The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-06-13
OPPOSES FURTHER
TIME EXTENSION
McReynolds Serves Notice That
Court Mandate Must Be
Obeycd.
NEW PLANS ARE SUBMITTED
Court Takes New Phase Of Dis
solution Controversy Under
Amusement.
NEW PLANS ARE SUBMITTED

st. Paul. MINI. June 12.-Attornoy-
General McReynolds served notice to-
day that the government was opposed
TO giving the Union Pacific Railroad
any further extension OF time within
which to dispose of its holdings of
southern Pacific stock. as ordered by
the Supreme Court. In doing so ho
rnade known to tho railroads attor-
neys and to United States Circuit
Judges Sanborn, Hook and Smith. at a
hearing in tho dissolution proceedings.
MS objections to two OF the latest plans
proposed by the railroad for getting
rid OF its sl26.65o, 900 worth OF SOUTH
ern Pacific stock
new plan was proposed for tho
disposition OF almost n third of the
Southern Pacific stock hold by Union
Pacific. This plan provides for trading
southern Pacific stock To tho Pennsvl-
yania for the latter company's hold
ings In Baltimore and Ohio
Taken Under Advisement.
Tho court took the whole case under
Amusement. No intimation was given
whether the plans submitted would be
approved or whether the court would
follow the Attorney Generals suEges-
ton and attempt to dispose Of the stock
itself through tho medium of a receiver
or suggest plan agreeable to the gov
ornment
We are anxious to comply with tho
.haHua.e OF the supreme Court and dis
pose OF our Southern Pacific holdings
but we are unwilling to sell il for the
price we could get in the present state
of tho market" Chairman Lovett az
the board. told the court.
Tho Supreme Court ordered the
union Pacific to relinquish it's South
ern Pacific stock by July l." respond
ed Attorney General McRevnolds.
fhat time practically has arrived. and
the Union Pacific has not complied with
tho mandate. The time has come for
the court to take the matter In hand
ana order something to be done If
loss Is Incurred by tho immediate sale
Oh mo STOCK II Will DO the result OF
wrongful action OF the road"
Mr.. McReynolds declared he could
SEQ no objection TO the proposed ex-
change by the road of s3S, 900, 600 worth
or It's Southern Pacific stock "a little
less than one third OF its total hold
lngs) for Baltimore and Ohio stock,
held by the Pennsylvania Railroad. He
asked tho court for a brief time how
ever. within which to Investigate the
stock holdings OF the various railroads
| involved.
Permission to mako this exchange
was sought by the railroad In a supple-
mental plan of dissolution filed to day
ne Two plans were explained to the
court by y. III. Loomis. of Omaha. as
aociate to Judge Lovett He Thought
the railroad should DO allowed a wear
| 10 carry them out. If approved
| During the discussion of the primary
| plan providing for the sale OF tho stock
by public subscription through syn-
! dicate. Judge Smith asked the raiIroad
! lawyer what there was to prevent the
syndicate from fixing a prohibitive
price on the stock. thus preventing
| popular sale and thereby leaving con
troll of the Southern Pacific in the
hands Of the Southern Pacific.
| Acting I'm Good Faith.
Mr.. Loomis protested that the rail
road was acting in good faith. and de-
sired no prohibitive price placed on
the stock. He agreed, however, with
Judge Smiths suggestion that the
court should Xix a minimum price. pro
Vided the Inquire was not below par.
In his statement to tho court. Mr.
McReynolds said he had been hopcful
| that the financial interests would get
together and arrange nm exchange OF
stock, whereby the Union Pacific would
acquire the Central Pacific which runs
from Ogden TO Sacramento, In return
for It's Southern Pacific stock Failure
To negotiate such a deal he said, left
tho government with no alternative but
to institute expensive litigation against
the Southern Pacific TO compel it Ia
relinquish it's control OF the Central
Pacific.