The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-01-01
IT'S in APRETTY TUMBLE
A Railroad Question That Involves Big
Money.
OPINIONS PUT IN PRINT
The Utah Northern and Other Lines
That Find Themselves All
Mixed Up i'm Courts and
Out of Them.

BUTTE, Dec. M.-The petition Tor the
appointment of separate receivers and
the foreclosure of a mortgage filed on
Saturday in the United States court for
The southern district of Montana by the
American Loan q Trust company, trus-
tees of the consolidated bonds of the Ore
gon Short Line and Utah Northern Rail-
way company, will probably be heard at
the January term of court to be held in
Butte. Copies of the petitiOn have been
received by the attorney of the interested
roads in this city. The bill of complaint
is against the Oregon Short Line and Utah
Northern. There are also four petitions
in suits brought-three against the Ore
gon Short Line and Utah Northern, and
one against the Union Pacific, on which
the same receivers for all that system of
roads were appointed.
The bill of complaint sets forth that on
Aug. /. 1889, the Oregon Short Line Dc
Utah Northern Railway company, for the
purpose of securing certain bonds, known
as the consolidated bonds of tho COM
pany. payable April 10, 1919, or earlier, as
therein provided, with interest at the rate
of 3 per cent. per annum, executed con-
solldated mortgage on all the lines OF the
railway company SO consolidated, l,4oo.59
miles, to be constructed. and then belong
ing OF thereafter acquired by the defend
ant, subject to certain prior mortgages.
The total amount secured by these
prior mortgages was 27,9i0,000. The total
amount of the bonds issued was 1885,
100.
The plaintiff believes if the railway
property of the defendant we're properly
managed and worked separately for its
benefit and not as part and for the ben
eft of the Union Pacific or any other sys-
TEN, the income would be more than am
ply sufficient to pay all expenses, interest
..V,lt Hrofr npfc 90
a part of the interest on the consolidated
bonds.
The plaintiff prays for the appointment
of separate receivers from the Union Pa
cific and for an order to show cause why
such separate receivers should not be aD-
pointed and the Oregon Short Line and
Utah Northern operated independently
and distinctly from the Union Pacific or
any other road. and that the consolidated
mortgage of 1889 having been obtained for
the benefit of the Union Pac4 &c and the
combined roads, remain charge on all
: such roads.
The suits in which the petitions are filed
arc Joseph Richardson VS.. the Oregon
Short Line and Utah Northern, James
NJ. Ham two actions) VS.. the Oregon
Short Line and Utah Northern, and Oil
yer Ames VS.. the Union Pacific railroad
ct al.
The petitioners, the american Loan and
Trust company, in each case set up that
the order appointing the receivers now In
charge was made without their receiving
any notice, and after making similar ALE
cations to those in the bill of complaint
pray that the Union Pacific receivers be
directed to deliver to separate receivers
all the railways and property embraced in
the Oregon Short Line and Utah Northern
and that other receivers than those OF the
Union Pacific be appointed for that road.
Similar suits and petitions were filed in
Portland and Salt Lake and the hearing
in Portland set for Jan. 10. Until that
court passes on 1t no steps will OF course
be taken here.
In commenting on the questions raised
by the action, the Salt Lake Herald says ::
1.-THE separation of the Union Pacific
from the Oregon Short Line and Utah
Northern means that the Ogden gateway
from the east to the Pacific coast will be
opened to the Burlington, the Rock
Island, Missouri Pacific, Rio Grande,
Santa Fe, Denver d Gulf and other
roads.
IAN absolute enforcement of the lines
named from the Union Pacific system,
while it might have all of the changes in
dictated, might also have disastrous
effect upon the great system. The ques-
ton is as to whether Ut not the disInte-
grafton which commenced with the APP
pointment of a separate receiver for the
Gulf is TO be continued until the Union
Pacific is stripped of its branch lines.
l.
questioned about the probable results OF
the Acknowledgement of the north and
south line and spurs of the parent system
of the Union Pacific, stated that they did
not anticipate any revolutionary tactics,
because they were OF the unalterable
opinion that the interests of the Short
Line system and the Union Pacific proper
are identical and mutual. While the pos
sible termination of the traffic arrange
ments may not result disastrously TO the
Short Line system, they believe that the
overland route will hold the top hand
when it comes TO a show down.
THE representatives of other roads
were unanimous in the opinion that the
separation of the Short Line system and
Its operation independent of the Union
Pacific's receivers. as petitioned for by
trustees for large portion OF the bond
holders, would rebound to the greatest adj
vantage of Salt Lake and the entire ter.
ritory iraversed by the road from Milford
on the south TO Garrison, Mont, on the
north, and Umatilla Junction, Ore, on
the west, and Granger, Wyo., on the east.
zone thing certain. railroad men, who
are not tied TO the Union Pacific, state
that the Rio Grande Western and all the
eastern roads running into Colorado
would be placed on an equal footing with
the Union Pacific in securing desirable
traffic TO and from Utah points and
throughout Idaho, Montana and to Port.
land and the Pacific coast ports in the
great northwest. Not less important will
be the fact that the transcontinental
rates in Montana common points, which
are from so TO 100 per cent. less than the
rates to Utah common points, will be made
applicable 10 Utah shippers. This alone
will be an advantage amounting 10 hun
dreds of thousands of dollars annually tc
Utah's merchants and importers, all due
TO the supplanting of monopoly by
spirited competition"