Cottonwood report. [volume] (Cottonwood, Idaho) 1893-1901, 1895-10-04
THE u. P. MIDDLE
Project for the Courts to Admin
lister Its Affairs as a Trust.
BANKRUPTCY IS IN SIGHT
Most Far.Reachlug Lawsuit Ever fried
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 Circuit. court of appeals
for the present session.
1t is the struggle of the heavy cred
itors of the Union Pacific railway and
it's 80 branches to have the entire bust
ness of the great trunk line thrown in
to a common pool and administered on
as trust fund by the federal courts.
The compliments are in part stock
holders and creditors of the company.
The allegations of voluminous 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
I stockholders of the Oregon Railway &
| Navigation Company, as well 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 25, 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 81, $50 900 of these bonds and sew
eral millions of similar bonds are held
by other plaintiffs.
Though the capital stock of the Union
Pacific is alleged to be more than $780,
100000, the plaintiffs aver that its in
debtedness is so great and its misman-
agement so apparent that it's affairs
ought to be administered by the feder-
al courts. 1t is alleged that the gov
eminent debts alone are sufficient to
cause the forfeiture of the franchise
The fact is reiterated with emphasis
that the falling off OF the roads rev.
enue is alarming, reaching as much as
81 400 900 in two months.
The complaint recites that the Union
Pacific Railway Company is not able
| to earn operating expenses either upon
| it's main line or branches, that the COM
pany will not have at any time suffi-
| cient funds or assets with which to pay
| its interest and sinking fund charges
maturing from month to month an6
| 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 the
| ACKNOWLEDGMENT of the Union Pacific
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 States
| and the company's creditors and share
| holders"