The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-06-26

The motion of the American Loan
any Trust company for a,-modification
of the order of the court in the matter
of the separate receivership for the
Oregon Short Line and Utah Northern
Railway company, came up promptly
at 10 o'clock yesterday morning before
Chief Justice Merritt
Judge John \. Marshall alone ap-
peared in support Of the motion. while
there was a formidable array OF coun-
sci against =, including Senator John
NJ Thurston, Hon. p. j. Williams,
representing the Union Pacific, r. V.
Han. Of Omaha, representing the
Oregon Short Line, General Cowan.
representing the government, and lie
Grand Young representing local bond
3older5.
The arguments were very brief, the
whole proceedings occupying very lit
tie over one hour and. at their conclu-
sion, Judge Merritt promptly an
nounced that his original order would
stand pending the appeal to the circuit
court of appeals at San Francisco on
the order made in this matter by
Judge Gilbert. of Portland. He also
declined 10 make an order authorizing
the issuance Of receivers certificates
until the appeal referred to was
passed upon.
When his honor took his seat On the
bepcX he enduired if the matter was
70 sAub.nitted without argument
Ju,. seS MARSHALL supports the Motion
JudgE Marshall stated he did not
wish 10 make an extended argument.
hut would content himself with a very
brief statement and. continuing, said
that the order previously made by this
court was about TO become nugatory
and would SO become on July l for the
reason that it had not been concurred
in by the other courts in whose juris-
diction the other portions of the Short
Line We're. No application had been
made 10 the other courts to grant
their concurrence and. Il am in
formed said Mr.. Marshall that
none will be made" We now ask the
court to modify the order in three par
ticulars First as to the appointment
of M. Bancroft as associate receiver.
We desire TO have Mr.. Egan appointed
sole receiver.
4 'asPbSe OF Separate Receivership.
'Cs->hc main purpose OF the separate
vceiVership is to put the Oregon Short
Line in an Independent position. The
Trust company has to pay large sum
OF money. nearly $4,000 600. and in re-
turn for this they want an independent
management BIr. Bancroft is a gen
tleman highly esteemed. He is an
honest man, his present management
is honest and no doubt he would BE-
honest as associate receiver with Mr..
Igan and being 50 he would naturally
be faithful to the Union Pacific
Receivers' Certificates.
r-lo eooo,5 49,, 4;ra.o-
an order authorizing the issuance OF
receivers certificates Your honor
lsntirnated," continued Mr.. Marshall
that you would authorize the issu-
ance of the certificates. and that it
was by inadvertance THAI it was
omitted from the original order We
now ask your honor to grant that
order
Payment of Interest.
third point was as to the pay
nent Of interest on the Dillon mort
gage on the Utah Southern and the
Utah Southern extension. There is nc
suit by the Dillon people in this court
and his honor was asked to withdraw
the clause requiring the Trust com
pany TO pay that portion OF the H.
terest before taking possession of the
road.
Senator ThurstOn.
Senator Thurston, on behalf OF the
Union Pacific, said he did not ca; u
reargue the case and would only make
suggestion in reference to the pay
lnent of the interest on the Utah
southern and extension. The other
courts had made a condition that the
Trust company pay interest on the
mortgages within their jurisdiction be.
fore entering into possession of the
line It was imperative from NJ
Thurston's point of view, that this
court impose a similar condition Sc
as 10 compel the receiver to take the
whole Of the road and prevent segrega.
ton.
Hon. p. L. Williams.
Hon. P. L. Williams asked leave tc
make few suggestions, remarkine
that the court was asked to undo whal
It had previously done without any
new reasons being urged for the
change OF grounds, which was con.
frary 10 established rules of law and
equity.
As TO the appointment of Mr. Ran
kcft as associate receiver, it was due
a matter Of courtesy. if The Trust
= company does not propose to dictats
10 the court, that they go to The other
courts with the order of this court
end invite an exercise of that ,onoitv
which should exist between courts.
but the Trust company has made no
such application, and we do not know
what the other courts would have done
in the premises. The speakerNY r.
prised at Mr. Marshall mS4a
statement that the order W
become nugatcry. Such b..
case, or not, had no legal bon.
the issue: was but an echo of
of the streets and the clamor
filled columns of the newspapers 5ut
which should never have sho - Itself
in this court.
Mr.. Williams again urged that the
bringing I'D of the motion was a vio-
lation of all rules of law and equity
as il had been laid down time and
again that a ease could not be opened