Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1913-06-12
A new Plan FOR
pISPOSING OF
THE STOCK
S3s,OOO,ooo WORTH OF STOCK OF
SOUTHERN PACIFIC TO Be DIS
POSED OF TO the PENNSYLvA.
MA RAILROAD.
LIBERAL TREATMENT
NEEDED, SAY LAWYERS

st. Paul, Mimi, June 12.--Attorneys
for the Union Pacic presented at the
opening of the dissolution hearing
today new plan for the disposition ol
$3S,00O,000 worth of Southern Paclflt
stock to the Pennsylvania railroad IN
exchange for $21, 100000 worth OF Bal
timore & Ohio stock.
Union Pacific railroad attorneys ap
peared before United States Circuit
Judges Sanborn, Hook and Smith TO-
day and explained additional plans
for disposing of the roads holdings OF
Southern Pacific stock. Attorney Gen
eral McReynolds, on behalf OF the gov
eminent, expressed unalterable oppo
sition to those plans which he said
were mo plans at all but were merely
propositions of something they intend
ed to try to do
The court adjourned without an
nouncing any decision. Presiding
Judge Canborn indicated that no or
der might be expected until the attor-
ley general had decided whether the
government would object to propos-
&c exchange of part OF the holdings OF
Southern Pacific stock for Baltimore
e. Ohio and this stock held by the
Pennsylvania railroad.
The new plan proposed was supple
mented to the two plans recently sub
mitted. The amount of stock involved
in the exchange represents only la
per cent of the total Southern Pacific
stock. The present holdings of the
Union Pacific in Southern Pacific COM
lnon represents about $126,000.
n. H. Loomis, of counsel for the
Union Pacific, explained the propos1-
tions to the court He said that the
Union Pacific did not guarantee 70
carry out either of the two principal
plans proposed even though the court
approved both of them. If it should
be found that to follow either OF them
would involve too great sacrltlce TO
tie Union Pacific stockholders, the
disposition OF the stocks would be left
10 the court.
"How long a time do you think the
Union Pacific should be given to dis
rose of the stock?' inquired Judge
Smith.
81 think the court should be liberal
with us in the matter of time because
of the present condition of the money
market" replied Mr.. Loomis. He
thought the railroad should have one
year in which to offer the stock ana
complete the disposition OF It,
Attorney General McReynolds, IN
opposing the plans proposed by the
Union Pacific, said that he regretted
that the railroads had been unable TO
effect a deal whereby the Union Pa
cific would acquire the Central Paclhc,
operating from Ogden to San Fran
cisco, in exchange for it's Southern IA
cific stock. He declared that this fail
ure would compel the government to
institute an expensive litigation 10
compel the Southern Pacific to relin-
uuish it's hold over the Central Pacific.
Philadelphia. Pa, June 12.--Pennsyl-
vania railroad officials confirmed the
statement that an arrangement had
been entered into for the exchange OF
the company's holdings Of Baltimore
4, Ohio railroad stock for $3S,0O0,O0O
worth of the Southern Pacific stock
owned by the Union Pacific. 1t was
stated that the exchange, If approved
by the court, would be made on the
basis of the relative market value of
Baltimore & Ohio and Southern Pacific
stock.
1t was stated that the Pennsylvania
had no interest whatever In the man
agement of the Southern Pacific and
that the arrangement is purely busi-
ness one, designed to prevent the
throwing on the market of such an
immense block of Southern Pacific
stock.
In financial circles the deal is look
ed on as REIMBURSEMENT Dy the
Pennsylvania of all the interest in the
Baltimore & Ohio company.
According to the last annual report
of the Pennsylvania Railroad COM
pany it held 142,746 shares Of prefer
red stock of the Baltimore & Ohio,
with a par value of $14,27S,600 and ST.
25O shares of common with a par
value of $o,725,OOO. Including the
Pennsylvania company, which controls
lines west of Pittsburgh, the Pennsyl-
vania interest own about $4S,0O0,OOe
of Baltimore & Ohio slock.
Mr.. McReynolds thought the govern.
ment would not object to the propos-
ed change but he wanted to investi-
gate the holdings Of the various roads
before making any definite statement
He said he probably could inform the
court within three or four days.
'The time has come for the court to
order something DONE said the at
torney general.
THE Union Pacific does not even