| Show HIGH I COURT T TAtS TAKES AI ES MERGER L CASE CASE UNDER ADVISEMENT I 1 DISTRIBUTION Of STOCK BONE Of CONTE NIl ON ONI I Railroad Attorneys Want Wt Union P Pacific Sto k l ers Given First Chance Chanc j GOVERNMENT OPPOSES EXCLUSIVE PRIVILEGE Court Probably y Will An Announce Announce An- An Its Decision Dec Next Monday j f 4 WASHINGTON Deck Dec 19 The 19 The SU su- premo court of thi the United St to tes day took under advisement a a. combi combined cd motion of or the tl government and U Union fon Pacific railroad attorneys for a amore amore more o e specific decree as s to the ng rights of or Union Pacific stockholders in th ordered ordered or or- dered distribution of or tho the worth of Southern Pacific stock k own on owned d dby 1 by the Union Unton Pacific Railroad c com n nt I pany The Time The railroad attorneys want the Union IPa Pacific stockholders rs exclusively exclusively to be allowed to buy the stock Tho The government is opposed ed to to such l ln ban an n I exclusive privilege The Tho courts court's ourt action may be announced M Monday The case caC came before tb the C court Th attorneys for or the Union P Pacific a and the government government- joined in a atho reC ct the tho court rt determine at nt onee once wl at ri rights bb tie the Union Pacific's 1 l should have hayo in tho disposal nl oCr Ot o r ii the Southern Pacific a r lc stock h held l by til tha Union Pacific a i ins violation lo 1 of ot Ul tho Sh Sher Shaf- I pau antitrust u trust l law l. w. w r Preference e c for U U. P P. s 14 r J f r the tho t ti the tuc ony onS' ti bl d I winch tie stock t k pr- pr practicable ble method by tie could b bo be distributed without irreparable ble injury would be for the time Union fion Pa Pacific P. P a- a cHio company to o offer it Jl to 1 its own shareholder er pro Pru rata according t to tho the mount amount of their holdings for for Ot purchase pur p chase at a or to Ih distribute it as as a dividend eull to its stockholders entitled entitled en en- titled d to to a dividend They declared that the attorney general l was opposed d to such a n plan plin To refuse to allow ollow the Union P Pa- Pa cHic shareholders to participate in such sueI- sucha a s d distribution distribution- ion 11 declared tho attorneys i in time the papers they thov filed would I wO c them to to toa a serious loss and possible irreparable injury r TIme Tho offering for of sale salo upon tho U-U open market ma of the Union holding holdin of ot Southern Pacific's shares a aggregating c at in lug ing would riot not only inflict in inflict in in- great in lust ice and irreparable damage upon the Union Pacific and its ih shareholders but but- 31 also o would cause a serious financial 1 disturbance by bJ o over over- oversupplying r. r I supplying the market demand d for e- e of or this character der and consequently conse come depressing the wico arice not lot merely mere more ly Iv of the Southern Pacific's sj shares owned h by the thc Union GuIon Pacific but ut a also so o ot Of the shares shuc of Southern Pacific held b bv by of C others and even coen of the securities other corporations corporation dealt in in on the themar market mar ket during d and for a n l long n period after the offering of or these Southern Pacific for sale sale- alc 1 Anal Analyze zes Proposed Distribution From exhibits brought bro Into court th the railroad attorneys argued that if it the Southern Pacific's tock stock owned J b by Union PACIfiC rr distributed 1 all aU Union shareholders th the FO so c called controlling ln interests t t Pt only C ii per por cent cont of or the totAl toUl capitalization of ot lh the Southern Pacific company or n an aim In portion Finally It was ll that the plan plait ad advocated ad b by tho railroad attorney was attorney was in conformity with the pr practice In oth other r t dt dis dissolutions solutions ot directed i by the court Attorney Vicker HIM ml a t. memorandum with the tho court courtn In oP opposition to lo loc c the railroad r plan attacking It ms as an unwise restriction llon upon the p power CU fc cd upon the d district l court to dissolve the combination and amI prevent Its renewal He ic expressed f a 0 that th thus Union stockholders should bt be n P tJ par par- 1 t- t milled to share hare hAr In the distribution n ot of tie the Southern p. stock with the time South em ern Pacific stockholder pr Problematical al Sa Says Bays Wickersham The effect of or a n. mere pro rats rata di dis dis distribution of ot th tIme nto toek k among amont tho the Union Pacific said Altorn Attorney Gen Gen- eral oral is ls wholly t. t leal Ical The stock tok to k lists afford aCCord but hut little clue Ius to the tho real ownership It Is a well Known 11 fact ct which an Inspection of nt the thus tock stock list confirms that r J large of or lito stock k stand tind on un the bot books U in in th namo names names' of banking and brokerage houses house I It i is II true lh the stock lock Is III distributed among amonI tom somi- stockholders stockholder but Mrs E E. If ITar ITar- Kuhn uhn I L Loeb o fb b A 1 Co and the tIme directors director direct direct- Pacific Railroad company com coin or ors of or the tho Union pan pany Including the Chicago Northwestern Northwestern North North- I western t Railway company compan represented 1011 on the time board of directors by ln to together t held S of Jt it- it stock k bunkers bankers and each hold 1000 or 01 o over or r Sl In Inde rt 61 tO l hold stork amount amount- In lug to or per cent rent of or th tile th whole It Is 18 only the r remaining 11 of ot stock that Is dl distributed nearly holders The Southern ll 8 ld fr rn that now not noth h held lt by b- bythe tho Ort Oregon Oreon Short tine Line Railroad company comPan In In the tHo hands hanels of ot the public to This amount is distributed among upwards Up vt iC hlll t |
