Evening star., 1913-06-12
Would Dispose of $38, 900, 900
of Southern Pacific Stock
to Pennsylvania Railroad.
AND RECEIVE $21,0O0,OO0
OF B. & o. IN RETURN
Counsel Asks for Year in Which 10
Garry Out Mandate of the United
States Supreme Court.

Union Pacific presented at the opening OF
the merger dissolution hearing today a
new plan for the disposition Of $4,000 :
600 worth of South hern Pacific stock to the
Pennsylvania railroad in exchange for
S21 100000 worth of Baltimore & Ohio
stock.
The new proposal was supplemental to
the two plans recent y submitted. The
amount Of stock involved in the exchange
represents only ii per cent of the total
Southern Pacific stock. The present hold
ings of the Union Pacific In Southern Pa
cif1c common stock represent about
S126, 600 600.
Loomis Explains Propositions.
n. II. Loomis Of counsel for the Union
Pacific explained the propositions to the
court He said that as a matter of fact
the Union Pacific and the Southern
Pacific We're in reality as distinct as they
ever could be; but the Supreme Court
had ordered the Union Pacific to dispose
of its Southern Pacific stock, and the
former road was doing it's best to acco l.
plish this on the best possible terms to
it's stockholders. He sa- d that the Union
Pacific did not guarantee to carry out
either of the two principal plans proposed
even though the court approved both OF
them. If 1t should be found that to fol-
low either of them would involve too
stockholders the disposition of the stocks
would be left to the court.
How long a time do you think the
Union Pacific should be given to dispose
of the stock" inquired Judge Smith.
Thinks One Year Needed.
II think the court should be liberal
with us in the matter of time, because
Of the present condition of the money
market" replied Mr.. Looms. He
thought the railroad should have one
year in which to offer the stock and
complete the disposition Of It,
Attorney General McReynolds, who
arrived today from Washing on said
in opposing the plans proposed by the
Union Pacific, that he regretted that
the railroads had been unable to eff
feet deal whereby the Union Pacific
would acquire the Central Pacific
operating from Ogden to San Francisco
in exchange for it's Sou. .hern Pacific
stock. He declared that this failure
would compel the government to insti-
tute an expensive litigation to compel
the Southern Pacific to relinquish its
hold over he Central Pacific.
Court adjourned without announcing
a decision in the Union Pacific dssolu-
ton matter.
Confirmed in Philadelphia.
PHILADELPHIA. June Il. - Pennsyl.
vania railroad officials confirmed the
statement that an arrangement had been
entered into for the exchange of the
company's hold .ngs of Baltimore and
Ohio railroad stock for $3S.OOU,OO worth
Of the Southern Pacific stock owned by
Union PACING 1t was stated that the ex-
change. If approved by the court. would
be made on the basis of the relative mar.
ket value of Baltimore and Ohio ant
Southern Pacific stocks.
President Rea OF the railroad declined
to make any statement on the subject Al
this time. 1t was stated that the Penn
sy.yania has no interest whatever in the
that the arrangement is purely q busines:
one. designed to prevent the throw. .ns
upon the market OF such an immens,
block Of Southern Pacific stock
The Baltimore and Ohio stock involved
in the transaction was acquired by the
Pennsylvania years ago at figures much
higher than the present market quota.
tiCns.
According to the last annual report oi
the Pennsylvania Railroad Company II
held Ia, 1876 shares of preferred stock OF
the Baltimore and Ohio. with q par value
Of $14.273, 600. and $3.50 shares of com
mon. with a par value Of S.. 725,0OO. In
Guiding the Pennsylvania company. which
controls lines west of Pittsburgh, the
Pennsylvania interests own about S43
OUU,OO0 of Baltimore and Ohio stock.
In financial circles the deal is looked
upon as REIMBURSEMENT by the Penn
sylvania of all interest in the Baltimor,
and Ohio company.
Comment in New York.
NEW YORK, June 12.-Wall street hat
been hearing for some time of plar
to offer part of the Union Pacific's hold
ings in Southern Pacific to the Pennsyl
van.a road for the latter's holdings il
Baltimore and Ohio. Local representa-
tives of the Pennsylvania. however. dis
claim any idea of the establishment O
a transcontinental road should the South
ern Pacific stock in question be acquired
1t was pointed out that even We're thi:
desirable. physical means would still
be lacking. Pennsylvania farthest west
ern connection, even through it's LEASED
lines Is many hundreds of miles away
from the Southern Pacifics nearest east
ern point.