New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-10
Attorney General Wickersham
Publishes Details of Union
Pacific Southern Pa
CifiC Dissolution.
UNQUALIFIED APPROVAL
Plan Provides for Disposition Of
100000 Shares of S. P.
Stock Held by U. P. to
Stockholders of Both
Companies.
From The T~bune Bmeaul

Washington, Feb. "Details of the
plan approved by the Department of
Justice and the railroads involved for
the dissolution of the Union Pacific
Southern Pacific merger, in accordance
with the decision of the Supreme Court
last December, were announced 10y the
Attorney General to-day.
The plan announced is essentially the
same as that made public a few days
ago by the two roads when they
reached an agreement satisfactory to
themselves dissolving the merger. The
Attorney General in pablo statement
tonight goes into greater detail. how
ever, and declares that competition will
supplant monopoly under the agreed
scheme of separation. lie gives it his
unqualified approval.
The various contracts necessary for
The carrying out OF the agreement
authorized 10y the boards of directors
of the railroad companies have been
completed and the effectiveness Of the
plan is conditioned on its approval 10y
the United States District Court, 10
which it will be presented at an early
day.
The plan provides for the disposition
of 1,266.500 shares Of Southern Pacific
stock now held by the Union Pacific by
offering them for subscription at a
price practically equal to par to the
stockholders of both companies AT the
ratio Of one share to the holder Of every
three shares Of Southern Pacific stock
and one to the holder of every four
shares Of Union Pacific stock.
syndicate is being arranged by
Kuhn. Loeb 4 Co. and the Ma
tional City Sank to underwrte The
stock so offered. out of the proceeds
of the sale of the stock the Union Pdc-
nc is to pay the Southern Pacific Slo4-
W0COO for the entire capital stock OF
the Central Pacific, and the existing
tease Of the Contra, Pacific with TIE
Southern Pacific is 10 be cancelled.
=
leases and joint uses Of terminals 70
give the Union Pacific a direct line
10 the coast between Omaha and San
Francisco. and 10 give the Southern
Pacific Il direct connection from Sun
Francisco TO Portland.
local Competitive Conditions.
The result Of the whole trans1c-
ton" the statement of the Department
Of Justice concludes, will be to create
ideal competitive conditions between
the two systems for transcontnental
business between eastern points and
Portland and San Francisco, and 20
relieve the states of California
and OREGON Of the monopoly
of railroad control, which has been the
occasion Of such widespread public
dissatisfaction in the past The At
iorney General feels that the approval
and carrying out Of this plan will AZ
complish results of inestimable benc-
III to the public, and results far more
satisfactory than there was any reason
10 anticipate could have been secured
The plan is conditioned upon its APP
prevail by the United States District
Court. TO which il will be presented
at an early day"
The original decision of the Supreme
Court. on December >, adjudged the
Pacific stock by the Union Pacific Il
combination in restraint. Of trade and
enjoineC he continued voting OF the
Southern Pacific stock by the Union
Pacific. To carry out the decree the
representatives of the Union Pacific,
proposed that the Southern Pacific
stock owned by the Union Pacific be
offered for subscription pro rata TO the
Union Pacific stockholders. Attorney
General Wickersham Directing 10
this, the proposal was submitted TO the
Supreme Court, which decided that It
would not be a compliance with the
original decree. Negotiations were re-
sumed and the plan just adopted
agreed upon.
Attorney Generals Explanation
The attorney General, with refer
ence TO the second decision, says. in
explanation of his purpose and Of the
plan that has been adopted:
The significance of this second refer
once By the Supreme Court TO pan
which should separate the Central Pac!hc
Railroad from the Southern and 10 secure
10 the Union Pacific the direct line 10
san Francisco contemplated by the acts
OF Congress was accepted by the Attol-
uey General as an intmatiOn OF the me
which should be pursued In working out
q plan for the dissolution of the unlawful
combination.
lie therefore insisted that any plan
presented by the defendants must be
designed 10 secure such result. The nego-
tiations have proceeded on that basis. ana
the agreements finally executed are in
compliance with the requirements which
. the Attorney General has insisted upon
AZ essential TO a complete dissolution OF
ration OF effective competitive conditions
between the Union Pacific and the South
CTn Pacific systems
The plan in brief provides for the dis
position of l.3699 shares OF stock OF the
Southern Pacific COMPANY which the Su-
preme Court requires the Union Pacific 10
dispose of, by Offering the same for sub
scription 10 and among the stockholders
Of the Union Pacific and the Southern
four shares of stock OF the Union Pacific
company TO have the right TO subscribe
for one of such Southern Pacific shares
and the holder Of every three shares Of
Southern Pacific stock 10 have the right
20 subscribe for one share of such shares