New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-03-16
u. P.-S0. PAC. PLAN
KILLED BY CALIFORNIA
Railroads Abandon Scheme in
u. S. Court After State
Objects to Traffic Deal.
NEW METHOD DEMANDED
Chairman Lovett's Unexpected
Action Leaves Situation as 1t
Was Prior to Wicker
sham's Approval.

Sndm APPIOFdi'
ST Louis March 1.-THE Union Paclnc
and Southern Pacific modified dissolution
plan, which contemplated traftc agree
ment between the two roads for the use
OF the Benicia short line between OAK
land and Sacramento. Cal, was aban-
doned in the federal court to-day by the
railroad officers. II now devolves on the
railway attorneys TO devise a ne" ar
rangement TO carry into effect the disso-
luton decree Of the United States Su-
preme Court.
The dissolution decree. which was GER
titled TO the District Court OF Utah on
February 10 gave the railroads three
months in which TO submit a satisfactory
plan 10 the lower court This time limit
will expire on MAY 10.
No date was set by the Judges OF the
stL Federal Circuit. sitting IA the Dis
trict Court of Utah. to-day for the re-
hearing Of the case. but IT is expected that
a new plan will be laid before the court
some time in April What arrangement
the railway companies contemplate "as
not indicated by Chairman Robert ;.
Lovctt of the Union Pacific system, VINO
announced the abandonment OF the second
plan I'm court to-day.
Hartman Officials Go East.
Mr. Lovett and other officers and at
torneys Of the Hartman lines LETT 81
Louis for the East on special tram tnis
afternoon. United States Attorney Houts'
4. .t..l h. 4
the proceedings to-day, has no informa-
ton as TO the course contemplated by the
railway representatives,.
The abandonment OF the modified plan
came as "A surprise. as Mr.. l.oVett ana MS
assistants came here expecting to present
the new dissolution arrangement TO the
Circuit, judges for approval
After his arrival in -. Louis chairman
Lovett received a copy OF the protest
against the new plan filed by the CALI
fornia Railroad Commission with the At
torncN General
Asserting that the approval OF the eau
fornia Commission was necessary 10
validate the proposed lease Of the Cen
traI Pacific by the Northern Pacific.
which in turn was necessary TO satsfy
certain French banking interests. MI
Lovett announced that the Union Pacific
could not go on with the plan. lie asked
the court to leave the final dissolution
decree IN allegiance.
The rejection by the California Railroad
Commission Of the modified plan for the
.uumereinr Of the Union aud Southern Pa
cinc leaves the situation identical with
that existing before eX-Attorney General
Wickcrsham approved the plan now de
clared as not meeting the requirements oi
the laws Of California. As the agreement
with the international undertaking syndi-
cate. headed by Kuhn. Loeb Co. which
was 10 market all OF part Of the 81 e6.6'o.-
600 Southern Pacific stock owned by the
Union Pacific in case II was not sub
scribed for bv stockholders. expired At
midnight Yesterday an entirely new DIS
solution plan mus, now be formulated
As TO the provisions Of this plan n IS
still too early TO predict with any great de
gree OF ACCURACY. but In view Of the oh
iections Of the california commission re-
garding the use Of the Central Pacific line
from Sacramento to Oakland. known as
the Benicla cutoff by the Union and
southern Pacific 10 the exclusion Of othor
roads. the conclusion is logical that TIN
southern Pacific will after all retain it
ownership Of the Central Pacific. Should
this be the case the old Huntington road
will be distinctly the gamer and the Union
Pacific the loser.
Not only is IL likely that tho future or
the Union Pacific Will be unfavorably ar
fectcd by new dissolution plan. but
with tho failure Of the underwriting syn
dicate II mus; pay sl25o.ooO as it, COM
mission There will also be- heavy eN-
penscs connected with the organization ~
"A new syndicate. which must be- formed
10 prevent the big block Of Southern Pa
ciRc stock from being thrown on the open
market. All I'm all. II is estimated that
the Union Paciic's treasury will be de
pletod by at least $4,000 900 I'm cash be
fore the present perplexing situation will
be properly adjudicated.
To Eliminate Objections.
Considerable interest has been manifest
IN the financial district as 10 the share Of