The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1895-06-01
He Oeclin, to Grant the Order
Asked for by the U. P.
FINANCES OF THE SHORT LINE
Wrangle in Court at st. Paul Over the
Suits for Separate Re
ceiyershps.

st. Paul, May 27.-The application OF
the Oregon Short Line & Utah North
ern for a separate receivership and the
payment of overdue interest coupons
on prior liens came up today in the
United States court of this city. The
receivers of the Union Pacific road pre-
sented a report of the amounts appli-
cable to pay the first mortgage interest
of the Oregon Short Line & Utah Nor
thern road in order that the road might
be turned over to the receiver appoint
ed under the foreclosure of the second
mortgage. The forenoon was devoted
to the discussion of points of the print
ed reports and by the receivers, no re-
suit being reached before recess. From
the report the following extracts are
taken as indicating the situation:
I'VE do hereby report and certify our
estimate that the net surplus earnings
of the Oregon Short Line division, be-
ing property subject to the mortgage
dated November /, 1881, made by the
Oregon Short Line Railroad Company
to the said John F. Dillon, as trustee,
will be on the first day of June, 1896,
1928, 922.O6.
The earnings of the Short Line &
Utah Northern Railroad Company.
meaning thereby the net surplus earn
ings of the entire property of that COM
pany considered as a system, will be
on the first day of June, 1895. $647, 1886.
I'VE further certify that the amount
| paid by us under the orders of this
court for interest accruing upon mort
| coc a
have been stated and deducted from
the balances of the surplus earnings.
and that it appears from the statement
that the respective surplus and defic-
iencies applicable to said divisions and
stated as of the date Of June 1, are as
follows: Estimated surplus, Oregon
Short Line division, $22S, .06; estimat-
ed surplus, Utah Northern division,
$553, 59SS6 estimated deficit, Utah South
ern, first and general mortgage divis-
| ion, S96,163.87; estimated deficiency.
| Utah Southern extension mortgage di-
vision, $37, 200.22; estimated surplus Or
egon Short Line & Utah Northern con-
solidated mortgage division, 2S,247. 06;
total. $637. 1896
THE receivers respectfully recon-
mend that before railroad property
now in their hands shall be permitted
to pass from the jurisdiction Of this
court a provision be made for the pay
ment of the said claim of J. p. Morgan
& Co. for compensation for the use of
81 locomotives, and that this obligation
should be considered before determining
that any part of the surplus earnings
appearing to be in their hands on the
said LIST day of June, 1895. can be con-
sidered to be properly applicable to the
payment of interest on any of the bonds
secured by mortgages covering the said
property of the Oregon Short Line and
Utah Northern Railroad Company, or
any part Of the same"
This afternoon there was a long argu
ment over the situation. The receiver
of the Union Pacific said the transfer
OF the Oregon Short Line and the issu-
ance of certificates at 95. running at G
per cent, meant that the present inter
est of per cent. would be increased to
S14 per cent, and that the court would
under the circumstances, make an order
Of transfer.
Judge Sanborn said he should make
no order with reference to the issuance
of certificates not heretofore made by
Judge Gilbert of Oregon.
The hearing will be continued today