The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-03-12

CO.. The collateral trust mortgage Is for
SI4.omacA The first mortgage on the
Idaho Central Is for $iss.oo0 The total
amount OF the mortgages on different
parts of the Short Line system. which
are Hens to the consolidated mortgage, Is
81 80 90 OF this amount John pillon Is
trustee OF the nrst mortgage on the old
Oregon short Line for $ls. s7l. 600 and OF the
nrst mortgage on the Salt Lake & West
ern for s1.oee.o oo. total Of $is.e1i. COO.
Joseph Richardson Is trustee Of the first
mortgage on the Utah & Northen for 81
s5s.en- James NJ. Ham IS trustee OF the
first mortgage on the Utah Southern for
81. SIS 90 ana of the 6rat mortgage on the
Utah Southern extension for 81. ssaoos. or
q total of $3.f7s.0o0 Dillon. Richardson
and Ham are trustees for mortgages on
different parts of the system aggregat-
Ing $24. AZ. CO., All of these trustees OPP
pose the granting OF the application for
an independent receiver and favor the
continuance of Union Pacific control OF
the Shors Line system. Their mortgages
are all first liens These latter aggregate
81. e4o, o0e.
Mr.. Story. of Boston. counsel for the
American Loan e. Trust Company, ex-
planned the organization OF the different
companies which were merged into the
Short Line system. and OF their CONSOLE.
dalton into the Oregon Short Line & Utah
Northern Railway Company.
After stating the default OF interest on
the bonds. he said there was no question
that receiver should be In possession of
the property. The only question was who
IL should be. and this was the point at is
sue in the suit. He then read from the
traffic agreement between the Oregon
Short Line q Utah Northern and the
Union Pacific. showing that the roads of
fxe~ 1<rsA
one line. He said that at the time of this
traffic contract the laws of the United
States prohibited the leasing of one rail-
road to another, except by express iegis-
lative authority. and this traffic contract
was intended. and did practically, take
the place of q lease. He compared the
two sides Of the Union Pacific system.
On one side he placed the corporate off,
GERS OF the Union Pacific Company. who
had controlled eighty subsidiary COM
panies for the benefit of and in the inter-
est of the Union Pacific Company. On the
other hand he said. there are numbers of
people having their money invested In
the stock ard securities of the subsidiary
companies controlled by the Union Pa
cific Company. He referred to the AyneS
bill. and said Mr.. Clark. Mr.. Mink, Mr.
Atkins and the executors of the Ames
estate secretly arranged TO place the
Union Pacific Company and its eighty
subsidiary companies into the hands of
Mr.. Clark, Mr.. Mink and MIR. Anderson as
receivers, and In furtherance of this plan
they brought the Ames bill in the United
States court at Omaha.
AIR. Story gave way to Mr.. Pierce, to
argue his motion for dismissal or that the
case be remanded to the district oi Wy
oming as the court of primary jurisdic-
ton. He said the first mortgage bonds
on the Oregon Short Line outstanding
amount to Sl4a36. 900. the first mortgage
bonds on the Utah & Northern amount
to 4495. 900, the Utah Southern Railway
Company has outstanding H.52S.o00 or
bonds, the Utah Southern extension has
outstanding s1.ss0.0oo. All of these mort
cages are prior to the consolidated mort
gage. The bonds secured by these prior
mortgages are in amount more than
double the consolidated mortgage.
Mr.. Pierce said that If the junior mort
gage (the American Loan & Trust Com
pany) would pay the interest on the prior
mortgages and furnish adequate security
for future payments, he stood ready as
representative of all the first mortgage
holders to accept 1t and withdraw from
the case. Mr.. Story interrupted to say
that the receivers had In their hands suf-
ficient funds to pay all the defaulted In
terest, and that If they would turn this
over to an independent receiver he would
agree that the receiver should pay the
interest on the first mortgages.