The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-06-08


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The interest in the hearing of the
application for a separate receiver for
the Oregon Short Line and Utah
Northern Railway company, before
Chief Justice Merritt, was even more
intense yesterday than the first day
OF the hearing. Standing room in the
court room was at a premium, especi-
ally when Senator John NJ. Thurston
was making his argument on behalf
of the present Union Pacific receivers
against the petition. Mr. Thurston's
address was an able and eloquent eff
fort and occupied three hours to de-
liver.
-syhe proceedings opened at 10 a. m.
sharp. The first speaker was WinsIow
C. Pierce, of New York, who, on be
half of some of the first mortgage
bondholders, opposed the separate re
Ownership. He was followed by +. B.
Kellogg, of Minneapolis, on behalf Of
the plaintiff, the American Loan and
Trust company, and then Senator
Thurston commenced his Grafton and
ccRcluded at $3.50, closing the case of
those opposed to the separate receiver
ship. Noorfield Storey, who closes for
the petitioners, commenced his address
and had talked just half ar hour
when ,&lrt adjourned till 10 o'clock
this nlNng, at which time Mr.
Storey4r resume his argument and
the case will be submitted to the
court proba bly, before noon. The only
new feature in the case was the sug-
gestiOn by Mr.. Thurston, thai If re-
ceiver as to be appointed, that Judge
Merritt appoint a local man as CO.
receiver with Egan.
Yesterdays Proceedings.
Winslow c. Pierce, speaking against
the separate receivership, said that
there was but two PROPOSITIONS to
which he could call his honor's atten-
ton; these are that there should be
absolute uniformity i'll the order and
that there should be no disintegration
OF the road. 1t is alleged, continued
counsel, that the receivers operate~the
road as part of the Union Pacific, and,
therefore, should be removed; that the
Union YPacific has broken the traffic
arrangement and that the Union Pa
cificFhas failed to pay the proportion
ateYamount to meet the interest on the
bonds and the operating expenses and
had not made z. fair distribution of
the earnings. Upon the first of these
allegations the pro- er remedy was
TO have applied to he court for in
StrucuOnS; the present receivers have
asked for nslructions and followed the
advice and orders of the court to
operate the road as one system as far
as possible. The prior right of the
senior mortgages to be satisfied with
the manner Of working the road is
recognized and the senior mortgages
r, !,
of the Union Pacific system The re-
ceiyers in the Ames cause are still in
existence, so are the general receivers,
and it is of the greatest Importance
thai q system of uniformity be main
tanned by the court in making the or
ders. The rule of comfy demanded
that there should be no diversity in
the mana cement Of a single fund and
that o. should be no splitting
I'D or the property operated.
The court will therefore not dismern-
Der properties and will nor create n |
diversity in the management Of the !
property.
Now tie American Loan and Trust |
company purpose, no matter how hon
est counsel may be In their protesta- !
tions to The contrary. to dismember |
the portion of the road within this /
judicial jurisdiction. They propose to /
take some branches of this road and |
leave others to be operated by a diff |
ferent receiver Such should not be /
permitted and 7 must urge upon the |
court the necessity of the unity of the /
orders and the indivisibility of the !
properties
r. B. kellogg, for the American !
Loan and Trust company then ad- |
dressed the court. He referred to Mr. /
Williams remark that the Loan COM /
pany was a stranger here, and sug- /
sested hat there were no strangers |
in court Of justice. The Loan COM |
pany represented as trustees the bond |
holders under the mortgage to the ex-
tent OF over s10,00O,000. also the col |
lateral mortgage of over $4,000 600 and /
of the Utah & Northern mortgage of |
nearly two millions. The five receiv-
ers were appointed at the request of /
stockholders in the Union Pacific and |
ot in the Short Line. though the
: IN Pacific owned the majority of
c-&in the Short Line, and made its
s nj San arrive At The right. Of -.
; 49, les under the Ames and Dillon
villages we will come very near an
understanding of the whole matter
we represent the bondholders and
Stockholders all over the country: the
f,,rSfeee are only The figure heads;
those behind them are the real par
ties ia interest anu IL ~ 4OT the Dene-
fit of these that this application is
made.
II is admitted that the Trust com
nary on paving the interest on the
FIRST mortgage bonds has the I'M
doubted right Under the terms of its
second mortgage to take possession of
tbe road The demand of the first
nortgageeS to have the road placed in
ffae hands of receivers was promptly
s1eceeded te and shall we be denied
|tFe undoubted right which was
|eranted them? We have a first mort
|gage on "a portion Of the road and our