The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-05-28
Arguments In the Case at st.
Paul Yesterday.
WHAT THE REPORT SHOWS
ESTIMATE OF THE SURPLUS
EARNINGS ON JUNE L.
Condition of the Short Line, Utah &
Northern and Utah Southern-The
Claim of j. p. Morgan X Co.-LOcaI
Notes of Interest.

st. Paul, Mimi, May 1.-THE appli-
cation of the Oregon Short Line &
Utah Northern for a separate receiver
ship and the payment of the overdue
interest coupons on prior liens, came up
today in the United States court Of this
city. The arguments were not con-
cluded at the noon recess.
The receivers of the Union Pacific
road presented report of the amounts
applicable to pay the first mortgage
interest on the Oregon Short Line &
Utah Northern road in order that the
road might be turned over to the
receiver appointed under the foreclos-
ure of the second mortgage.
The forenoon was devoted to a
discussion of the points of the printed
reports made by the receivers. no re-
suit being reached before noon recess.
From the report the following ex-
tracts are taken as indicating the sit
uation:
We do hereby report and certify our
estimate that the net surplus earnings
of the Oregon Short Line division, be-
ing the property subject to the mort
gage dated the 1st day of November,
1881, made by the Oregon Short Line
Railway company to said John f. Dill
Ion, as trustee, will be on the 1st day
of June, 1895, S22S, 922.06 Short Line &s
Utah Northern Railway company,
meaning thereby the net surplus earn
ings of the entire property of that COM
pany considered as a system, will be
on the 1st day Of June, 1895, $647, 1886.
We further certify that the amounts
paid by us under orders of this court
for interest accruing upon the mort
cages affecting the respective divisions
have been stated and deducted from
the said balances of surplus earnings,
and that it appears from the statement
that the respective surplus and de-
ficiencies applicable to the said di-
visions and stated as of the 1st of
June, 1895, are as follows
Estimated surplus Oregon Short
Line division, s22S, 922.O6; estimated
surplus Utah & Northern division,
1888, 1886; estimated deficit, Utah
Southern extension mortgage division,
SS7,2O022; estimated surplus Oregon
Short Line & Utah Northern CONSOLE
dated mortgage division, $23, O6;
total, $637, 24366.
The receivers respectfully submit
that before the railroad property now
in their hands should be permitted to
pass 1IOlil LIE JuIlSulCllOH OIL ILLS
court, provisions had been made for
the payment of the said claim of ].
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 first day
of June, 1895, can be considered to be
properly applicable to the payment of
the interest on any of the bonds Sc
cured by mortgages covering the said
property Of the Oregon Short Line
and Utah Northern railway. COM
pany or any part of the same.
This afternoon there was a long
argument over the situation. The re-
ceivers of the Union Pacific said that
the transfer of the Oregon Short Line
and the issuance of certificates at 50,
running at per cent, meant that the
present interest of per cent would be
increased to S1a per cent, and that the
court would, under the circumstances,
made the order of transfer Judge
Sanborn said he should make no order
with reference to the issuance of GER
tifcates not heretofore made by Judge
Gilbert, of Oregon.