Red Lodge picket. [volume] (Red Lodge, Mont.) 1889-1907, 1895-06-01
SANB0RN SAYS NOT
He Declines to Grant the Order
Asked for by the U. P.
FINANCES OF THE SHORT LINE
Nrangle in Court at ST. Paul over the
suits for Separate Re.
eeiyersh;ps

ST Paul, May 21.-The applicat ton OF
the Oregon Short Line &, Utah North.
efh for s. 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 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
! pe turned over TO the receiver appoint
ed under the foreclosure of the second
mortgage. The forenoon was devoted
70 the discussion of points of the print
ed reports and by the receivers, no re
suit beng reached before recess. From
the report the following extracts are
taken as indicating the situation:
We do hereby report and certify our
estimate that the net surplus earnings
OF the Oregon Short Line division, be-
ing property subject to the mortga ge
dated November i, 1881, made by the
Oregon Short Line Railroad Company
TO the said John f. Dillon. as trustee,
$22S, ,92206.
The earnings Of the Short Line &
Ctah Northern Railroad Company,
meaning thereby the net surplus earn
lh2s OF the entire property of that COM
pany considered as system, will be
on the first day of June, 1895, $647. 8 49, &c.
We further certify that the amount
pad by US under the orders Of this
court for interest aecrung upon mort
cages affecting the respective divisions
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-
lencies applica ble to said divisions and
stated as Of the date of June /, are as
follows: Estimated surplus, Oregon
Short Line division, 1925, ,922. .O6: esti1nat
ed surplus, Utah Northern division,
s553, ,59S. Sc; ESTIMATED deficit, Utah South
ern, first and general mortgage divis-
ion, S96,l63.S7; estimated deficiency,
Utah Southern extension mortgage di-
vision, $37 ,2o0,22; estma ted surplus Or
egon Short Line & Utah Northern CON
soiidated mortgage division, $23. .06:
total, s6S7 ,243 &C.
The receiversi respectfully RECON-
mend that before railroad property
now in their hands shall be permitted
TO pass from the jurisdiction of this
court provision be made for the paw
ment of the said claim Of j. 2. Morgan
4 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 1st day of June, 1895, can be con- |
sldefed 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,
Ut the Oregon Short Line and the iss1l- |
ance OF certificates at 50, running at 6 |
per cent, meant that the present inter
est OF . per cent. would be increased to |
S12 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