Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1895-10-05
Project for the Courts to Admin
lister Its Affairs as a Trust.
BAN KRUPTCY Is IN SIGHT
Most Far.Reachtng Lawsuit Ever Tried
in California for Its Economic
Bearings.

San Francisco, Sept. 29.-The Chron-
icle says: The most far-reaChing law
suit ever tried in California, and one
which will attract worldwide attention
from it's economic and commercial
bearing, is on the calendar of the
United States circuit court of appeals
for the present session.
1t is the struggle of the heavy cred
itors of the Union Pacific railway and
It's 80 branches to have the entire bust
ness of the great trunk line thrown in
to common pool and administered on
as a trust fund by the federal courts.
The compliments are in part stock
holders and creditors of the company.
The allegations of vOluminOuS COM
plant against the receivers of the COM
bined companies is full of startling
announcements and vital statements
as to the failure of unrestrained pri-
Vate control The inadequaCy of the
present management is emphasized,
and it's inevitable trend toward bank
ruptcy portrayed.
The fight is really between the Farm
ers' Loan & Trust Company and others
against the Union Pacific Railway
Company and many of its branches.
Such distinguished men as ex-Judge
John f. Dillon and Attorney Francis
r. Coudert are involved as cO-defend-
ants. The suit involves the two branch
es of the Union Pacific system as we'll
as the main line and it's city and depot
property, and the plaintiffs appear as
committee for the minority of the
stockholders of the Oregon Railway 81
Navigate Company, as Well as for the
! I i
| the American Loan e. Trust Company
The rights of the plaintiffs originally
accrued by reason of Frederick l..
Ames' ownership of about 1000 shares
of stock in the railroads in question, to-
gether with his ownership Of consider
able amount of collateral trust per
cent bonds of the Union Pacific. The
American Loan e. Trust Company
holds $4450,O00 of these bonds and sew
eral millions Of similar bonds are held
by other plaintiffs.
Though the capital stock of the Union
Pacific is alleged to be more than $780,
900 geo, the plaintiffs aver that it's in
debtednesS is SO great and it's misman-
agement SO apparent that it's affairs
ought to be administered by the feder-
al courts. 1t is alleged that the gov
cause the forfeiture of the franchise
The fact is reiterated with emphasis
that the falling off OF the roads rev
enue is alarming, reaching as much as
81 400 900 in two months.
The complaint recites that the Union
Pacific Railway Company is not able
to earn operating expenses either upon
it's main line or branches, that the COM
pany will not have at any time sutfi-
cient funds or assets with which to pay
it's interest and sinking fund charges
maturing from month to month and
that as a result, innumerable credit
ors Will have a right to begin a multi
tude of actions against the company,
which it is alleged will result in the
ACKNOWLEDGMENT of the Union Pacific
system, SO that otis properties and as
sets will be dissipated to the manifest
and irreparable injury of the public,
the government of the United States
and the company's creditors and share
holders"