, 1879-07-13
: THE RAILROADS.
Latest Move in the Atchison and
Rio Grande Fight at
Denver.
Of Counsel on the Mo-,
tion to Remove the Re-
ceiVer.
TIE DENVER FIGHT.
xnecfdI Qit1dteh :o The Tr{h1k1:xs.


THE DENVER FIGHT.
=. Special Dtt,ateh 70 The Trtau,7s. ::
Denver, COL, July 12.-The second days.
hearing in the United States Court in the great
Colorado railroad war began at 9 o'clock this
morning, upon the motion to discharge Receiver
Risley, an immense crowd filling the courtroom.
Solicitor Meyer, il behalf Of complainant, pro-
duced sffidayits of President Palmer, ChieEEn-
pincer McAfurtrie, and others relating to the
matters ln controversy. after which judge Miller
said to Meyer: "What have you to say about
your suit OF 1871 You had a suit In this Court
| in 1877 just before the Receiver was appointed
By Judge Bowen. You withdrew the bill, tax
ing it to Junge Bowen's Court After the Re-
| ceiver was appointed yon brought it back to
| this Court. This, think, requires some erpla-
| nation."
Meyer replied, and said why he did 50 Vas he
thought there were previous proceedings there
in. he ascertaned there were nor, and he
| brought the bill back to this Court. Laugh
| ter. "a
At1:50 .. NJ. without reading further afida-
Wits, Judge Miller stated his readiness to hear
the arguments. Pratt, Of the Atchison counsel,
began by urging his reasons why Receiver
Risley should be discharged. When Receiver
has gone out of case, continued Pratt, 1t sat-
ties the matter entirely who moved in the lease,
who in equity are bound by the lease from the
spring Of 1878 to the same >1al. Both the Atchi-
son and Rio Grande were engaged in bitter con-
troversies. Rio Grande bonds were down to 40
Referring to the first negotiation for lease,
Pratt charged that these first negotiations we're
begun bY Potts and schlessinger, proceeding to
Boston for negotiation purposes, going there
with the full balance e-sheet, showing the alleged
condition OF the Rio Grande Company, they de-
string to compromise affairs. They we're repre-
sentatives Of the Rio Grande bondholders, stat
ing they we're an authorized committee. Rio
Grande Road bonds were down to 40,
With the road not earning interest, and the
stock worth nothing. So long as the $7,OOO,00V
we're going along without the interest being
paid thereon, SO much the better for Palmer,
TO take some steps. Palmer did not eonsent.to
this proceeding. The Rio Grande Company
went into it. reluctantly. Gen. Palmer after
ward followed, hence The proceedings under
this trus1-deed. Trustee Meyer: has powcr to
past due interest. Meyer had this right to get
back part Of the rental or interest. Solicitor
Meyer had charge Of the mortgagc debt: He
went to Boston; be drew the lease, made bE
his own yolition, and acknowledgement Now he
stand, now, Meyer is solicitor for the ,Trustee-
What's the next move? The Rio uTande Com
pauy assigns the Lease to Meyer. Meyer
takes it, and collects the moneys
nearly s1,Go0,000 in improving this property.
The bonded debt is DOW over ninety. When
these men consented to making this Lease they
knew they must mako the Rio Grande Road
earn interest eet out IN Men ne o9f ed no Of
earned money sufficient to pay Interest Where
upon the Atchisou Company, the les6ees, ad-
vanced the funds. The Rio t3ranue Railroad In
the hands Of the Atchison Road Will pay the
interest. The facts vi hch arc produced show It,
There is no excuse for q Receiver, SO far as
current Interest is concerned The Lease says
The Atchison Company should pay 43 per cent
of the total earnings Of The Rio Grande Koad.
iye per cent is over $4,000 TO avoid Receiver:
The first five months, from January
to May, under the 4tcbison management
showed the business to be 2s per cent
better. We ask the Court to consider the fact
and the Rio Grande is in better condition than
when leased, aud the earnings ara 25 peF cent
greater under the Atchlson management than
usual. Forty-three per cent Of the zross earn
ings Of the road Is paid under the lease. There
boudholoers as the RIO Graude. Meyer appears
here as the bvudholders' representatives lie is
bound to let the lease stand. he has accepted
the terms presented, and interest In 1911
Il w
have Gen. Palmer appointed Receiver. Meyer
and Palmer worked together. THIS suit reulained
here until June 10 last. The Denver d Rio
Grande Railway Company were previously arm
armed rufEans in Colorado, which has disgraced
Colorado. Meyer came to Colorado and entered |
collusiYeiy into this damnable scheme. Meyer has
no right OF equity if be is acting collustvely.
The Court will not appoint Rtsley as hio*Grande
solicitor. He resigned to Judge Bowen, and !
Bowen turns round and appoints Risley Re- |
ceivcr.
Pratt thought the Court would not give such |
proceedings as those judicial sanction
stFour hundred and sixty thousand dollars"
continued Pratt, q the Atchison Company has |
paid upon this road. do not know what Law !
will permit the road to be taken bT Receiver. |
This steal is $1,000 600, and they are trying to
saddle the debt upon Us. we claim NJ that @ the
possession of that money. Aeyer says he has !
this money pledged for the payment Of those |
ten-year certificates: Isn't It reasonable that |
Meyer had these funds? Beyond doubt the
by Tie Rio Grande Company came from some
where, and the SS0i, ,0O tells where the expense |
money camc from.
Pratt closed with other reviews Of matters in |
controversy in concise. logical manner. ~'@~"s'-
Solicitor Meyer replied from written manu- !
script. ,.-..
Judge Miller again called his attention to his !
former query regarding the original suit
Meyer replied rather unsatisfactory.
Judge Usher followed for nearly one hour. |
Usher made an earnest plea for bis clients, en-
deayoriug to con:roverr the allegations set forth
by the Atchison Company, and denied the legal
ity Of the lease, and claimed. the earnings after
the Aschison got possession He refuted the
reports OF corrupt Judgments in Colorado.
Judge Usher endeaTored to explain Away |
Judge Miller's query to Meyer by stating that
there vas nothing irregular about the matter
At 5 O'Clock tie Court .reassembled, when
Judge Beckwith opened in behalf OF the Atchi-
son Company. Judge Beckwith's argument
vas able and thorough. He reviewed the case
statement as to the funding debt, proving that
the two issues OF bonds left a credit: Of orer
$4,000; that, when the Atchison Company took
possession OF the Rio Grande Road, the road
bed was poor, the bridges so poor that they /
could NOT run on schedule time, the rolling |
stock insufficient, etc. The Atchison Company
nj a hrf3prns nm