St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1895-01-18
BOLD PLAN OF The up.
Move Will Be Made Saturday
= to Foreclose on the
Road
TO SHUT UNCLE SAM OUT,
As the Line Is Not Expected
! to Sell for the Amount Of
Mortgage.
QUITE A PLOT CHARGED.
Believed to Be an Attempt to
Force Congress to Pass
the Kelly Bill.

OMAHA, Neb., Jan. IA petition
will be filed in ST. Louis Saturday be-
fore Judge Sanborn looking to the fore
closure of the first mortgage of the main
line of the Union Pacific railroad. The
petition is supposed to have been pre-
par at the instance Of the trustees of
the nrst mortgage bonds in the Office of
Win3low A. Pierce, of New York
Senator-elect John NJ. Thurstou, at
torney for the Union Pacific receivers,
will go to st. Louis tomorrow. He will
represent the government. The
present receivers are expected to be
retained by the trustees until the
business is concluded. The road is not
expected to sell for the amount of the
first mortgage. This will wipe out all
6ther Indebtedness, and, if carried out.
the government and all other creditors
will lose everything involved. Those
interested in protecting the govern
ment's interests, however. insist that
this is a coercive measure; that the
papers were prepared at the Omaha
Headquarters of the company, and that
it is merely bold plan to force con.
gress to agree to an extension OF its in-
debtednesS on terms quite favorable to
first mortgage bondholders as involved
in the Reilly bill, now before congress.
/ AS evidence that the proposed litiga-
tion is not really intended as fOreclOS-
ure, Omaha people who are insisting
that the government shall have nothing
to show for the money it has invested in
the company are tonight pointing to the
fact that the first mortgage
Merely Covers the Main Line
of the company, and that past expe-
renee indicates that the feeders of the
line alone have paid expenses, and that
without the branches the main line is
nowlse desirable property. For some
weeks there have been Whisperings
that foreclosure proceedings will be in
stituted, though at the headquarters the
idea has been secuted. Today il was
learned that tomorrow Senator Thurs
ton would visit st. Louis on an impor-
tant legal matter.
At later hour he admitted he would
go there, and that he would meet the
Eastern attorneys, who would file the
petition in foreclosure. Tonight he
stated his visit to the Southern metrop-
oils was for the purpose of looking after
the interest of the Union Pacific re-
ceivers, for whom he is the attorney.
He said he had no knowledge of the
contents of the petition which would be
filed, as it had been prepared IN New
York or Boston. On Oct. 13. 1894,
Judge Bundy, sitting in. the United
States court in this city, appointed S.
H. II. Clark, Oliver w. Mink and e.
Ellery Anderson receivers OH the APP
plication of the executors of the
estates of Frederick l.. Ames and
Sidney Dillon largest holders OF
the companies bonds) and Edwin F.
Atkins. of Boston. The interests that
applied for the appointment of the re-
ceivers were friendly to the existing
management, and their action was taken
for the avoWed purpose of protecting the
property. According to an official
statement issued at that time, "the OBJ
ject was to keep intact in one system
and to preserve the road to its
greatest value and anticipate possible
suits growing out of the failure to meet
obligations because of dull times"
Preparations have been going on for
some time. The present proceedings are
expected to bring the l0ng-drawn-out
story to some sort of definite settlement.