Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 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.Reaching Lawsuit Ever Tried
In California for Its Economic
bearings.

San Francisco, Sept. 29--The Chron-
lcle says: The most far-reaching law
suit ever tried in California. and one
which will attract worldwide attention
from its economic and commercial
bearing, is on the calendar of the
United States circui. court of appeals
for the present session.
1t Is the struggle Of the heavy cred
itors of the Union Pacific railway and
its 30 branches to have the entire bust
ness Of the great trunk line thrown in
to 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 its 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
stockholders of the Oregon Railway &
Navigation Company. as we'll 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 rs, 900 shares
of stock in the railroads in question, to-
gether with his ownership of consider
able amount of collateral trust per
cent bonds of the Union Pacific. The
American Loan & Trust Company
holds s4.450,0OO Of these bonds and sew
eral millions of similar bonds are held
by other plaintiffs.
Though the capital stock of the Unior
Pacific is alleged to be more than $780,.
100000, the plaintiffs aver that it's in.
debtedness is so great and it's misman.
agement so apparent that it's affairs
ought to be administered by the feder-
al COURTS. II Is dlleBeu tnat the gov
eminent debts alone are sufficient tc
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, 900 in two months.
The complaint recites that the Unior
Pacific Railway Company is not able
to earn operating expenses either upon
Its 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 and
that as a result, innumerable credit
ors will have right to begin a multi
tude of actions against the company,
which 1t is alleged will result in the
ACKNOWLEDGMENT of the Union Pacific
system, so that ats properties and as
sets will be dissipated to the manifest
and irreparable injury of the public
the government of the United States
and the company's creditors and share
holders"