The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1895-10-05
Project for the Courts to Admin
ister Its Affairs as a Trust.
BANKRUPTCY IS IN SIGHT
Most Far.Rcaehtug Lawsuit Even Tried
in California for Its Economic
hearings.

San Francisco Sept. 29-The Chron-
icle says: The most far-reaching law
suit ever tried in California. and one
which will attract worldwide attention
from its economic and commercial
bearing, is on the calendar Of the
United States circuit court of appeals
for the present session.
1t is the struggle of the heavy cred
itors of the Union Pacific railway and
its 80 branches to have the entire bust
ness of the great trunk line thrown in
to a common pool and administered on
as a trust fund by the federal courts.
The complainants are in part stock
holders and creditors of the company.
The allegations Of voluminous COM
plant against the receivers of the com
bined companies is full of startling
announcements and vital statements
as to the failure of unrestrained pri-
vate control The inadequacy of the
present management is emphasized
and its inevitable trend toward bank
ruptcy portrayed.
The fight is really between the Farm
ers Loan e Trust Company and others
against the Union Pacific Railway
Company and many Of it's branches.
Such distinguished men as ex-Judge
John f. Dillon and Attorney Francis
r. Coudert are involved as co-defend-
ants. The suit involves the two branch
es of the Union Pacific system as well
as the main line and its city and depot
property, and the plaintiffs appear as a
committee for the minority of the
stockholders of the Oregon Railway &
Navigation Company, as well as for the
Farmers Loan & Trust Company, and
the American Loan & Trust Company.
The rights of the plaintiffs originally
accrued by reason of Frederick L.
Ames' ownership Of about %, 900 shares
Of stock in the railroads in question, to-
gether with his ownership OF consider
able amount of collateral trust per
cent bonds of the Union Pacific. The
American Loan &c Trust Company
holds 4,450 900 of these bonds and sew
eral millions of similar bonds are held
oy other plaintiffs.
Though the capital stock of the Union
Pacific is alleged to be more than $780,
0OO,Oe0 the plaintiffs aver that its in
debtedness is so great and its misman-
agement so apparent that its affairs
ought to be administered by the feder-
al courts. 1t is alleged that the gov
eminent debts alone are sufficient tC
cause the forfeiture of the franchise
The fact is reiterated with emphasis
that the falling off Of the roads rev
enue is alarming. reaching as much as
81 400 600 in two months.
The complaint recites that the UniOT
Pacific Railway Company is not able
TO earn operating expenses either upoT
its main line or branches, that the com
pany will not have at any time sufli
cient funds or assets with which to pay
its interest and sinking fund charge.
maturing from month to month anC
that as a result, innumerable credit
Ors will have a right to begin a multi
tude of actions against the company
which it is alleged will result in the
ACKNOWLEDGMENT of the Union Pacific
system, so that "its properties and as
sets will be dissipated to the NANTES
and irreparable injury of the public
the government Of the United States
and the company's creditors and share
holders"