The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-05-28

BY November 1 II is expected that trains
will be running over the Columbia &
Puget Sound Railroad made into a stand
ard gauge road.
Receiver Smith, OF the Oregon Improve
ment Company. will at once perfect ar
rangements by which equipment will be
procured for the road in its new form.
having secured an order from Judge Han
ford yesterday authorizing the improve
ment. Two new engines of great power
will be ordered, and the necessary freight
and coal cars will be manufactured here
by the company The roadbed will, in
the meantime, be PIT IN shape for the
change. bridges will be rebuilt and
strengthened, and in other ways prepara-
tons Will be made for the Improvement.
Bids will ne asked for the material nee
essary for the construction OF the rolling
stock.
The legal steps that make possible this
important improvement to the property
OF the Oregon Improvement Company
were taken yesterday morning IN the
Federal court. Judge c. II. Hanford pre-
siding. As has been fully detailed in the
Post-Inteiligencer a minority OF the ae-
curity holders. represented by the Amy
committee. had protested against the Inn
provement. and through ". W. Cotton.
of Portland had filed rigorous protest
with the Farmers Loan & Trust Com
pany, the trustees under the mortgage
which Is now In process of foreclosure.
Through Mr.. Cotton. the Amy committee
asked the court for leave to file objections
and chance TO he heard In the matter.
This day in court was accorded the COM
mittee yesterday. and Mr.. Cotton was
given every opportunity to present the
case from his standpoint. Andrew F.
Burleigh. representing the Waterbury
committee, which holds a majority Of the
securities. replied to Mr.. Cotton in be-
half of the reorganization plans as out
lined by Mr. Waterbury and HIS associ-
ates g. H. Piles presented the case for
Receiver Smith. supporting the petition
for authority to make the expenditure.
In support Of the objections raised by
the Amy committee a number Of DOOR
ments were filed. First among these was
formal objection to granting the order.
made by Henry Amy and Henry H. Nc
Harg, comprising what is known as the
Amy committee. The document sets ur
that the intervenors represent security
holders OF the Oregon Improvement Com
rany and for themselves and for those
they represent. object to the proposed
expenditure by Receiver Smith They
claim to represent the following securities:
Two hundred and forty-one thousand
dollars par value first mortgage bonds:
twenty-three certificates OF the Manhattan
Trust Co, each representing one first
mortgage bond for 81 0o0; 81. OPT 900 OF the
consolidated mortgage bonds and 37s GER
tifcates of the Manhattan Trust Com
pany. each representing a first mortgage
bond. $1,000 par value.
Further, the complaint says Inter
venors deny that for any time prior to the
appointment of receiver herein. the Ore
gon Improvement Company was operating
or controlling the Columbia e Puget Sound
railroad or any part thereof. and deny that
the receiver was by any order OF the court
directed to take possession or operate the
said railroad"
II IL alleged further that the railroad
company controls its own property ard
operates IL independently Of the Improve
ment company and is a solvent corpora
ton. II is declared that no showing has
been made as TO the necessity for the ex-
penditure OF sIo5 200 in standardizing the
road and for the issuance Of receivers GER
titicates for this amount in payment
thereof
expenditure and Issue of receivers certin-
Gates. which shall constitute lien upon
the property of the company, Is improper
and contrary 10 law.
Mr.. Cotton supported this document In
An extended argument. He laid stress
upon the allegation that the Oregon Inn
provemen. Company ana the railroad com
paHS were TWO instinct corporations nd
that the receiver had no authority en-
powering him 10 control and operate the
railroad.
To this technical objection Mr. Rurlelgh
replied a. length. and he also explained the
reorganization plans OF the Waterbury
committee. These make provision for .he
staudardizing and equipment of the road
He pointed out the advisahility OF making
The Improvement al this time showing
that with the present sszitfur,erf and road
bed large expenditures would have to be
made. which OF necessity were OF a tenn
porary nature.
After Mr.. Cotton had replied to Mr. Bur
leigh. the court rendered an oral opininn
stating tina, he would sign an order author
izing the expenditure of the money arid the
issue Of the receivers certificates provided
that the formal consent TO the improve