The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1879-07-25

| Justice mas Oeen UOne- mat santa re
rooster still lives and will sound his
drowned forever the feeble pipings of
Palmer's NANCY chick.-Pueblo Coll
Chieftain.
THE COLORADO RAILROAD SITUATION.
Commonwealth
So many law suits have grown out of
| the Santa Fee and Rio Grande railroads
| in Colorado, and so rapidly too, that it
is very difficult to comprehend the exact
situation of affairs. AS we understand
the matter, all the positions of the Santa
Fe are in a fair way to be sustained by
the courts, and the question of the dis
puted possession of the Rio Grande prop
erty is already decided in their favor.
A brief history of the litigation, as we
| understand 1t, will make this more plain
About a year ago the Rio Grande road,
which was operating amicably with the
Santa Fee road in the transportation of
passengers and freight to Denver via
Pueblo, broke off Its relations with the
Santa Fe, and refused to carry either ex-
cept at full rates. This, as is believed,
was in pursuance of an agreement en-
tered into by the Rio Grande with the
Union Pacific. The Santa Fe just then
being prominently before the business
world, found no difficulty in securing a
| subscription sufficient to build a broad
gauge road from Pueblo to Denver, to
connect with its main line, and began
rapidly to make preparations for its con-
structiOn. This threatening the business
destruction of the Rio Grande people,
forced them to enter into an agreement
with the Santa Fe, by which the posses
| sion of the former road was to be turned
60 90 No
ia Fe to assume debt of $4,000 a mile
on the Rio Grande property. Certain
conditions were prescribed by those ne
gOtiations for the Rio Grande to which
the Santa Fee assented the most import
ant of which was certain floating debt
of the Rio Grande amounting to about
$500, 600 should be paid and to secure
these conditions, it was agreed that the
stock of the Rio Grande to the amount
of ten more shares than a majority
should be placed in escrow, and like
wise lease of the Rio Grande road and
the possession of the Rio Grande proper
ty should, thereupon, be delivered to the
Santa Fe which was done. Certain
agreements as to exchange of stock were
entered into at the time, which are not
i important in this connection. Before
the transfer of the road under this agree
ment, a dispute between the Santa Fe
and the Rio Grande had grown up as
to the right of way through the
Royal Gorge of the Grand Canon,
which being narrow defile does not ad-
NIT of the building of two railroads,
which dispute was in the federal courts
in the form of a suit for an injunction.
The discoveries at Leadville had given
it great importance. 1t was supposed
that the possession of the Rio Grande
1 Anv. - 10 90 l,nS H.
resolved to dispute practically in favor
of the Santa Fe. However, VIM j.
Palmer, president of the Rio Grande,
who has always disliked the necessity
which drove the Rio Grande to its union
with the Santa Fe, still persisted on be-
half of the Rio Grande Company, of
which corporation he still remained
president, to fight this question of title,
and at the same time sought to break the
agreement by which the lease and stock
were delivered in escrow. AS a pretext
for this action, unfortunately given to
him by the Santa Fe, he urged the fact
that the floating debt was not paid with
in the time limited by the agreement
Although the money was paid by the
Santa Fe, and accepted by the Rio Grande
after such time, notice was served by
Palmer upon those holding the escrow
and lease, not to turn the same over, and
suit was brought in Boston for their
recovery and to abrogate the agreement
Subsequently the supreme court decided
that the Rio Grande had the first right
through the Royal Gorge, but they could
not enjoy it to the total eXclusionot the
Santa Fe, but must enter into an equita-
hle agreement with the Santa Fe for q
right of track over that narrow defile
where two roads could not be built Mean
while the Santa Fe had been building
the road on through the canon to Lead.
vile. Various proceedings of mandam-
uses, quo warrantO, &C., were thereupon
began by the Attorney General of Color
ado, on the relation of Palmer, in Judge
Bowen's 0he State) court, aud under the
order of that court in these proceedings.
After the suits had been removed into
the federal court, as it was claimed,
Palmer and his associates forcibly re-
possessed themselves of the Rio Grande
property, and as it appears, to prevent
the operation of any order to restore its
possession had a foreclosure writ brought
against themselves ON a default of the
May coupons on their bonds (puPposely
allowed to be made) in Judge Bowen's
court, and receiver appointed. The
receiver was Mr.. Risley, one of the at
torneys of the Rio Grande road
AS soon as the facts were shown to
Judge Miller, he made an order upon the
Rio Grande people to turn the road back
into the possession of the Santa Fe with
in three days. Then the Rio Grande
people came in and averred their lnabil-
ity to obey the order of the court on &C
count of the receivership. This availed
them until under direction of the court
the Santa Fe was made a party to the
foreclosure suit, when Judge Miller, hav-
ing all the cases and all the parties be-
fore him, directed that the receiver turn
the property back to the Rio Grande, and
that the Rio Grande thereupon obey the
order already made upon them to re-
store possession to the Santa Fe, and here
the matter now rests.
Il When the decision of the supreme
court of the United States was made Civ
ing the prior right through the Royal
George to the Rio Grande, the Santa Fe
fled q supplemental bill, setting up the
fact of the lease and the transfer of the
stock, aud that the right of the Santa Fe
had since the beginning of the suit de-
cided by the supreme court been therein
established to the control and endowment
of all the property and franchises of the
Denver s. Rio Grande. The Rio Grande
replied that the agreement was abrogated
by the non performance Of conditions on
the part of the Santa Fe. Judge Miller
has substantially decided that before he
will pass upon the question as to lease
or no lease, or as to the conflicting rights
of the Santa Fe and Rio Grande to the
possession of the latter's property, that
both parties must be placed in the con-
ditlon they were at the commencement :
that is, he will not allow the Rio Grande
TO enter the mandate from the supreme
cnuFt of the limited States dac;diUr4hair