The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1913-02-08
CENTRAL PACIFIC TO
OPERATE own Line

Plans for the dissolution of the
Union Pacific Railroad company and
the Southern Pacific company, as Dc.
creed by the United States Supreme
Court, officially were announced in de-
tail, after a protracted session of the
directors of the two companies, held in
New York Thursday night The terms
are said in statement issued Jointly
bv the roads to have the approval #
the department of justice at -'aehiny-
ton, and the agreement now awaits
confirmation of the court in the Fed.
eral district where the action was
originally taken, and by the railroad
commission of the state of California.
In accordance with recent intima-
tons, the severance of the Union ia
cific and the Southern Pacific results
in the Union Pacific's absolute pur-
chase of the Central Pacific, which
has been the bone of contention be-
tween the two principal roads of the
Hartman system.
The agr cement also provides for the
sale of all the Southern Pacific stock
held by the Union Pacific at 9S5s per
cent, with accrued dividend to the
stockholders, common and preferred,
of the Union and Southern Pacific,
other than the Union Pacific and Ore
gon Short Line.
1t is understood that syndicate
has been formed under the leadership
of Kuhn, Loeb & Co. and their foreign
connections to finance the sale of the
Union Pacific's holdings of the South
ern Pacific, amounting to $126,650-
000
Statement Of Directors.
The official statement, issued Jointly
by the Union Pacific and Southern Pa
cifc, follows:
The boards of directors of the Union
Pacific and Southern Pacific Railroad
companies have approved plans which
have been under consideration by spe-
cial committees for several weeks and
which have been worked out with the
attorney general, subject to the ap-
proval of the court, as follows:
"The purchase by the Union Pa
ciic of the entire capital stock of the
Central Pacific, consisting of $67 ,275,-
500. par value of common, and $17,-
100000, par value of preferred stock,
for the sum of $104, 1S9, ,941-the cost
at which it stands upon the books of
the ooubutfH TdclHc company.
Eighty-four million six hundred
and seventy-fve thousand, five hun
dred dollars of the amount was to have
been paid in stock of the Southern Pa
cifc company, held by Union Pacific
at par, but legal difficulties having
been found in the way the plan has
been changed, so that payment is to
be made as follows, viz, $126,650,000
per value-being the entire amount of
stock of Southern Pacific company
held by Union Pacifc-is to be offer
ed to the stockholders, common and
preferred, of the Union Pacific and
stockholders of the Southern Pacific
company, other than the Union Pacific
and Oregon Short Line, for subscrip-
tion at 9S9s per cent and accrued
dividend. This offer is to be under
written and subscribers are to receive
the dividend, payable April 1, 1913
"details to be given later.
''The proceeds of $S4,6 800 of
this stock, less the underwriting COM
mission and expenses, is to be paid
over to the Southern Pacific company
together with $5,449,000 of the South
ern Pacific eompany's per cent gold
bonds, and $14,065,4 in cash.
Plan Given Approval.
The attorney general of the United
States has assented to the essential
features of this plan, but it is of
course subject to the approval of the
District Court in which the govern
ment litigation is pending, and also
dependent upon the approval by the
California Railroad commission of
agreements for certain trackage and
running rights in that state. The plan
and agreements will be presented to
the court and commission with the
least possible delay.