Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1913-06-12
ATTORNEY GENERAL
OBJECTS TO ALL
UNION PACIFIC
PROPOSITIONS
Representatives Of Governs
ment Tell Federal Court
That Proposed Dissolution
Is No Dissolution at all.
PENNSYLVANIA MAY BUY
SOUTHERN PACIFIC STOCK
~ Leaaed VIC b IsraninE IIaTaIll.

fI8y Leased Wire 20 Evening Jlorafd.
~. Paul. Minn., June i2.-Union
Pacific attorneys appeared before
United States Judges Hanborn. Hook
and Smith today and explained addi-
tionnl plans for dirporing of the
roads holdings Of southern Pacific
stock. Attorney General McIteynolds
In behalf OF the government cx-
pressed unalterablo oppoaltlon 10
those plans which he said were mo
plans at all but were merely propo~
sitions OF something they inteDded ~
try TO do" The court adjourned
without announcing amy decision.
Prosi ding Judge Sanborn indicated
that no order might be expected until
the attorney general had decided
whether the government would OBJ
jcct TO proposed exchange OF part
Of southern Pacific stock for Balti-
more a. Ohio stock held by the PcnE-
sylvania railroad.
The new plan proposed was sup
Elemental 20 the two plans recently
submitted. The amount OF stock IN
volved In the exchange represents
only "a per cent OF the total SoutheFn n
Pacific stock. The present holdings
OF the Union Pacific In Southern Pa
cific common stock represent about
S126. 200.
N. II. Loomis. of counsel for ths
Union Pacific, explained the proposi-
tions to the court. He said that the
Union Pacific did not guarantee 10
carry out either OF two principal
plans proposed even though the court
approved both OF them. III Il should
be found that TO follow either OF
them would involve too great sac
rifico to the Union Pacific stockhoid-
ers. the disposition OF the stocks
would be left 10 the court.
How long a time do yue think the
Union Pacific should be given to dis
pose of the stock?" inquired Judge
smith.
III think the court should be liberal
with US In the matter OF time because
OF the present condition OF the money
market" replied Mr.. Loomis. He
thought the railroad should have one
year la y hich 10 Offer the stock and
complete the disposition OF II.
Attorney General McReynoids. In
opposing the plans proposed by the
Union Pacific. said that he regretted
that the railroads had been unable
10 effect deal whereby the Union
Pacific would acquire the Central Pa
clfc operating from ogden 10 san
Francisco in exchange for It's South
ern Pacific stock. He declared that
this failure would compel the govern
ment TO institute an expensive litiga-
ton TO compel the Southern Pacific
10 rclinquish its hold over the Cen
tral Pacific.
Mr.. McReynolds thought tho gov
ernmont would not object 90 the pro-
posed change but he wanted 10 In
vestigate the holdings OF the various
roads before making any definite
statement. lie said he probably could
Inform the court within three or four
days
"The time has come for the court
To order something DONE" said the at
/ torney general. The Union Pacific
does not even guarantee 20 carry out
either OF the two so-called plans now
before the court Il asks a year to
try TO accomplish one plan, provld-
ed market conditions will permit such
| action without loss 90 stockholders.
"The railroad counsel say that 10
/ dispose of the stock al present mar
ket conditions would be at "a great
sacrifice n loss Is incurred Il will
be- as tho result OF wrongful action
as construed by the supreme court,
/ which has ordered this court TO dis
| pose OF the stock within "a reasonable
/ time. Approval 0f either proposition
submitted probably would find the
situation Just as Il Is now az the end
| Of the year
Judge SanbOrn asked the attorney
general what action he thought tho
| court should take. Mr. McReynoids
said the court should either appoint
receiver TO dispose OF the stock OF
should itself devise some mean OF
disposing OF IL. The primary plan
proposed provided for the sale Of the
stock by popular subscription. similar
| TO city bonds. while the alternative
plan provided for placing the disiran-
chised stock with a trustee and tho
issuance OF certificates against Il.
These certificates would be exchange
able only on the filing Of an affidavit
that the holder did not own any
Union Pacific stock.
Judge LovCtt. chairman OF the
board, explained % the court that u
would be impossible to carry out the
first plan AT tho present time OWNS
TO market conditions all over the
world, but no thought the second plan
could bo contaminated la muci
shorter time.
] Ifaana q -.