The morning call., 1894-12-25
E MUST BE INDEPENDENT.
Gross .Mismanagement Charged
Against Present Officers.
THEY USED MONEY UNFAIRLY.
1t is Likely That Things Will Be
Made interesting for the Union
Pacific Receivers.

PORTLAND, Or, Dec. pa petition for
a separate and independents receiver of
the Oregon Short Line and Utah Northern
Railway Company was filed in the United
States court to-day by Joseph Simon,
representing the American Loan and
Trust Company, trustee of the CONSOLE
dated bonds of that company. Judge Gill
bert ordered that a hearing on the appli-
cation for an independent receiver be held
the 18th day of January, at which time the
present receivers of the Oregon Short Line
and Utah Northern, who are also receivers
of the Union 2 ciGc system. are cited to
appear to show cause why the application
should not be granted and an independent
person or persons be appointed to the
TeceiVership Of these railways.
Should the application be granted it
means the enforcement of that road from
the Union Pacific system and its operation
as an independent property, Or possibly in
close connection with the Oregon Railway
and Navigation Company. 1t means that
the Ogden gateway 10 Portland will be
open to the Burlington, the Rock Island.
the Santa Fe. Denver and Gulf, the Mis-
souri, Pacific and the Rio Grande, all of
which will be given an outlet from Denver
land.
The application sets forth that August /,
1885, the Oregon Short Line and Northern
Railway Company, for the purpose of Sc
curing certain bonds, known as the con-
solidated bonds of the company. payable
April 1, 1919. or earlier, as therein pro-
vided, with interest at the rate of per
cent per annum, executed a consolidated
mortgage on all the lines of the railway
company then cOnsolida led, 1856 miles, or
10 be constructed, and then belonging or
thereafter acquired by the defendant, SUBJ
ject to prior mortgages.
The total amount secured by these prior
mortgages was $2Z9N, OOO The total
amount of the bonds issued secured by
The consolidated mortgages was SO,
600. The application then reeites the lease
Of the Oregon Short Line and Utah North
ern to the Union Pacific By reason Of its
controlling 151, 1877 shares of the company's
capital stock. The Union Pacific has
always controlled the business of the com
pany. That default was made in the pay
me0t OF the interest on the consolidated
bonds, payable April l, 1894; that at all
times since the making of he agreement of
the 9th of December. 1885, the gross re-
ceipts from the traffic carried On by the
Short Line and the Union Pacific, and de-
llyered by one company to the other for
carriage. has been more than sufficient.
with the gross receipts from the local and
other business of the defendants railway
and defendants other sources of income, to
enable the defendant to meet and pay all
expenses, taxes, repairs and interest Yet
the Union Pacific Company and its re-
ceivers have failed TO pay such interest
and have apportioned the gross receipts
from joint traffic in such manner as they
have seen fit.
The plaintiff believes if the railway and
property of the defendant were properly
managed. and worked separately for is
benefit, and not as a part of and for the
benefit of the Union Pacific, or any other
system, The income would be more than
amply sufficient to pay all expenses, inter
est On the first mortgage bonds, and at
least part of the interest on the consoli-
dated bonds.
Two other petitions similar in character
and purpose have been filed. the title of
one being a petition of the American
Loan and Trust Company in the suit be-
tween John +. Dillon. plaintiff, trustee
and the Oregon Short Line and Utah
Northern Railway Company, defendants,
and the other alike petition in the suit be.
tween Oliver AmeS and Others, plaintiffs,
and the Union Pacific Railway Company
and others, defendants. These latter are
the suits in which the present receivers of
the TWO lines were appointed.
Receiver Mcneil OF the Oregon Railway
and Navigation Company said: "Tbe re-
ports connecting me with the Short
Line are absolutely without foundation. l
have no interest In the matter"