The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-06-08

TO take possession of the road. We are
! not seeking to divide up with the
road, but we have the same right as
/ other mortgages and we believe these
rights will not be denied us.
/ The Oregon Short Line is the life
li1fuser for the Union Pacific, and
! The Union Pacific is determined to hold
/ It to the last ditch. The petitions for
foreclosure of the first mortgage bond
holders were not genuine. All they
desired to accomplish was to retain
! the Oregon Short Line and Utah
1 Northern for the Union Pacific. The
Ham, Ames and Richardson petitions
are all similar and all had the same
object in view to retain the Short
Line as a blood infuser to the Union
Pacific. We want to take 1t out OF |
the possession of the Union Pacific be
cause they are not entitled TO II. we
don't want to dismember it The flrst
mortgages of the several DIVISIONS
however, lent their money on the |
faith of the several divisions only ana /
claim to be entitled only to the reVen-
ues from each and no one OF them
claims that he has any lien on the
road as a whole. The entire road is
not obligated to pay the bonds |
on any subdivision and the mort |
cages of any subdivision are |
only entitled to the income from |
that subdivision Default has been
made in the interest and we come and
ask to take possession Of the SeFerdl
subdivisions by paying the interest on |
the first mortgage bonds on each
n1o,-tera ped division. We ask q uni !
form order: we ask as a matter OF Jus
tice that Mr.. Hams mortgage or MI /
Dfllon's mortgage or AIr. Richardson's /
mortgage be not declared to cover pro
perties which they have nothing 10 90
with. and that these gentlemen be de-
10
revenues from other portions OF the
road than those covered by the mort
gage We ask this as matter OF abso-
lutte right and justice. we ask lnal
an order be made in this court similar
to that made in the other courts, at
Portland and St. Paul, that Mr. Egan,
against whom naught has been sald'
be appointed receiver
Counsel then, in closing, urged that
the order be made so as to allow the
receiver to issue certificates. We don't
ask the certificates to be made |
charge prior to the first mortgage.
The certificates will come in ahead of
the second mortgage, but that is the
business of the American Loan and
Trust company. We propose to sell
these certificates at 80 Well the
first mortgage bonds have been sell
ling at 80 to 90 and it is not likely that
certificates with security subsequent
to the first mortgage bonds Will sell
any better. We come into this court
Of equity not as strangers, for this
court knows no strangers.
Senator John VI. ThurstOn.
Senator John NJ Thurston then
made the closing address ON behalf of
the present five receivers of the Union
Pacific system which counsel said was
the only interest he had to represent.
Counsel would only attempt to advise
the court as to the legal propositions
involved; he would not attempt TO mis-
lead the court, such course did not
pay; any laurels of victory won in
such a. way would wither as surely as
the summer flowers fade before win
ter's blasts. ] am not here, said coun-
sci, to ask the retention for one day
of the present receivers. l am here to
ask that no order be made which
would act detrimentally TO these pro-
pertieS.
The administration of the present
receivers is such as TO enable the pro-
perties to earn more money than under
amy other system, but [ don't ask that
they be retained for one day, for one
hour, except for the benefit of the first
mortgage bond holders, the second
mortgages, the public who granted
the franchise and all concerned. There
has been no contention here that the
mort ga gees cannot take possession of
the road in default of interest, the
question is whether Mr. Egan. the
nominee of these parties shall have
the power 10 manage all those vast in
tereStS at his own beheSt. Mr.. Egan
is pleasant gentleman, a man of
great business experience whose dis
tinguiShed services in maintaining law
and order the speaker commended
The question us in delivering over to
him, or amy man, the road i'm a dis
membered condition and to be further
dismembered, is the court acting for
the interest of all concerned? They
will take the good and leave the bad
and the southern lines will not re-
ceive any contribution from the north
to it's operating expenses. There {
is a great responsibility thrown
upon the court. Why did they
go to the court at Portland to
get their first order? The same
primary jurisdiction existed here in
regard to the lines in this territory.
The orders made by the other Judges
were made subject TO the approval of |
this court, which is as much court of {
original jurisdiction as any of the 9TH /
ers. Under the rule of comfy this
court can say to Judge Gilbert that it
has jurisdiction over the lines in this | ,
territory, and in guarding the inter
ests of the people in this district, your
honor may appoint another receiver
to act with and in conjunction with .
bert. That is comfy. All courts within |
their jurisdiction are courts of original
jurisdiction. The question of comfy
does not rest on the theory that one
court is superior to another. The rule
of comfy is that court which is in
auxiliary position to another court of
primary jurisdiction. will not under
take to turn over the whole property
to other receivers without the consent
Of the court of primary jurisdiction.
The court of auxiliary Jurisdiction
need, however, only act in unity with I
the court of primary jurisdiction as i
long as it is convinced that the latter d
has made orders which are legal and :
right. I
Who is the American Loan and
Trust company 1t is the grantee of
the Oregon Short Line & Utah North '
ern Railway company, and it derives s
its power from it as consolidated a
company. The trusts rights under S
the mortgage is what was given it as
the grantee of the consolidated com
pany. 1t is well established principle
that grantor cannot convey more
than it has got and that the creature
is not greater than the creator
Afternoon Session.
After the noon recess Mr. Thurston
continued his argument.
The counsel for the petitioners. said
the speaker, would have your honor \
make an order regardless of the well