The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1897-07-30
A DECREE
RENDERED
Against the Union Pacific
Railroad
ALL PROPERTY ORDERED SOLD
I'LL PROPERTY ORDERED SOLD
w. d. CORNISH NAMED AS THE
SALESMAN
First Mortgage Bonds Will Be Paid
and the Surplus Will REIN
burse the Government


Associated Press Special Wire.
OMAHA, July Pa decree was rem
dered today in the Union Pacific railroad
foreclosure proceedings.
1t was after 1 o'clock when the for
malities were completed and Judge Mum
ger adjourned court. The attorneys in
the case spent another hour correcting
copies of the decree to conform to the
changes made by the court and the
papers were then filed. The decree for
the first mortgage bondholders covers
forty-four printed pages. 1t recites the
history of the road, with the several acts
of congress governing the same, the is
sue of the different series of bonds and
the litiga ton leading up to the suit for
foreclosure.
1t is then decreed and ordered that
all the property and rights of the COM
pany shall be sold at auction to the
highest bidder upon the mortgaged
premises at the freight station of the
railroad company in the city OF Omaha
on date to be fixed by the special mas
ter. A notice of the sale Is ordered pub
lished at least once week for four sue
cessive weeks in at least one newspaper
in New York city, Boston, Omaha, Den
yer, Cheyenne and Salt Lake City. The
receivers of the road are ordered to file
within ten days of the entering of this
decree an approximate statement of the
amount of money in their hands, the
amount of moneys due to them and all
their liabilities due from the operation
Of the mortgaged premises. The de-
cree appoints William D. Cornish as spe-
cial master to make the sale and he is
given power to postpone the sale from
day to day. Prospective bidders are
required to deposit with the master five
days previous to the sale the sum Of
So, 900 900, and the successful bidder must
deposit within five days after the sale
sum equal to Is per cent of the bid as
pledge that he will make his bid good
No bid will be accepted for less amount
than $50 637 ABS. The purchaser may
pay for the property in cash or in cash
and first mortgage bonds, and the
amount remaining after the application
of the two deposits made must be paid
as follows: Twenty five per cent within
thirty days after the confirmation Of the
sale; twenty-five per cent in forty days;
twenty five per cent in sixty days. Pay
ments may be made in bonds at the
value of the principal and the interest
due.
The money received from the sale is to
be used first for the payment of the first
mortgage bonds, and second, if there
be a surplus, to the payment of any debt
due the government. The purchaser
pays all costs of the case, the expenses
of the sale, compensation of the mas
ter, balance due the receivers on salary
and unpaid Indebtedness of the receivers
incurred during the management of the
property.
The decree in favor of the United
States is similar in form to the one of
the first mortgage bondholders, except
that it provides for sale of he prop
erty subject to the prior liens reported
in the other decree.
1t provides for double sale, to-wit
The subsidy bonds of $27 512, with
interest amounting to $50, 1925, 430, MAX
ing total of S57, 1852, ,430, the upset price
being $23, 900, coo; the other is the sale of
$13, ,645, ,250 in bonds in the United States
Union Pacific sinking fund, cannot be
sold for less than par value.
CROCKER'S SUCCESSOR
SAN FRANCISCO, July 29-The di-
rectors of the Southern Pacific company
met today and elected George Crocker
a director of the company to fill the va
cancy caused by the death of his brother,
the late Col c. F. Crocker.
No action was taken in regard to fill
ing the position of first vice president of
the company, held by c. F. Crocker at
the time of his death. H. E. Hunting
ton, in speaking of the matter said that
there was no immediate necessity for
electing Col. Crockers successor, and no
action was accordingly taken. 1t is un-
deretood that the position will be allowed
to remain vacant for some weeks to
come.
GOING TO PIECES
CHICAGO, July 29-The Southwest
ern Passenger association is apparently
going to pieces. The ST. Louis and San
Francisco has withdrawn. The Rock
Island and Santa Fe. it is reported, are
about to do so, and there will seemingly
not be enough, lines left to maintain it.
The reason for the collapse is the refusal
of the Southern Pacific to have anything
to do with the association.
FORECLOSURE FILED
vINITA, 1. T., July pa bill has been
filed in the United States court here
against the Atlantic & Pacific railroad
and the American Loan and Trust COM
pany of Boston for the foreclosure of the
first mortgage on the central division
of said road extending from Seneca,
Mo- to Salpupa l. r.. 112 miles. Under
this mortgage bonds are outstanding to
the amount of So, 7940 900, and the suitalso
involves 81 1928, 900 of bonds issued under
a second mortgage to the same trust.
The central division bonds have been
sold to the st Louis & San Francisco
Railroad company, and title will be ac-
quired under these foreclosure proceed
ings.
DAY OF SALE SET
DENVER, Col, July 29.-The sale of
the Colorado Midland railroad and all
property appertaining thereto is adver-
tlsed to occur at Colorado City Septem-