Las Vegas optic. (East Las Vegas, N.M.) 1908-1921, 1913-06-12
HE SUGGESTS A RECEIVER
If THAT PLAN is NOT sATlsFAc-
TORY He URGES JUDGES TO
DEVISE A SCHEME.
RAILROADS HAVE new One
THEY PROPOSE TO TRADE s. P1s
u. p. STOCK FOR PENNsYL
VANlA's B. G. o.

St. Paul, Mimi, June 12.-Attor-
neys for the Union Pactnc presented
at the opening of the dissolution hear
ing today new plan for the dispo-
sition Of $3S,OOO,oeO worth of South
ern Pacific stock to the Pennsyl-
vania railroad in exchange for $21,-
100000 worth of Baltimore & Ohio
stock.
Union Pacific railroad attorneys ap-
peared before United States Circuit
Judges Sanborn, Hook, and Smith to-
day and explained additional plans
for disposing of the roads holdings
of Southern Pacific stock Attorney
General McReynolds, on behalf of the
government, expressed unalterable op-
position to those plans, which he
said were mo plans at all but were
merely propositions of something they
intended to try to do"
The court adjourned without an
nouncing any decision. Presiding
Judge Sanborn indicated that no or
der might be expected until the at
torney general had decided whether
the government would object to a
proposed exchange of part of the
holdings Of Southern Pacific stock for
Baltimore and Ohio and this stock
held by the Pennsylvania railroad,
The new plan proposed was supple
mental to the two plans recently sub
mitted. The amount of stock involv-
ed in the exchange represents only
IA per cent of the total Southern Pa
cific stock. The present holdings Of
the Union Pacific in Southern Pacific
common stock represent about $126,
100000.
N. H. Loomis, of counsel for the
Union Pacific, explained the PROPOSE
tions to the court. He said 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 it should
be found that to follow either of them
would involve too great a sacrifice to
the Union Pacific 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 dis
pose of the stock?" inquired Judge
Smith.
II think the court should be liberal
with US in the matter of time be-
cause Of the present condition Of the
money market" replied Mr.. Loomis.
He thought the railroad should have
one year in which to offer the stock
and complete the disposition of it.
Attorney General McReynolds, in
opposing the plans proposed by the
Union Pacific, said that he regretted
that the roalroad had been unable t.
effect deal whereby the Union "a,
cific would acquire the Central Pa
cific, operating from ogden to San
Francisco in exchange for its South
ern Pacific stock.
He declared that this failure would
compel the government to institute
an expensive litigation to compel the
Southern Pacific to relinquish its
holdoyer, the Central Pacific
Mr.. McReynolds thought the gov
ernment would not object to the pro-
posed change, but he wanted to in
vesligate tho holdings Of the various
, roads before making any definite
statement. He said he probably
could inform the court within three
or four days.
oThe time has come for the court
to order something done said the
attorney general "The Union Pa
cific does not even guarantee to carry
out either Of the two so-caIled plans
now before the court; it asks a year
to try to accomplish one plar, rro
vided market conditions viii permit