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Show ANNOUNCE PUN FDR DIVORCE Of Directors of the Two Roads Issue Statement Jointly After Af-ter a Protracted Conference Confer-ence in New York. ATTORNEY GENERAL ' WILL n6t OPPOSE Agreement Now Awaits Confirmation Con-firmation of Federal Court in This District to Be- -come Effective. NEW yOUK., Feb. fl. Plans for tho dissolution of the Union Pacific Railroad company and the South, em Pacific company, as decreed by the Uuitcd States supreme court, officially of-ficially were aunouueed iu detail tonight to-night after a protracted session of the directors of the two companies. The terms arc said iu a statement issued .lointlr by ti(C roads to have tho approval appro-val of the department of justice at Washington and the agreement now awaits confirmation of(the court iu the federal district where the aulion was originallv taken and by the railroad commission of the state of California.. In accordanco with recent intimations the severance of Union Pacific and Southern Pacific results iu Union Pacific's Pa-cific's absolute purchase of Central Pacific, Pa-cific, which had been the bone 'of contention con-tention between the two principal roads of the Harrirnan system. The agreement also provides for the sale of all the Southern Pacific stock held by Union Pacific at 9S per cent, with accrued dividend to tho stockholders, stockhold-ers, common and preferred, of the Union and .Southern Pacific, other tlui,u the Unjon Pacific aud Orogon Short Uine. It is understood that, a syndicate- has been formed under tho leadership of Kuhn, Loeb & Co. and their foreign connections to financo the sale of Union Pacific's holdings of Sbuthcru Pacific, amounting to $126,650,000. Official Statement. The official statement, issued jointly by Union Pacific aud Southern Pacific, follows: "Tbo boards of directors of Union Pacific and Southern Pacific railroad companies today approved plans which have been under consideration 1)3' special spe-cial committees for several weeks and which have becu worked out with the attorney general, (subject to the approval appro-val of the court, as follows: ''The purchase by tho Union Pacific of tho entire capital stock of tho Central Cen-tral Pacific, consisting of $67,275,500 par valuo of common and .lT.-iOOjOOO par valuo preferred stock for tho sum of $101,189,0-11- the coit at which it stands upon the books of tho Southern ' Pacific company. Eighty-four million, six hundred and seventy-fivo thousand, five hundred dollars of the amount was to have boon paid in stock of tho Southern Pacific company, held by Union Pacific at par, but legal difficulties diffi-culties having boon found iu tbo way the plan has beeo changed so that payment, is to bo made at follows, via.: One hundred and twenty-six million, six hundred and fifty thousand dollars, pnr value being tho entire amount of stock of Southern Pacific company hold by Union Pacific is lo bo offered to the stockholders, common and pro-frrod pro-frrod of tho Union Pacific and stockholders stock-holders of tho Southern .Pacific company com-pany other than tho Union Pacific and Oregon Short Lino for nubiicription at 98 5-8 por cent and accrued dividend. This offer is to bo underwritten and subscribers are to roceivo tho dividend divi-dend payable April I, 191S (details lo be given later). Tho proceeds of S4 ,675,500 of this stock lew tho underwriting un-derwriting commission and expenses is to bo paid ovor to Southern Pacific company, together with $5,449,000 of the Southern Pacifio eornpany'n 4 per cent cold bonds, and $14,06o,-ML iu cash, Wickersham Approves. "Tho attorney general of the United Stales ha3 assontod to tho "usontial features of this pln.n, but it in of course subject to tno approval of the district court in which the govortimout litigation is pending, and nlso dependent de-pendent upon the approval by the district court in which tho govornmcnt litigatiou is pending, and also depend eut upon the approvnl by tho California Califor-nia railroad commiBion, of agreements) for certain trackage and running rightB in that slato. The plan and agroo-! menta will bo presented to the court and commission with tho loost possible delay." Julius Kruttsehnitt, chairman of tho Southern Pacifio company, in discuss-ing discuss-ing tho nalo of tho Central Pacific stock by tho Southern Pnciilc com- , (Continued ou Pago Two.) HIE M FOB DIVORCE OF HPS (Continued from Pago Ono.) puny, stated that while the directors havo not decided -what disposition to make of tho money thus received, a considerable part of it "will bo needed in the near future to pay for extensions, exten-sions, for equipment and for additions and. betterments. The amount is sufficient suffi-cient to take caro of future requirements, require-ments, ho said, without increase of flaed charges. Mr. Kruttschnilt also stated that at a meeting with the Southern Pacific stockholders protective committee, held this afternoon, the plan agreed upon by the boards of the Southern and Union "Pacific companies was approved unanimously. Judce R. S. Lovett, Chairman of the executive committees of the Union Pacific, said, in a statement tonight: "If the plan is consummated the lease and the operation of the Central Pacific, by the Southern Pacific company, com-pany, o courso will cease and the Central Cen-tral Pacific Bailway company will enter upon the opora'tiou oi its own lines, with a completo organization in California, from president down. The. president of the Contra! Pacific will have fully as much authority with ro ' spect to those lines as tho president of , the Southern Pacific company has over its linos. "The published roporls that the Central Cen-tral Pacific is to be leased or merged into tho Union Pacific railroad are without foundation. The Union Pa-, cific's control will be through owner i ship of stock of tho Central Pacific, 1 the operation? beinc carried on by the Central Pacific Railway company and 1 in its own name. , |
