The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-03-16
|LOVETT'S PLAN
OF DISSOLUTION
PUT IN DISCARD.
Attorneys for Railroads
Must Devise Another
Scheme.
DECREE OF COURT
HELD IN ABEYANCE
Second Hitch in Proceedings to
Dissolve Famous Hartman
Merger Caused by Objection
on Part of California Rail
road Commission-Action
Comes as Surprise.

st. Louis, March 15.-The Union
Pacific and Southern Pacific dissolu-
ton plan. which contemplated n traffic
agreement between the two roads for
the use of the Benicia short line. be-
tween Oakland and Sacramento, Cal,
was abandoned in the Federal Court
to-day by the railroad officers. 1t now
devolves on the railway attorneys to
devise new arrangement to carry In
to effect the dissolution decree of the
United States Supreme Court.
The dissolution decree. which was
certified to the Distract Court Of Utah
on February 10. gave the railroads
three months to submit n satisfactory
plan to the lower court. No date was
set by the judges OF the Eighth District
Federal Court sitting as the District
Court OF Utah, to-day for the rehearing
OF the case, but 1t is expected a new
plan viii be laid before the court some
time In April What arrangement the
railway companies contemplate was not
| indicated by Chairman Robert s. Low
ett of the Union Pacific system, who
announced abandonment of the second
plan In court to-day. United States
District Attorney Houts, who repre-
scented the Attorney g eneral in the
proceedings to-day, has no Information
as to the further course contemplated
by the railway representatives.
The arrangement which was aban-
doned to-day was the second plan
drafted by the railway ATTORNEYS in
an attempt to comply with the dissolu-
! ton decree.
| The first plan, submitted to the Cir
! cult Judges on February "A, was
modified because the California Rail
way commission objected to a clause
| providing for q lease OF the Southern
racine short line from Oakland to
sacramento to the Central Pacific.
which in turn was to be taken over
by the Union Pacific
No Exclusive Use.
The California Commission held that
there should be no exclusive use OF tho
short line by the two Hartman roads.
The modified plan, abandoned to-
day, provided for traffic agreement
between the Southern Pacific and. the
Union Pacific for the use of the short
line instead of lease
The abandonment of this plan came
as surprise. as Mr.. Lovett and his
assistants came here expecting TO pre-
sent the new dissolution arrangement
TO che Circuit judges for approval.
After his arrival in ST. Louis. Chair
man Lovett received a copy OF the pro
test against the new plan filed by the
California Railroad Commission with
| the Attorney General
Asserting that the approval OF the
! California Commission was necessary
| ia validate the proposed lease OF the
| CS,ntral Pacific by the Union Pacific,
! which In turn was necessary to salts
/ fy certain French banking interests
| Mr.. I,ovett announced that the Union
! Pacific could not go OH with the plan.
/ He asked the court TO leave the final
| dissolution decree in allegiance
/ Chairman Lovett in his address to
| the court did not mention the ruaran
| tee which the Union Pacific had given
| Kuhn, Loeb & Company. the banking
| firm which was TO handle the stock
| distribution features of the dissolution
! but 1t IS said that by the collapse of
| the plan the Union Pacific forfeits
more than 100000 commission to
the banking syndicate