The Coeur d'Alene press. (Coeur d'Alene, Idaho) 1892-1907, 1895-02-02
|TO CLEAR THE DECKS
The st. Louis Suit to Reduce
Complications.
WHAT THE OMAHA BEE pnIkTs

The Foreclosure 81 the Usisn Paeias
Thought to Be . Necessary Prsiaas-
isasy - Responsibilities - Suit AIse
facilitated In the Stste o. NsbF.sks.
OxAnA, Neb.. January Is The Dec
to-day esys: There il food Of nm.
written history connected with the 70.
cent foreclosure suit brought BY tho
trustees Of the frat mortgage bonds Of
the Union Pacific in st. Louis last week.
A. early - last July Judgs Sanborn in-
timated to the trustees Of the frat mort.
gage bonds that IN action in foreclosure
would have to be brought in order to
keep the stockholders' interest in tie
property subject to the direction Of the
court; otherwise the court might decide
to transfer the direction Of the property
back to the directors Of the company.
There are 80 many contracts, which, in the
present depressed condition Of business,
operate against the advancement OF the
Union Pacific system that it has Le-
come essentially necessary to have these
contracts amended or revised along lines
favorable to one OF the parties At least
TO the contract. This could not be done
without foreclosure, and in order to
clear the decks for Reorganization it was
decided to bring suit in foreclosure,
which would have been necessary under
any circumstances il . readjustment Of
present difficulties WAS at all desirable.
Al these cults in foreclosure arc
brought upon various lines, and the
present receivers are appointed under
the bills Of the complaints. the Old suits
brought by the stockholders begin to
grow less burleneome and finally the
receivers under the new euits cease to
have any interest in the old cases, and
they are removed from court, 60 to speak.
Until the foreclosure suits the earnings
are kept separate, the court directs what
use 10 to be made Of certain funds and
gradually the end approaches when the
property is to be offered for salc. So
the grind OF the court reduces the many
com plications until the final run Is
made. when the property is in position
to be taken for its actual vaiuc in reor-
ganization. 1t is pretty generally un-
deretood that all the foreclosure proceed
ings brought on the various properties
formerly continuing the Union Pacific
system viii Ue pusueu T1piuiy 10 maj
adjudication, in order that the reorcan-
ization committee may have something
to work upon in reorganizing what was
once the greatest railroad property in
the country.
suIr BEGUN At LINCOLN.
LINCOLN. Neb., January 25.-proceel-
ings in foreclosure against the Union Pa
| ciiic railway similar 10 that instituted
at st. Louis were heKun Yesterday in the
Federal Court before Judge Dundy by
F. G. Dexter and Oliver Ames. trustees
\ OF the mortgage bondliohlers. Tho
plaintiffs Get up that the company de
iaulted on the interest Of July l. 1894,
and continued in default until Novem-
her %, when the receivers offered to pay
the defaulted interest at the face OF tho
coupons, but not the accrued interest.
Plaintiffs relate the appointment OF the
receivers October Is, 1895, by Judge
Dandy, and allegc that therefore all
property OF the railway is in the hands
Of the court.