The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-01-18
B%ULLDOZING SCHEME
EFFORT TO FORCE CONGRESS TO
ACT IN THE UNION PACIFIC CASE.
Petition for Foreclosure of the First
Mortgage ON the Main Line to BE
Filed i'm st. Louis Saturday.

be filed In St. Louis Saturday before Judge
Sanborn looking to the foreclosure of the
first mortgage on the main line of the Union
Pacific railroad. The mortgage is for $32,-
100000. The petition is supposed to have
been prepared at the instance of the trus-
tees of the first mortgage bonds in the office
of Winslow A. Pierce. of New York. Sena-
tor-elect John NJ. Thurston. attorney for
the Union Pacific receivers, will go to st.
Louis tomorrow. He will represent the
government. The present receivers are ex-
pected 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 will wipe out all other in
debtedness and If carried out the govern
ment and all other creditors will lose every
thing involved. Those interested in protect
ing the government interests, however, In
sist that this is a coercive measure: that
the papers were prepared at the Omaha
headquarters of the company, and that it is
merely a bold plan to force Congress to
agree to an extension of it's Indebtedness
on terms quite as favorable to first mort
gage bondholders as those in the Reilly bill
now before Congress.
As an evidence that the proposed litiga-
ton is not really intended as a foreclosure,
Omaha people who are insisting that the
government shall have something to show
" Liz iiioASy IL has lnVtSleu Ill the COIil-
pany are tonight pointing to the fact that
the first mortgage merely covers the man
9ine OF the company and that past exper-
FENCES inalcate tnat the feeders or the Inc
branches the main line is in no wise de-
sirable property. For some weeks there
have been whisperings that foreclosure pro-
c~eedings would be instituted, though at
the headquarters this idea has been
secuted. To-day 1T was learned that to-mor-
row senator Thurston would visit St. Louis
In an important legal matter. At a later
that he would meet the Eastern attorneys
and would file the petition in foreclosure.
metropoiis se was ss' for Il the sl purpose 9 enc Of looking
after the interest of the Union Pacific re-
said he had no knowledge of the contents
of the petition which would be filed, as 1t
had been cen, prepared 1saa in New New York 31,nd or Boston Boston t
in the United States Court, In this city,
appointed s. H. H.. Clark, Oliver W.. Mink
and e. Ellery Anderson receivers on the
application Of the executors of the es-
tstes Of Frederick L. Ames and Sidney
pany's bonds), and Edwin E.. Atkins, of
Boston. The interests that applied for the
appointment of the receivers were friendly
to the existing management and their ac-
ton was taken for the avowed purpose of
protecting the property. According to an
official statement issued at that time, THE
object was to keep intact in one system
and to preserve the road at it's greatest
value and anticipate possible suits grow
ing out OF the failure to meet obligations
because Of dull times"
|
Means Another St. Louis Line.
The Journal learns from a semi-of1cial
source that the Lake Erie Western
will go ahead with the deal by which it
will secure control of the Indianapolis,
Decatur & Western, the owners of the
latter, it is said, having agreed to protect
the purchasers from any loss through the
litigation recently begun by Harry Craw-
ford, ST., in the interests of the second
-
that no court will take the view that Mr..
Crawford does Of the questions the liti-
cation suggests. The same authority, in
speaking of the matter, said: with the
Lake Erie & Western getting control of the
indianapolis, Decatur & Western Indian
apolis will without question get another
st. Louis line. The Lake Erie & Western
Toledo, st. Louis & Kansas City man
agement and the latter will readily Join
them In establishing a new line between
indianapolis and st. Louis, running through
trains. The Indianapolis, Decatur & West
ern connects with the Toledo, st. Louis
& Kansas City at Metcalf. 1T is ninety
one miles from indianapolis to Metcalf
and 162 miles from Metcalf to st. Louis,
moaIs g5s tine m,l eista Tss d dgsm this sro city tits to St.
sspolis, to ST. Louis by the VandaIia is
20 miles, by the Big Four 2sa miles. From
this mileage statement it will be seen that
the new line would be nine miles shorter
than the Big Four and but thirteen miles
lOuSSF CQan slne banudlla, cOnSeuuentiy If
Is not a surprise that among conservative
railway officials the feeling is that it
would be better for the vandalia and the
Big Four We're the deal to fall through.
as the Lake Erie & Western and the To-
ledo, st. Louis & Kansas City would be
such schedules that to establish a good
line the number of day or night trains
need not be Increased. Another thing is
that the Toledo, st. Louis & Kansas CITY
Is .classed among the rate demoralizing
lines, as is the Lake Erie & Western, but
unJustly, says Mr.. Parker, traffic manager.
Troubles of Western Lines.
No progress was made by the Western
lines at Chicago yesterday toward the
formation of a passenger agreement. The
Union Pacific has not accepted the propo-
sition of the other lines to keep the long
haul via Ogden and leave the Denver bus
mess open to division, and there is small
chance that it will accept it. 1t abso-
lutely refuses to make any concessions
unless the boycott against it is removed.
This boycott was applied only because the
Union Pacific would not agree to allow
the other lines the same privileges which
1t demands from them. This is the weak
point in the attitude of the Union Pacific
and is the real reason why that line would
not accept the propos ton of the other
lines for a board Of arbitration. The other
western roads are nearing the end of
their patience with the Union Pacific and
y i. persists In its present attitude there
Is likely TO be a hot light instead of an
agreement between the Western lines. III
a separate receiver is appointed for the
Oregon short line there is no question but
the other roads will use 1t for their west
bound business and bring down a frost
on the through business of the Union Pa
cihc. The Rock Island and the Burlington
roads have prepared a notice which will
be served on the Union Pacific as soon
as IL is definitely understood that no re-
organization of passenger business can be
effected. The notice will be to the effecY
that the Rock Island and the Burlington
will receive business originating on the
Union Pacific west of Cheyenne and
destined to points in Iowa reached ONLY
by the Rock Island and Burlington. as
though 1t originated in Cheyenne. That is
t~hey-wiil allow the Union Pacific nothinp
for the haul II makes west of CHEYENNE
nor any proportion for the haul they make
in iowa. This is simply forcing the Union
Pacific to do for them what they are now
doing for it.
indianapolis Lines Will RetaIinte.
kilograms received by freight men at this
point yesterday afternoon conveyed informa-
ton which led to the belief that Commits
sioner Goddard. Of the trunk lines, and
Commissioner Blanchard. of the Central
Traffic Association. had agreed to permit
some of the weak Chicago lines that are