, 1891-11-27
THE PACIFIC SHORT LINE.

James ID. Negus OF Denver, has filed in
the United States circuit court at Omaha
a petition in Intervention asking hat the
the road be remanded to the custody of
the receiver. The case is entitled, The
Manhattan Trust company VS.. the Ne
braska 4 Western Railway company"
The action was begun to forec!ose a mort
rage on the railroad because the defen-
dant defaulted In the payment Of interest
on its bonds.
Negus alleges that he is a ~stockholder
in the Nebraska & Western and has ill.,
terests to the amount of 5000 that are
adversary to both the plaintiff and the
defendant in the suit, says the Bee. He
sets forth that IN 1886 and thereafter he
organized the Wyoming 4 Eastern com-
pany in Wyoming, to build a railway by
way of the valleys of the Platte and
Sweetwater rivers and the South pass to
the Utah line. He says the eastern end
was to be connected with the Nebraska &
Western and the western end with the
projected Salt Lake Valley & Eastern,
running through Utah. The plan was to
consolidate the three roads ultimately
under the name of the Pacific Short Line.
Negus claims to have spent several
years and q large sun in cash in procuring
the right of way and franchises and max
ing surveys Tor the three corporations. He
values his services at $25, 1000 and puts
his cash outlay at 500, 900. He received
stock in the Nebraska & Western for the
former claim and was to be reimbursed
for the money he expended. but the lat
ter agreement was never carried out.
Megus asserts hat the corporation
known as the Wyoming Pacific Improve
ment company received for the tract 1879
miles Of road from Covington to O'Neill's
stock of the Nebraska e. Western to the
amount of 1883. 900 and first mortgage
bonds TO q like amount, making the az
gregste IS. l6s, 900. lie then charges
that the improvement company borrowed
Of the Manhattan Trust company 81, 250,-
600 on the bonds and did not expend more
than 81, 600, 900 for the equipment and
construction OF the road. The balance
Of $3.50. 900 has not been accounted for.
After showing that the officers Of the
Manhattan Trust company we're the Off
GERS of the Improvement company.
Negus' petition alleges that the decree
for the sale OF the road was obtained by
fraud. He sets forth that on April,
1890. the Nebraska & Western issued
bonds to the amount Of 81. SOC, 900, which
had no cupons for the period prior to
January l, 1891. and were not to
bear interest before that date.
Subsequently aud prior to October
Is, 1890. Willard R. Jones resigned
as president OF the railroad company, and
Donald Mclean was chosen his successor.
During that month while Mclean was
president, another set of bonds to the
amount of 81, 583, 900 was made to take
the place OF the first issue. The first bonds
we're destroyed. The second had coupons
for interest during the period prior to
January l. 1891. 1t was on the default
Of those coupons that the Manhattan
Trust company began foreclosure pro-
ceediugs.
The petition alleges irregularities 10 the
proceedings and sets forth various allega.
tions of fraud. collision and inequity. 1t
charges that Garretson and Wickersham.
who bid 10 the road for 81, 900. 900, owned
the bonds and had bought them of the
Manhattan for a few cents on the dollar.
1t sets forth that none OF the stock OF
the Nebraska & Northwestern except that
issued to Negus, was paid FOR and that
consequently all stockholders but he are
indebted to the railroad corporation Tor
such stock.