The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-06-07

receiver, but they do not. They ask
the court to borrow the money.
1t is not, continued Mr.. Sanborn, in
cumbent upon your honor at all to
follow the ruling of Judge Gilbert YOU
are not bound by him, you can appoint
any receiver you choose for the por-
ton of the line within your henor's
district. They ask you as matter OF
comfy to appoint the same receiver
and make the same order as has been
} made for the other branches of the
line, but it is entirely within your
honor's discretion whether you do SC
or not
There is no precedent of a court or
dering the issuance of receivers GER
tificates to pay the interest on a prior
loan where such issuance was opposed.
There are cases where it has been
done by consent of all parties, but
none where OPPOSITION has been made.
We concede their right as second
mortgages to take possession of the
road if they come up with their
money and pay the interest on the
first mortgage, but they don't do that,
instead they ask the court to provide
the money for them by authorizing an
/ issuance of receivers certificates. The
issuance of certificates paying 3 per
cent interest and to be sold at par,
would not be so Objectionable as
what they propose, certificates paying
6 per cent and to be sold at 80. The
bondholders who I epres mt decidedly
/ object to the property being further
/ burdened by the issuance of certifi-
/ Gates.
! If the order is made by this court I
ask particularly that your honor have
the order so drawn that the Oregon
Short Line be not further disrupted
I think it would be better not to
separate it from the Union Pacific
system, but if your honor desires to
make a severance at least see that no
subdivisions are made. Let the segre-
gated portion be operated as whole.
Dir. Hall, Of Omaha.
R. S. Hall of Omaha, representing
the Oregon Short Line and Utah
Northern, that is the stockholders of
the consolidated company, said there
was no question that it was not adj
misSable to have a receiver represent
ing several diverse interest. There was
no qestion as to the right of the sec
ond mortgage holders to come in and
take possession of the road by paying
the interest on the first mortgage, but
this application was more for reaching
it was that the court borrow the
money to pay the defaulting interest
Counsel agreed with Mr.. Storey that
no man could serve two masters, but
he didn't agree with him when he
asked that rights be set aside on
question of comfy.
The other side claims the absolute
right to have the option of taking ot
refusing any of the four branches of
the line on which they choose TO pay
the interest on the first mortgage.
They say they don't want to use that
option. they want it because they
claim it as absolute right. Counsel
contended that they must take it If
at all as whole. He continued
his argument in opposition to
the issue of receivers certificates
under q separate receiver, for the pay
ment of interest on the first mortgage.
He insisted that while the Oregon
Short Line was willing to abide by It's
contract, it was unwilling to nave the
contract changed by the proposed is
sue of certificates which he did not be-
lieve was a necessity. Although the
Short Line was insolvent. it had a
grave interest in this case, and was
here to represent itself. not to ask |
represe ton at the hands OF those |
engaged in a conspiracy to destroy IL /
Turning attention TO the claim OF
the loan company that it could take
any section of the road II It cnose;
even if that were true, Mr.. Hall |
claimed it could not ask for receiver
to be appointed for the purpose. The
evident intention was to take so much |
Of the road only as suited the loan
purpose. He believed that
the policy of that company was TO /
take such part of the Short Line as
could be operated to the interest OF
the Oregon Navigation company
Mr. Storey-That statement is wholly
without foundation in fact.
Mr. Hall-Do you intend 10 take the
Short Line in it's entirety2
To this there was no reply.
Mr.. HALL knew they would not
answer that question. | say they pro-
pose to take such portious as they
have agreed with the loan company
should be taken. They propose to dis
member this road. Mr.. Hall said he
lid not believe this court would allow
such dismembership. Should the loan
COMPANY be allowed to increase the
Of the Short Line by the
ssue of the proposed certificates?
Should the loan company be allowed
o name the receiver, in view Of its
Portland interests. The receiver should
De some local person who would pro-
ect the property, as the hand OF the
Utah court, and prevent the destruc-
ion Of the Short Line system.
Farley L. Williams.
Mr. p L. Williams said he repre-
ented. besides the Union Pacific, the
interest of the stockholders in the road
nd of bondholders, Mrs. D. c. Dun
var, LIE Grand Young, J. e. Clinton,
ohm Sharp, James Sharp and others.
of this territory, were named.
t would be an expensive experiment,
e said to appoint a new receiver, I'M
amiliar with the property and the
'eople along its lines. Mr.. Williams re-
ited some of the history of the build
ng of the lines at issue, from the time
f the connection of the Pacific roads,
orth of Ogden. He named the con-
by President Young, John
harp and others. of the Utah Cen
raj, finished in 1870, the Utah South I
IN, comm enced in 1871, the Utah & /
JOrthern, began about the same time.
nd the Utah Southern Extension; the
tab Northern, being in default of its ]
ayments. was sold in 1873. and re-
Incorporation was made; then about ,
SS1, there was built the Oregon Short
line The bulk of the populat ton
rhich supports these roads, all con-
ohdated in 1889, in the Short Line.
as within the jurisdiction of this
curt. There were eight railroads COM
med, five of them being in Utah. In {
onsolidating, the liabilities were all I
ssumed by the new corporation, whose
lterests were now sought to be dis I
upted. In Salt Lake city and vicinity '
the center of the interests of the I
hort Line, and it should be handled 5
l view of the interests of the people {
ere. The benefit of one was the bena- s
t of the other. I
Mr.. Williams then directed attention 7
, the proposition that the Loan COM c
-------------------------