Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1895-02-02
DECKS CLEARED.
COMPLICATIONS Are Reduced by
the Suit at ST. Louis.
WHAT THE BEE PUBLISHES

The Foreclosure of the Union racine
Thought to be "a Necessary Fei''''-
iparv tn REORGANIZATION suit Also
Instituted in the State OF Nebraska
OMAHA, Neb., January 25.-Ihe bee
to. day saws: There is flood oil I'M
written history connected with the re-
cent foreclosure suit brought oy the
trustees of the first mortgage bonds oil
the Union Pacific in st. Louis last week.
As early as last July Judge Sanborn IN
timated to the trustees of the hrst mort
gage bonds that an action IN foreclosure
would have to be brought in order to
keep the stockholders interest In the
property subject to the direction OF the
court; otherwise the court might declde
to transfer the direction OF the property
back to the directors OF the company.
There are so many contracts, when, in the
present depressed condition OF business,
operate against the advancement Oh the
Union Pacific system that IL mas De-
come essentially necessary TO nave tnese
contracts amended or revised along lines
favorable to one of the parties at least
to the contract. This could not DE done
without foreclosure, and III order TO
clear the decks for reorganization IL was
decided to bring suit IN foreclosure,
which would have been necessary under
any circumstances II REIMBURSEMENT Oh
present difficulties was at all desirable.
As these suits in foreclosure are
| I
present receivers are appointed under
the bills of the complaints, the old suits
| brought by the stockholders begin to
grow less burdensome and finally the
! receivers under the new suits cease to
| have any interest in the old cases, and
| they are removed from court, so to speak.
| Until the foreclosure suits the earnings
are kept separate, the court directs what
| use is TO be made of certain funds and
gradually the end approaches when the
| property is to be offered for sale. SO
| the grind OF the court reduces the many
complications until the final run IS
made, when the property is in position
| to be taken for its actual value IN reor-
ganization. 1t is pretty generally UNI
! derstood that all the foreclosure proceed
ings brought on the various properties
| formerly continuing the Union Pacific
system will be pushed rapidly to final
adjudication, in order that the reorgan-
| ization committee may have something
to work upon in reorganizing what was
once the greatest railroad property i'll
the country.
SUIT BEGUN AT LINCOLN.
LINCOLN. Neb., January 25.-Proceed-
ings in foreclosure against the Union Pa
cltic railway similar to that instituted
at st. Louis were begun yesterday in the
Federal Court before Judge Dundv by
F. G. Dexter and Oliver Ames, justices
of the mortgage bondhoIders. The
plaintiffs set up that the company de-
iaulted on the interest of July l, 1894,
and continued in default until NOvem-
Der 81, when the receivers offered to pay
the defaulted interest at the face of the
coupons, but not the accrued interest.
| Plaintiffs relate the appointment of the
receivers October IS. 1893, by Judge
Dundy, and allege that therefore all
property of the railway is in the hands
| of the court,