The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-06-11
REJ01CINGS IN OMAHA.
The American Loan and Trust
Company Still Has a Fight
ing Chance.
WILL HAVE TO PAY HEAVILY.
w. II. Bancroft of the Union Pacific
and J. M. Egan Will Oper-
ate the Road.

SALT LAKE, UTAH, June 10.-The de-
cision handed down by Judge Merritt of
the Third District Court this morning ap-
pointing J. NJ. Egan and w. H. Bancroft
as receivers of the Oregon Short Line and
Utah Northern Railroad has been the all
absorbing topic in railroad and commercial
circles to-day.
Before the order OF the court becomes
operative it makes it incumbent upon the
American Loan and Trust Company to
pay $734 900 interest due on the mortgages
July l, and to pay all interest falling due
thereafter within thirty days after matur-
ity. This includes the interest due on the
Utah Southern mortgages.
If default should be made on theinterest
the road is then to be surrendered to the
present receivers. 1t was also stipulated
that the entire road should be operated in
one interest.
No reference was made to the issuing of
receivers certificates. The loan and trust
company made strong fight for single
receiver, claiming that the appointment of
an associate receiver would defeat the OBJ
jeCts of the suit.
In some quarters it is claimed that the
loan and trust company will not accept the
condition imposed by the court This
opinion is in part shared by Mr. Egan
himself.
The friends of Mr.. Ban croft point to his
clean and successful management of the
Rio Grande Western road during his six
years management as receiver and general
superintendent; also, the vast improve
ments made by him on the Oregon Short
Line, and think that his association with
such an able railroad manager as Mr..
Egan could not fail to bring satisfactory
results to every interest involved.
Mr.. Egan leaves for the East tonight
and Senator Thurston goes to Idaho for
few days recreation.
OMAHA, June 10.-It was a foregone
conclusion that the Short Line and Utah
Northern would be placed under the con-
troll of separate receiver, the only hope of
the interests antagonistic to the American
Loan and Trust Company being to secure a
coreceiver who would be fair to the Union
Pacific, which has now been accomplished
by the appointment of w. H. Bancroft,
superintendent of the mountain division
of the Union Pacific General Manager
Dickinson was elated over the appoint
ment of Mr.. Bancroft, whom he regards as
separated property.
But 1 do not believe Mr.. Egan will ac-
cept the terms of the transfer, embodying,
as 1t does, the Utah Southern, property
which has not paid operating expenses.
Our people feel satisfied with the terms of
the order as made by Judge Merritt, and
If it is accepted by the American Loan
and Trust Company it must be done at
great cost to the corporation. The Ameri-
can Loan and Trust Company, through its
attorneys, has fought the co-receivership
idea from the beginning, and this, coupled
with the interest feature of the order.
which is along the lines outlined by the
attorneys for the first mortgage interests,
receivers for the Union Pacific and Oregon
Short Line, will probably prove too much
OF load for the receivers to carry.
Should Mr.. Egan accept it will not affect
the forces at the Union Pacific headuuar-
tiers to the extent of more than thirty men,
and as for our mechanical forces, they are
reduced to minimum. 1t has been nv
idea, however, all the way through, if two
receivers were accredited to the property
and the contentious of the attorneys for
the first mortgage and other interests fol-
lowed, that the successor receiver could
not consistently take the property.
''Mr. Egan will now operate the proper
ties in the eighth and ninth circuits, but
can hardly believe this, as Ogden is the
key to the situation and it would leave Mr..
Egan the ends of the line to operate, while
the great middle would be operated by the
present receivers, for 1 take it that Mr..
Bancroft would refuse to take the road if
his senior should object to the order"
There was considerable satisfaction ex-
pressed about the headquarters when the
terms of the order became known, for the
majority OF the heads of departments felt
that M. Egan would not take the Short
Line loaded down with non-paying divi-
sions, as in the case of the Utah Southern
and Southern Extension.