald., 1913-07-01
Decree to Become Effective
With Filing in the
Federal Court
This Week
DECISION COMES
AS BIG SURPRISE
TO BOTH SIDES
Was Not Thought That Decree
Would Be Handed Out Immedi-
ately-Mr. McReynold's De-
sire for Delay Dis
regarded

ST. Paul. June 3o.--TedcraI Judges
Walter II. sanborn, William G. Hook
md Walter G. smith, sitting as the
district court OF the United states for
the district of Utah. approved late to-
day plans agreed upon by the Attorney
General and attorneys for the Union
Pacific railroad and the Union Pacldc-
Southern Pacific merger, known ms the
mn end.
The decree signed today will become
effective with it's fling in the federal
court at Salt Lake city which probably
Thursday.
With the handing down of the final
decree years of litigation came to an
| end the first suit of the government TO
dissolve the merger having been filed
at salt Lake city in 1908
The decision today came as a sur
prise. There was a brief hearing this
morning at which the government as
represented by G. Carroll Todd, special
assistant to the Attorney General and
the road by N. H. I.oomis and II. W.
| Clarke. The court then took the case
under advisement. A number of times
the judges called in attorneys for both
sides to question them further, but
there was no hint that a decree would
be given today.
Exception Named
shortly before 4 o'clock Judge San
born, presidine. announced that LA
fsoai't had deoIded 10 enter "A iinai &
cree approving the plan with only ofs.a
important exception This exception
was the naming of Louis c. Krauthoff
| of New York city as a commissioner of
the court to see to it that the letter
and spirit of the plans be carried out.
The court also directed him to report
to II from time to time
In brief the plan, which has the APP
prevail of President Wilson, provides
that the Union Pacific shall exchange
| $3S, 100000 of its $126,OO0,00O holdings
| in the Southern Pacific for the Pennsyl-
vania railroad g holdings in the Balti-
nlore and Ohio. virtually an equal
amount, that the remaining $ss, 900, 900
shall be sold to the general public
| through the Central Trust company
of New York that no present stock
| holders in the Union Pacific continuing
as such, may buy any of the Southern
Pacific stock so sold that the transac-
| tion should begin November l, 1918,
and If not complete by January /. 1916,
the court should direct the disposition
of any Southern Pacific stock remain
| ing unsold.
McReynOld's Desire Disregarded
BY the decision today the court dis
regarded the desire of the Attorney
General that final decision be withheld
for the interposing of objections by in
terested parties. to which portion OF
the Attorney General plan Mr. Looms
made objection at the hearing today
as unfair to the road The Attorney
General also had asked in this connec-
ton that there be publication of the
plan as in the American Tobacco com
pany case, calling the attention of in
terested parties that objection ght be
made, but this also was ovcrruied by
the handing down of the decree by the
court.
I'VE deem a decree or dissolution more
nee essary at the present time than any
other action" said Judge Sanborn after
announcing the decree.
The government. however. in the plan
presented today and approved by the
court expressly stipulated that should any
Illegal conditions arise from the exchange
of stock, either under existing or future
legislation or future Interpretation by the
courts of present statutes the govern
ment would have the right freely to
| assail' the arrangement.
In presenting the plan to the court to-
day. Mr. Loomis said:
This is the third and amended plan
for dissolution and Is offered as a sub
stitute for previous plans. II differs from
the others in the provision for the sale
of sSSO0O,00O worth of stock through a
trustee under direction of the court 1t
also provides speedier method of Sc
curing the certificates of stock. The
previous plans contemplated the compile
tion of the dissolution in five years. BY
throwing restrictions about the use of tho
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