The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-03-21
The SHORT LINE AFFAIR
Judge Gilbert Orders /. Taken 10
Wyoming for Hearing.
HE GIVES HIS REASONS
The Legal Contest fer the Removal
OF the Present Receiver Terml-
mates In Further Decay Of
Final settIement.

PORTLAND, Ore, March 20-In the
| United States Circuit court to-day Judge
Gilbert to-day rendered decision in the
Oregon Short Line and Utah Northern
separate receivership case. He sustained
the demurrer and decided that proceed
ings may be brought in the district court
of Wyoming.
After reviewing the case. Judge Gilbert
said: THE disposition of these applica-
tlons must depend upon the effect to be
gwen to the fact that the Oregon Short
Line q Utah Northern Railroad company
was first taken into the receIvership by
the circuit court of the United States for
tho district OF Wyoming upon fcreclos-
ure of the Dillon mortgage. That court
had unquestionab.e jurisdiction of the
subject matter and of the parties. 1t was
the proper court for the institution. The
corporation defendant was organized un-
der the laws of Wyoming, which had been
its principal place of business. The right
of the court whose jurisdiction is first in
voked over n corporation whose property
lies within various districts, is not to be
measured by the proportionate extent of
property interest in the jurisdiction.
There is no rule that the court, within
whose limits the greater portion of the
property is, shall be the court of primary
jurisdiction.
"rhe legal authority of the receiver ex-
tends no further than the territorial linn
its of the jurisdiction of the court whose
officer he is. Within that limit his right
of possession will be respected by all other
courts; without that limit no court is
bound TO recognize his authority. But by
the principle of comfy tho court whose
jurisdiction is exterior TO that of the court
which appointed the receiver, will con-
cede TO the latter the right to reduce to
his possession and control, the property
of his trust which may there be found;
that this comfy will not be extended to
the detriment of local creditors of the
person or corporation whose property is
in receivership. BY another rule of COM
ity, equally well established and univers-
ally recognized by circuit courts of the
United States, the action of the circuit
which first acquires jurisdiction of the
parties of tho subject matter OF suit by
appointment of a receiver, will be re-
spectcd by circuit courts OF the other dis
tricts in which the property of the insolv-
ent is situated.
"If the Oregon Short Line and Utah
Northern railroad were susceptible of dis
memberment without injury to either por-
tion; IL that portion of its line within the
state of Wyoming were a separate branch,
capable of n separate management, or If
the action of this court were necessary to
the preservation of the rights of lien hold
ers by whom applications are made, it
might bo urged that a case is presented
which would justify the court, in the exer-
else of its discretion, to disregard the set
tied rule of comfy. But no such excep-
tional state of facts exists. The reasons
which are urged for the removal of the re-
ceivers already appointed and the ap-
pointment of others in their stead, have
not been presented to the consideration
of the circuit court for the district of
Wyoming. That court has had no oppor-
tunity to pass upon them. Those reasons
are as potent and convincing in that court
as in this, and It must be assumed that all
courts equally will mete out to the suitor
the justice and relief to which he is en-
titled"
At headquarters of the Union Pacific
the decision was received with much ia
vor. An official said: "This application
for separate receivers by the junior mort
gage bondholders should have been pre-
sented to the court of primary jurisdic-
ton, which happens to be the eighth cir
cult of tho district of Wyoming. The trust
company has the right TO renew the petition
for separate receivers in the Wyoming
district, before Judge Sanborn, if 1t sees
fit. But the fact that the receivers have not
been attacked and the original appoint
ment is, in a sense indorsed, is taken to
mean n good square winning in the first
round of the contest to preserve the Union
Pacific system from further disintesra-
tion."