The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-09-30
ONE MORE BIG SUIT
The Union Pacific in The Court at San
Francisco.
1T IS IN A VERY BAD WAY
Creditors of tho System Say tho
Affairs Must Be Adjusted Right
Away or the Whole Works
VIII Go to Ruin.

San Francisco. Sept. 2e.-The Chron-
icle says: The most farreachlng law
suit ever tried in California. and one
which will attract world wide atten-
ton from Its economic and CONNER
cial bearing is on the calendar uf the
United States circuit cours Of appeals
for the present session. 1t Is the strug-
gle OF the heavy creditors Of the Union
Pacific Railway company and its 3a
branches to have the entire business q;
the great trunk line thrown into n
common pool and administered on as
a trust by the federal courts. The
complainants are IN part stockholders
snd creditors of the company. The al
legations OF the vo,lminous complaint
against the receivers OF the combined
companies are full of startling announce
ments and vital statements as to the
failure Of unrestrainci private control.
The ina1eluacy of the present manage
meni Is emphaslzr,. and Its inevitable
trend toward bansrl.h " portrayed.
The fight Is really between the Farm
ers' Loan & Trust company and others
against the Union Pacific Railway COM
pany and many Of Its branches. Such
distinguished men as ex-Judge John +.
Dillon and Attorney Francis II. Cou-
dent are involved as lco-defendants.
The suit involves 30 branches OF the
Union Pacific system. as well as the
main line and its city and depot prop
erty, and the plaintiffs appear as 4
committee for the minority OF the
stockholders OF the Oregon Railway &
Navigation company. as well as for the
Farmers Loan & Trust company and
the American Loan & Trust company.
The rights of the plaintiffs originally
accrued by reason of Frederick l..
Ames ownership of about 5000 shares
together with his ownership OF con-
siderable amount Of collateral trust
per cent. bonds of the Union Pacific
company.
The American Loan q Trust company
holds $4.445,0 900 OF these bonds and sew
eral millions Of similar bonds are held
by other plaintiffs. Though the capita
stock Of the Union Pacific Is alleged to
be more than s6O,000.000 the plaintiff.
0NcE tuut Ito iuutptCuuCcS ID ~ kftd
and its mismanagement so apparent
that Its affairs ought to be administer.
ed by the federal courts. II is alleged
that the government debts alone ar,
sufficient to cause the forfeiture of the
franchise. The fact is reiterated with
emphasis that the falling of Of the
roads revenue Ia alarming. reaching
ss much as s1,40O.000 in two months
The complaint recites that the Union
Pacific Railway company IL not able
to earn operating expenses. either up
on Its main line or branches: that the
company will not at any time have
SUFFICIENT funds or assets with which
to pay Its interest and sinking fund
charges. maturing from month to
month. and that. as a result. innumera
Bile creditors will have right to be.
gin a multitude of actions against tn,
company. which, II is alleged. will re
suit In the dlsmemberment OF tn,
Union Pacific system. so that ''its prop
critics and assets will be dissipated tc
manifest and irreparable injury of tn,
public. the government OF the Unitet
States and the company's creditors an,
shareholders"