Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-06-28
DISSOLUTION OF
HARTMAN ROADS,
IS AGREED UPI.
AttOrney-Gen. McReynoIds
Directors, After Long Cor
ference, Reach Conclusion.
PLAN WILL GO TO COURT
WITH GOVERNMENT O. Z
Tribunal to Be Requested to At
low Limited Time for
Disintegration.

WASHINGTON. June 28.-Attor-
ney-General MeReynolds and repre-
sentatives of the Union Pacific. It
was definitely learned today, havs
reached an agreement for the disco
luton Of the great Hartman merger.
The principles of the plan are ia
harmony with the views Of President
Wilson, and he Is expected to approve
them The plan viii be submitted
Monday TO the judges of the United
States Court for the Eighth circuit,
at St. Paul.
The plan will go to the court with
the governments approval qualified
only by a request that the judges
give limited time before entering
final decree. during which the gov
ernment may possibly make obJec-
tions. which cannot n4w be foreseen-
Not Ready to Discuss DAaIIs.
Attorney General MeReynolds to-
day said he was not ready TO discuss
the situation or details It is Under
stood, however. that the plan viii
provide for exchanging $3s, 000. 600 OF
Southern Pacific stock held by Jnion
Pacific for Pennsylvania interest
in Baltimore and Ohio. and the sale
of the remaining sss,a00,000 of south
ern Pacific through the medium OF
trust company under such safeguards
as will end control of the Southern
Pacific by either the Union Pacific or
its shareholders
Officials today declared that Presi-
dent Wilson and Attorney General
McReynolds had been in perfect ac-
cord all along TO reach an agreement
for the dissolution provided a plan
could be evolved that would answer
the demands of the Sherman law. It
was declared that while there had
never been any tendency 10 place OBJ
stacles in the way of an agreement,
the administration had insisted upon
an adequate dissolution The plan
evolved, it is believed. will accomplish
il, but the government takes the pre-
caution of asking for limited time
within which TO make objections.
so that in case public discussion Of
the proposition and further study by
nffie5a1s shows any weakn eSses the
hands of the administratf tfon WIFI MT
be tied.
AS the plan of dissolution does nor
provide for the separation Of the
Southern and Central Pacific, officials
of the department of justice today
reiterated that Attorney General Nc
Reynolds later on would bring civil
antitrust suit under the sherman
Jaw to accomplish that result.
Attorney McReynolds does not ex-
pect to go to ST. Paul. but will send
! G. Carroll Todd, special assistant.
who has been associated in the
negotiations.
The President. having upset his
personal plans for a weeks vacation.
delved into the intricate details df
the disintegration. Attorney-Generai
McReynolds continued conferences
with Paul D. Cravath. counsel for
the Union Pacific. Cravath had
| planned to return to New York yes
| terday, but remained in Washing-
ton, hoping TO complete the negotia-
tions.
1t is generally understood that.
apart from the dissolution, the attor-
ney-general later will begin proceed-
ings under the Sherman law to sepa-
rate the Central Pacific from the
Southern Pacific. The Supreme Court
did not decide that question in the
Union Pacific case, but held that
nothing in its mandate should preju-
dice future attempts by negotiations
or litigation to sever the Central
Pacific from its parent.
The proposal by which the Union
Pacific would give $SS,OOo,o0o Of its
holdings in Southern Pacific TO the
Pennsylvania for the latter's interest
in the Baltimore and Ohio is favor
! ably regarded, and today's eonsidera-
ton related primarily TO the sugges-
ton of placing the remaining $ss.ooO,-
600 of Southern Pacific stocks in the
hands of a trust company to be sold
within a reasonable time, and under
such conditions as will prevent the
| shareholders of the Union Pacific from
acquiring any substantial proportion
of the Southern Pacific.
/ The government has contended, and
the supreme Court has sustained the
contention. that no adequate dissolu-
ton can be accomplished simply by q
transfer of the ownership of any great
block of Southern Pacific from the
Union Pacific Railroad Company to
the stockholders of that corporation.