New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-07-01
Pacific Merger Becomes a
Thing of the Past by the
Unexpected Signing of
Final Decree.
YEARS OF LITIGATION END
Attorney Generals Request for
Delay, to Allow Possible
Objections to the Scheme
To Be Made, Over
ruled by Judges.

ruled by Judges.
ST. Paul, June 30.-Federal Judges
Walter H. Sanborn. William c. Hook
and Walter 1. Smith. sitting as the
District Court of the United States
for the District of Utah, approved late
to-day the plans agreed upon by At
torney General McReynolds and at
torneys for the Union Pacific Rail-
road. and the famous Union Pacific
Southern Pacific merger, known as
the great Hartman combination.
practically came to an end. The de-
cree signed to-day will become effec-
tive with It's filing in the federal court
at Salt Lake City. which probably
will take place next Wednesday or
Thursday.
With the handing down of the final
decree to-day years Of litigation came
TO an end, the first suit Of the gov
eminent 10 dissolve the merger hav-
mig been filed in Salt Lake City in
1908.
The decision to-day came as sur
prise. There was a short hearing this
morning, at which the government
was represented by C. Carroll Todd,
special assistant to the Attorney Cen
eral, and the roads by n. H. LOOMS
and H. w. Clarke. The court then
took the case under advisement, call
ing in attorneys for both sides sew
eral times to question them further
concerning the plan. but there was
no hint that a decree would be given.
Prompt Action Taken.
Not long before o'clock Judge San
born, who was presiding. called in the
attorneys and announced that the court
had decided to enter a final decree ap-
proving the plan as presented by the
Attorney General and roads counsel,
with practically only one exception.
This exception was the naming of Louis
c. Krauthoff, of New York City, as
commissioner of the court to see that
the letter and spirit of the plan are
carried out. The court also directed
him to report TO il from time to time.
In brief. the plan, which had the ap-
proval of President Wilson. presented
by the Attorney General and counsel of
the road and approved by the court,
provides that the Union Pacific shall
exchange $3S000,OO0 Of its $126,000000
holdingsin the Southern Pacific for the
PENNSYLVANIA Railroads entire hold
ings in the Baltimore & Ohio-virtually
an equal amount; that the remaining
SIS 200. 900 shall be sold to the general
public through the Central Trust Com
pany Of New York; that no present
stockholders in the Union Pacific, con-
tinuing as such, may buy any Of the
Southern Pacific stock so sold that the
transaction should begin November ],
1913. and il not complete by January
I, 1916, the court should direct the dis
position Of any Southern Pacific stock
remaining unsold.
BY the decision to-day the court dis
regarded the desire Of the Attorney
General that final decision be withheld
Tor the interposing Of objections by in
terested parties, to which part of the
Attorney Generals plan Mr.. LOOMS
made objection as unfair to the road.
The Attorney General also had asked
that there be publication of the plan,
as in the American Tobacco Company
case, calling the attention Of interested
parties to the fact that objection might
be made, but this also was overruled
by the handing down OF the decree by
the court.
Deems Decree Most Important.
1--WE deem a decree OF dissolution
more necessary at the present time
than any other action" said Judge
Sanborn, after announcing the decree.
The government, however, in the plan
presented to-day and approved by the
court, expressly stipulated that should
any illegal conditions arise from the
exchange Of stock, either under exist
ing or future legislation or future in
depreciation by the courts Of present
statutes, the government lould have
the right freely to assail" the arrange
ment
In presenting the plan to the court
to-day Mr.. LOOMS said:
This is the third and amended plan
for dissolution and is offered as a sub
stitute for previous plans. 1t differs
from the others in the provision for
the sale of SSS.OOO,O00 worth of stock
through a trustee under direction Of
the court. 1t also provides speedier
method of securing the certificates OF
stock The previous plans contem-
plated the completion Of the dissolu-
ton in five years. By throwing re-
strfctions about the use Of the stock
certificates this plan will make it pos
sible to complete the dissolution by
January l. 1916"
Mr.. Todd, who left tonight for
washington, and Mr.. Clarke and Mr..
LOOMS, who left for New York and
Omaha. respectively, declined to dis
cuss the decree Of the court.
Beginning of the Case.
When the suit of the government to
dissolve the Union Pacifc-Southern
Pacific merger was fled in the Federal
Circuit Court for the District Of Utah
in 1908. the CircUlS Court for the
,ss-.-t~. ....,., o,.,o n1ead 80 TElnac