Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-02-10
PERFECTED
FOR UNMERGING
HA ARRIMAN
nVnTrAH
Il5lEW
Attorney General Wickersham
Announces the Program by
Which Union Pacific is 10 be
Divorced from Southern,
SHAREHOLDERS TO HAVE
FIRST RIGHT TO STOCK
Government Believes Compe-
tillon Will be Restored in
Traffic 10 Points on Western
Coast

Traffic 10 Points on Western
Coast
Inv Morning Jonrnal special Ieased wire.I
Washington Feb a.--Attnfney Gem
efal Wickersham announced tonight
that ne had reached AN agreement
With the representatives 81 the Union
Pacific aud southern pacihc railroads
for dissolution OF the great Hartman
merger. as decreed hy the supreme
court The Union Pacific agrees "a
sell its 2G6, 500 shares nf Southern Pa
cihe stock 70 ITS own stockholders and
those Of the Southern Pacific. IN what
the government regards ns safe pro-
portion.
The Union Pacific viii acquire tho
Central Pacific from the Southern Pa
ciAe giving il an extension from Og-
den 20 the Paclilc coast. The plan
announced tonight Is essentially the
same as that made public a few days
ago By the two roads when they
reached an agreement satisfactory to
themselves dissolNng The merger.
The attorney general, In "A public
statement tonight. goes into greater
detail however and declares that
competition will suppinnt monopoly
ender fte agreed sebemt II ee9,fa
ton Ne gives 1t his unqualified ap-
proNal. The various contracts neces-
safy for the cnrNing out OF tho agree
menf authorized hy the boards OF dl-
feetors Of the railroad companies
have been completed and the effee-
tifenoss Of the plan ia conditioned
upon Us approval fy the United sintes
district court, 20 which ii will be pres
scented at an early date.
In his statement the attorney gen-
efal says,
"The result " the whole transaction
Will De % create ideal competitive
conditions between the Union Pacific
Hnd the Southern Pacific for ifanscoH-
tlnental business between eastern
points and Portland and san Fran
cisco ana to relieve the states Of Gale
fernia and oregon Of the monopoly Of
railroad control which has been the
occasion Of such widespread public
dissatisfaction IN the past
Tho agreement aa stated by the at
terney general is this
"fhe plan In brief provides for the
disposition Of i2Gf.b0O shares Of
stock 0f the Southern PAclne CONS
panY, which the supreme court re-
qures the Onion Pacific to dispose Of.
hv Offering the same for subscription
To and among the stockholders Of the
Union Pacific and The Southern Pa
cifc companies and the holder OF oV-
cry four shares of stock Of the Union
Pacific company TO have the right to
subscribe for one uf such Southern
Pacific shares ana the holder Of every
three shares Of southern Pacific stock
20 have the right to subscribe for Cne
share Of such shares. The larger pro-
portion given to the southern Pacific
stockholders WAS insisted upon hv the
attorney general for the purpose OF
insuring q wider distribution among
the Southern Pacific shareholders and
70 guard against the securing of any
undue control Of the Southern Pacific
'omnany by the stockholders of the
nlon Pacific.
THE result of the distribution, n all
he shareholders should avail Of their
subscription rights. will be that the
present Stockholders Of the Southern
Pacific company Win own n per cont
IF ta capital stock. while the stock
holders of the Union Pacific will hold
lnls % per cent The stock Is SO Of
ereu for subscription az q price prac-
ically equal % nar, payable in four
extending over period
If nine months
"Out of the proceeds Of such sale Of
itoek, the Union Pacific Railroad
company is "a pay TO tho Southern
Pacific company for the entire capital
It0cx of the Central Pacific Railroad
company now held BY the Southern
'aeihc company, the total considera-
Ion amounting 20 upwards of S104,-
100000 ana the existing leases Of the
CENTRAL Pacific TO the Southern PIT
life ftilroad arc to be Cancelled Pro-
'iai0n asn s made for the lease ia
hy the Central Pacific to
he Southern Pacific Or the line con-
leeiins the Southern Pacac road IN
alifolnia with the Oregon and Cali
arnia line. making direct connection
rom San Francisco - Portland. Ore.
nd for the grant by The southerui
'aelic 70 the Centfel nf equal running
lights with the Southern over lilo Be-
ieia line between Sacramento andl
lakland and between Redwood andl
an Francisco, thus airording the
'nion Pacific. bv way OF the Central
'aeife. q direct line for its transcon-
mental traffie over the short line be-
ween Omaha aud SAN Francisco.
here are various provisions for the
oint equal use by the two companies
( the terminals nt junction points
nd other details not necessary to ho
lentioned here.
Concerning the negotiations which
"a up TO the formulation Of the PLAN
Attorney General Wicker
ham said:
erhe original decision rendered bv
he supreme eohrt on December 3 liz
ectly adiudeed that the ACQUISITION
nd continued holding Nv the Union
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