The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1913-01-12
ROADS HAVE PLAN
TO DISSOLVE
UNION PACIFIC AND SOUTHERN
PACIFIC MEN CONSULT
WickERsHAM.

Washington, Jan. 11.-Steps will be
aiken Immediately by the Southern
Pacific railroad to elect a board OF
directors distinctly allied with that
road, to represent it in the negotia-
tons with Attorney General Wicker
sham for the formulation of a plan
dissolving the. Union Pacific-Southern
Pacific merger in accordance with the
decree of the supreme court.
This fact developed today after a
conference of the attorney general and
the protective committee of the South
ern Pacific appointed to look after the
roads interests in connection with
the dissolution.
Because. of the present large hold
ings of Southern Pacific stock by the
Union Pacific, the board of directors
of the Southern Pacific is regarded
as largely representative of the Union
Pacific interests. The attorney gem
eral desires to deal with men closely
representing both roads in order that
he may have the benefit of the. points
of view of each party concerned.
Today's conference between the at
torney general, James N. Wallace, Al
bert A. Wiggin. Frederick Straus, J..
bert H. Wiggin, Frederick Straus, ].
New York, was the first discussion
the attorney general has had with
representatives of the Southern Pa
cific since. the decree of dissolution,
the negotiations previously having
been entirely with the Union Pacific
interests.
Only the general phases of a ten
| tatiUa 1jNCn1rtinr Milan ,arnyn annCi1.
cred today. It principal feature,
which the attorney general is UNDER
stood to approve, is thai the Southern
Pacific turn over to the Union Pa
cific the Central Pacific line which
runs from Ogden to San Francisco.
This line, the SGT, 275, 900 common and
SIT, AGO. 900 preferred stock of which
is owned exclusively by the Southern
Pacific, would give the Union Pacific
an extension to the Pacific coast.
BY the tentative proposition, the
transfer would be accomplished by the.
Union Pacific s%urrendering to the
Southern Pacific a part of the $780,
100000 Of Southern Pacific stock
held by the Union Pacific and ordered
relinquished by the supreme court.
A complication in this connection is
lIe ldCl Iidl Tile SeHtfdl racine IL
now reserved as collateral for the.
Southern Pacific 4 per cent bonds.
If this exchange is agreed upon, an
involved problem faces the negotiators
in reaching an agreement as to the
disposition of the remainder of the
1926, 900, O0Oof Southern Pacific stock
held by the union Pacific. Officials
Of the department of justice. concede
that the supreme courts decision does
not forbid the Union. Pacific dis
tributing or selling "a small part of
these holdings to its stockholders.
The attorney general maintains, how
ever, that no substantial proportion
can go to Union Pacific shareholders.
Conferences of the last few days
have encouraged the attorney general
to believe. it is said, chat all the in
terested parties are disposed to make
a serious effort to reach an agree
ment of dissolution for presentation
to the courts for ratification. The
Southern Pacific committee, which
presented no particular plan, but as
stunned an attitude Of study of the
situation, returned to New York this
afternoon for further consultation
with Southern Pacific interests.