The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-02-10
Attorney General An
nounces That He Has
Given Approval.
THINKS MONOPOLY
NOW ELIMINATED
He Expects Agreement Will
Bring About Ideal Competition
in States Traversed by Union
and Southern Pacific Rail
roads and Put End
to Complaints.

Washington. February 3-Attorney-
General Wickersham tonight an
nounccd that he had reached an agree
ment with the representatives of the
Union Pacific and Southern Pacific
Railroads for the dissolution OF the
great Hartman merger as decrecd by
the Supreme Court.
The Union Pacific agrees TO sell its
l.266500 shares OF Southern Pacific
stock to its own stockholders and those
or the Southern Pacific in what the
government regards as safe proper.
! ton. The Union Pacific will acquire
the Central Pacific from the Southern
Pacific, giving it an extension from
Ogden to the Pacific Coast.
The plan announced tonight is es-
sentiaily the same as that made pub
lie n few days ago by the two roads
when they reached an agreement sat
isfactory TO themselves, dissolving the
merger. The Attorney General in a
public statement tonight, goes into
greater detail however and declares
that competition will supp!ant monop-
oily under the agreed scheme of scpa-
ration. He gives it his unqualified ap-
proval.
The various contracts necessary for
the carrying out of the agreements
authorized by the boards OF directors
of the railroad companies have been
completed. and the effectiveness of the
plan is conditioned upon it's approval
by the United States District Court, to
which 1t Will be presented at an early
day.
Wickersham's statement.
In his statement. the Attorney en-
crai says:
The result of the whole transaction
Will he TO create ideal competitive
! conditions between tic Union Pacific
and Southern Pacific for transcon,inen-
tai business between eastern points
and Portland. San Francisco. and to re-
lieve the States OF California and Ore
gon OF the monopol: OF railroad con-
! troll VIII ch has been the occasion of
! such Widespread public dissatisfaction
| tn the past, The tiorney General
| feels shat the approval and carrying
/ out Of this ylan will accomplish re suit:
of ine3tinable benefit 10 the public and
1 results far more satisfactory than
there was any reason TO anticipate
| could have been secured"
| The agreement as stated by the At
( torney-, eneral is this:
The plan in brief provides for the
disposition of 1.266.500 shares of stock
OF the Southern Pacific Company, which
the supreme Court reuuires the Union
Pacific TO dispose of by Offering the
same for subscription tc and among
the stockholders Of the Union pactfc
and the Southern Pacihc companies.
the holder of every four shares of
stock OF the Union Pacific to have the
| right to subscribe for one of such
Southern Pacific shares. and the hold
er of every three shares of Southern
Pacific stock to have the right to sub
scribe for one share OF sucn shares
The Eager proportion given to the
Southern Pacific stockholders was in
sisted upon by the Attorney General
for the purpose of insuring n wider
distribution among the Southern Pa
| cine shareholders and to guard against
| the securing of any undue control of
( the Southern Pacific Company by the
stockholders of the Unicr Pacific.
Division IF stock.
The result of the distribution if
all the shareholders ai.ouid avail them
selves OF their subscription rights, will
be that the present stockholders OF the
Southern Pacific Company will own II
per cent OF Its capital stock, while
the stockholders OF the Union Pacific
Will only hold % per cent. The stock
is SO offered for subscription at a price
| practically equal to par, payable In
four installmcnts, extending over a
period of nine months. One Of the
/ conditions of the plan is that the
amount of stock offered shall be
underwritten by responsible under
writing syndicate, and such an under
writing is being arranged by the firm
| of Messrs. Kuhn. Loeb &. Co. and the
National City Bank. as syndicate man
ayers.
Out of the proceeds of such sale
of stock the Union Pacific Railroad
Company is to pay TO the Southern
| Pacific Company for the entire capita,
stock of the Central Pacific Railroad
| Company. now held by the Southern
Pacific Company, the total conuidera-
tion amounting to upwards OF $780,
| 600. 900. and the existing leases OF the
Central Pacific to the Southern Pa
| cific Railroad are to be cancelled.
! Provision ALSO is made for the lease
| in perpetuity by the Central Pacific to
the Southern Pacific of the line con-
| Meeting the Southern PacInc ROAD in
| Continued on Eighth PaEel