Arizona republican., 1913-04-22
Presents Motion for Exten- sion to July n, Stating by That Time Plan Will Be Perfected Agreeable to the Court
CIRCUIT JUDGES
 HEAR ARGUMENT
General Believed Appeal Will Be Granted As Rail- roads Seem to Be Really Striving to Obey Man. date of the Court
tAssocrATED PRESS p1sPArcH1

ST PAUL, April 21.--Tho pre- sentation of a motion for an exten
 sion of time until July II which was and the informal presentation of a revised plan of the dissolution of the Union Pacific and Southern Pacific railway merger marked a conference of the Union Pacific and United States Circuit Judge Walter H. San
 born, William c. Hook and Walter l. Smith,
 was at first denied. the judges being undecided on the question of juris-
 diction. Later. however, they ex pressed the opinion the extension could be granted. believing the rail-
 way was doing all in it's power to present a plan Of dissolution that would be acceptable to the supreme court, and to the attorney general.
 In a telegram read to the court.
 United States Attorney General Mc- Reynolds declared his willingness to
 grant the desired extension
 Upon information from the supreme
 court as to the jurisdiction of the
 circuit judges, the court of appeals
 may convene and act on Lovett's
 action. It may be some time. how
 ever, before this will be done. Lovett and his associates left late
 today for Washington to place the | nf nf hn
 before the supreme court.
 Following the presentation of the motion, Lovett informally presented the court with a tentative plan Of dissolution. Late this afternoon a synopsis of the plan was given out by the judges.
 The amended plan in brief is that the entire s126,65o,OOo of Southern Pacific stock to be distributed shalt be deposited with trustee and dis franchised while so held; the certi- ficates of interest to be issued by the trustee against said shares which shall carry no voting right and which shall be exchangeable for Southern Pacific shares held by the trustee | only upon the filing of an affidavit l by an applicant of such exchange. showing that such applicant does not own 1000 shares or more of Un- 1 ion Pacific stock: that these certifi- Cates of interest shall be offered for
 subscription and purchase to all Un- I ion Pacific stockholders ratably at a 1 distribution ratio of not less than l 3S per cent.
 The largest Union Pacific stock | holders (36S in number, according to 1 the September stock list) are by this
 amended plan entirely excluded from
 the acquisition of. any of the South ern Pacific shares to be distributed l ''The objection expressed by the supreme courts opinion on Janu-
 ary 6. 1913" the amended plan states. ] therefore absolutely avoided for the 36S Union Pacific stockholders to whom the objection pertained instead of being entitled to pro rata shares | to twenty-nine per cent of the South
 ern Pacific stock and being theoreti- cally able to increase this holding by 1 the acquisition of rights from the 1 smaller shareholders are not entitled
 to acquire one single share of the Southern Pacific stock to be dis 1 tributed'
 The amended plan continues:
 But even if it be assumed that
 any concerted action by the 21,7S2
 holders of the Southern Pacific stock
 resulting in control of the elections of the Southern Pacific company is possible, the effect will not be to
 continue the previous combination Ttese 21,7S2 holders assume to be able to control the Southern Pacific company by holding actually forty six per cent of it's stock do not con-
 trol the Union Pacific Railroad com pany and not are able to elect its
 directors. since their aggregate hold
 ings of Union Pacific stocks amounts } to only. AT per cent of the Union Pacific stock and as the votes of l the remaining 46S stockholders hold : ing 62.S per cent of the stock, na : turally these represent a controlling
 interest of the Union Pacific com Ipany.
 l. The plan also provides the sale sto a. syndicate or on the New Yorl, stock exchange any certificates oi interest not subscribed for by South ern Pacific shareholders Certificates ? of interest, it continues. unacquiree on the open market will still be sub. r ject to conditions that they are noI l to be converted into stock by an, II Union Pacific shareholder. hOll2in, lone thousand shares or more.''