The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-03-21

There was much suppressed excite
ment around Union Pacific headquar-
tiers yesterday and all hands waited
with keen interest for the first news
from Portland as to Judge Gilbert's
decision on the demurrer put in by the
Union Pacific to the petition for the
appointment of a separate receiver for
the Short Line. There was a general
feeling of confidence as to the result,
but the tremendous Importance of the
issue impressed all. AL last the news
came that the demurrer had been suS-
tanned and then everybody smiled and
shook hands all round. Mr.. Clark wore
look of calm satisfaction. He has
been through too many campaigns to
become excited, and besides, he never
had doubt as to the outcome. Gen
eral Manager Dickinson was not sur
prised, but he was the happiest man
in town, and showed it. One evidence
of this was the joke he perpetrated in
suspending for the day rule 207, reQuir-
ing all Union Pacific employees to alb
stain from the use of intoxicating
liquors. And so it went all along the
line
Consider the Matter Settled.
This decision settles the whole bus
Short Line; you can bank on that"
said one of the visiting magnates Ia
a Herald man. while the decision goes
chiefly to the question of jurisdiction
and sends the case to the court Of
Wyoming, the showing made has den-
onStrated our strength and the weak
ness Of the other side. ] am confident
that it will not come UP again, for
trial would simply mean more COM
iar
This was the sentiment of the entire
party, and with happy hearts the Wis
itors left at about 10 o'clock last night
for Idaho to enjoy q little recreation
in hunting and fishing. The party con-
sists of Receiver Clark, General Man
ager Dickinson, E. l.. LomaX, Engineer
Pegram, Mr. Munroe and some others.
The Decision.
The following dispatch from Portland
gives the gist of Judge Gilbert's de-
cision:
Portland, Or, March 20-Judges Gil
bert and Bellinger today in the United
States Circuit court rendered a deci-
sion denying the motion of the Ameri-
can Loan & Trust company for the
removal Of the Union Pacific teceiverS
from the receivership of the Oregon
Short Line & Utah Northern and the
appointment of others, with leave to
to renew the motion after the matters
involved shall have been submitted to
the circuit court for the district of
Wyoming. After reviewing the case,
Judge Gilbert said:
The disposition of these applications
given to the fact that the Oregon
Short Line & Utah Northern Railway
company was first taken into receiver
ship by the circuit court Of the United
States for the district of Wyoming,
upon the foreclosure Of the Dillon
mortgage. That court had unques-
tionably Jurisdiction of the subject
matter and of the parties. 1t was the
proper court for the institution OF the
suit. The corporation defendant was
organized under the laws of Wyoming
and had been it's principal place of
business. The fact that but small
percentage of its railway lines Is
within that state is unimportant. The
right of the court whose jurisdiction
is first invoked over corporation
whose property lies within various
districts is not to be measured by the
proportionate extent of the property
interest in that jurisdiction. There is
limits the greater portion of the pro-
perty is. shall be the court of primary
jurisdiction. It is sufficient that the
corporation had it's home in Wyoming
and had a portion Of It's property there.
1.-THE legal authority of receiver
extends no further than the territorial
limits of the Jurisdiction of the court
whose officer he is. Within that limit
his right of possession will be respected
by all other courts; without that limit
no court is bound to recognize his
authority. But by principle of
comfy, courts whose jurisdiction is
exterior to that of the court which ap-
niynfn &6a r--s11 A.
the latter the right to reduce to his
possession and control the property Of
his trust which may there be found
That this comfy will not be extended
to the detriment of local creditors of
the person or corporation whose pro-
rule Of comfy. equally we'll established
and universally recognized by the cir
cult courts of the United States. the
action of the circuit court which first
acquires jurisdiction of the parties of
the subject matter of a suit by the
appointment of receiver will be re-
spected by the circuit courts of the
other districts in which the property
of the insolvent is situated
'1t is urged that If the Oregon Short
Line & Utah Northern was operated
under a management wholly independ-
ent of the Union Pacific system it
would be free to enter traffic contracts
with other and competing roads and
that thereby its earnings might be
greater than under the present man.
agement, and it is insisted that the
lien holders of the road have the right
to demand that the property over
which their lines extend be segregated
from the system, since the traffic
agreement has been broken, and that
it be free to be operated in such man |
ner that advantage may be taken OF
its situation and surroundings TO earn
the greatest possible income for those |
who are interested therein, and this |
of the effect that may
thereby be produced upon the re
mafnder of the system.
eff the Oregon Short Line G Utah |
Northern railway were susceptible OF |
dismemberment without injury to
either portion; if that portion of its
line within the state of Wyoming |
were a separate branch, capable of a |
separate management, or IL the action |
of this court were necessary to the |
of the rights of the lien |
holders by whom the applications are
ma de, it might be urged that a case
is presented which would justify the |
court in the exercise of it's discretion, |
to disregard the settled rule of com
ity. But no such exceptional state of
facts exists There is nothing pre-
scented in the record in these cases
which makes the general rule inapplic-
able. The reasons which are urged for
the removal of receivers already ap-
pointed and the appointment of Others
in their stead have not been pre-
sented to the consideration of the cir
cuit court for the district of Wyoming. |
That court has had no opportunity tc
pass upon them. Those reasons are
as potent and convincing in that cour'