Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-20
j, P.-S.P. DECREE
HEAVY BLOW To
STOCKHOLDERS
Action of Government in Rail-
road Dissolution Case HaSty
and Unfair, Says Expert.
BY THOMAS c. sHorwELL.


Segregation Of Union Pacific and South
ern Pacific that is now being carried on
IS open 20 severe criticism. For twenty
wears the Sherman antitrust law was a
dead letter. Pol tlcians found il profita-
Bile to let Il lie unenforced, and business
men, who In the main are the only really
honest portion Of the public, came to be-
IIeve that they were not really violating
the law Their belief Is Justified now be-
cause even the lawyers, who arrogate to
themselves all Of the worlds wisdom,
can not agree as 70 what the law means.
In the American Tobacco and Standard
Oh cases the government tr ed to make
The courts repeal the law Of supply and
demand and to compel competition by
nersons who do not want to compete.
Anuered at the failure Of this attempt
as Illustrated In those two cases, the poll
tIcIans are now taking revenge on the
pubIIc by slaughtering the Union Pacific
and Southern Pacific stockholders. As
IN. Union Pacific stockholders furnished
the money to buy Southern Pacific stock
Justice demands that the Southern Pa
cifc stock be handed out TO them without
any more formaIIty. The government
however, will not consent to this, be-
cause that is what was done in the To-
baoco and Standard Oil cases. Some new
way must, therefore, be invented. II
has taken the form Of compelling the i'm
mediate sale Of Southern Pacific stock.
It is impossible that 1926 900, 600 of
stock should be sold at a fair price on
ninety days notice. The state Of New
York allowed several years for the In
surance companies to dispose of the
stocks that they were adludged to hold
improperly and the stocks have not even
vet been sold. To force Union Pac fic 70
throw its St26 900 600 of Southern Pacific
stock on the market at such short notice
looks something like confscatIon on the
mart Of the government. At the very
least two years should be allowed.
This forced sale, II actually consum-
mated, Will prove disastrous not only to
Union Pacific and Southern Pacific, but to
the whole body Of stockholders, for the
entire market will be depressed In sym
pathy. Not only will the mere sinking
Of quotations cause apprehension, but the
FriohtfuI Injustice of the act will impair
confidence Of the entire civilized world
In the honor Of the American govern
ment. No American corporation can go
after that to the investors Of Europe and
ask for their money for any American
enterprise.
Until this affair is Strengthened out, il
is idle 70 discuss values Of stocks, for
while everybody knows them to be selling
far under their true value, nobody cares
70 purchase outlawed securities. The
uneaslness now felt by the high financiers
will, in a few months, be causing every
little merchant and business man in the
country to trembIe for the savings that
he has accumulated after years of hard
work.
The Union Pacific owns 1850, 900 shares
Of Southern Pacific stock. Every point
decline means a loss Of 81 ,26o 900 to Union
Pacific stockholders. 1t has already lost
fully 10 points on account Of the peculiar
actions of the politicians since this segre-
cation has been ordered. SO that Union
Pacific has already lost more than S12,-
OOO 900.