The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-03-12

ADJUDICATION Tor an IuQepeHueHl re-
ceiVer for the Oregon Short line and
Utah Northern railroad.
This hearing is on the application of
the American Loan ana Trust COM
pany for the appointment of a receiver
independent of Union Pacific interests.
The Union Pacific receivers are at
present also receivers of the OreGon
Short Line and Utah Northern, having
been appointed separate receivers of
that line in proceedings brought by
John T.. Dillon. trustee of the first
mortgage on the old Short Line.
Which is the line from Huntington to
Granger and the branch to Ketchum.
The american Loan and Trust COM
mortgage on the Oregon Short Line &
Utah Northern which Was executed
about the time of the consolidation of
the several roads into one system
which covers all the lines subject to
second mortgage liens. 1t was on this
consolidated mortgage that the fore
closure proceedings we're begun in
Judge Gilbert's court by the American
Loan and Trust company. This COM
pany is also trustee of the collateral
trust bond securities of the consolidat-
ed system, and also Of the first morts-
age of the Idaho Central, a minor
branch Of the system. The CONSOLE
collateral trust mortgage is for $14,-
0oo,0 GOO, The first mortgage ON the
Idaho Central is for S145 000 The total
amount of the mortgages on the diff
ferent parts of the Short Line system,
which are prior liens to the CONSOLE
dated mortgage Is s27,940,000. OF this
amount John #. Dillon is trustee of
HrGf o. orn M q hNaosAy,
Short Line. for S14.9a1.OO0 and of the
first mortgages on the Salt Lake &
Western for $1,0S0,000 total Of $16,-
1O1, GOO.
Joseph Richardson is trustee of the
first mortgage on the Utah g. Northern
for $4.955;ooo James NJ. Ham is trustee
OF the first mortgage on the Utah
Southern for 81, 529 600 and of the first
mortgage on the Utah Southern exten-
sion for 81 600, or total of S,42S 900.
Dillon. Richardson & Ham are trus-
tees for mortgages on different parts Of
the system aggregating $24, 442, 900. All
Of the trustees oppose the granting Of
the application for an independent re-
ceiyer and favor the continuance OF
I Union Pacific control of the short line
system. Their mortgages are all first
! liens. The latter aggregate S25, 040, 900,
Morsfeld and Story and Dolph. Nal
! lery, Simon & Strahan are the attor-
neys of the record for the American
! Loan and Trust company and Senator
/ Thurston, WinsloW S. Pierce and Snow
& McCammant Will appear for the de-
| PENDANTS and urge the continuance of
| Union Pacific control
| Mr.. Story, of Boston, counsel for the
American Loan and Trust company,
explained the organization Of the DIFF
/ ferent companies which we're merged
| into the Short Line system and Of their
/ a IN hn
Line q Utah Northern railway COM
pany.
| After stating the default of interest
on the bonds. he said there was no
! question that a receiver should be in
| possession of the property. The only
! question was who, and this was the
| point at issue in the suit. He then
| read from the traffic agreement be-
! tween the Oregon Short Line g. Utah
! Northern and the Union Pacific, show
! ing that the two companies roads
were to be worked as one line. Ho
| said that at the time of this traffic
contract the laws Of the United States
prohibited the leasing of one railroad
| to another except by express eXecu-
| tive authority and this traffic con-
! tract was intended, and did practically
| take the place of a lease
! He compared the two sides Of the
| Union Pacific system. On one side, he
| placed the corporate officers OF the
! Union Pacific company, who had con-
| trelled eight subsidiary companies for
| the benefit of, and in the interest Of
! the Union Pacific company. On the
| other hand, he said, there are numbers
| of people having their money invested
| IN the stock and securities of the sub
sidiary companies controlled by the
Union Pacific company He referred
| to the Ames bill, and said Mr.. Clark
Mr. Mink, Mr.. Atkins and the e1eeu-
! tors of the Ames estate secretly ar
/ ranged to place the Union Pacifie COM
pany and its eighty subsidiary com
panies into the hands of Mr.. Clark, Mr.
! Mink and Mr.. Anderson as receivers
and, in furtherance of this plan, they
| brought the Anes bill in the United
| States court at Omaha.
| Mr.. Storey gave way to Mr.. Pierce to
argue his motion for dismissal, or that
the case be remanded to the district
Of Wyoming as the court Of primary
jurisdiction. 5
He said the first mortgage bonds on
the Oregon Short Line outstanding
amount to $14, s31 300; the first mortgage
bonds on the Utah & Northern amount
to s4,495, 900; the Utah Southern Rail
way company has outstanding Sl,52S,-
coo of bonds; the Utah Southern extern
sion has outstanding S1,s40000. All OF
these mortgages are prior to the con-
solidated mortgage. The bonds secured
by these prior mortgages are in amount
more than double the consolidated
mortgage.
Mr.. Pierce said If the Junior mort
gage (the American Loan and Trust
company would pay the interest on
the prior mortgages and furnish ade
quate security for future payments, he
stood ready as representative Of all tbs
first mortgage holders to accept 1t ano
withdraw from the case.
Mr.. Storey interrupted to say thai
the receivers had in their hands suf'
f1cient funds to pay all the defauitet
interest and If they would turn this
over to an independent receiver III
would agree that the receiver should
pay the interest on the first mort
cages.
Astronomers think the inhahitant
ST Mars are attempting to communl
cate with US. The MARSHES have prob
ably caught a Whit of biscuit made
With DR.. Prices Cream Baking Pow4e
: md are frantically signalling for them
Union Pacific Decision,
Omaha. Neb.. March 11.-W. D. Cor
nish. special master in ehancery IF tn
; Union Pacific has decided that Franz
Hewitt, the Laramie fireman, is no
entitled to Reinstatement as an en-
ploye of the Union Pacific.
The case has been watched with
great deal of interest by every EN-
ploye of the Union Pacific. and tn
decision has been apxiously awaitet
Hewitt was a fireman on the Unia
Pacific fast mail running netwee
Laramie and Rawlins, June Is, lsaA
Hewitt reported to the company's ply