The chronicle=news., 1913-06-12
OISS OIL j TI0N
PLAN IN NEW
FORM

81 Ftni. hiuhHs june 'h''"
Pacific railroad attorneys appeared ,
before United States Circuit Judges
Sanborn, Hook and Smith today and
explained additional plans for dispos-
Ing OF the roads holdings OF Southern
Pacific stock. Attorney General Me
Reynolds. on behalf OF III. govern
mcnt. expressed unalt"rabi" opposi-
ton to ihos. plans which h. said
were mo plans at all hut w.r. merely
propositions OF something they In
tended to try to do"
The couf, adjourned without an
nouncing any decision. Presiding
Juds. Sanborn Indicated that no or
der Nigh, he expected until the at
tornry general had decided whether
tn. government would obict To pro-
posed "Schang" Of par, "f the hold
ings of sou,."rn paclfi. stock for
Baltimore 4 Ohio. aud this stock held
by the Pennsylvania railroad.
TIL. new plan proposed was sup
elemental To tn" two plans recently
Th. amount Of stock In
yoiy-d In the exchange represents on
~ - per cent Of the total Southern
Pacific stock. The present holdings
of tn. Union Pacific ip southern PA
rifir common stock represents about
{ i... 600. 600.
y. H. i>nnmis of counsel for tn.
Union Pacific explained the pr"poni-
Ions to tn. court. ~" said that the
Union Pacific did not guarantee" To
carry out either of tn. two principal
plans proposed even though tn" court
approved both Of them. II 4, should
be- found that to follow either of them
would involve too sr-a, ,,criii-" To
The Union Pacific sto.khoid-rr. th.
disposition Of the stocks would he left
la the court.
''itow long n time do you think
The tnlon Pacific should he given So
dispose Of the stock" inquired Judge
smith.
II think the court should be lib
rrai With II, 10 tho ssas:~s as :t--A>>
rausc Of the present coalition NJ the
money market replied Mr.. lIoomIs
". thought III. railrosd should have
one year In which to offer the stock
'nd complete tn. disposition Of II.
Attorney General Mcitcynoids In
opposing the plans proposed by the
Union IA, lfic. said that he regretted
effect u deal whereby the tnipn Pa
fiflc would acluir" the Central Pa
r!tic. operating from ogden to SaG-
In exchange for it, South.
rrn Pacific stock. lie declared that
this faiiur. would compel the govern.
m.nt to institute an "spcnSiv" III.
:n,ion to compel the southern Pacific
To rclinuuish its hold over the Cen
trail Pacific
Mr.. McRcynoids thought the gov
ernincnt would not obj.., to the pro-
posed change hue h" wanted To in
ycstigatc the holdings OF tn. various
roads bcfor. making any dcfint"
lie said he probably
inform the court within three or
four days.
The time has come for the court
To order something DONE said tho
attorney general.
THE Union Pacific doc. not even
guarantee to carry out either OF the
two so-cailcd plans now before the
court. IL asks year to try to az
coriplish one of them. provided mar
kct conditions viii permit such ac-
lion without loss to stockholders.
THE railroad counsel say that to
kct conditions would b" at n great
sacrifice.
III loss tx incurred It will he a.
the result OF wrongful action as
construed by the supreme court.
which has ordered this court to dis
time. Approval OF either proposi-
tion submitted probably would find
the situation Just MS II is now at the
end OF the years.
Judge Sanborn asked the attorney
general what action he thought the
court should take. Mr.. McRcNnulds
said the court should either appoint
n receiver to dispose of the stock or
should itself devise some means OF
disposinE OF II.
The primary plan proposed pro-
vidch for the sale OF the stock by
popular subscription similar to city
bonds. while the alternative plan
provided for placing the disfranchis-
cd with a trustee and tho Issuance OF
OF interest against 1t.
These certificates would be cNchanE-
able only on the filing OF an affida'
Wit that the holder did not own any
Union Pacific stock
Judge Lovctt. chairman of tho
board. explained to the court that
1t would be impossible to carry out
the first plan at the present time
owing to market conditions all over