The Meeker herald., 1895-10-05
UNION PACIFIC SUIT.
THE ROAD oo,No TO RUIN.
Heavy Creditor. Ash That the Ansirs Of
the Entire system Be Administered ~
. Trust Fund BY the United States Js-
lieiAl Authorities.

San Francisco, Cal, Sept. 3o.-The
Chronicle says: The most far-reachine
law suit ever tried in California, ano
one which will attract world-wide AT
tention from its economic and CONNER
cial bearing. is on the calendar OF the
United States Circuit Court Of Appeals
for the present session. 1t is the strug-
gle of the heavy creditors Of the Union
Pacific Railway company and It's thlr
ty-five branches to have the entire busi-
ness Of the great trunk line thrown INV
q common pool and administered OH us
q trust fund by the federal courts. Inc
complainants are in part stockho'ue's
and creditors of the company.
The allegations of the voiumlhous
complaint against the receivers Oh ,ne
combined companies Is ful OF sIar.iins
announcements and vital statements as
to the failure of unrestrained private
control. The inadequacy Of the pres
ent management is emphasized, and Its
inevitable trend toward bankruptcy POT
trayed. The fight Is really between the
Farmers Loan and Trust company and
the others against the Union Pacihc
Railway company and many OF It's
branches. Such distinguished men as
ex-Judge John +. Dillon and Attorney
Francis Coudert are involved as Code
PENDANTS.
The suit involves thirty-two branches
of the Union Pacific system, as wei as
the main line and its city and depot
property, and the plaintiffs appear as a
committee for the minority stockhoid-
ers of the Oregon Railway and Naviga-
ton company. as well as for the farih-
ers' Loan and Trust company ana the
American Loan and Trust company.
The rights of plaintiffs originally ac,
crued by reason of Frederick l.. Ahes
ownership of about 25,oOU shares OF
stock in the railroads in question. to-
gether with his ownership of consid-
erable amount of collateral trust per
cent bonds of the Union Pacific COM
pany. The American Loan and Trust
company hold $5.445.OOO of these bonds
and several millions Of similar bonds
are held by other plaintiffs.
Though the capital stock of the Union
Pacific Is alleged to be more than *6o,-
OOO,OOO. plaintiffs aver that Its indebted
ness is so great and its mismanagement
30 apparent that its affairs ought to be
administered by the federal courts. 1t
is alleged that the government debts
alone are sufficient to cause the forreit-
ure OF the franchises. The fact s re-
iterated with emphasis that the falling
of of the roads revenue Is alarming,
reaching as much as 81 100000 In two
months.
The complaint recites that the Union
Pacific Railroad company is not able
to earn operating expenses either upon
its main line or branches; that 1.-THE COM
pany will not at any time have sufficient
funds or assets with which to pay Its
interest and sinking fund charges ma
turing from month to month" and that.
as result. innumerable creditors will
have right to begin a multitude of ac-
alleged, Will result In the dismember,
ment of the Union Pacific system, that
ats property and assets will be dissi
pated to the manifest and irreparable in.
jury of the public. the government Of
the United States and the company's
creditors and shareholders"