Daily Kennebec journal., 1913-07-01
THE MERGER DISSOLVED.
CONTINUED from Page One)

lie through the Central Trust Co. of
New York; that no present stockhold
ers in the Union Pacific. continuing
as such, may buy any Of the South
ern Pacific stock So sold that the
transaction shall begin November Z
1913 and if not complete by Jan |,
1916, the court shall decide the de-
position of any Southern Pacific stock
remaining unsod.
He disresarded the desire Of the
attorney general that final decision
be withheld for the interposing of
affections by interested parties 10
which portion of the attorney gener
ais plan. Mr.. Loomis made objec
ton at the hearing. today. as unfair
to the road. The attorney general
had also asked in this connection
that there be publication of the plan
as in the American Tobacco case,
calling the attention of interested
parties that objection might bes made,
" hut this also was oyerruled by the
handing down of the decree by the
court
I'VE deem a decree of dissolution more
necessary at the present time than any
other action said Judge Sanborn after
.annpuncing the decree. The government.
however, in the plan presented, today,
and approved by the court expressly stip-
ulated that should any Illegal conditions
arise from the exchange of stock, either
unden etktifSgt or future legislation or
futuref Interpretation by the courts of
present statutes. the government would
have the right freely to assaii' the ar
rangement. &e !.
In presenting the plan to the court, to-
day, Mr.. Loomis said:
'"rhis IS sthe tfird and amended plan
for diSsbfntion and is offered as, supsti
tute for previous plans. II differs from
the other in the provision Tor the sale
of $SS, 600 600 of stock through a trustee
under direction of the court. 1t also pro-
vides a speedier method of securing the
certificates of stock. The previous plans
contemplated the completion of the DIS
solution in five years. BY throwing re-
strictions about the use of the stock GER
tificates this plan will make it possible
to complete the dissolution by January
/. 1916"
Mr.. Todd who left, tonight, for Wash
ington, and Mr.. Clarke and Mr.. Loomis,
who left for New York and Omaha, re-
spectfvely. declined to discuss the decree
OF the court. When the suit OF the gov
ernment to dissolve the Union Pacihe-
Southern Pacific merger was flied in the
federal circuit court for the district oil
Utah In 1908 the circuit court FOR the
eighth district was composed OF Judges
Willis Van Devanter, now on the su-
preme bench, Walter II. Sanborn. St
Paul; William c. Hook. Leavenworth,
and Elmer b. Adams st. Louis, appoint
ed an examiner 10 take the testimony.
!. Witnesses were examined IN all
eparts OF the United States. tie evil
.dence was submitted to the circuit
court and in 1910 the case was argued
in St Paul.
On June "a, 1911, the circuit court
handed down it's decision IN winch the
majority of the court held that the
case OF the government was not sus-
tained. but Judge Hook filed dissent
ing opinion, holding that the merger
of the two railway systems was Vio-
lotion of the Sherman antitrust law.
,.sYhe government appealed the case 10
@fhe supreme court from the decision OIL
the circuit court and in December,
tSf2..t the supreme court handed ao"i
a decree reversing the lower court, up
holding in the main the dissenting
'GElnloifa OF JuuSe HUM, anu No
the ease back to the federal court Tor
the district Of Utah for an enforce
ment of the decree dissolving the mer-
ger:
<. ts4fwsen the time of the filing of the
original suit ard the decree of the SUI
premeH court, Congress had apoilsheu
the circuit courts and assigned ther
Jurisdiction to district courts, proVld-
Ing that the circuit judges. VINO CON
tStliSffe the circuit also should SIT as
ssaiSfict Judges. 1t is under TINS law
Y tbat stfiea Circuit judges I'm tins case SAT
as the district court OF utah.
After the first tentative plan of
dissolution was presented to the court
at st. Lonis,, Feb. "a, 1913, num-
her of modes of procedure providing
for the separation of the interests OF
the two roads were suggested put op
iections were raised against eaeh.
The principal point upon Whlch the
government and railroad representa-
tiyes were unable to agree was the
disposal Of Unien Pacific holdings OF
Southern Pacific stock, amounting 10
; s128 100000. In March, with the charge
Of administration Attorney General
McReynolds succeeded Attorney Gen
eral Wiciersham in the case.
/. On April II, 1913. representatives OF
the Union Pacific made application
to Judges Sanborn. Hook and Smith
1T st. Paul for an extension OF time