Omaha daily bee., 1895-05-26
SEEKING TO CAPTURE A ROAD
Short Line Bondholders to Make Their
Showing Before Judge sanbOrn.
MANY QUESTIONS ARE TO BE CONSIDERED
Radical Policies Are Likely to BE Pursued
IL There is Divurcsment of the
Lines from the Union
Pacific system.

At the hearing before Judge Sanborn in
st. Paul tomorrow the offer Of the Oregon
Short Line and Utah Northern consolidated
mortgage bondholders to pay the overdue
coupons on the prior lien issues is to be con-
sidered. The amount of overdue interest is
about 81 900 and the questions involved
are many and complicated
1t is understood that the consolidated
bondholders propose to raise receivers
certificates about $3.50 900, and rely upon OBJ
tanning from the present receivers the prop
erty, together with unexpended net earnings,
sufficient in amount to more than cover the
difference There is also a large sum due
for accrued interest on the prior lien bonds,
which will also probably be the subject Of
contention between the prior lien holders and
the holders of the junior lien.
1t was apparent at the recent hearing that
the unadjusted claims against the receivers,
for which due provision in their behalf will
probably be ordered, amount to a very con-
siderable sum, though the exact amount was
not disclosed. The question is therefore
likely to include a review CT the claims OF
certain Of the prior lien holders, indepGnd
general question as to how far the funds in
the hands of the present receivers shall be
withheld for the purpose of meeting the
claims asserted and to be asserted against
contest will be made by the consolidated
bondholders to obtain possession of the road
but whether they are prepared to provide
the moneys necessary to discharge the over
due interest, to provide for the accrued in
terest and to meet the claims then to be
considered is a question which can be solved
only after the present receivers shall have
presented their report to the court tomorrow.
WILL PURSUE ANOTHER POLICY.
Inc appointment OF a separate receiver
for the Oregon Short Line and Utah North
ern railway system, though carried on os-
tensibly on the theory that friendly relations
are to be continued cannot but very seriously
disturb its relations with the Union Pacific.
1t is evident that the consolidated bond
holders committee intends to naugurate pol
cies the effect of which cannot be foreseen.
At the same time it will in all probability
| impose on the Union Pacific the adoption of
altogether new lines of policy. Just what
| will be the first in the series of surprises is
| problematical.
Heretofore the policy of the receivers has
| been to conserve all interests and to maintain
| absolute neutrality between the several roads
| embraced in the Union Pacific system, oper-
| ating all with equal justice. When the Gulf
| system and the Navigation company were
| divorced from the Union Pacific the present
| receivers of that property continued to treat
| in the most conservative manner the lines
which were formerly a part of the Union
Pacific, but should the enforcement of the
| Short Line take place 1t seems safe to- as
sumo that a different policy will be pursued
| in order to protect the Union Pacific against
| outside competition. That new policies will
| obtain under prospective conditions seems
! certain.