The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-03-27


cific-Denver & Gulf case came up for
hearing this morning before Judge
Caldwell, and a surprise was sprung
by the attorneys for Receiver Frank
Trumbull, who withdrew the demurrer
already filed and submitted an answer,
alleging that the Union Pacific COM
pany is not bankrupt, but that it is in
fiourishing condition and it's earn
ings cover the interests on its bonded
Indebtedness, it's operating expenses
and the payment due by law to the
United States government, and in ad-
dition thereto surplus.
Judge Willard Teller, of Denver,
opened the argument. He briefly re-
viewed the action of Judge .Hallett in
appointing separate receiver for the
Denver 81 Gulf road, and placed be-
fore the court the differences between
Judge Dundy and Judge Hallett.
Judge Teller contended that Judge
Dundy's order absolving the Union
Pacific from its contracts with the
Denver & Gulf, was good law. The
question of ultra riers was raised and
thoroughly discussed by Judge Teller
E. Ellery Anderson, of the receivers.
devoted his argument to the relation
of the receivers to the property. He
went into the different obligations laid
on the receivers by the orders OF
Judges Dundy and Hallett. He held
that the receivers would have to de-
eide for themselves which court to
obey.
Judge ThUrston argued for the re-
ceiyers. He went into the points of
by stating that the Gulf company and
Union Pacific company existed under
separate organizations. AT different
meetings annual elections were held,
directors being chosen and different
officers selected. By the same corpo-
rate power it came about that both
companies selected the same officers.
One could no more say that the Union
Pacific operated the Gulf than that
the Gulf operated the Union Pacific.
The statement that the Union Pa
cific operated a, through train from
Council Bluffs to Denver is not true.
1t was a joint train operated by the
| two companies, the Gulf and the
Union Pacific. Judge Hallett's or
der appointing Mr.. Trumbull as
receiver, called upon the
receivers Of the Union Pacific to de-
liver up the property of the Gulf in
the hands of the Union Pacific. The
Union Pacific has never operated a
single line except its chartered line
given it by act of Congress. The Union
Pacific was never in possession of the
Gulf property, except as it operated
the line in conjunction with the Gulf
company. I'm the contract they got nc
power on God Almighty's earth except
harmonious relations" He stated the
Gulf was in the hole nearly 100000 and
the Union Pacific had to take this
amount out out of its treasury to make
good the deficit, notwithstanding the
constructive mileage of to 1, which
has been growing for years. The differ
ence in arbitrary mileage will amount
/ to about $500, 000 In addition to that
! it will require 100000 to make up the
/ Cuffs deficit, requiring the Union Pa
cific to take out of its treasury $780,
600 to make good the hocuS pocus under
which the Union Pacific has worked.
One of the features of the contract
was that the Union Pacific Should dc
free switching at Denver. In response
! to Judge Hallett's order it is doing the
Cuffs switching at Denver and getting
nothing in return. Judge Hallett also
! ordered that the receivers should pay
over to Frank Trumbull moneys accru
! ing between July / and October 49,
! by what power" said Mr.. Thurston
had Judge Hallett the right to name
these particular dates?' The mode Of
/ of procedure having been somewha
/
ton proceeded to tell the court wha
had been done.
! Judge Caldwell after listening fol
some time t the ar"ument of Judge
Thurston, remarked, sententiously, tina
! had there been a hearing such as thi!
is, he thought there would not have
been the differences now existing. H,
said as the proceedings had been e2
parte, it had worked badly for all in
| terested.
You have not invited Mr. Trumbul
into this court said Judge Caldwell.
Mo- said Thurston, because
didn't believe he would come, and hat
no means whereby we could bring hin
into this court Of primary jurisdiction
because of our inability to secure. ser
vice, and it was only through you
honors that he is now in court"
Attorney HobZen stated that he would
regard it as a favor if the court would
adjourn until morning before being ask
ed to commence for Receiver Trumbull
and it then being 5 o'clock, court ad
journed until 10 o'clock tomorrow morn
ing.