Show U IoN JION PACIFIC PlAN I I May Secure Transfer of if South Sonth Southern I ern er em Pacific I Lease I II I PRESIDENT HAYS HERE HE HEI e I i PACIFIC VIsITS I t New Tone Yo Feb 4 4 The Evening Post today ha baa the The suggestion tion was made n tny that further study tudy 1 I of the Southern Sou flent by the i interests the Union Pacific might develop a PIa l ja by bi which the i i Union PadRe Pacific U be able le to te assume I i I absolute awl aud permanent control of the theS I II j S Central without any I I I liability lIty for tor time Whole ern Pacific I system y tem Union Pacific interests b freely treely I admitted that Ute t et interests I I of the company compe 7 in m the Southern Pacific i is in it lt its control co of the natural and only I possible sibIe po outlet for Cor the ue Union Pacific to toI San Francisco The Central Pacific and I the Union Pacific were ere conceived as one route and their division t into separate companies was unnatural tural and harmful I to the best beat interests I of ot the Ute companies themselves them elves and mt Ja with the transportation tran facilities of ot the public The Tile two companies com nave have often otten work worked ed in opposition In money matters as astrain regards train service ervIce rates nEt and distri dIstil distribution distribution button and anti movement of tonnage The Southern other liner fine are nat naturally naturally naturally allied the interests ta of Call Cali California fornia and the southwest and form a transportation transport U n complete and arid valuable in ia itself even without the di dl direct direct tact ownership of the Central Pacific It is believed that theA time the plans of the syndicate now hold the Southern Pacific for the Union Pacific for fr jing I leg ing the property will not lM t be definitely formed until maUl the Central Pacific lease has haa been carefully gone over to see if that property can he be segregated from front the other lines under feasible condi conditions conditions The adoption of the plan of oC is issuing IssUing issuing suing collateral trust notes DOte as in other recent mergers it Jt is 18 not regarded as likely to o be adopted opted until lieU other plans plan have been thoroughly canvassed I The terms under which the Central Pacific is 18 held by the Southern Pacific therefore becomes mes a point of special In Interest interest terest They would seem most t definite definitely ly fixed by the terms of ot the Southern Pacific 4 per cent collateral trust tru t bonds issued in lItt These are secured redby by a deposit of all dl the time outstanding out shares of the Central l Pacific which are owned by the Southern Pacific The section of this mortgage bearing on this point says The T existing tease lease of the properties of the Central Pacific railway to the Southern Pacific company shall ShaU termed terminate terminate nate in case the pledged stocks tucks shall ball be besold besold besold sold in hi consequence of default hereunder der er The Southern Pacific company will wilt not assent to t any other lease of such s unless such lease shall have haven been n approved by y time the of a ma In amount of the tite bonds outstanding lug ing hereunder or shall haU mall contain a provi provision provision sion slon terminating the same ame me in case ease such pledged stocks shall mail be b sold eold This would mean moan to afford ample au authority authority authority and amid feasible means mean fur for the I Union Pact Ac assuming the lite Central Pa Pacific Pacific lease Jease if I Mould be decided to turn that property directly over OY to the I Union Pacific |