The Anaconda standard., 1895-06-08
THEY ARE WORRIED
This Railroad Divorce Business Sets
EN- to Guessing.
ARGUING AT SALT LAKE
Much CONSERVATION About the
Union Pacific's Headquarters
I'm Omaha-How Employees
Look at the Layout.

Salt Lake, June I'm the Oregon
Short Line case to-day Mr.. Pierce. on
behalf of the Union Pacific. took up
the three allegations of the loan COM
pany's complaint on which was based
the application for removal of the pres
ent receivers. He argued that IL the
operation of the Short Line as part of
the Union Pacific system was not sat
isfactory, the proper remedy was to
apply to the court for instructions to
the receivers. He claimed that there
had been no violation of the traffic
contract and that a fair distribution
of the earnings had been made. Mr..
Kellogg. for the loan company. then
addressed the court. He said the loan
company represented as trustees the
bondholders under the mortgage to the
extent of over $10,OOO.O00. also the col
lateral mortgage of over $13, ,000, 900.
Under the contract, when the Union
Pacific failed to keep It, the Short
Line could enter upon the possession of
the property. In the first IL months
the receivers had shown a surplus OF
81 ,299, 900 in the earnings of the Short
Line. Subsequently they had shown
an indebtedness of $2,5O0,000 1t is
time the loan company should ask the
court for protection. Senator Thurston
next spoke in the interest of the Union
Pacific He said the receivers did not
want to remain in possession a single
day. They only asked that the inter-
ests of the property be preserved en-
tire. There was no contention as to
the right of the loan company to have
a receiver appointed. The controversy
was whether a man selected, as Mr..
Egan had been, by the loan company.
should be given control of this proper
ty. Mr.. Egan was an able man, who
had rendered distinguished service in
maintaining law and order. but IL was
a question whether this court should
be judicial puppet, and follow the ac-
tion of a distant court. or whether the
order of transfer shall be of a charac-
ter to procure a fair operation Of the
entire property in accordance with It's
charter obligations and interests of all
concerned. The court should impose
conditions which would prevent the
dismembering of the system in Utah.
The properties of the Utah Southern
and Utah Southern extension should
not be rendered Yalueless by being
Topped off in a section paralleled for a
hundred miles by the Rio Grande
Western.
The court could not lend itself to any
process of destruction such as was pro-
posed here. This court is asked To
write amen. on orders of another court.
without further consideration. Mr..
Storey then began the closing argu-
ment for the Loan and Trust company.
He said the great desire of the Union
Pacific was TO continue to monopolise
the Short Line business. Il will agree
now" continued Mr.. Storey. that
your honor may put the requirement
i'm the order. that we must take every
part of the road and operate it," Be
fore Mr.. Storey concluded court ad-
journed.
Omaha, June THE gloom that has
settled around the Union Pacific head
quarters as a result of the continual
cropping off Of the lines of the great
system. is very morbid. The Short
Line has been about given up by those
who are familiar with the status OF
the case. The divorce of the Short
Line will mean a big reduction in the
shop and headquarters force in this
city, but just to what extent will be
unknown until the books are balanced
and the transfer made. The probable
separation has produced CONSERVATION
among the Union Pacific people and
further dismemberment is looked for.
as this divorce business has become an
Epidemic The Kansas Pacific, between
Kansas City and Denver. and the
Denver Pacific. between Denver and
Cheyenne. and the st. Joseph & Grand
Island are I'm danger of catching the
same disease that has effected the
Short Line and Gulf and Oregon lines.
1t is believed that. while the reduc-
tion in the shops and headquarters Of
the Union Pacific viii be heavy as
result OF the Short Line divorce. that
most OF the men will find employment
in the West with the road.
The telegraphic announcement from
Salt Lake that the Union Pacific would
build from ogden TO Salt Lake is given
credence I'm this city among well posted
railroad men. The volume Of business
is Of too much magnitude in Salt
Lake to be overlooked by the Union
Pacific.
Chicago. June There is some talk
among transcontinental lines Of re-
newing their attempt TO form a pas
senger association. No steps will be
taken, however. until after the termi-
nation Of the oregon Short Line liti-
cation. II is possible an association
may be formed having control Of the
business as far as Utah. and another
to have Jurisdiction between Utah and
the Pacific coast.
TO SQUARE THE TOWN.