The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-12-27

/ The American Loan and Trust COM
lpany. trustees Of the consoli dated bonds
| or the Oregon Short Line & Utah North
fern Railway company, by their attorneys,
Messrs. Bennett, Marshall and Bradley
| yesterday fled in the Third district court
iof this territory bill Of complaint
against the Oregon Short Line & Utah
Northern railway and also four petitions
i gon Short Line s. Utah Northern, and one
against the Union Pacilic, ON which the
same receivers Tor all that system Of
Tne bill Of Complaint sets forth that on
August i 1882 the Oregon Short Line 81
| utah MOI them Railway company, for the
/ purpose of securing certain bonds, known
as the consolidated bonds OF the COM
pany. payable April 10, 1913, or earlier.
as therein provided, with interest at the
rate of per cent per annum, executed a
! consolidated mortgage on all the lines OF
1 1868 miles, to be constructed, and then
/ belonging or thereafter acquired by the
defendant, subject to certain prior mort
! The total amount secured by these
| prior mortgages was $27,940000. The total
amount of the bonds issued was SO, $780,
4 000.
| The plaintiff believes If the railway
! property OF the defendant were properly
managed and worked separately for its
benefit and not as q part and for the
\
| system, the Income would be more than
amply sufficient to pay all expenses, in
terest and the first mortgage bonds and
at least 5e part OF the interest on the
| The plaintiff pray for the appointment
Of separate Eeeeivers from the Union Pa
! cifles and for order to show cause why
4 such HSepa rate sSeceivers should not be
appSintsd aaa the Oregon Short Line &
Utah NQrffeI51 operated Independently
and dis from the Union Pacific or
L.
NOR Is Of iSS$, having been obtained for
| the benefit OF the Union Pacific and the
combined roads, remain a charge on all
| SUCH roads.
filed are Joseph Richardson vs.. the Ore
gon Short Line & Utah Northern, James
N. Ham two actions) vs.. the Oregon
Short Line. & Utah Northern, and Oliver
Ames vs.. the Union Pacific railroad ct al
| The petitioners, the American Loan and
Pacific Railroad ct III.
Trust company, in each case set up that
the order appointing the receivers now
! in. charge was made without their re-
ceiving any notice and after making
similar allegations to those in the bill
of complaint pray that the Union Pacific
receivers be directed to deliver to separate
receivers all the railways and property
embraced in the Oregon Short Line G
| Utah Northern and that other receivers
than those of the Union Pacific be ap-
! pointed for that road.
oliIlIldI SUIT cllu peIfllOnS We're iue4
| in the United States court at Portland,
Oregon, on December "a, and the hearing
on order to show cause set for January
15: Until that COURT passes on 1T no steps
| will be taken here.
Should the petition be granted 1t means
a great deal for Salt Lake, for Utah, and
all this section of the country.
The separation of the Union Pacific
from the Oregon Snort Line and Utah
! Northern means that the Ogden gateway
| from the east 10 the Pacific coast will be
opened ito the Burlington, the Rock Isl
and, Missouri Pacific, Rio Grande, Santa
| Fe, Denver & Gulf and other roads.
The proposed appointment has been
discussed here from time TO time. and of
course there is much to say on both Sides
of the proposition.
| An absolute enforcement of the lines
named from the Union Pacific system,
while it might have all of the changes
indicated, might also have disastrous
f! effect upon the great system. The ques-
ton is as to whether or not the disgnte-
grafton which commenced with the ap-
pointment of a. separate receiver for the
| Gulf is to be continued until the Union
Pacific is stripped of its branch lines.