The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-11-01
Evans Creates a Sensation.

|
Denver, Oct 31-Ex-Governor Evans
sprang sensation in the foreclosure pro-
ceedings against the Gulf road in the
United States district court this after
noon, by filing a counter petition alleging
that the bonds were fraudulent. Attorney
& Trust company, said the bonds with
| unpaid interest amounts to $5000,000. He
asked that Frank Trumbull,, the present
| receiver, and z. Ellery Anderson be
named as receivers. Ex-Governor Evans
alleges the Union Pacific issued bonds for
twice the amount agreed upon before
ly on the right of way over the Denver
6, Rio Grande between Pueblo and Trini-
dad, secured to the Gulf by lease.
Ex-Governor Evans declares that
while the stockholders of the Gulf
railway agreed before the consolida-
ton to an issue of $4,000 bonds on
each mile of single track, and $35, 900 on
each mile of double track, the Union
Pacific management actually issued
bonds for double that amount. The
Union Pacific is accused of issuing
bonds under the consolidation of the
construction of a railway which the
Union Pacific owned before the con-
solidation in New Mexico.
1t is also alleged that $2,617 900 IN
bonds was put forth by the Union Pa
ciffc officials in exchange for 81, 254, 900
of the bonds of the Cheyenne North
ern railway; S629,000 were exchanged
for $22600O of the bonds of the Den
YER Marshall & Boulder railway; ST.
307 900 for 1897 900 of the bonds of the
Greeley, Salt Lake & Pacific railway;
SLIT 900 for $4,000 of the bonds of the
Georgetown {, Breckenridge railway,
all of which passed into the treasury
of the. Onion Pacific Railway company.
The petition states that these bonds
were of but. little value and a fictitious
value was in violation of the laws of
the state.
The petition relates that the Union
Pacific, by the deal, was enabled to
construct it's Oregon Short Line.
Drexel, Morgan & Co. comes in for
a share of the blame. The claim al
leges that the Union Pacific manage
ment caused the property of the
Gulf, absorbed by the consolidation to
be destroyed and dispersed, alienated
and sold without sufficient considera-
ton to the Gulf corporations. The
shops were dismantled and the ma
chinery removed and shops were cree
ted in other places where the title was
vested in Union Pacific officials, in
defiance of law and former agree
ments. The principal Offices and books
were removed from Colorado and the
kept in Boston, in conflict with the
agreement between the corporations
consolidating.
All this was done, it is charged, in
of conspiracy to destroy
the Gulf road as a competitor to the
Union Pacific for Atlantic coast trade
Union Pacific officials are accused of
conniving with the trust company for
the foreclosure. In the matter Of fur
nishing improved security to the gov
eminent for the Union Pacific the pc
titions says the Gulf is in no way in
debted to the government and should
not submit to having it's interests sac
rif1ced.
Late this afternoon the court de-
cided to consolidate the Evans case
with the foreclosure suit, and extend
ed the appointment of Trumbull pre-
viously made in the Evans case, to
cover the foreclosure suit. The appli-
cation for E. Ellery Anderson's ap-
pointment was denied.