Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-11-30
IN RAILWAY CIRCLES.
Union Pacific Officials Finish
Inspection.
NO OTHER HEADS IN DANGER.
General Superintendent Moore Talks OF
Te1as-His Impressions Concern
ing the Empire State
and Its People.
WANT THE SALE SET ASIDE.
Pacific Short Line Troubles to Be Told
Again in Court.

Pacific Short Line Troubles to Be Told
Again in Court.
The days of the Nebraska and Western
railroad. popularity known as the Pacific
Short Line, have been few and full of
trouble; but when it was sold four weeks
ago to Garretson and Wickersham for
81 600, OG0 it was supposed that its owner
ship had been positively determined.
These four weeks, however, have been
period of fancied security. for litigation has
broken out afresh and the title 20 the rail-
road is again questioned. Ellis L. Bier
bower, the receiver, has been advertising
for the presentation of claims against him
and expected 10 make his final report to
Judge Dundy by December 90 Now there
is a possibility Of his again being put in pos
session of the railroad, pending another
series of suits.
james D Negus OF Denver yesterday
presented TO in the United States circuit
court petition II! intervention
asking that the sale Of a month ago be set
aside and that the road be renamed TO the
custody OF the receiver. His petition is
rather lengthy document, but it gets at
the inside !nanipu!ations n the building of
the road and presents q statement OF the
relations Of the railroad company, the con-
struction company Gld the trustee Of the
bonds that makes an interesting story.
The case is entitled. The Manhattan
uoL NJ'4lip'.LlN NilN 'iilNA w
ern Railway Company" The action was
begun to foreclose mortgage on the rail
road because the defendant Gefaulted in the
payment of interest on its bonds.
Negus alleges that he is a stakeholder in
the Nebraska and Western and has inter-
cstS to the amount of SO, 600 that are ad-
versary to both the plaintiff and the de-
PENDANT il the suit. He sets forth that in
1856 and thereafter he organized the Wyom-
ing and Eastern company il Wyoming to
build a railway by way of the valleys of the
Platte and Sweet Water rivers and the
South pass to the Utah lire. He says the
eastern end was to be connected with the
Nebraska andWeStern and the western end
with the pro jected Salt Lake Valley and
Eastern. running through Utah. The plan
was to consolidate the three roads ulti-
mately under the name of the Pacific Short
Line.
Negus claims to have spent several years
and Il large sum in cash in procuring the
right of way and franchises and making
surveys for the three corporations lie
values his services at $500 and puts his
cash outlay at $4,000. He received stock
in the Nebraska and Western for the for
mer claim, and was 20 Oe reimbursed for
the money he expended, but the latter
agreement was never carried out.
Then follows :, history CT the construc-
ton company which built the road. Ne2us
asserts that that corporation known as the
Wyoming Pacific improvement company,
received Tor the l29 miles of road from Cow
ing-on TO O'Neill's stock of the Nebraska
and Western to the amount of s2,jS3, 900
and first mortgage bonds to Il like amount,
making the aggregate 81, 100, eco. He then
charges that the improvement company
borrowed Of the Manhattan trust company
s., 80, 600 on The bonds anu did not eXpend
more than 81 800, 900 for tn" construction
ant Of no pnuA Tho hal of
$50 coo has not been accounted for. and
NeglS thinks that this much Of the loan
was fictitious and was made 10 appear for
the benefit of the Manhattan trust com
pauy.
After showing that the officers of the
Manhattan trust company We're the officers
of the Improvement company, Negus' petit
ton alleges that the decreo for the sale of
the road was obtained by fraud. He sets
forth that in April, 1896 the Nebraska and
Western issued bonds to the amount of
81 800. coo which had no coupons for the
period prior to January l, 1891, and were
not TO bear interest before that date. Sub
SeGuently and prior to October II, 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
-. $50, 600 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 !. 1881. II was
on the default OF those coupons that the
Manhattan trust company began foreclos-
ure proceedings.
The petition alleges Irregularities in the
proceedings and sets forth various allega-
lions of fraud. collision and inequity. 1t
charges that GarretSon and Wickcrsham,
who bid in the road for 5000, 600 owned
the bonds and had bought them of the Man
haitian for Il few cents on the dollar. II
sets forth that none of the stock of the Ne
braska and Western. except that issued to
NeguS, was paid for, and that consequently
all stockholders but he are indebted to the
railroad corporation for such stock
Negus, therefore. asks the court TO set
aside the decree ordering the sale of the
Nebraska and Western; TO dispose of the
Manhattan trust company as trustee and
appoint another; to declare the interest
coupons sued upon to have been fraudu-
lently and Illegally issued; to require the
receiver TO begin suits against the stock
holders of the railroad Company for pay
ment of their subscriptions: to require an
investigation as TO the amount actually
paid for the bonds, and that so much and
no more be declared debt against the rail
road secured by the mortgage and TO cancel
and annul the stock That was issued without
consideration.
Mclean was 1T South Sioux City few
days ago. and is quoted as saying that he
had not Yet lost his foothold IN Dakota
county, and some day would turn i upside
down" 1t has been supposed in some quar-
tiers that this foreboded new developments
in the Short Line affair. but there IS good
reason for believing thar Mclean referred
to an entirely different enterprise [Omaha
Bee.