Show Various Unmerging Plans Turned Down DOl By Federal Court The suit fUI of or the government to dissolve dis- dis solve olve sol e the Union Pacific merger was lied filed fied in tho the federal circuit court for forthe forthe the he district of or Utah Utah in Salt Lake In 1905 The circuit court for tho the eighth circuit which then was composed of Judges Willis Van Yan Devanter now on on ho tho supreme bench Walter Walor H H. I Sanborn Sanborn San- San born orn of ot St. St Paul William C. C Hook of Leavenworth and Elmer B B. Adams of or St. St I Louis appointed an examiner to total tal take ake o testimony Witnesses ses were heard in all al parts of or orthe the ho United States the evidence was submitted to the circuit court and in October 1910 the case was s argued In Int St. St t Paul On June 24 1911 the circuit court baided landed dnn its Is decision The majority ma- ma of or tho the court held that tho the case caSE ot of f th the the- government Ko was waa WI not riot sustained but ut Judge Hook Hoole filed tied a dissenting opinion Pinion holding that tho the merger of or orthe the ic two railway systems was a vIolation violation vIola vIola- tion on of or tho the Sherman antitrust law The he government appealed appealed to the tho su- su remo prenie court from the decision of of- or the circuit court court and nd in December 1912 1912 the 10 supreme court COUr handed down a R doree do- do cree ree reversing the lower court upholdIng upholdIng uphold- uphold Ing ng In the main tho the dissenting opinion ot of f Judge Hook and sending the case back ack to the tIre federal court for the distrIct district dis- dis of or Utah for an enforcement nt of or th the IP decree dissolving the merger Between the th time of or the fin filing of the ic original suit and the decree of or the tho supreme court Con Congress had abolished the he circuit courts court and assigned their jurIsdiction to district distrct courts providing provid- provid ing that the circuit judg Judges who judges who s-who who con- con stute the circuit court of at appeals appeals- should hould sit si also as district judges Judges It I 1 I is under 3 thim law lav that the circuit judges In n this case sat as tho the district court oT or Utah tah Various n Rejected After Alter the dissolution decree was t handed down b by the supreme court varIous arlous plans for dissolution were pre pre- but objection from several quarters led to repeated changes Former Attorney General Wickerham Wickersham Wicker Wicker- r- r sham ham tham and attorneys for tor the HarrIman lines nes agreed upon the tho first plan of This plan was 3 argued before be- be fore foro oro Circuit Judges Sanborn Hook Hool and nd Walter aler I. I Smith of or Council Counci Bluffs 1 Ta a- a at St. St Louis on February 24 1913 and nd tho the plan then was liS taken under advisement for tor approval or tion ton on This plan however howe did not meet the he approval al of at the tire California railroad commission and was WA strongly obJected object- object ed d to by tho Western Pacific Railroad company compan when submitted to tho the court courtat at t St. St Louis on February 24 4 Objection lon tion ton was made by Western Pacific counsel before the court to the proposed proposed pro- pro posed distribution of ot the tha Union Pacific Pa Pa- cle holdings of or Southern Pacific tock stock amon among tho the individual stockholders ers cn rs of the time two roads and to the tho proposed pro pro- posed year year 99 lease of ot the cut off tho the Southern Pacific short line from Oakland to Sacramento to the Central Pacific which va was to bo be taken over vcr b by the Union Pacific On March 14 1 the Union Pacific an- an flounced it would submit a a modified plan lan for tor dissolution without awaiting the tho 10 approval of Attorney General Mc- Mc Reynolds tates Circuit JUI Judges es and Smith Adams being beng be- be ing ng absent sitting as th the district court of f Utah at St. St Louis on March 15 The ThA revised plan showed In a n general way that hat the fundamental change over o theold the tho old Id plan plan was that tho the Union Pacific would enter into a traffic instead of or a S arrangement In reaching the tho coast COlt over the cut cut California When Whon it heard of the tho revised plan tIme lie California commission expressed skepticism as to the good faith of or the tho Union Pacific and telegraphed Attorney Ator- Ator ne ney cy General tho follow follow- lag InG ng The supreme court wants these lInes Inos ed and we will wi prevent If f we can combinations in such un- un merging For or want of ot fuller fuler data data the he slon withholds its is app approval ap- ap p royal The following da day Chairman Robert c. c Lovett of or time the Union Pacific system announced to tho the court that the modified mod- mod fled Ired plan had been abandoned because be- be cause of or the opposition of at tho the Call Call- Cal Cal- fornia railroad commission The h court allowed tho the plan to lapse An agreement agree areo- ment meat of or the tho Union Pacific with wih a banking bankinG syndicate for the floating of or the he stock distribution feature of or the dissolution expired that night In New Now York on Ma May 29 two to alternate alter aler- aler nate plans for tho the disposition of ot tIre the Southern Southen Pacific stock owned by hy the tire Union Pacific were ap approved ap- ap proved by tho thu Union Pacific board and short shortly n afterward tt submitted to the tire court sitting Hitting at nt St. St Paul for approval with wih tho the request th that t tho company bo he permitted to elect which one It would adopt and failing court approval that the stock be placed in tho the hands of or a receiver to be he named by the tho court Th The first alternative Contemplated soiling selling the stock to highest bidders after the manner of ot municipal bonds a minimum minimum minimum mini mini- mum bid hid to be designated the second see sec ec- ec ond contemplated placing the tire stock wih with itI a trustee wi without hout voting power to o be later ater distributed upon affidavit that hat tho owners possessed ed no Union Pacific stock Toward the end of or Juno counsel for th the tho Union Pacific began hegAn ft a f of conferences with Attorney General with wih particular re reference to an added proposition to exchange Southern Pacific stock h heid ld b by tho tire Union Pacific for fOl a a similar amount of Baltimore Ohio held b by bythe bytho the tho Pennsylvania The attorney genera general general gen gen- era eral had opposed tho other plans and andon andon andon on on June 25 modified plans were presented presented presented pre pre- to him Including the tire proposed exchange with wih the tho Pennsylvania which the attorney general favored because this would divorce tho the Pennsylvania Pennsylvania Pennsylvania Penn Penn- sylvania from n a competing line lne Mr nold then announced that thero were good gaud prospects for tor an agreement t ton on the dissolution plan in time to present present pre pre- sent Bent it to tho tIre United States court for forthe forthe forthe the ei eighth circuit before July 1 On Juno 28 23 It became known that President Wilson Wison and Attorney General General Gen Gen- eral had reached an agreement with Union Pacific representatives on tho the dissolution plan which was as approved ed by tho tim court at St. St Paul toda today |