The herald., 1896-02-05
&A MADE No PROMISE ALONG THE RAILROAD lines 1.-THE INSURGENTS advance PEAMER CONGRESS CONGRESS
hdyD New
New Litigation Affecting Santa
Fe Reorganization
NO DAMAGES ARE AWARDED
Ia a Suit Against the Southern Pacific
Company
]. L. Talbot Asked for Ten Thousand Dollars.
The Jury Gave Him Not
Cent-Notes

Associated Press Special Wire.
| CHICAGO, Feb. A cross bill was filed
in the United States circuit court that may
delay the completion Of the reorganization
of the Santa Fe railway. The bill raises a
question of the ownership of the line of
railroad from Chicago to Kansas City,
denying the claim of the bonds now held
by the Union Trust company and under
which foreclosure proceedings are now
pending, in pursuance to the general plan
of reorganization. The complainants are
William Church Osborne, Fred Sturgis, Ed
ward Sturgis, Thomas Berkelbork, Henry
Sturgs and William H. Osborne, all east
ern men, who claim to own 62S bonds of
the denomination of $1,000 of the issue of
January 1, 1877, and assert that they are
the only outstanding bonds of that issue.
On the other hand, the reorganization or
new company, which recently purchased
the road at sale, claims to be the owner of
| 14,721 of bonds of the same issue, and
which were pledged as security to the
Union Trust company for the general mort
gage of October 15, 1880.
| Incidental to the issue Of the bonds in
the corporation had concealed considerable
of it's property to evade paying creditors,
and allege that among such concealed
| property was stock i'll various sub-corpor-
ations controlled by the road. the Cerrillos
| Coal and Iron company, the Cerrillos Coal
| Railway company and the Union Belt rail-
way of Chicago-all of which stock the
complainants charge, was not covered by
the blanket mortgage, but which is in
ri, 1nI fhn off ,vrdn <t,n
blanket mortgage. To the bond issue
which it directly concerns, the bill asserts
| thst there never was q default, and the
court is asked to refuse to grant the decree
of sale prayed for by the Boston Safe De-
posit company, the trustees under the or
iginal mortgage.
| Robert Dunlap, counsel for the Santa Fe,
said of the bill:
J ~ cannot exactly understand what these
people want. They say they do not wish
the foreclosure. They claim to have a
prior lien on the railroad and that our
| mortgage have been paid off or satisfied,
and that they virtually own the road. They
do not seem, as I gather from the 100
pages of typewriter matter, to have their
bonds paid off. Our procedure is to sell
the road and pay the bonds, in order to
carry out the scheme OF reorganization.
| Apparently these people are in court to
hinder that reorganization for some pur-
pose or other not clearly shown in the bill. J"
THE VALLEY ROAD
| STOCKTON, Feb. 1.-The work on the
truss bridge across the Stanislaus river is
the only thing that is retarding the work of
track laying on the Valley road. The
bridge il quite an extensive affair, one of
! the spans that is being put in this week
being 1S5 feet long. There are four other
spans of eighty feet each.
All the approaches to the bridge across
Dry creek have been made and the piles
driven. The material for the spans is
here now and is being put together, SO that
the sections will be ready to take to the
front as soon as the track is laid to that
point.
On the north side of the Tuolumne river
all the piling for the approaches have been
driven and the false work has been erected
in midstream, and the pile-drivers are now
ready to go ahead with placing the piling
| for the center span.
Three of the spans are already in posi-
ton. just as soon as this bridge is COM
| pleted, which will be in two or three weeks
at the outside, the work of tracklaying will
| be resumed. The grading ia nearly ell
| done to the Tuolumne river, near which
| place Grant Brothers, gang of graders is
| now at work.
| The subscribers to the capital stock of
| the San Francisco and San joaquin Valley
other 10 per cent assessment Immediately.
The directors made the order at the regu-
lar weekly meeting today.
This is the fifth 10 per cent assessment.
1t will become delinquent on March 9th,
and all shares of stock on which the assess
ments are not paid will be sold on March
26th. 1t was stated at today's meeting
that The first three assessments were paid
in full. The fourth assessment was all
paid except six shareholders, who hold one
share each. The stock will be sold in a
day or two If its owners do not pay up.
The directors, since beginning work on
the new road, have received $974,24O, and
think they have spent the money, or are
now spending it, to the best advantage in
construction work. They are not prepared
to say just how far the new road can be
built down the valley with the total sub.
scripton fund of $2,5OO.OOO. but propose
to make it 60 as far as possible consistent
with good construction work.
Bids for a roundhouse at Stockton large
enough to accommodate five locomotives
are to be called for next week. The plans
for the building are prepared. The same
kind of building will be erected at Fresno
some time in July, at which time the road
is expected to reach that place.
The directors have decided for the pres
ent not to handle any freight or passengers
between Stockton and the Stanislaus river,
a distance of fifty-one miles.
Chief engineer Storey said:
whether we get the road into Fresno or
not by July, we shall haul all the wheat we
can when it is ready for shipment. We
want to get the line into Fresno as soon as
possible, however, in order to be in a good
condition to handle all the wheat offered.
To attempt te haul freight and passengers
just now would interfere with our construc.
ton trains and delay our work in many
ways"
THE SOUTHERN PACIFIC FORECLOSURE
FRANKFORT, KY. Feb. 4.-Chairman
Goebel has called a meeting of the senate
committee on railroads to consider the bill
to repeal the charter of the Southern
Pacific railroad for tomorrow evening.
People from California are expected to an.
pear and it is announced that c. P. Hun
tington will be here tomorrow. Members
of the committee state it is foregone con-
clusion that the bill will be favorably re.
ported for passage.
A RAILROAD MAN DEAD
SAN FRANCISCO, Feb. 4.-G. L. Lansing.
secretary and controller of the Southern
Pacific company, died today after an ill
ness of several months. His sickness was
nervous prostration, the result of over
work. He had been connected with the
railroad company for many years.