New-York tribune., 1913-06-29
Reasonable Time Before Sign
ina Final Decree to Enable
Government to Object.
TRIBUNE TOLD OF PACT
McReynolds Sends Todd to St
Paul to Submit Case to Court
To- morrow - Stock
Shows Activity.
fFrom The Tribune Bureau.l

IFrOm The tribune bureau
Washington. June 2S.-The President ap-
proved to-day the tentative agreement
reached on Wednesday. which was exclu-
sively announced i'm The Tribune of June
96. regarding the plans for the dissolution
of the Hartman merger of the Union
Pacific and the Southern Pacific railroads
The scheme was submitted TO him this
forenoon by Attorney General Nc
Reynolds, who conferred with Judge
Lovett and Paul d. Cravath on Wednes-
day and completed the details Of the
plans.
In approving the plans President Wilson
suggested that II would be wise to present
them to the United States Court of the
Sth Circuit at st. Paul. with request
that a reasonable time be granted before
the signing of the final decree, in order
that the government might have an op-
portunity to offer possible objections
which cannot now be foreseen. There is
some opposition to the scheme. as 1t is
known in a general way, and Mr. Nc
Reynolds Will make a further study Of a
number of features, but 1t IS believed that
the plans will not be revised in any ma
terial instance.
MoReynolds Stays at Capital.
Attorney General McReynolds decided
that It was not necessary for him TO go
TO st. Paul to submit the matter to the
cour personally. so G. Carroll Todd. who
has been associated in the case, and IS
familiar with all the details, will repre-
sent the government before the court.
Mr.. Todd left here for St. Paul tonight
and will present the plans to the court on
Monday.
Attorney General McReynolds late to-
day received word that Circuit Judges
Sanborn and Smith would be in St Paul
on Monday to receive the plan. Judge
Hook has not been heard from, and 1t is
not known whether he will be present.
Mr.. McReynolds would not discuss the
nature of the plans in detail to-day, say
ing he wished to have them submitted
to the court first, but II is generally un-
derstoOd that they provide for exchanging
$3S000,OOO OF Southern Pacific stock held
by the Union Pacific for the Pennsylva-
MAS interest in the Baltimore & Ohio,
and the sale Of the remaining sSSOOO,OOO Of
Southern Pacific stock by a trust COM
pany in such manner as to prevent it
being controlled by the Union Pacific or
its shareholders
As the plan Of dissolution does not pro-
vide for the separation Of the Southern
and Central Pacific, officials Of the De-
pertinent Of Justice to-day reiterated that
Attorney general McReynolds later on
would bring a civil antitrust suit under
na n
suit.
Following the announcement that
President Wilson had approved the
Union Pacifc-Southern Pacific dissolu-
tion plan the stock of the former became
very active. and within a few min
utes had risen from 1852 TO 149T. Be
fore the close of the market, however il
had receded 10 14S$4, a gain Of S1s points
over Thursdays closing price. southern
Pacific stock also responded TO the news
fI that the dissolution problem had been
~ finally settled with a rise OF 1ss points.
With this element Of uncertainty elm
mated other stocks listed on the exchange
also witnessed moderate gains.
Robert S. Lovett. chairman Of the Union
Pacific board Of directors. and Paul d.
Cravath. the roads general counsel, were
in conference at the companys offices. at
No. 165 Broadway. yesterday morning,
but neither would make any statement
concerning the details Of the approved
plan. II was stated that this news would
probably be announced from Washington
on Monday.
Had the Department Of Justice and
President Wilson failed 10 ecquiesce to
the latest dissolution plan by July s126,-
$4,000 Southern Pacific stock held by the
Union Pacific would have perforce been
disposed Of through the appointment of a
receiver.
Wall Street now believes that stock
market conditions will show marked i'm
provement with this important matter set
tied.