The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-02-07
Sale of Southern Pacific Stock.

Hartman system.
Sale Of Southern Pacific Stock.
The agreement also provides fol
the sale of all the Southern Pacific
stock held by Union at 80 SIS per cent
with accrued dividend to the stock.
holders, common and preferred, OF
than the Union Pacific and oregon
Short Line.
1t is understood that q syndicate
has been formed under the lead OF
Kuhn, Loeb & Co.. and their foreign
connections to finance the sale oi
Union Pacific's holdings Of Southern
Pacific. amounting to $126.650,000.
The official statement, issued Joint.
|ly by Union Pacific and Southern Pa.
cific, follows:
The board of directors of Union
Pacific and Southern Pacific railroad
companies today approved plans
which have been under consideration
by special committees for several
weeks. and which have been worked
out with the attorney general, subject
to the approval Of the court, as fol.
lows:
The purchase by the Union Pacific
Of the entire capital stock Of the Cen
trail Pacific consisting of $67,275.5 500
par value of common and 17,4OO.OOt
par value preferred for the sum OF
$1O4. .1SS.941-the cost at which il
stands upon the books Of the South.
ern Pacific company. Eighty-foul
million. six hundred and seventy-five
thousand. five hundred dollars Of the
amount was to have been paid in stock
of The Southern Pacific companv. held
by Union Pacific at par. but LEGAL diff.
ticulties having been found in the way
the plan has been changed SO that
payment Is to be made as follows
viz: One hundred and twenty-si
million. six hundred and fifty thou
sand dollars par value-being the
|entire amount Of stock Of Southern
Pacific company held by Union Pacific
common and preferred. of the Union
Pacific and stockholders of the South
ern Pacific company other than the
Union Pacific and oregon Short Line
for subscription at 9S SIS per cent
and accrued dividend. This offer Is
to be underwritten and subscribers are
to receive the dividend payable April
1. 1913 "details to be given later).
The proceeds OF $S4.675.500 of this
sion and expenses is to he ~aid over
TO Southern Pacific company. together
with s5.44s.000 OF the Southern Pa
cific company's four per cent gold
bonds. and s14,0e5,44l in cash.
Attorney General Assents.
"The attorney general of the United
features Of this plan. but it is OF
course subject to the approval Of the
district court in which the govern
ment litigation is pending. and also
dependent upon the approval by the
California railroad commission of
agreements for certain trackage and
running rights in that state. The plan
and agreements will be presented to
the court and commission with the
least possible delay"
Julius Kruitschnitt. chairman of
the Southern Pacific company. in dis
cussing the sale Of the Central Pacific
stock by the Southern Pacific COM
pany, stated that while the directors
have not decided what disposition to
make Of the money thus received. a
considerable part Of 1t will be needed
in the near future to pay for extern
sions. for equipment and for additions
and betterments. The amount is suf-
ficient to take care Of future require
ments. he said, without increase Of
fixed charges.
Was Unanimously Approved.
Mr.. Kruttschnitt also stated that at
a meeting with the Southern Pacific
stockholders' protective committee,
held yesterday afternoon. the plan
agreed upon by the boards Of the
panies was unanimously approved.
Judge r. S. Lovett, chairman Of tho
committee Of the Union Pa.
cific. said in a statement last night:
IF the plan ia consummated the
lease and the operation Of the Gen.
trail Pacific by the Southern Pacific
company Will. OF course. cease. ana
the Central Pacific company will en-
ter upon the operation Of it's own
lines, with q complete organization in
from president down. The
have fully a. much authority with
respect to those lines as the president
Of the Southern Pacific company has
over its lines.
"The published reports that the
Central Pacific is to be leased or to
be merged into tho Union Pacific rail-
road are without foundation. Tho
Union Pacitic's control will be through
OF stock Of the Central Pa
cti,c. the operations being carried on
by the Central Pacific Railway COM
PAW and In its own name."
WILD WOODY WELCOME HER?
Washington. Feb. 7.-Miss Della
lia." who has supplied the white house
with an occasional old fashioned New
England apple pie while Nephew
Will" has occupied 1t. arrived at the
mansion today for her last
visit. Since President Taft has been
president. Mrs. Torrey has been a vel
como visitor to her nephew'S home on