The Weiser signal. [volume] (Weiser, Idaho) 1890-1904, 1895-10-03
THE u. P. MIDDLE
Project for the Courts to Admin
ister Its Affairs as a Trust.
BANKRUPTCY is IN SIGHT
Most Far-Reaching Lawsuit Ever Tried
In California for Its Economic
bearings.

San Francisco. Sept. 29.-The Chron-
icle says: The most far-reaching law
suit ever tried in California, and one
which will attract worldwide attention
from it's economic and commercial
bearing, is on the calendar of the
United States circui. court of appeals
for the present session.
1t is the struggle of the heavy cred
itors of the Union Pacific railway and
Its 32 branches to have the entire busi-
ness of the great trunk line thrown in
to common pool and administered on
as trust fund by the federal courts.
The complainants are in part stock
holders and creditors of the company.
The allegations of volun,inous COM
plant against the receivers of the COM
bined companies is full of startling
announcements and vital statements
as to the failure of unrestrained pri-
vate control The inadequacy of the
present management is emphasized,
and it's inevitable trend toward bank
ruptcy portrayed.
The fight is really between the Farm
ers' Loan & Trust Company and others
against the Union Pacific Railway
Company and many of it's branches
SUCH distinguished men as ex-Judge
John F. Dillon and Attorney Francis
r. Coudert are involved as co-defend-
ants. The suit involves the two branch
es of the Union Pacific system as well
as the main line and it's city and depot
property, and the plaintiffs appear as a
committee for the minority of the
stockholders of the Oregon Railway &
Navigation Company, as we'll as for the
Farmers Loan & Trust Company, and
the American Loan & Trust Company
The rights of the plaintiffs originally
accrued by reason of Frederick l.
Ames' ownership of about rs, 900 shares
of stock in the railroads in question, to.
gether with his ownership of consider.
able amount of collateral trust pei
cent bonds of the Union Pacific. The
American Loan & Trust Company
holds $4, ,450,0 900 of these bonds and sew
eral millions of similar bonds are helt
by other plaintiffs.
Though the capital stock of the UniOr
Pacific is alleged to be more than $50.
100000, the plaintiffs aver that it's in
debtedness is so great and it's misman
agement so apparent that it's affair.
ought to be administered by the feder
al courts 1t is alleged that the gov
ernment debts alone are sufficient I,
cause the forfeiture of the franchise
The fact is reiterated with emphasi
that the falling off of the roads rev
enue is alarming, reaching as much a
81 400 900 in two months.
The complaint recites that the Unioi
Pacific Railway Company is not abl
to earn operating expenses either upoi
| It's main line or branches, that the com
| pany will not have at any time suffi
| cient funds or assets with which to pa,
| its interest and sinking fund charge
maturing from month to month ant
| that as a result, innumerable credit
| ors will have a right to begin a multi
| tude of actions against the company
| which it is alleged will result in tn
| dismemberment of the Union Pacifi
| system, so that 'its properties and as
| sets will be dissipated to the nantes
and irreparable injury of the public
| the government of the United State
and the company's creditors and share
holders"