The Saint Paul globe., 1897-05-20
Do THE INTERESTS INVOLVED IN
A CASE BRFORE JUDGE SAN
BORN TODAY.
POWERFUL ARRAY OF TALENT.
CREDITS CONTINUATION COMPANY
OPPOSING aTHE PROPOSED
UNION RAQbFIO SALE.
STANDING OFF sIogx CITY PEOPLE
One of the aue.tthn. which Court
Must i First Qetermine-East
Against West.


at the Ryan yesterday can accomplish
the end they have in view. the sale
Of the Union Pacific railroad. under
the programme now on foot. will be
prevented. These gentlemen will ap-
pear before Judge Sanborn. to argue a
case begun few days ago. 1t is ex-
pected that there will be very power
full array Of legal talent before. Judge
Sanborn today. There are In the par
ty, Hon. John w. Coombs and his asso-
ciate, Frederick Chamberlain. of Bos-
ton; Albert w. Horton. Of Kansas;
Henry J. Taylor, Of Sioux City; ]. H.
Hummel, Of Grand Island: William II.
Munger, Of Fremont. and Oscar b.
Hills. of Omaha, clerk Of the United
States court.
The sale of the Union Pacific system,
under guarantee bid of $45,00O,OOO. will
come up before court In the form of a
petition by.-a certain interests aginst
the proposed sale, although the vital
point in today's case is the standing OF
the petitioners. The interests involved
are tremendous. The case is one Of un-
usual interest in railroad and legal cir
cles for the reason that the govern
ment has hand in the case through
the giving Of vast subsidies at the
! time the road was projected and built.
The fight is being pushed by the Cred
it's Communication company. Of which
Mr.. Coon1bs Is the chief counsel Mr.
Coombs is one of the best known at
torneys in the East, and during the
Fifty-fourth and Fifty fifth congresses
he appeared several times before the
house and senate committees on Pacific
railroads in support Of the claims Of
his clients. s
The real basis Of the petition by the
Credits Communication committees, as
told in the G o b e last week. is that
the proposed reorganization will jeop-
ardise the interest Of the Northwest
and work to the interest of the Eastern
security holders. It is also claimed
that the original will Of congress in
the matter Of the construction Of the
road has beenf violated WantOnly.
The Credits Communication company
is a corporation composed of nearly
four hundred state, savings and ma
tional banks, whose interests are To-
Gated at Sioux City, and whose ram1-
fications extend to st. Paul. Minne-
Northwestern cities. The company
represents investments valued at $10.-
000, 900, which will be ruined or render
ed practically valueleSS if the proposed
reorganization is carried into execu-
ton. The properties Of the company
include the bridge over the Missouri
river at Sioux City, valued at 81 $50, 900;
it is also entitled to three-quarters Of
the stock of the Sioux City & Northern
railroad, which runs northerly from
Sioux City and connects with the
Great Northern, which road gives it
an outlet to St. Paul and the head
of the lakes; the Credits company also
owns the stock Of the Sioux City,
O'Neill & Western, road running 13o
miles west from. Sioux City to O'Neill,
Neb., which roads are connected by
the bridge mentioned above; also the
stock of a terminal company in Sioux
City, the total investments represent
ing, as already stated. over $10.000,00o.
The company was organized In 1894.
1t claims the right given by congress
in 1862, to make application to the
president to fix the place and terms
for a connection Of the connpany's
lines with the Union Pacific. which
right the company has never taken
advantage of. The claims of the COM
pany involve the rights of the rail-
roads owned by the company. It Is a
fight, as was said by one of the party
yesterday, between the West for its
rights and the East and it's securities.
The fact that the hearing has been
transferred to Minnesota, is looked
upon as a good sign by the people Of
the West.
1t is not unlikely that today's pro-
ceedings will be of great interest, for
the reason that the compliments have
notified Attorney General McKenna,
the Vanderbilt, Sage and Gould inter
ests' trustees, John F. Dillon and other
Eastern financiers to be represented.
The fact that last Monday the senate
sent an inquiry to the executive de-
partment to find out by what authority
the latter had entered into an agree
ment to subject the Union Pacific to
sale, has lent new tinge to the pro-