The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-07-30
SUIT FILEDIN VINITA
IN FORECLOSURE AGAINST TIE AT.
LANTI0 AND PACIFIC
'enfral Division, From Seneca. No., to
Sale, Under Foreclosure, Of the Union
Pacific Main Line. Omaha to Ogden.
Pnssed Upon In the United states Court
at Omaha, and Other Proceedings Had
Thereupon Southwestern Passenger
Associations Going to Pieces

| Thereupon Southwestern Passen:el
| Association Going to Pieces
vinita. I. T.. July pa bill has beer
fled in the United States court here
against the Atlantic and Pacific Rail-
road company by me American Loan
AMI Trust company Of Boston. for the
! ioreclosI re OF the first mortgage on the
Central division OF said road. extending
from Seneca. No, 70 Sapulpa. l. T, IL
mics. Under this mortgage bonds are
outstanding 20 the amour; OF .0o0
and the suit also involves sI.023,oo0 On
/ bonds issued under q second mortgage
% the same trust The Central division
bonds have been sold 10 the ST. Louis
and San Francisco Railroad company
and title will be acquired under these
foreclosure proceedings
UNION PACIFIC PROCEEDINGS.
Omaha, Neb.. July os-Decrees Of sale
CO The Union Pacific railway under the
foreclosure proceedings Instituted against
il by the United States were passed
upon by Judge Waiter Sanborn in the
United States court here this morning.
There was no objection to the entrance
OF the AmeS-Dexter decree, and after a
feH corrections had been made in the
printed copy Of the decree, i, was passed
upon by the court.
The entrance Of the government decree
drew forth vigorous debate between
Ex-Governor Hoardly, special counsel for
the United Srates and wins!ow S. Pierce
counsel for the reorganization commit
tee. The debate was upon the rights OF
the company 10 reserve for the United
states all OF the government not express
L. stated In the decree. II was decided
in favor OF the government
The upse, price under the first mort
gage will De 1887 ASS. Judge William
d. Cornish OF ST. Paul, Mimi. will act as
special master In the matter. He will
cell the main line, the 1893 miles OF road
from Council Bluffs to Ogden. and IL,
immediate branches, in this city. The
date Of ne sale will not be fixed un1il
twenty days shall have expired. the
court giving that much time TO the
Urion Pacific railroad to redeem thei.
property. The date OF the sale and other
matters connected with the sale will oe
fixed by Judge Cornish.
Judge Sanborn sat on the bench with
Judge Munger and passed on the decree
The government; was represented by ex-
Governor Hoardley Of Ohio, now OF New
York (1-T aud h,-I
en- OF this city, Winslow s Pierce OF
New York City. said 70 have evolu,ed
the scheme Of reorganization OF The
Union Pacific. with Lawson Green look
ing after the affairs Of Dexter. the trus-
tee OF the Union Pacific first mortgage.
r. s. Hall OF this city, associated with
Mr. Pierce, was also on hand. Three OF
the receivers OF the Union Pacific sys-
TEN were in attendance. Oliver II.
Mink, John W. Doane. and E. Erery
Anderson.
1t vas after 1 o'clock when the for
malides were completed and Judge
Munger adjourned court. The attorneys
in the case spent another hour correct
ing the copies OF the DEGREES 20 conform
II
the papers We're then filed.
TIE decree for the first mortgage
oondholders covers forty-four printed
pages. II recijes the history OF tie
road, with the several acts OF congress
governing the same, the issue OF the diff
ferent series Of bonds. and the litigation
leading UP 10 the suit for foreclosure
It IL then decreed and ordered that all |
the property and rights Of the company |
shall be sold at auction to the highest |
bidder. upon The mortgaged premises g, I
he freight station OF the railroad COM |
Dany in the city OF Omaha. on a date 70 1
De fixed Try the special master Notice 1
y the sale $ ordered published a. least 1
,nce a week for four successive weeks /
n az least one newspaper in New York 4
lily, Boston. Omaha, Denver, Cheyenne /
md Salt Lake City.
The receivers Of the road are ordered
% file within ten days Of the entering OF
his decree an approximate statement OF I,
ne amount Of money in their hands. {
he amour: Of moneys due 70 them and 1
IL thei- liabilities due from the opera
ion ot the mortgaged premises
The decree appoints William n. Cor
iish as special master 70 make the sale, |
nj ne is given power 70 postpone the
ale from day 10 day II circumstances
eqUire. Prospective bidders are requir-
T 20 deposit with the master. Ave DAYS !
revious n the sale. the sum OF 81 cD0.-
%. ana the successful bidder must d.
osit within FIVE days after the sale a
r
ledge that he VIII make his bid good.
20 bid will DO accepted for a less
mount than 80 s37. As. The purchaser
nay paw tor TIE property IN cash. o. In
ash ard first mortgage bonds. and the
mount remaining after tie application
the two deposits made must De paid
: follows: twenty-five ger cent within
sirty days after the confirmation y the
ale: 3 7sr cen: IN f1-ty days: . ps-
snt in fly days. and x pe- cent n
xtv days Payments may be made n
on5s at re value % tire principaI AMI
ne interest doe.
The money received from :ae sale e
, be used. frs. .1r re 7tymen; - ne
=. mortgage bonds. and. second. -
here Be surplus. . the payment %
~ deb. due he government TIE
,,rcnassr pays al ocscs - The case. ne /
expenses q the sale. compensation Of
IL master. bs-sacs 5Gs the receivers on
lazy sni unpaid .nsz6:e5Eess .. re-
.-vs-s incurred during the manage
tent OF ne property.
The decree n favor ct the United
,atss Is similar II FORM 20 the one 20
e frs mortgage bordhciie-s. sxce2.
"a; L provides - = sale .. The prop
~ sz5ject - TIE p-ior Hens represent
] n tn 5the- decree
II provides for druhis sale. to-zl. Z