The Columbus journal., 1895-10-02
UNIONPACIFIC
HEAVY CREDITORS CHARGE MIS-
MANAGEMENT OF ITS AFFAIRS.
Alleged Thas the GovsFsmest Debts Alone
Are SaAcieat % Cause the Forfeiture a
tAo Fraachise-suie Comnesced In
vsasss Thirty-Twe Braachss.

SAN Francisco, Oct. 1.-The Chron-
ide says; The most far reaching suit
sver tried in California and one which
viii attract world wide attention from
ts.economic and commercial bearing. is
On tho calendar Of the United States
circuit court OF appeals for the present
session. II. is the struggle of the heavy
creditors Of the Union Pacific Railway
company and its 81 branches to have
thu entire business Of the great trunk
line thrown into Q common pool and
administered. on as . trust fund by tho
federal courta The complainants are
in part stockholders and creditors OF the
company. The allegations Of the
voluminous complaint OF the combined
companies is full Of startling announce
ments and vital, statements as to the
failure Of unrestrained private control.
The inadequacy Of the present manage
ment il emphasized and its inevitable
txond toward bankruptcy portrayed.
The fight il really between the Farmers
Loan and Trust company and others
against the Union Pacific Railway COM
peny and many of its branches. Such
distinguished men at ex-Judge John F.
Dillon and Attorney Francis B.. C0udert
xte involved as c~odefendants.
lnvolves ThlFty-two Branches.
The suit involves 81 branches OF the
Union Pacific system. al well as the
main line and it's city and depot prop
erty, and the plaintiffs appear a q COM
mittee for the minority stockholders Of
the Oregon Railway and Navigation
company, as well as for the Farmers
Loan and Trust company and the Amer.
lean Loan and Trust company. The
rights Of the plaintiffs originally &C.
crued by reasoh,o of Frederick L. Alnes'
ownership. Of about $4,000 shares Of
stock in the railroads in question, to-
eether with his ownership Of a cOnsid-
cradle amount of collateral trust 6 per
cent bonds of the Union Pacific com-
pany. The American Loan and Trust
company holds q, 445, 900 Of these bonds,
| and several million of. similar bonds are
held by other plaintiffs. Though the
capital stock of the. Union Pacific is
alleged. to be more than go, OOO. 900,
plaintiffs aver that its Indebtedness is so
great and its Encouragement SO appar-
emit that it's affairs ought to be admins
tered by the federal courts.
Alarnaisg Falling on Of Revenues.
It Is. alleged that the government
debts afone are sufficient, to 10 the
forfeiture of the franchise. The fact is
reiterated with emphasis that the falling
OF Of the roads revenues is alarming,
reaching as much as 81. 400, 600 in two
months. The complaint recites that the
Union. Pacific Railroad company is not
able to earn operating expenses, either
upon its main line or branches; that the
company will not at any time have
sufficient funds or assets with which to
pay its interest and sinking fund
charges maturing from month to
month" and that as a result innumer-
able creditors will have a right to begin,
. multitude of actions against the com-
pany, which. it is alleged, will result in
the ACKNOWLEDGMENT Of the Union Pa
cific system, So that ''its properties and
assets will be dissipated to the manifest
and irreparable injury of the public. the
government of the United States. aud
the company's creditors and share
holders"