The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-06-28
Wilson Compelled to
F'orego Trip to Sum-
mer Capital.
RAILWAY MERGER
TAKING HIS TIME
President and Attorney-General
Hope to Prevent Union Pacific
Southern Pacific Receivership
by Agreement OH Plan Ade-
quate to Meet Demands
of Antitrust Law.

Washington. June 27.-President
wilson late to-day brushed aside all
plans for weeks trip to Cornish, "
H. the summer capital. to examine
Immediately the tentative agreement
reached between Attorney General Nc
reynolds and the railroad attorneys
Tor the dissolution Of the Union Pa
cifc merger IN order to prevent. il
possible. the railroad combination
from being thrown Into the hands Of
receiver Unless a method of dis
membering the Union Pacific and
Southern Pacihc, satisfactory to the
Judges of the United States Court for
the Eighth Circuit. is submitted by
July j. the United States Supreme
Court has ordered the dissolution of
the merger by government receivership
Making Supreme Effort.
supreme effort is being made by
the President and the Attorney Cen
eral TO prevent this drastic alternative
by an agreement on plan adequate
TO meet the demands of the Sherman
antitrust law and the mandate of the
supreme Court. officials tonight
freely predicted that the government
and the railroad would present an
agreed plan TO the court within the
time limit. although it was stated that
the governments approval in all prob
ability would be qualified. In submit
ting the plan To the court, il is pro
posed TO ask the judges to give "A lin
tied time before entering a final decree
within which objections displayed in
the light of further study of the prop
ostions may be filed by the govern
ment or any of the other parties inter
ested.
1t is understood that the agreement
will Incorporate, one step in the
dissolution, the previously proposed
plan for transferring S3S.0Oo.0OO of
Southern Pacific stock held by the
Union Pacific TO the Pennsylvania Rail-
road in exchange for the latter's hold
inEs of Baltimore and Ohio. The re-
naming sSS,00o.0 900 OF the total sloS,-
100000 of Southern Pacific owned by
the Union Pacific, IL Is said. will be
placed in the hands OF a trust com
pany. TO be sold within a definite pc
ROD of time and in such manner as to
Insure that no substantial proportion
of the stock will be sold TO the share
holders of the Union Pacific
Attorney General McReynolds OH
jected TO the trusteeship previously
proposed by the railroad 10 the Fed
eral court at st. Paul on the ground
that it was too vague and did not
guarantee that the Union Pacific would
surrender its ownership OF Southern
Pacific within a reasonable time These
objections have been overcome by a
more definite outline for the disposi-
tion of the stock
The exchange OF stock between the
Union Pacific and Pennsylvania will
result according to estimates in Civ
ing the Union Pacific. with its present
holdings in the Baltimore and Ohio,
3S.2 per cent of the outstanding stock
of that company. and in giving the
Pennsylvania IA per cent of the stock
of the Southern Pacific
Cabinet Considers II.
So important was the situation re-
garded that the proposed plan of dis
solution was considered at the Cabinet
meeting to-day. The President has
planned TO leave the city at 5:35 p.
NJ, but after studying the intricate
question all afternoon decided that It
would be ineXpedient for him TO take
the plan away with him for examina-
tion on the train to New Hampshire
as he had proposed, but that he should
remain I'm Washington for further con-
ference with the Attorney General
Paul II. Cravath, counsel for the
Union Pacific. held long conference
with the Attorney General this after
noon. and although he had planned to.
return to New York tonight, decided
after to-days developments to remain
here until the question is settled
The President suspended considera-
tion OF the railway problem long
enough to motor to the station to say
good bye To Mrs. Wilson and his
youngest daughter, Miss Eleanor who
left for New Hampshire on schedule
time.