Dewey County advocate. [volume] (Timber Lake, S.D.) 1910-1913, 1913-07-11
UPS. ?. MERGER IS
FINALLY DISSOLVED
HARTMAN COMBINE rs WIPED
OUT OF EXISTENCE BY DE-
CREE OF U. S. COURT.
WILSON APPROVES THE PLAN
Decision Handed Down in st. Paul
Ends Years of Litigation-Brief
Resume of the
Plan.

st. Paul, July 2.-Federal Judges
Walter H. Sanborn, William C. Hook
and Walter /. Smith, sitting as the
district court of the United States for
the district of Utah here, approved the
plans agreed upon by Attorney Gen.
eral McReynolds and attorneys for
the road and the famous Union Pa
cific-Southern Pacific merger, known
as the Great Hartman combine, prac-
tically came to an end.
The decree signed will become ef-
tective with its filing in the federal
court at Salt Lake City, Utah. which
probably will take place next Thurs
day.
With the handing down of the final
decree years of legation came to an
end, the first suit of the government
to dissolve the merger having been
filed at Salt Lake City in 1908.
Decision is a Surprise.
The decision came as a surprise.
There was a brief hearing at which
the government was represented by
G. Carroll Todd, special assistant to
the attorney general, and the road by
N. P. LOOMS aid H. W. Clarke. Then
the court took the case under advise
ment, number of times calling in the
respective attorneys to question them
further concerning the plan, but there
was no hint that decree would be
given.
Shortly before 4 o'clock, Judge San
born presiding, called in the respect
i've attorneys and announced that
the court had decided to enter a final
decree, approving the plan as present
ed by the attorney general and roads
counsel, with practically but one ex-
ception. This exception was the NAM
ing of Louis C. Krauthoff of New York
city, as commissioner of the court
to see to it that the letter and spirit
of tbs plan is carried out. The court
also directed him to seport to 1t from
time to time.
Approved BY President.
In brief, the splan which had the
approval of President Wilson, pre-
scented by the attorney general and
counsel of the road and approved by
the court provides that the Union Pa
cific shall exchange $38,000,000 of its
$126, 100000 holdings in the Southern
Pacific for the Pennsylvania roads en-
tire holdings in the Baltimore & Ohio
virtually an equal amount; that the
remaining $88,OOO,O00 shall be sold to
the general public through the Cen.
trail Trust company of New York;
that no present stockholders in the
Union Pacific, continuing as such, may
buy any of the Southern Pacific stock
SO sold; that the transaction should
begin Nov. /, 1918, and if not COM
plete by Jan. 1, 1916, the court should
direct the disposition of any Southern
Pacific stock remaining unsold.
In the decision the court disregard
ed the desire of the attorney general
that final decision be withheld for the
interposing of objections by interested
parties, to which portion of the at
torney generals plans Mr.. LOOMS
made objection at the hearing yes
terday as unfair to the road. The at
torney general also had asked in this
connection that there be publication
of the plan as in the American To-
bacco company case, calling the at
tention of interested parties that OBJ
lection might be made. but this also
was overruled by the handing down
of the decree by the court.
1--WE deem a decree of dissolution
more necessary at the present time
than any other action" said Judge
Sanborn, after announcing the decree.
Courts Special StipuIations.
The government, however, in the
plan presented and approved by the
court, expressly stipulates that should
any illegal conditions arise from the
exchange of stock either under exist
ing or future legislation or future in.
depreciation by the courts of present
statutes, the government would have
the right freely to assail" the ar.
rangement.