Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-03-16
PLANS ABAND0NE D
FOR UNMERG
PACIFIC ROADS
New Arrangement Expected to-
be Devised by Attorneys for
Hartman Interests and De-
partnent Of Justice,
oBy Morning Journal Special reu.ed wire

tBy Morning journal Special Leased Wire1
ST. Louis. Mo. March is.- The
Union Pacific Southern Pacific disso-
lntion plan which eorfeNs slatea e.
preferential traffic agreement between
The two Hartman roads for the use
Of the Renicia cutoff from Oakland
to Sacramento. Cal. was abandoned in
the federal court here today by the
Hartman interests. and It now de-
wolves on the railroad attorneys and
the attorney general to devise a new
arrangement to carry into effect the
dissolution decree of the federal SUI
premc court The dissolution decree.
which was certified to the district
court of Utah. on February o. gave
the railroads three months TO submit
a pian 10 the lower court This time
limit win expire on May 10. No date
was set hy the judges of the Eighth
federal circuit, sitting as the district
court of Utah, today for the rehear-
ing Of the case, but 1t Is expected that
new plan VIII be laid before the
court some time in April. What arr
rangemcnt the railroad companies
contemplate was not indicated by
Chairman Robert S. Lovett Of the
Onion Pacific system, who announced
the abandonment of the plan in court
today.
Mn Lovett and other officials and
attorneys Of the Hartman lines. left
st. Louis for the east on a special train
this afternoon United states District
Attorney Houts. who represented the
attorney general in the proceedings
today, has no information as to the
further course contemplated by the
railroad representatives
The arrangement known as the
modified plan, which was abandoned
today was the second device drafted
by the railroad attorneys in an at-
tempt to comply with the dissolution
decree Of the supreme court The first
plan, which was submitted to the cir
cult judges on February "a. was
modified because the California rail-
road commission objected to the
clause providing for the lease Of the
Southern Pacific short line rom oak
land to Sacramento. to the Central
Pacific, which, in turn, was to he taxi
en- over ty the Union Pacific. and To
the provision for the exclusive Joint
use of the cutoff hy the two major
Hartman lines.
The modified plan abandoned to-
dan, provided for a preferential traf-
&c agreement between the southern
Pacific and Union Pacific for the use
Of The cutoff The abandonment of
the plan came as Il surprise, as Mr
lovctt and other attorneNs came here
fully expecting to present the disso-
luton agreement to the circuit Judges
for approval After his arrival IN 81.
Louis. Mr.. Loyett received copy of
the protest fled by the California
railroad commission with the attor-
ney. general objectine to the prefer
ential traffic agreement Realizing
that the approval Of the California
commission was necessary to validate
the proposed lease of the Central Pa
ciflc by the Union Pacific, which in
turn was necessary to satisfy certain
French banking interests, Mr.. LoVett
announced that the Union Pacific
could not go on with the plan, and
asked the court to leave the final dis
solution decree IN abeyance.
MIR Lovett, in his address 70 the
court. did not mention the guarantee
which the Union Pacific had given
Kuhn. Loeb < Company, the banking
ci,.,, which WAS fo handle the stock
distribution features Of the dissolu-
ton. Tut it is understood that hN the
collapse of the plan the Union Pa
cific forfeits upwards Of sl.90paoo to
the banking syndicate,