The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-01-24

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Roads, and Goes Ahead-Atlantic aud
Pacific Reorganization Bill = Railway
News in General
ST. Louis, Mo, Jan. 23-United States
! Circuit Judge Sanborn today issued an
order authorizing a foreclosure sui.
against the receivers of the Union Pa
ciiic railroad. The government repre-
sentative, who appeared before Judge
Sanoorn yesterday, is General j. c. Cow
/ in OF Omaha. General Gown kept his
mission a secret, but quietly intimated to
Judge Saaborn during the course OF the
day that he might probably desire an
audience before the night ended At
late hour last night General Gown ap-
peared al the hotel, and was Immediately
admitted TO the judges room, where a
! proceeding in chambers was duly begun
| With the usual fornalities.
| The attorney for the government was
provided with a voluminous document,
which was produced. and proved 10 be
| Dill praying that the lien OF the United
! states on the Union division of the Tn
ion Pacific railroad be foreclosed. 1t is
the practice of the United States courts
in the proceedings against properties in
the hands of receivers, not to permit
suits to be filed against them without
permission first obtained from the judge
in whose circuit the property is located.
Accordingly, General Gown asked for an
order of court for levy To sue the receiV-
ers, who were appointed at the instance
OF first mortgage bondholders, and who
are now in possession Of the property.
The court granted an order giving the
United States permission TO sue the re-
ceivers, upon the condition that the gov
eminent appear in the suit brought by
Dexter and others, trustees for frs NOR
tgage bondholders OF the Union Pacific,
the United States and others. General
Gown entered an appearance for the
government in the Dexter suit, and ask
ed leave TO answer on or before the rule
day of the court in March. The permis-
sion was granted, the necessary orders
were Immediately made and a messenger
sent to Omaha Neb.. where the orders
and the bill OF foreclosure were filed to-
day.
The Union division of the Union Pa
cific railroad, on which the government
seeks to foreclose its second mortgage.
extends from Council Bluffs, Iowa, 70
Ogden, Utah, and embraces 1,403 miles
out of total mileage operated by the
company of 4 1908 miles. Receivers for
tober, 1898. The receivers are 5. II. II.
Clark. Oliver w. Mink, T.. Ellery Ander-
son. John w Doane and Frederic +.
Coudert.
PROCEEDINGS AT OMAHA.
Omaha, Neb.. Jan. 23.-Attorney Gen
eral Harmon, through special counsel
John c. .Cowin, filed in the office OF the
clerk of the circuit court of the United
States a { noon today, bill in equity call
ing for the foreclosure of the govern
ment's second mortgage on the Union
Pacific main line from Omaha to Ogden,
and the Kansas Pacific from Kansas
City to Denver. The bill recites the acts OF
congress prior TO the organization of the
companies and shows how the govern
ment got into the case. 1t then recites
the defaults in the terms of the mort |
gage and calls for a decree OF foreclosure |
end sale in accordance with the terms of !
them ortgage. Under the rules of the |
court the defendants have until the first |
day OF March to answer the bill. The |
receivers of the Union Pacific, the gov |
eminent trustees and the first mortgage |
bondholders are made defendants. Al |
though the fling of the bill had been long
looked for, there was no demonstration |
at its reception. Clerk Hills, of the cir |
cult court, was not in his office when the |
Kelly of the Union Pacific came IN with |
the papers. The lonely reporters wei |
coined him. Clerk Hills came in and the /!
papers were formally filed and .hus the |
great suit begun with as little display |
as if it were the most ordinary court |
routine OF thee flee. At the Union Pa |
clfic headquarters there was a little stir, |
but the officials declined to talk for |
publication. President and Managing |
Receiver S. H. II. Clark expressed salts |
faction at the state of affairs, but de- |
clined to go into details in discussing the !
matter. Il is the prevailing sentiment a. |
headquarters that the move is the best |
that could have come. II is in line with |
the policy advocated by President Clark |
sine the road fell into its present state.
IN DENVER NEXT.
Denver. Colo. Jan. 23.-The clerk OF |
the United States district court in Dem |
Yer has received a telegram from John c.
Gown, special counsel in the Union Pa /
cific foreclosure suit, announcing that he
viii arrive in Denver tomorrow 20 file \
a bill for foreclosure of the governments
lien on the Union Pacific and Kansas Pa
cific lines.
POWERS WILL GO AHEAD
Washington, Jan. 23-Chairman Pow
eTs Of the Pacific railroads committee OF
t1s house, says that the determination oE
the government 10 foreclose its len |
against the Union Pacific will not affect
the action of his committee in preparing
and urging the adoption OF the cabinet
bill. The Central Pacific.
Sioux City and Central branches were
still subjects for legislation. hes aid The
Central had not defaulted and If the
sinking fund werea pplied il would nO1
be in de.auitu ntil next January.
ATLANTIC AND PACIFIC.
Washington. Jan. 25.-The confsrees Of
the two houses reached an agree ent to-
day on the bill for the reorganization OF
the Atlantic and Pacific railroad Many
of ne provisions contained in The house
amendments are retained. but the Ian
suase OF most of these were changed. As
greed 20 the bill authorizes a Te-OrCaT-
zat!on of the old company. granting 20
Z all theD rivileges and franchises Of the |
original concession. II is also 10 be sub
ice, 10 theo bligations and duties OF the
bid concern towards the United States.
is towards other creditors The capita.
stock Of the new corporation Is not 70
De allowed = exceed thea mount OF TIE
mortgage except upon the payment %
ash for additional stock. the secretary |
Il the interior 10 approve theS ame- The
purchasers ara 70 be required - rein
luish all claims % the companies IN
earned land grant. The provision Insert
ID by theh ouse that the company shsil
Dad traversas. is omitted in the agree
7ent-
AGAINST THE MONON.
Indianapolis. Ind. Jan. 22-Ju3Ee
.Noa.ls. in me circuit court To-Day enter
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