Omaha daily bee., 1895-06-05
FIGHTING OYER THE SHORT LINE
Interesting Litigation to Como Up for Set
Element Mt Salt Lake.

SALT LAKE, June 4.-(Speclal Tele-
gram)-The Oregon Short Line and Utah
Northern receivership case was yesterday
set for hearing before Chief Justice Merritt
on Thursday. The appointment Of John NJ.
Egan as receiver is said to be with the ap-
proval of Judge Merritt so far as 1t affects
the Utah lines of the system proposed to be
cut off from the Union Pacific. 1t has been
generally assumed that as the case was de-
cded adversely to the Union Pacific, both in
Portland and st. Paul, after full hearings,
that the approval of Egans appointment by
Judge Merritt would follow as a matter Of
course But the indications are multiplying
that the trial here will be fully as earnest a
battle as was fought in either of the other
courts.
President Clark of the Union Pacific ar
rived from the east today. Senator Thurs
ton, Attorney Pierce, John NJ. Egan and the
American Loan and Trust company attorneys
will arrive from Portland tomorrow. The
Union Pacific apparently is preparing to
make last ditch struggle to hold the Utah
lines. If 1t should succeed its victory would
seriously handicap the Short Line people, as
they would be without connection with Utah
points and be cut off from transContlnental
connections, except the Union Pacific, via
Granger and the Northern lines. The case
will come up before Judge Merritt under con-
dItions different from these that existed at
Portland and St, Paul. New questions will
DC TalSeu, out just Wndl lOTn lney Will ldht
is not explained. The Utah Southern and its
Utah Southern extension lines, extending
from Salt Lake to Frisco, about 200 miles,
are covered by separate mortgages and the
court will doubtless be asked to protect these
interests. The lines south of this city are
| losing properties, and 1t is understood the
| court will be asked to except them from its
order, giving to Egan only the profitable
| lines.
President Clark was seen by The Bee cor
| cd hut IN aly
| statement concerning the recevership pro-
ceedings until he had consulted with the
! attorneys. The American Loan and Trust
company's application would be opposed, but
he was not prepared to state the grounds
of opposition.
! Should the Union Pacific company fail in
| its effort to prevent the granting of the pc
| tition of the American Loan and Trust COM
pany for the separation of the lines from the
| Union Pacific system, it will, 1t Is said
make an effort to secure the appointment by
Judge Merritt of a separate receiver fol
| those lines, in which case there would be
! two receivers for the Oregon Short Line
! and Utah Northern roads-Egan and the ap
pontee of the Utah court. 1t would be advan
| tageous to Salt Lake City to have a sep
arate receiver appointed for the lines within
| this territory, for, as a consequence, the
headquarters of the Utah portion of tht
system would undoubtedly be established
here, whereas Is is expected that Egan vii
| locate at Portland.
What action Judge Merritt will take is o
course not known, but it is believed that h,
will not feel bound to coincide with th
other courts unless convinced that 1t is t
the advantage of all parties to do so. l
is reported that the bondholders Of the Utal
companies will stouty oppose the confrma
tion of Egan, and this opposition will brint
questions into the case that have not beel
passed upon elsewhere. 1t is understood
also that the government interest in pre-
serving the value of the Union Pacific sys
TEN will cut more of a figure here than
has in the other courts.
Attorney Kellogg, representing the Amer
lean Loan and Trust company, made tn
positive statement tonight that Salt LAX
would be headquarters of the Short Lin
system under Egans receivership.