Rocky Ford enterprise., 1895-10-03
UNION PACIFIC SUIT.
THE ROAD oo,no TO RUIN.
Heavy Creditors Ask That the Affairs of
the Entire System BE Administered ~
Trust Fund by the United States Ju-
dicial Authorities.

San Francisco, CAL, Sept. 3O.-The
Chronicle says: The most far-reaching
law suit ever tried in California, and
one which will attract worldwide at
tention from It's 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 Its thir-
ty-five branches to have the entire busi-
ness of the great trunk line thrown Into
a common pool and administered on as
q trust fund by the federal courts. The
complainants are in part stockholders
and creditors of the company.
The allegations Of the voluminous
complaint against the receivers OF the
combined companies Is full OF startling
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 por-
trayed. The fight is really between the
Farmers Loan and Trust company and
the others against the Union Pacific
Railway company and many OF Its
branches. Such distinguished men as
ex-Judge John F. Dillon and Attorney
Francis Coudert are involved as code
PENDANTS.
The suit involves thirty-two branches
of the Union Pacific system, as well as
the main line and its city and depot
property, and the plaintiffs appear as
committee for the minority stockhold-
ers of the Oregon Railway and Naviga-
ton company, as well as for the Farm
ers' Loan and Trust company and the
American Loan and Trust company.
The rights of plaintiffs originally ac-
crued by reason of Frederick l.. Ames'
ownership of about 25,OO0 shares of
stock In the railroads in question, to-
gether with his ownership Of consid-
cradle amount of collateral trust per
cent. bonds of the Union Pacific COM
pany. The American Loan and Trust
company hold S., 900 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 $50,
OOO, 200, plaintiffs aver that its indebted
20 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 forfeit
ure of the franchises. The fact is 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 "the COM
pany will not at any time have sufficient
funds Or assets with which to pay Its
interest and sinking fund charges ma.
<,,rf IN, IN
as result, innumerable creditors will
have a right to begin n multitude of ac-
tons against the company, which, 1t Ia
alleged, will result in the dismember-
ment of the Union Pacific system, that
"its 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"