The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-03-23
A Further Explanation of Judge
GiIbert's Action.
WHAT THE ORDER MEANS.
INTEREST ON THE DILLON MORT
GAGE WILL BE PAID.
The Effect of This Payment VIII Be
to Virtually Throw the Dillon
Case Out of Court-The Beach Bus
fness-Nestern officials Pleased
With Their Trip-General Notes.

The conflicting reports received here
in regard to the action of Judge Gill
bert in appointing John NJ. Egan re-
ceiver of the Short Line. have caused
much confusion among the local Union
Pacific officials as to the exact status
of affairs. The following detailed ex-
PLANTATION came by wire last night and
will be read with great interest by rail-
way men:
Portland, Or, March 22.-There is ap-
parently a. misunderstanding as to the
effect of Judge Gilbert's order appoint
ing John M. Egan to be independent
receiver of the Oregon Short Line &
Utah Northern Railway company. The
order is conditional, and is effective
only after the entry in the court of
Wyoming of an order directing the old
receivers to turn over the property in
their hands to Egan. Technically, this
means that should the Wyoming court
decide in the Dillon case that the old
receivers should be removed, Egan
would be appointed by that court in
their stead, and by the suit of the
American Loan and Trust company
having been brought here and the APP
pointment of Egan having been made
here first, Judge Gilbert's court would
become the court of primary Jur1sd1c-
ton. Egan would then operate the
property under the direction of the
court over there from which all orders
would be originally obtained, and all
moneys would be deposited first In
Portland. This is the technical con-
clusion to be drawn from the language
of the order, viewed in legal light
The Practical Effect.
The practical effect, however, will be
to place John NJ. Egan in possession
of the property as receiver. The Amer
lean Loan and Trust company Will pay
the back interest due on the Dllion
mortgage. The old receivers in Decem-
her last maid the August interest on
this mortgage, and all that is now due
and PAYABLE is the February interest,
which amounts to SAL, $40. The old re-
ceivers have in their hands more funds
than sufficient to pay the interest, ana
in order to secure control of the prop
ertv to Egan as receiver the American
Loan and Trust company Will advance
this amount, and wait for It's return
few weeks until the old receivers turn
over their funds to Egan, When the
latter will then pay back to the Amer
lean Loan and Trust company the
$447, $40 they advanced.
The effect of this payment of the
interest due on the Dillon mortgage
will be to satisfy all present claims
that can be made under it, and to viz
tually throw the Dillon case out OF
court. The American Loan and Trust
company will move for dismissal or
the Dillon suit and this motion Will
have to be granted. There will then
be left two suits, that of Richardson,
trustee of the first mortgage on the
Utah e. Northern, and that or the
American Loan and Trust company on
the consolidated mortgage on the. en-
tire Oregon Short Line Titan Northern
system. Both these suits were brought
in the Ninth, or Judge Gilbert's cir
cult, and his order appointing Egan
receiver will hold good.
The plan of the Junior lien holders
of the Short Line is to reorganlZe the
road and take it out Of the hands OF a
receiver at the earliest possible day.
The Short Line system owes the Amer
lean Loan and Trust company about
s27, 00O, 900. A part Of this amount is
secured by the hypothecation of ma
jority of the stock of the oregon Rail
way & Navigation company. The plan
contemplates foreclosure proceedings,
by which this stock will be secured
and the stock of the Short Line sys-
tenn wiped out, so. that for the ST.
600 900 the junior lien holders will Sc
cure absolute ownership of the Short
Line property and of majority of the
part of the stock of the
Oregon Railway & Navigation COM
pany. Then the lines of the two COM
panies will be organized into one
system.
hoI Tor. 6Q1iUpT-