The herald., 1894-11-01
GULF ROAD oREoLosuRE.

0OLn ROAO VR &OLOS nh
Ex-Governer Evans Springs = Sensation
In Conrt.
DENVER. Oct. 3l.-Ex-Governor Evans
sprang q sensation in the foreclosure
proceedings againat the Gulf road in the
United States district court this after
noon, By fling q counter petition al~
leging the bonds were fraudulent. At
torney Hyde. representing the American
Loan and Trust company. ssid the
bonds, with unpaid interest, amount to
$l5, 600. 900. He asked thst Frank Trnm-
hull, the present receiver, and E. Ellsry
Anderson be named as receivers. Ex.
Governor Evans alleged the Union
Pacific issued bonds for twice the amount
agreed upon before consolidation and
81. 900, 900 based merely on right of way
over the Denver and Rio Grande be-
tween Pneblo and Trinidad, secured to
tho Gulf by lease.
Ex-Governor Evans declares that
while the stockholders OF the Gulf rail-
way agreed before the consolidation to
an Issue of $25, 1000 bonds on each mile
OF single track, and $50, 900 on each mile
OF double track, the Union Pacific man.
agement actually issued bonds for
double that amount. The Union Pacific
is accused of issuing bonds under the
consolidation of the construction of
railway which the Union Pacific owned
before the consolidation in New Mexico.
1t is also alleged the 2,6l7 900 in bonds
was put forth by the Union Pacific
officials in exchange for 81 ,254.0 OF the
bonds of the Cheyenne Northern rail.
way: 1925. 900 were EXCHANGED for $685.
600 of the bonds OF the Denver, Mar
shall and Boulder railway; $1.307 900
for $685., 900 OF the bonds of the Greeley.
Salt Lake and Pacific railway; $l77 900
for $127. 900 of the bonds of the George.
town and Breckinridgs railway, ell OF
which passed into the treasury OF the
Union Pacific company. The petition
states that these bonds were of but little
value, and fictitious value was in vio-
lation OF the laws OF the state.
The petition relates that the Union
Pacific, by the deal, Was enabled to con-
struct its Oregon Short line.
Drexel, Morgan & Co. come In for .
share OF the blame. The complainant
alleges that the Union Pacific manage
ment caused the property OF the Gulf,
absorbed by the consolidation, to be de-
stroysd and dispersed, aliensted and
sold without sufficient confederation, to
the Gulf corporations. The shops were
diamantled and the machinery removed,
and shops were erected in other places
where the title was vented in Union Pa
cific officials. in defiance of law and form
or agreements. Ths principal fi ;es
and books were removed from Colorado
and the principal offices OF the consoli-
dation kept in Boston, in conflict with
the agreement between the corporations
consolidating.
All this was done, it 10 charged. in
pursuance of conspiracy to destroy the
Gulf road as competitor OF the Union
Pacific for Atlantic coast trade.
The Union Pacific officials are accused
OF conniving with the trust company for
the foreclosure. In the matter of fur
nishirg improved security to the gov
ernment for the Union Pacific, the petit
tion says the Gulf is in no way indebted
to the government, and should not sub
NIT to having it's interests sacrificed.
Late this afternoon the court decided
to consolidate the Evans case with the
foreclosure suit, and extended the ap-
pointment of Trumbull, previously made
in the Evans case, to cover the foreclos-
ure suit. Ths application for E. Ellery
Ander5on's appointment was denied.