The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-01-18

Omaha, Neb., Jan. IA petition will
be flied in st. Louis Saturday before
Judge SanbOrn looking to the fore
closure of the first mortgage on the
main line of the Union Pacific railroad
The mortgage is for $4,000 900. The
petition is supposed to have been pre-
pared at the instance Of the trustees
of the first mortgage bonds in the Of
flee of Winslow \. Pierce, of New York.
.Senator-elect John NJ Thurston, attor-
ney for the Union Pacific receivers, will
go to st. Louis tomorrow He VIII
represent the government. The present
receivers are expected to be retained
by the trustees until the business is
concluded.
The road is not expected to sell for
the amount Of the first mortgage. This
viii wipe out all other indebtedness and
if carried out the government and all
other creditors will lose everything in
vOlved. Those interested in protectfna,
the governments interest, however, in
sfst that this is a coercive measure;
that the papers were prepared at the
Omaha headquarters of the company
and that it is merely bold plan to
force Congress to agree to an extension
OF its Indebtedness on terms quite
favorable to first mortgage bondnoIders
as involved in the Reilly bill now before
Congress. As an evidence that the pro
posed litigation is not really intended
as a, foreclosure. Omaha people who
are insisting that the government shall
have something TO show for the money
it has invested in the company, ,are
tonight pointing to the fact that the
first mortgage merely covers the main
NTr1la Of II
Indicates that the feeders of the line
alone nave paid expenses and that with
out the branches the main line Is in
no wise desirable property. For some.
weeks there have been WlaisperingS that
foreclosure proceedings would he In
s1tuLed, though at the headquarters
this idea had been secuted.
Today it was learned that tomorrow
Senator Thurston would visit st. Louis
on an important matter. At a later
hour he admitted that he would go
there and that he would meet the east
ern attorneys who would file the petit
| ton in foreclosure. Tonight he stated
that mis- visit to the southern metropolis
was for the purpose of looking after
| interests Of the Union Pacific receivers,
! for whom he is the attorney. He said
that he had no knowledge Of the con-
| tents of the petition which would -sbe
/ filed, as it had been prepared in New
F.! York or Boston.
On October 13. 1893, Judge Dundy.
sitting in the United States court in
this city, appointed s. H. H. Clark,
| Oliver w. Mink and e. Ellery Ander-
son receivers on the application OF
the executors of the estates of Freder-
| ick L. Ames and Sidney Dillon (the
largest holders of the company's
bonds and Edwin T. Atkins, of Bos-
| ton. The interests that applied for
the appointment of the receivers were
friendly to the existing management,
and their action was taken for the
avowed purpose of protecting the prop
erty. According to an official state
ment issue at that time, 'tthe object
was to keep intact in one system and
TO preserve the road at its greatest
value, and anticipate possible suits
growing out of the failure to meet OBJ
| The present proceedings are expected
| to bring the long drawn out story to
some sort Of definite settlement.