The islander. [volume] (Friday Harbor, Wash.) 1891-1899, 1895-01-31
SEPARATE RECEIVERS
They Are Granted for Union
Pacific's New Line.
THOSE WHO WERE APPOINTED

Foreclosure by First Mortgage Bond
holders Thought Not to Prejudice the
Governments Interests Order Cow
ers Seven Type Written Pages.
ST. LOUIS, January 23.-United States
Circuit Judge Walter III. Sanborn to-day
handed down a decision upon applica-
ton of E. Gordon Dexter and Oliver
Ames, second trustees for the first mort
gage bondholders of the Union Pacific
Railway Company, for separate re-
ceiver for the portion of the Union Pa
cific system covered by the first mort
gage. The decision on the order covers
seven closely typewriter pages, and in
effect grants the application. The re-
ceivers appointed are the same as those
now in charge of the entire system, viz !:
s. H. H. Clark, Oliver w. Mink, E. Ell
lery Anderson, John w. Doane and
Frederic R. Coudert. The order pro-
vides that funds already earned by the
debts and Just claims under the present
serves the right to order that any def
cheney in such funds shall be made good
from future earnings under a separate
receivership. In effect the decision to-
day simply sequestrates the old main
line from the rest of the system only so
far as accounts are concerned, so that the
property covered by the first mortgage
shall be within easy reach of the mort
gagees.
The property covered by the first mort
placed upon the main line of 1,O36
and no other. The other portions of the
road and branches, while under the man.
agement of the same receivers, will have
a separate system OF accounting, al
though they will be run by the same ex-
ecutive. Before he issued the order
Judge Sanborn stated that he had
changed one clause, making future earh-
ings to certain extent liable for present
Indebtedness, as he felt that too much
protection could not be given the present
receivers in the Ames case. He stated,
however, that before making any order
to pay any of the present operating in
debtedness he would always give the
DlalnCtHS
privilege of hearing.
Attorney Price for the complainants
stated that he was perfectly satisfied
with the order. The Judge then called
for the appearance OF the Union Trust
Company and that OF the Union Pacific
Railroad Company. Mr.. Pierce pre-
scented one and Attorney Kelly in behalf
of the Union Pacific the other. Judge
Sanborn appointed Mr.. Kelly special
clerk and messenger for the court to
carry the order and the appearance to
the clerks offices of the northern dis
trict of this circuit at Omaha and place
them on file. Judge Sanborn stated
after the order had been issued that the
appointment of the new receivers IN no
wise changed the manner operating the
system, but that the future surplus earn
ings of the main line would now apply
to the payment of the first mortgage
bonds.
THURsTON ON THE FORECLOSURE.
OMAHA, January 23-The Union Pa
cific attorneys, who went to st. Louis to
assist in foreclosing the first mortgages,
returned oday. Speaking OF the suit,
Judge Thurston said:
"The situation of the property has
reached the point where foreclosure was
inevitable. The first mortgage interest
is in default and the system in the hands
of receivers. The first installment OF
6,475, 900 of the principal will be due
January 1, 1896, and there is no posi-
bility Of that amount being paid except
by foreclosure sale. This foreclosure OF
the first mortgage on the part OF the
Union Pacific main line is really the last
foreclosure to be brought. The mort
cages on the Oregon Railway and Navi-
CATION Company, the Union Pacific,
Denver and Gulf, on all the divisions OF
the Oregon Short Line and Utah North
ern, Kansas Pacific, Denver Pacific, Kan
sas Central and several other branch
lines are already in process OF foreclos,,
ure, and receivers have been appointed
under all of them. This foreclosure does
not prejudice the governments interest
in any possible way. The government
can come into this case and foreclose
it's mortgage as second lien. or it can
foreclose independently, but always sub
iect to the first mortgage. The time has
now come when Congress must either
act during the present session or the
matter will pass beyond legislation and
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