Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1895-06-07
,ro,,nusd from Page one)
TWO OR ONE, WHICH?

10 my ave receivers were formerly.
iof wv "a asked was that this court
Az :, Inc Loan company the same
s,,mept that was given to It's Or
p0nBe.h,,I, 10 the general history q
.csivefship, MIR. Kellogg said that
u VIZ n suiteI inc receivers the non
Ni,, lines were thrown over; but
nayIng short Line wa. retained.
Ms ~, tbe claim Ut the Union Pacific
snsvs that the receivefship might
N,inste in a short time, ami thus be
lave. because the fret mortgage
f.i,sufe d rOceo1iugs we're In court,
~, Kellogg declared that the Loan
.,nsay mad Offered 10 withdraw Its
ssW lie foreclosure was pressed to q
Imitation, anu the line be- sold; but
,ei. "a. refused because the foreclosure
W. moi brought Ia good faith. hut was
scbsme /, retain the Snort Line In
40 Union Pacific Interest.
sing ~ the roai segregation prop.
o.ition, Mr. Kellogg poinlei onl that
Ibat was begun by the Union Iaritc
IN lts own procedure by dividing the
,sveuue,. IL was tho Ave receivers
sbo asked the division 81 the Short
Line by mottgaged sections, AMI the
sDnft granted an order allowing this,
mich di.ctiminate1 againAt tho Loan
rsmfany In not paying the inioteat on
Il. fnt mottg 'ge, nut paying the in
isf,st on tue mortgages OF Others This
W., what the Union Pacific had done,
and now II had the etironlety TO come
~, rotitt and charge the Loan com.
sspy with seeking to disrupt tue road.
~. Ip.p company wanted ita prog.
a.. 4 "a
ihs flr.t eleven months the receivers
sad shown 81, 2gg,OJO surplus In this
s.,pIppz Of tue short Line; rubse.
,,sntiy they show practically no In.
tease tut an indebtedness Of about
uBOl,OJO. lt surely was time the
s5,n company came In and asked this
,gufts 10 protect It's Interest which was
mus being waited.
M, Kellogg WAS here interrupted In
his Argument by an Inquiry from
sepstor Thurston ~ 20 how the revc.
uues were covered 10y mortgage, anu
t,plird that he would come to that In
he eoute oi his argument, court Gus
IN thanking Mr.. ThurstOn for tbs IA.
sfrupti0n-a rather marked contrast
10 .ome VI tho proceedings Ia cOnuec-
ion with Interruptions yesterday. Mr. |
Kellogg then quoted from the cluSOli. |
dated mortgage that the revenues |
,houlI be- taken under II after default |
iof AK months which had elapsed. |
Thls wa, the reply TO Senator Thurs
onp inquiry, and when II was madc |
the senator arose anu took the COPY Of |
the mortgage 10 examine II.
Reiefnngl 10 the use Of revenues |
before and after the appointment Of |
receivers, MIR. Kellogg pointed cut that
lAE And equity require distinction
which the Union Pacific bad not |
deserved. Further than this, u was
t.eclAlly provided in the Loan COM
panyis mortgage that " should have
iue revenues Ia n certain time, but |
this had not been allowed by the tt.
eelvet.. The Loan company asked q
receiver Tor the entire Snort Line, be. |
cause the Union Pacific receivers were
not legally entitled TO 10. IL was n
tight which he claimed for the Loan
company. The courts In the eighth
md ninth circuits had recognized the
aw aud the right, and the Utah court
was asked TO do the same thing. This
talk Oh the other side about disruption
u the road was isll claptrap, brought
IN 10 diytst attention from tho actual
itsue. The Loan company asks uni.
form order; II 10 not disTupting the sys.
TEN, the other side has been doing
that. II ssks that Its nights be not sub.
vested u interests that have no claim.
Turning TO the rule OF com.
iiy, which he taid was rule
Of courtesy, Mr.. Kellogg said
ihatii II was applied rs tho other side
hfguei II should be, then their own
claim for local receiver must TAIL, be.
cause there would be u breach Of uni.
i9Fmlly In not appointing Mr.. Egan.
The Loan company does not say this
court should appoint Mr.. Egan, nut II
suggests him us u suitable railway
man. The other eide ask why We 10
not iotsslose our mortgage; but N we
tught % do ~ the court would tell Us
laatwe would have TO pay deiauI ting
Interest, aud there would be- the same
CLIQUE which has been going on for the
past Two months. The Loan company
does not ask any options, II asks
The possession Of Its property. Tho
teal mortgages are MT the Loan COM
pny, hut the bondhOldoTs, anu
Zoe separate teceivership Ia to
ihelr interest. Ths way the other
ide talks, one would think the
Loan company mai committed
$3.50 "aNAR "a htoihk hhti W.T. IL |
los setuTltlus. Iho ctutt Ia u krd
70 do Justio, TO The men VINO
mai Placed thelr n oney here 'Jr
met development Of great enterprise,
WhV ufchased bonds under tho con.
'olldatei mortgage. The court is
.ked only 10 issue receiver uergiil.
Gales which will pfeoede The Goa.
'oldated mortgage, the Loan com.
lAhy'a property. The Loan company
nusl pay tue first mortgage, hut n
allowed the Union Picnic interest
could crowd out the sec Ind mDTtgagee,
"hlch he court In asked to prevent.
Alf Kellogg argued that tue percent.
we u Interest on the certificates aud
nee OF sale were the best that could
yeuone under existing circumstances
~ was the broken promises OF The
Snlon Pacific that brought the
LoAn company into court to ask
mat II be protected In i,s rights.
senator fhutslOn next al irps,ei the
Vouil ON behalf Of tho Union Pacific
lestlVerri and also as assisting the
o'ne' counsel with whom he was asso.
el' lie would endeavOr not 10
'litleal the court. He believed that
Ssuusel would lose by such ptOos.
uuie' lie would therefore advise the
, ,t rs 10 his professional belief rs TO
uo Jaw. Tho receivers did not wish |
N, uclhhln IN possession u single day. |
,tuey only asked that the interests OF
NV property be preserved entire.
AhNy did NOT lp,n,... =. .tt..,l... a.