Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-19
i. P. -S.P. DECREE
HEAVY BLOW To
STOCKHOLDERS
Action of Government in Rail-
road Dissolution Case HaSty
and Unfair, Says Expert.
Rv THOMAS c. sHoTWELL

Segregation of Union Pacific and South
4rn Pacific that is now being carried on
s open to severe criticism. For twenty
wears the Sherman antl-trust law was a
dead letter. Pol tlcians found It profita-
bte 20 let it lie unenforced, and business
men. who in the main are the only really
honest portion of the public. came to be-
gfeve that they were not really violating
the law. Their belief Is Justified now be-
cause even the lawyers, who arrogate to
themselves all of the worlds wisdom
can not adree as to what the law means.
In the American Tobacco and Standard
Oh cases the government tr ed to make
the courts repeal the law of supply and
demand and TO compel competition by
persons who do not want to compete,
Anaered at the failure of this attempt
as Illustrated In those two cases, the poll
ticfans are now taking revenge on the
nu5lic by slaughterIng the Union Pacific
and Southern Pacific stockholders. As
the Union Pacific stockholders furnished
the money to buy Southern Pacific stock,
Justice QGfndNOS AlldN NilC OOhhi'N'' q
cffic stock be handed out to them without
any more Formally. The government
however, will not consent to this, be-
cause that is what was done in the To-
bsoco and Standard OIL cases. Some new
way must. therefore, be invented. It
has taken the form Of compelling the i'm
mediate sale of Southern Pacific stock.
II is impossible that $126 100000 of
stock should be sold at fair price on
ninety days notice. The state of New
York allowed several years for the in
sLrance companies to dispose OF the
stocks that they we're adludged to hold
improperly and the stocks have not even
vet been sold. To force Union Pac fic TO
throw its s126, 900 900 of Southern Pacific
stock on the market at such short notice
looks something like confiscaton on the
part of the government. At the very
least. two years should be allowed
This forced sale, If actually consum-
mated, will prove disastrous not only TO
Union Pacific and Southern Pacific, but to
the whOte DOuJ VI eNOSNbOiN~'Sf ~ ~
entire market viii be depressed in sym
pathy. Not only Will the mere sinking
Of quotations cause apprehension, but the
fr0uhtful injustice of the act will impair
confidence of the entire civilized world
In the honor OF the American govern
ment. No American corporation can go
after that to the investors of Europe and
ask for their money for any American
enterprise.
Until this affair is Strengthened out. II
IS idle to discuss values of stocks, for
while everybody knows them to be selling
far under their true value, nobody cares
to purchase outIawed securities. The
uneasiness now felt by the high financlers
will. in a few months, be causing every
little merchant and business man in the
country to tremble for the savings that
he has accumulated after years of hard
work.
The Union Pacific owns 100000 shares
of Southern Pacific stock. Every point
decline means loss of 81 ,26o 900 to Union
Pacific stockholders. Il has already lost
fully 10 points on account of the peculiar
actions of the politicians since this segre-
cation has been ordered. So that Union
Pacific has already lost more than s12,-
mn mn