Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-02-07
Union Pacific and Southern Pa
cific to Be Completely Di-
vorced in FuIfiIIment of
Order by Supreme Court,
HARRlMAN'S DREAM
SHATTERED BY LAW
Arrangement Is Said to Have
Approval Of Attorney Gen.
eraI WickerShami Details to
Be Worked Out Yet,

be worked Uul vel,
Inv Morning journal Special Leased Wire.l
New York. Feb. 6.-Plans FOR the
dissolution of the Union Pacific Rail-
road company and the Southern Pa
cifc company, as decreed by the
United states Supreme court, officially
were announced in detail tonight af-
ter protraeted session of the diree-
tors Of the two companies. The terms
are said, in a statement issued Jointly
by the roads. TO have the approval
of the department of justice at Wash
ington and the agreement now awaits
confirmation Of the court in the fed
eral district. whore the action was
originally taken and by the railroad
commission OF the state of California.
In accordance with recent intma-
tions. the severence of Union ana
southern Pacific results in Union Pa
cities absolute purchase Of the Gem
tral Pacific which had been the bone
Of contention between the two prin-
clpal roads Of the Hartman system.
The agreement also provides for the
sale OF an the Southern Pacific stock
held by the Union Pacific at 9S 5-S.
with accrued dividend to the stock
holders. common and preferred, the
Union and Southern Pacific, other
than the Union Pacific and Oregon
Short line. Ii is understood that a
syndicate has been formed under the
leadership Of Kuhn. Loes. a Co. and
their.-fr1eis e. eanaestsa 20 finance
the sale of Union Paeihc's holdings
Of Southern Pacific, amounting to
sf26.65O,O00. The official statement
issued Jointly by Union Pacific and
Southern Pacific follows:
"The boards OF directors of the
Union Pacific and Southern Pacific
railroad companies today approved
plans which have been under cOnsid-
GRAFTON by special committee for sew
eral weeks and which have been
worked out with the attorney general
subject TO the approval of the court
as follows
THE purchase by the Union Pacific
of the entire capital stock of the Cen
tral Pacific consisting of S67,725,500
par value of common and S17,400,000
par value preferred stock. for the
sum Of $i04,1S9. 9.941~-the cost at
which it stands upon the books of the
Southern Pacific company. Eighty
four million six hundred and seventy
five thousands. Eve hundred dollars,
Of the amount was to have been paid
in stock of the Southern Pacific COM
pany. held by the Union Pacific at par,
but legal difficulties having been found
in the way. the plan has been changed
SO that payment is to be made as fol-
lows. viz.
one hundred and twenty-six mil
lion. six hundred and fifty thousand
dollars par value, being the entire
amount Of stock Of Southern Pacific
company held by Union Pacific, IS to
be offered to the stockholders, conf
mon and preferred. of the Union Pa
eific and stockholders of the Union
Pacific company other than the Union
Pacific and oregon Short line for sub
serlption at 9S SIS per cent, and ac-
crued dividend. This offer Is to be
underwrltten and subscribers are to
receive the dividend payable April /,
1913, "details TO be given later). THE
proceeds OF SS4,675. 500 Of this stock,
less the underwriting commission and
expenses, is to be paid over to the
Southern Pacific company together
with $5,449,000 Of the Southern Pa
eifc cOmpany's 4 per cent gold bonds
and $14,O65,iit in cash.
'frhe attorney general of the Unit
cd states has assented to the essen
tial features Of this plan. but It is. of
course, subject 10 the approval of the
district court In which the govern
ment litigation is pending, and also
dependent upon the approval Of the
California railroad commission Of
agreements for certain trackage and
running rights IN that state. The plans
and agreements will be presented the
court and committee with the least
possible delay
julius Kruttschntt, Of the Southern
Pacific company. in discussing the
sale of the Central Pacific stock by
the Southern Pacific company. stated
that while the directors have not de-
eided what disposition to make Of the
HtoHtSS ftceIAeuf toH9tuttdDi' pa
OF it will be needed in the near future
to pay for extensions, for equipment
and for additions and betterments.
The amount is sufficient to take care
Of future requirements, he said, with |
out increase Of fixed charges.
Mr.. Kruttschnitt also stated that at +
meeting with the Southern Pacific /
stockholders protective committee
held this afternoon, the plan agreed
upon by the boards Of the southern
and Union Pacific companies was ap-
proved unanimously. Judge r. 5
Lovett, chairman Of the executive |
committees Of the Union Pacific, said, /
in statement tonight: If the plan
is eonsumated the lease and the ope-
ration Of the Central Pacific. by the
southern Pacific company. Of course,