Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-19
/. P. DECREE
HEAVY BLOW To
STOCKHOLDERS
action of Government in Rail-
road Dissolution Case HaSty
and Unfair, Says Expert.
gv THOMAS c. sHoTwELL.

gsgrecation Of Union Pacific and South
.-- Pacific that is now being carried on
s coen to severe criticism. For twenty
Years the Sherman antitrust law was a
dead letter. Pol ticians found it profita-
,ls 10 let it lie unenforced. and business
men. who in the main are the only really
honest portion Of the public, came to be-
.evs that they were not really violating
the law. Their belief is Justified now be-
cause even the lawyers, who arroqate to
themselves all Of the worlds wisdom,
can not agree as to what the law means.
I'm the American Tobacco and Standard
OIL cases the government tr ed to make
the courts repeal the law of supply and
demand and to compel competition by
persons who do not want TO compete.
Aruered at the failure of this attempt
AZ Illustrated In those two cases, the poll
,fr.ars are now taking revenge on tbs
,g5c by slaughtering the Union Pacific
and Southern Pacific stockholders. As
the Union Pacific stockholders furnished
Oh. money 20 buy Southern Pacific stock,
Justice demands that the Southern Pa
eff, stock be handed out to them without
any more formsIity. The government,
however. viii not consent to this, be-
cause that is what was done in the To-
bs,co and Standard Oil cases. Some new
way must therefore, be invented. II
hss taken the form Of compelling the i'm =
mediate sale Of Southern Pacific stock.
n IS impossible that s126 900 900 Of
stock should be sold at a fair price on
ninety days notice. The state Of New
York allowed several years for the in
sur5nce companies to dispose of the
stocks that they were adiudged to hold
Improperly and the stocks have not even
We, been sold. To force Union Pac fic 70
throw its s12e, 600 900 of Southern Pacific
stock on the market at such short notice
looks something like confiscatlon on the
mart Of the government. At the very
least two years should be allowed.
This forced sale, If actually consum-
mated. will prove disastrous not only to
Union Pacific and Southern Pacific but to
the whole body Of stockholders, for the
entire market VIII be depressed IN sym
p,thy. Not only will the mere sinking
Of quotations cause apprehension, but the
frohtiuI injustice Of the act will impair
confidence Of the entire civilized world
In the honor Of the American govern
msnt. No American corporation can 90
after that to the investors Of Europe and
ask for their money for any American
enterprise.
Until this affair is Strengthened out It
IS die TO discuss values of stocks, for.
while everybody knows them to be selling
far under their true value, nobody cares
TO purchase outlawed securities. The
uneasiness now felt by the high fnanclers
will, in a few months, be causing every
little merchant and business man in the
country 70 tremble for the savings that
he has accumulated after years of hard
work.
the Union Pacific owns 100000 shares
Of Southern Pacific stock. Every point
decline means a loss Of 81 ,26o 900 TO Union
Pacific stockholders. II has already lost
fully 10 points on account of the peculiar
actions Of the politicians since this segre-
cation has been ordered. So that union
Pacific has already lost more than S12'-
600 OOc