The herald., 1895-03-12
Decision in Matter of q Receiver
for the Oregon Line
ARGUMENTS OF ATTORNEYS
The Great Northern Line Will Run
Cars Into Victoria


9. Portland, Or, March 1.-THE hearing
vss begun in the United States Circuit
Court before Judge Gilbert today upon
an application for an independent receiver
for the Oregon Short Line and Utah
Northern Railway. This hearing is on
the application of the American Loan
snd Trust Company for the appointment
0f = receiver independent of the Union
Pacific interests. The Union Pacific re-
csivers are also receivers Of the Oregon
Short Line and Utah Northern, having
hssn appointed receivers of that line in
proceedings brought by John f. Dillon,
trustee of the first mortgage on the old
Oregon Short Line, which Is the line
irnm Huntington to Granger and the
branch to Ketchum.
Mr.. Story Of Boston, counsel for the
American Loan and Trust Comany, ex-
plained the organization of the different
companies which were merged into the
Short Line system and OF their consolida-
ton into the Oregon Short Line and
Utah Northern Railway Company.
After stating the default Of interest on
the bonds he said there was no question
that 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 tho traffic
agreement between the Oregon Short
Line and Utah Northern and Union
Pacific, showing that the two companies
roads were to be worked as one line. He
said ct the time of this traffic contract
the laws OF the United States prohibited
the leasing OF one railroad to another ex.
cspt BY express legislative authority, and
the traffic contract was intended, and
did practically take the place OF 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 controlled eighty sub
Sidiary companies for the benefit OF and
In the interest Of the Union Pacific Com
pany. On the other hand, he said there
are numbers OF people having their
money invested in the stock and securi-
ties OF the SUBSIDIARY companies controlled
BY the Union Pacific Company.
He referred to the Ames bill, and said
Mr.. Clark Mr.. Mink, Mr.. Atkins and the
executors of the Ames estate secretly ar
ranged to place the Union Pacific Com
pany and its eighty subsidiary companies
In the hands Of Mr.. Clark, Mr.. Mink and
Mr.. Anderson as receivers, and. in fur
therance Of this plan, they brought the
Ames bill in the United States courts 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 do tuc COuIb VI PRIMARY JuIlS"
tliction. He said the first mortgage bonds
on the Oregon Short Line outstanding
amount to $l4 93l, 900; the first mortgage
bonds on the Utah and Northern amount
to "a, 495, 600; the Utah Southern Railway
Company has outstanding 81 ,526, 600 Of
bonds; the Utah Southern extension has
outstanding 1880, 900. All OF the
mortgages are prior to the consolidated
mortgage. The bonds secured by these
prior mortgages are in amount more than
double the consolidated mortgage.
Mr.. Pierce said if the junior mortgage
1.-THE American Loan and Trust Company
would pay the interest on the prior
mortgage and furnish adequate security
for future payments, he stood ready as
the representative of all the first mortgage
holders, to accept it and withdraw from
the case. Mr.. Story interrupted to say
that the receivers had in their hands
sufficient funds to pay all the defaulted
interest, and that if they would turn this
over to an Independent receiver he would
agree that the receiver should pay the in
torcst ON the first mortgages,