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

Segregation of Union Pacific and South
is open to severe criticism. For twenty
wears the Sherman anti trust law was d
dead letter. Pol tIcians found It profita-
bIe to let it lie unenforced, and business
men, who in the main are the only really
honest portion of the public, came to be-
lieve that they were not really violating
the law. Their belief is Justified now be-
cause even the lawyers, who arrogate tc
themselves all of the worlds wisdom
can not agree as to what the law means
In the American Tobacco and Standard
OH 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
Anaered at the failure of this attempt
as illustrated In those two cases, the poll
ticIans are now taking revenge on tbs
nubllc by Strengthening the Union Pacific
and Southern Pacific stockholders. AS
the Union Pacific stockholders Furnished
the money TO buy Southern Pacific stock
Justice demands that the Southern Pa
rific stock be handed out to them without
any more formality. The government
however, will not consent to this, be-
cause that is what was done in the To-
bacco and Standard OIL cases. Some new
way must, therefore, be invented. II
has taken the form of compelling the i'm
il
II is impossible that st26 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
surance companies to dispose of the
stocks that they were adludged TO hold
improperly and the stocks have not even
vet been sold. To force Union Pac tic to
throw its 1925 900 900 Of Southern Pacific
stock on the market at such short notice
looks something like confiscation on tbs
part OF the government. At the very
least. two years should be allowed.
This forced sale, if actually consun
mated, will prove disastrous not only tc
Union PdeiUC anu OouNUS'H VaS'"Nf w. -
the whole body Of stockholders, for the
entire market will be depressed in SYM
psthy. Not only will the mere sinking
Of quotations cause apprehension, but the
frfahtful Injustice Of the act will impair
confidence of the entire civilized world
in the honor Of the American govern
ment. No American corporation can &c
after that to the investors of Europe and
ask for their money for any American
enterprise.
Until this affair is Strengthened out II
IS idle 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 financlers
will, in a few months, be causing every
little merchant and business man in the
country to tremble for the savings thai
he has accumulated after years Of hare
work.
The Union Pacific owns 100000 shares
of Southern Pacific stock. Every poin'
decline means a loss of 81 ,26o 900 to unior
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 Ohior
Pacific has already lost more than s12,'
mn mn