Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-02-27
DISSOLUTION PLAN OF BIG
HARTMAN r. r. SYSTEMS

?
Hawaiian stockholders n. the three
big railroads that compose the liar
riman merger system" have received
from headquarters in New York the
proposed plan for the dissolution or
The company. together with a sta;e.
went If the financial deals involyed
AS told in recent news dispatches by
cable, the Hartman UfflcIaIs aeciar l.
that the California state railroad com
missioners have blocked the dissoiu-
ton plans, while the encouragement
OF the United States is emphatic in
stating that the PLANS will go forward.
The financial statement says:
To stockholders Common and Pre-.
ferred) Of the Union Pacific Ra1-
road Company. and Stockholders
OF the Southern Pacific Company:
With the approval of the attorney
general Of the United States, the Union
Pacific Railroad Company has aGoples:.
plan, which has also been assented
to by the Southern Pacific Company
In so far as action on its part is re-
onired. for complying with the terms
OF the decree to be entered in the
government suit In accordance with
the recent decision of the Unitec
States supreme court, which plan in
clGdes the following:
The Southern Pacific Company has
agreed to sell to the Union Pacific
Railroad Company the entire capital
stock Of the Central Pacific Company,
and TO cancel or assign the existing
lease of the railroad and other prop
af ~
thus transferring to the Union Pacific
Railroad Company the beneficial own
ership Of the railroads and other prop
erty Of the Central Pacific Company
subject to certain leases. rec;proca:
contracts for the joint use OF railroads
and terminals, anu other arrangements
intended for the mutual protection OF
The two companies. 1t had been e1-
pected that the Union Pacific Rail-
read Company would pay for the Cen
trial Pacific property by surrendering
or transferring $84,675.500, par value,
Of the stock Of the Southern faciIic
Company now held by the oregon
Short Line Railroad Company, by the
cancellation and surrender OF $5,44G,-
900, face value, of the four per cent.
j
Of the Southern Pacific Company now
owned by the Union Pacific Railroad
Company. and by the payment of Sl4.-
0g5. AL in cash. But there being doubt
as TO the right of the Southern Pacific
Company 10 acquire its own stock, it
has been decided TO sell the entire
Oregon Short Line Railroad Company S |
entire holdings of stock in the South
ern Pacific Company, aggregating
81 !, $50 900, par value, and it has beenf
agreed that the net proceeds of the
sale of $S4,675, 500, par value, OF sail
stock, shall be paid to the Southern
Pacific Company in lieu of such con-
templated surrender to it of said
amount of stock.
Accordingly the privilege is offered |
10 stockholders, registered on the /
books of the Union Pacific Railroad
Company and the Southern Pacific i
Company Iexcluding, however, the
Oregon Short Line Railroad Company
and its nomineesl, respectively, at
the close of business on February %.
1919, to subscribe on or before March |
q, 1913, for such stock of the South |
ern Pacific Company in the proportion
of one share of Southern Pacific stock
for each four shares of Union Pacific
stock, preferred or common, and OF
cne share of Southern Pacific stock
for each three shares of Southern Pa
cific stock held by others than the
Oregon Short Line Railroad Company
and its nominees.