Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-11-01
CHARGES THE UNION PACIFIC
WITH ISSUING noNps TWICE on
THE SAME TRADE.
Allegations Made ny Ex-Gov. Evans
of misunderstanding Track on tho
San Antonio and veiasco Road--Rio
Grande Excursion.

Denver, Col. o,t. si.-Ex-cov. John
Evans. through whose efforts the Tn
Ion Pacific, Denver and Gulf road was
segregated from the Union Pacinc sys-
tenn and separate receiver aprolated
for II, sprang sensation when the
bearing began in the United stnsns
court this afternoon In the foresiosurc
proceedings OF the American Loan ami
Trust company OF Massacausctt-
against the Gulf road by fillng q eoun-
ter petition In which he alleges that
the bonds held by that road are fraud-
ulcnt.
Attorney Hyde, representing the trust
company, asked that Frank TrumLnll
the present receiver. and Il. Ellery An
derson, be named as receivers under
the foreclosure proceedings
Mr., Hyde said the Gulf bonds OUT
standing and the interest unpaid
amount to sih,s0o,ooO, Among those de-
string the appointment OF receivers
were Morgan Jones and Gen. Dodge,
representlng si3,ooo.00O.
ES-Gov. Evans' petition claims that
! the Union Pacific management issued
bonds upon the Gulf twice, the amount
agreed upon before the consolidation
and that $1,000, 900 OF the bonoed In
debtedness ~ based merely upon the
| riEht OF way over the Denver and
Rio Grande railway between Trinidad
and Pueblo and secured to the Gulf
road by lease.
| Ex-Gov Evans declares that while
| the stock holders OF tho Gulf railway
agreed before the consolidation to an
Issue OF $4,000 bonds on each mile OF
single track and $4,000 ON eacf. mile of
double track. the Union Pacific man.
ageinent actually issued hords for
double that amount The Union Pa.
cihc IL accused OF Issuing bonds under
the consolidation for the construction nf
n railway which the Union Pacific
owned before the consolidation IN New
| Mexico, II Is also alleged that Sc
| 6ll,OOO In bonds was put forth by the
| Union Pacific officers In cNchungc for
| Sl,sOO,OO0 OF the bonds OF the Cheyenne
and Northern RAILWAY, se9e,0O0 were ex
changed for S226000 OF the bonds OF
the Denver. Marshal and Boulder rail !,
way, sl,3070OO for $685. 900 OF the bonds
OF the Greedy, Salt Lake and Pachic
| railway. $4,000 for Si27 600 OF tie bond /
OF the Georgetown and Breckenridge
railway, all Of which passed into ihr
| treasury OF the Union Pacific rail-
way company, The petition stRt "A that
| these bonds were of hut little valic,
and fictitious value was given them
In Violation Of the laws OF the state.
The petition relates that the Union
| Pnclnc. by this deal, was enahed to
construct the Oregon Short Line. DreX-
| 81, Morgan & Co. came In for share
of the blame, Tho complaint alleges
| TINT the Union Pacific management
| caused the property OF the Guif. alb
sorbed by the consolidation. 20 be de-
| stroycd and dispersed. allcnat91 and
sold, without sufficient consli ration
to the Gulf corporation. Ths shop9
were dlsmantled and the machinery re-
| moved; shops erected In other places
| where the title was vested In Union
| Pacific officials, In defiance II the
law and former agreements, The prln-
| cipal office and books were removed
| from Colorado and principal properties
OF the concern kept In Boston In con-
| nlct with the agreement between the
corporations consolidating. Al this
was done Il was charged, In pursuance
Of a conspiracy to destroy the DUFF
road az Il competitor OF the U,ilon Pa
| cific for Atlantic coast tradc. Union
| Pacific officials are accused OF con-
nlylng with the trust company FOR tho
| foreclosure.
In the matter OF furnishing improved
security to the government for tho
Union Pacific. the petition says the
Gulf Is In no way Indebted to the gov
ernmcnt and should not submit to hay
ing It's interest sacrificed.
Late this afternoon the court decided
That the hondholders were entitled Ia
representation but did not believe in
multiplicity OF receivers. has Mr..
Trumbull and Mr.. u, Elery Ander-
son had been nominated.
Trumbull, the court says " proving
good manager; consequently. he hp-
pointed Mr.. Trumbull and dcu.ed Sir.
Anderson, as he resided without the