The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-03-06
AN OREGON RAILROAD suit.
HALF A MILLION DOLLARS IN
-VOLVED IN THE
CASE.
AN ACTION BROUGHT Blythe BOND
HOLDERS OF THE o. r.
AND N.

PORTLAND, Or, March 5.-A railway case
| involving half million dollars was begun
| in the United States District Court to-day.
The case was that of Henry Reed and
the other bondholders of the Oregon Rail
way and Navigation Company, together
with E. Mcneil, receiver of the o. r. and
| N, and the Farmers Lean and Trust Com
| pany, as trustee under the consolidated
mortgage of the o. R. and N. Company, to
have the order appointing Mcneil receiver
so modified as to absolve him from the
payment of the Indebtedness contracted
by the Union Pacific receivers in their oper-
alton of the Oregon Railway and Naviga-
ton Company.
Andrew +. Burleigh, counsel for the Ore
gon Improvement Company and the Pacific
Coast Steamship Company, asked to be
made an intervenor, in order to secure a
claim of about $4,000 for coal furnished
the Oregon Railway and Navigation Com
pany for the operation of the steamers
Elder and Columbia; also to secure the
claim of 900 due on the lease of the
steam,r State of California.
w. W. Cotton, the secretary of the Ore
gon Railway and Navigation Company,
was put on the stand to show that Henry
Reed and others were stockholders of the
o. R. and n. G. E. S. Woods then opened
the argument in behalf of the 0. R. and n.
He said the order appointing Mcneil,
which practically required Mcneil to pay
outstanding claims, was made through
misunderstanding of the agreement pre-
viously made in New York by interested
parties looking toward an amicable trans
ference from the Union Pacific receivers to
Receiver O'Neill.
The agreement arrived at in New York
contemplated having the equity of the
claims adjudicated, but owing to the fact
that the agreement was reached during
the great railroad strike last year, the cor
respondence was carried on by wire, and
counsel in this city did not fully under
stand the nature of the agreement. They,
therefore, ask that the order be modified,
and that the claims go before the master
in chancery to determine whether they
be paid by the Oregon Railway and Navi-
CATION receiver or Union Pacific receivers.
The answer of the Union Pacific re-
ceivers to the complaint of the Farmers
Loan and Trust Company, under which
Mr.. Mcneil was appointed receiver for the
Oregon Railway and Navigation Company,
alleges there is due them as receivers
about $117,53S from operation OF the
o. r. and n. lines: that the receivers ex-
pended in excess of their receipts about
1922, 716 in their operation of the lines;
and there was outstanding Indebtedness
amounting to about $3.50, 723, all of which
was expended in their operation of the
o. R. and N. They allege they expended
about 1924 900 for fuel, supplies, rails, ties,
ETC., necessitated by the food of last May
and June, all OF which was turned over to
Receiver Mcneil.
The petition for a separate receiver for
the Oregon Short Line and Utah Northern
will not come up before Monday, as Judge
Gilbert of the United States Circuit Court
will not reach here from San Francisco
until that time.
John M. Egan, manager for the General
Managers Association during the great
strike last summer, was in the city to-day.
His name is mentioned in connection with
the receivership of the Oregon Short Line
in case the court grants the petition for
separate receiver. Mr.. Egan, states how
ever, that he is here on private business
and that his visit has no connection with
the Short Line case.