The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-02-07
Terms for Dissolution of
r Ill w ay Merger
Agreed Upon.
APPROVAL GIVEN
BY WICKERSHAM
Central Pacific, Which Has Been
Bone of Contention, Purchased
Outright by Union Pacific,
but Will Be Conducted In
neutrality-suspicious. to
Finance Stock Sales

New York, February 6-Pians for
the dissolution OF the Union PaSfc
Railroad Company and the Southern
Pacific Company, as decreed by the
United States Supreme Court. were
officially announced in detail tonight
after a protracted session Of the di-
rectors Of the two companies. The
terms are said In "A statement Issued
Jointly by the roads TO have the APP
prevail Of the Department OF Justice
at Washington. and the agreement
nov awaits confirmation OF the court
IN the Federal districts. where the ac-
ton originally was taken. and by the
Railroad Commission of the State of
California.
In accordance with recent intima-
tions. the severance OF the Union Pa
cifc and Southern Pacific results In
Union Pacihc's absolute purchase Of
Central Pacific. which has been the
bone Of contention between the two
principal roads Of the Hartman sys-
TEN.
The agreement also provides for the
sale Of all the Southern Pacific stock
held by Union Pacific at ssss with &C
crued dividend TO the stockholders.
common and preferred. of the Union
Pacific and Southern Pacific, other than
the Union Pacific and Oregon Short
Line.
Syndicate TO Finance Sale
II is understood that a syndicate mas
been formed under the lead OF Kuhn.
Loeb d co. and their foreign connec-
lions. 10 finance the sale or Union IA
cific's holdings OF Southern PACING.
amounting 20 sl2s.s5o.o00-
The official statement issued jointly
by the Union and Southern Pacific FOL-
lows:
The boards of directors of the Union
Pacific Railroad Company and South
ern Pacific Company. at meetings neid
to-day. approved plans which have
been under consideration by speciaI
committees for several weeAs. and
which have been worked out with the
Attorney General subject 10 the az
proval OF the court. as roiio~s-
The purchase by the Union Pacihc
of the entire capital stock of the Cen
trail Pacific consisting OF So, S.ooO
par value OF common and Sl".4Vv'Vov
Dar value preferred, for the sum OF
SI04.iSs.s4l-the cost at wnicn
stands upon the books OF the southern
Pacinc Company. Eighty-four million
six hundred and seyenty-hye thousand
Ave hundred dollars Of the amount was
TO have been paid in stock or the
Southern Pacific Company held 1y
Union Pacific at par. but Iegal oiH-
entities having been found In the way.
the plan has been changed so that
r,avn9.nt is L, be made as follows. viz;
one hundred and twenty six mil
lion six hundred and fifty thousand
dollars par value-beinE the entire
amount Of stock Of Southern Paclnc
Company held by Union Pac4Ec-ls 10
be offered to the stockholders common
and preferred. of the Union PaciHc. and
s,ockholders Of the Southern Pacific
COMPANY. other than the Union Pacific
and Oregon Short Line. for subscrip-
ton at IS SIS per cent ana 2ccruro
dividend This offer is to he under
written. and subscribers are 10 receive
the dividend. payable April 1. 1919
"details to be given later)- The pro-
ceeds OF ss4.s75.5 500 of this stock. less
the underwriting commission and er-
penses are to be paid over to the South
ern Pacific Company. together with
s. ass. GOO of the Southern Pacific Com
panv's 4 per cent gold bonds and sl4'-
0s5.44 in cash
Attoruey-tsenerEl Approves
The sttorney-General Of the United
states has assented to the essential
features of this plan. but II as. OF
course. subject 20 the approval OF the
District Court in which the govern
u1ent litigation is pending. and also
dependent upon the approval oy the
California Railroad Commission OF
agreements for certain trackage and
running rights in that state. The plan
and agreements viii be presented To
the court and commission with least
possible delay.
Julius Kruttschnitt. chairman OF the
Southern Pacisc Company. IN discuss
ing the sale OF the Central Pacific stock
by the southern Pacific Company.
stated that while the directors have
not decided what disposition TO make
q the money thus received. cor
s-derabl part % Il will b. needed n
~. rear future TO pay for extensions
equipment and beti~rments.
Tac amount IS sufficient 70 take care
% future requirements. h said with
our increase Of axed charges.
Er Kruttschnitt also stated at 2
meeting with the southern Pacific
stock holders protective committee this
sftcra ,0a the plan agreed upon by
the bozlds Of the southern and Tuinr
racifc Companies was approved
uuai .nOusly-
Judge r. : Iovctt. chairman Of the
executive committee OF the Union Paci-
&c said IN a statement tonight:
II the plan Is ccusumnated tho
lease and operation OF the Central
pacific by the southern Pacific Com
paav. will. q course. ccase and the
Genital Paciec Railway Company viii
enter upss, the OBJ ration % It's own
lines With a complete organization IN
california from president down. The
r-esse.nf Of the Central Pacs1c VIII
have fully ss much authority with 70
spe-t 20 those lines a. tn prcsider'
81 The uthcrn Pacihc Company Ia
over its lines
The polished reporfs thar tn
...,f-s- pacific 10 70 b Leased TO =.
,,e~0ed into the Union Pacisc Rail-
ma are without foundation. IT,.
1-nfon paci0c's control will be through
owre-ship 81 stock 81 the Central
pscsec. the operations being carried on
~ the Central rscidc Railway Com