The Mobridge news. [volume] (Mobridge, Walworth Co., S.D.) 190?-1917, 1913-07-04
WILSON AIDS |NU.P..
S.P. DISSOLUTION
PRESIDENT AIDING McREYNOLDS
IN PREVENTING u. S.
RECE!VERSHiP.
REACH TENTATIVE AGREEMENT
Calls Of Trip to Examine This-be'
lieved Plan for Remembering OF
Combine Will Be Reached
BY July l..

Washington, June 30.-President
Wilson brushed aside all plans for a
weeks trip to Cornish, n. H.-the
summer capital-to examine imme-
diately the tentative agreement reach
ed between Attorney General Mickey
nolds and the railroad attorneys for
the dissolution of the Union Pacific
merger in order to prevent, If pos
sible, the great railroad combination
from being thrown into the hands Of
d receiver.
Time is Pressing.
Unless a method of dismembering
the Union Pacific and Southern Pa
ciic, satisfactory to the judges of h
United States court for the eighth cir
cult, is submitted by July l, the
United States supreme court has or
dered the dissolution Of the merger
by government receivership.
A supreme effort is being made by
the president and attorney general to
prevent this drastic alternative by an
agreement on a plan adequate to meet
the demands Of the Sherman anti
trust law and the mandate of the su.
preme court. Officials freely predict
that the government and the railroad
will present an agreed plan to the
court within the time limit, although
it is stated that the governments ap-
prevail will be qualified.
To Ask Court for Time.
In submitting the plan to the court,
it is proposed to ask the judges to
give a limited time before entering q
final decree within which objections
displayed in the light of further study
OF the propositions may be filed by
the government or any of the other
parties interested. 1t is understood
that the agreement will incorporate,
as one step in the dissolution, the
previously proposed plan for trans
ferring $3S, 600, 900 of Southern Pa
cifc stock, held by the Union Pacific,
to the Pennsylvania railroad in ex-
change for the latter's holdings OF
Baltimore & Ohio. The remaining
$SS,000, 900 of the total $126. 000, 900 of
Southern Pacific owned by the Union
1 dClLN, IL 10 Sdlu, Will Ue placed IN
the hands of a trust company, to be
sold within a definite period Of time
and in such manner as to insure that
no substantial proportion of the stock
will be sold to the shareholders of
the Union Pacific.
Opposed Trusteeship.
Attorney General McReynolds OBJ
jected to the trusteeship previously
proposed by the railroad to the fed
eral court at st. Paul on the ground
that it was too vague and did not
guarantee that the Union Pacific
would surrender its ownership of
Southern Pacific within a reasonable
time. These objections have been ov-
ercome by a more definite outline for
the disposition of the stock.
The exchange of stock between the
Union Pacific and Pennsylvania will
result, according to estimates, in Civ
ing the Union Pacific, with its pres
ent holdings in the Baltimore & Ohio,
3S.2 per cent of the outstanding stock
of that company and in giving the
Pennsylvania IA per cent of the stock
Of the Southern Pacific. So import.
ant was the situation regarded that
the proposed plan of dissolution a
considered at the cabinet meeting.