The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-06-26

at full hearing, unless some new
grounds could be urged for a reconsid-
Grafton, and in this case no new point
had been made.
The Appeals.
Judge Merritt-There is new
phase in this matter. 1 understand two
appeals have been taken from the or
ders made by Judges Gilbert and San
born.
Mr.. Marshall-The only point ap-
pealed from is the order allowing re-
ceivers' certificates to issue.
Judge Merritt understand there
are TWO appeals.
Mr.. Hall-Yes, the bondholders have
appealed from the order appointing a
receiver.
Mr.. Marshall-Who allowed the ap-
peal from the order appointing a re-
ceiver?
Mr.. Hall-My information is that it
was Judge Bellinger
Mr.. Marshall-The appeal was from
the order allowing receivers certifi-
Gates to issue from that, and that only:
Anyway, the appeal does not annul
the order appointing the receivers or
any part of the order. The order of
the court stands while the appeal is
pending, and ii cannot be assumed that
II will be reversed. We are not max
ing this application on the same show
ing as before. The original order can
not be carried out, because we cannot
induce capitalists to put money down
with the co-receivership. Nobody will
advance dollar on the original order
of this court.
Mr.. Thurston-If the court took
charge of the read you would not pay
the money or take the road. You would
only take IL with your own receiver;
rather a want of confidence in the
court.
Mir. Marshall-If the court undertook
to manage the road it would have no
time to do anything else. The court is
not educated in operating railways,
ana must necessarily trust its receiver.
Mr.. Bancroft has been identified with
the management of the Union Pacific
and We believe if the Trust company
pays this large sum of money it is en-
Titled to separate receiver.
General COwan.
General Cowan, representing the gov
eminent, then made a few remarks
stating that he had been requested by
the encouragement to oppose any
modification Of the order When the
Union Pacific went into the hands of
receivers 1t was partly at The request
OF the government that the receivers
were appointed. Receivers were asked
vi NAiQCA LAIC Jill VI lOIcclOSuIt, anu II
was thought the interests of the gov
ernmenC ran in that direction but
now that the American Loan and
Trust company asks for a separate re-
| celVer, the government does not lose
its interest in the road, for the millions
of acres of land it donated and the mil
lions of dollars of the bonds which it
holds So far as the orders made in
the other courts are concerned they
rest on the condition that the Trust
company pay off the interest so that
the bills for foreclosure would have
no standing in court. When the Trust
company pa IS the interest it is entitled
to sepal re receiver, and not be-
fore. We think it to the interest of all
parties that segregation of the lines
should not be made. 1t is to the inter-
est of the government to have the
road operated as one system, and it is
owing to the action of the govern
ment in fostering the road at the
start that it was possible TO open it
up and run it for the benefit of the
west. for the benefit of the people in
the mountains, and that is why the
attorney general has asked me to be
here and oppose any modification of
the order.
The speaker said he heard Judge
Sanborn tell Mr.. Storey that he had
not been informed that his clients, the
/ Trust company, intended to raise the
/ interest money by issuing receivers
/ certificates, and Judge SanbOrn made
! the order allowing their issue because
/ Judge Gilbert, in the court of primary
| jurisdiction, had made that order.
General Cowan refererd to the
| terms on which it was proposed to is
sue the certificates to be sold at 80
( and to bear per cent. interest. He
! knew of no right of junior mortgagee
| TO issue certificates on such conditions,
assuming that they are the only pee.
! pie in interest in those vast proper
/ ties. Il oppose" said the general,
! any modification in your order, and
! I oppose making the property useless
to any but the Trust company
n. Y. Hall.
Mr. Hall was disappointed because
the mover of the motion had not
! raised any new points. AS to the APP
! peals from the orders of the other
/ courts, he understood the appeals
were from the whole of the orders, not
only from the issuance of the certifi-
Gates. He argued that the trust COM
! pany had shown bad faith by declining
to take the road unless it gets full con-
troll to the detriment of everybody
else.
Mr.. LeGrand Young opposed the
| change of the receiver, or the dismissal
Of Mr.. Bancroft until the accrued in
terest is paid off. The proposition to
do so was absurd; it was an outrage to
segregate these roads. He insisted that
prior liens should be satisfied before
the loan company took the road.
Judge Marshall-Do you oppose the
issue of certificates?
Mr. Young have nothing to say on
| that. | only say that our lien should
be satisfied.
Judge Marshall-The court did not
| forbid certificates, and we presumed it
was not necessary TO bring new matter
on this subject.
! Mr. Marshall then pointed out that
/ the prosecution of the foreclosure suits
I by the other side would segregate and
dismember the road. The appeal was
| not a supersedeas, therefore the orders
are in force.
Judge Merritt understood it was a
supersedeas bond.
Senator Thurston-No supersedeas
| bond was given.
Judge John a. Marshall.
Judge Ma shall-For the first time
we see the government represented
! here. 1t has nc interest in this road.
Its lien is on the Union Pacific. / am
surprised that the attorney-general OF
the United States sends man here to
/ urge the interests of the people of this
intermOuntain region. The attorney
general does not represent them. He
| has no interest here. AS TO segregation.
there is no thought of it on our part.