The Coalville times. [volume] (Coalville, Utah) 1894-1923, 1897-01-29

Salt Lake City. Jan. 17.-The Heral,
says The governments bill for fore
closure Of the mortgage on the Unlor
Pacific Railway company was yester
day filed In the United States circuit
court In this city.
The plaintiff Is the United States oil
America, by Judson Harmon. attorney.
general. acting In the premises by d.
ree,ion OF the president Of the United
States. under authority Of the tenth sec.
ton OF the act OF congress approved
May 7. 1878, and the defendants are the
Union Pacific Railway company. S. n.
II. Clark. oliver W. Mink. z. Ellery
Anderson. Frederick r. coudert and
John w. Doane. receivers. +. Gordon
Dexter and oliver hmes as trustees,
Union Trust company Of New York as
trustees, J. Pierpont Morgan and I'd.
win F. Atkins. az trustees, and the
Central Trust company Of New York.
as trustee.
The complaint IL a very voluminous
affair consisting Of about 90 pages print
ed In pamphlet form In which Il Il set
out that by act Of congress OF July {.
1904, the government undertook to aid
AID assist In the building OF a railroad
and telegraph line from Omaha west
through Nebraska, part OF Colorado,
Wyoming and part Of Utah, to connect
with the Southern Pacific road at point
five miles west Of Ogden, a distance Of
i,oSi % miles; that the government was
to have the first call on the company for
transportation Of malls, troops, .ele
grams and 80 forth, and that the com.
pany building the road. now known a.
the Union Pacific Railroad company,
should receive a grant OF a right OF way
Tor a single track and 400 feet OF land
on each side Of the track. also every al.
ternate section Of land. 6,o acres on each
side Of the road for the entire distance.
The act empowered the government
and the government did advance to the
company the sum OF $4,000 per mile Of
the road. except 900 miles In the Rocky
Mountain district, which was very ex.
penslve to build, and on Iso miles Of
this portion II advanced $4,000 per
mile and on the otter $50 rsiies S5a..
600 per mile. The loan was made from
time to time as each 20 miles Of the read
was completed and a. security for the
money the government accepted 6 per
cent mortgage bonds payable In 30 years
from the date Of issuance which, Ipso
fsrto, constituted a first mortgage on the
railroad and all the rolling stock there
on. The Interest was payable semi.an.
nually and Il was stipulated that { per
cent per annum Of the net earnings Of
the road should be applied to the ex.
tinetlon Of the debt until the whole was
paid.
On July J, 1864. congress passed an
amendatory act providing that Ge
railroad company might Issue first
mortage bonds to an Asount not ex.
eeedlng the amount advanced by the
government. such mortgage bonds to
rank as lien on the property prior
ana superior to the lien OF the govern.
ment, and such bonds were Issued In
1855 and are now held by F. Gordon
Dexter and the Ames estate.
II Is then recited that another amend.
atory act was passed by congress ON
May 7. 1873. providing that, as the com.
pany had defaulted In the payment OF
The interest on the government loan,
it, net earnings should be ap.
piled to the payment Of the interest.
Another act was passed allowing the
to Issue hrst mortgage bonds
on and for the construction Of a bridge
over the Missouri river between Omaha
ind Council Bluffs. These bonds were
ssued and are now held oy ]. Pier.
,ont Morgan and Edwin F. Atkins.
II Is then set out that the 81, lao. 900
u the Jo-year 6 per cent bonds issued
o the government became due on Feb.
!, 1896; $3.50, 600 became due on Jan. 1,
so7i SrS9rosIa will became due on
an. 1. 1893, and SlIS7,ooo will become
lue on Jan. !, 1899, the total Issue being
f17736,sI7.
The bonds which have already be.
ONE due have not been paid. and after
the portion of the earsIngs
m account of interest there Is due for
interest balance Of $4,000 5000, max.
ng total OF principal and interest Of
s6,ooLI7s3o.
II Is then alleged that the company
insolvent and that the government
ray redeem and clear of the first
iortgage bonds and demand a decree
( foreclosure on the property.
Plaintiff then prays that the court
inter- judgment for the amount claimed
nd that II the same Is not paid that
,e property be sold.
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