The Saint Paul globe., 1897-05-21
HAS THE CREDITS COMPANY RIGHT
TO INTERVENE IN U. p.
MATvTERSY
ARGUMENTS BEFORE SAMBORN.
SIOUX CITY CONCERN WILL STOP
PROPOSED SALE IF 1T Pos
SIBLY CAN.
MINNESOTA HAS SOME INTEREST.
Claimed That the Present Plans VIII
Cut Of Some of the Duluth
Trade.

n The petition of the Credits Commute
tion company for leave to intervene In
the case of the United States OF Amer
lea, complainant, VS.. Union Pac1nc
Railway Company ct al, defendants;
F. Gordon Dexter and Oliver Ames
Secord trustees complainant, VS.. Union
Pacific Railway Company ct al, de-
PENDANTS; Oliver Ames Secord and Sam
uel Carr, executors, compliments, VS..
Union Pacific Railway Company ct al,
defendants, was partially argued be-
fore Judge w. H. Sanborn, United
States circuit appellate judge, yeSter-
day.
There was a formidable array Of coun-
sell John c. Coombs and Henry j. Tay-
lor appeared as solicitors for the petit
tioners; Gov. George F. Hoadley, of
Ohio, and Gen. John W. Corwin, of
Omaha, for the United States; Winslow
S. Pierce and Judge John F. Dillon for
the Union Pacific reorganization COM
mittee, and the Union Pacific Railway
company.
Judge Coombs argued for the peti-
tioners. He said that the comprehen-
sive design and single purpose Of all
the said great public enterprises by the
petitioners was to promote and accom-
modate an Interchange Of traffic and
transportation between the country
west of the Missouri river at Sioux
City and the head of lake navigation at
Duluth, and there the usefulness and
value of all said railroad terminal
bridge properties depended upon such
tGonnection as may be made between
the same and the main line of the
Union Pacific railroad and the place Of
such connection.
He said that the Communication COM
pany was organized and acquired it's
properties and completed it's bridge for
the purpose, among others, Of securing
a connection with the Union Pacific
railroad by building, Or causing to be
built, a railroad from Sioux City in
generally southwesterly direction to
junction with the Union Pacific rail-
road.
He said that the petitioner was the
owner of one Of the first mortgage
bonds of the Union Pacific company,
and brought this action to protect it's
several interests for itself and all 9TH
ers in like situation.
tudes due from the Union Pacific, Mr.
Coombs said, were contained in the
10Th section Of the act Of July 1, 1862,
as follows: "Be it further enacted:
That any other railroad company now
incorporated, or hereafter to be incor-
pcrated, shall have the right to con-
, meet, their road with the road and
branches provided for by this act, at
such places, and upon such just and
equitable terms as the president of the
United States may prescribe"
He said that under this provision,
the president Of the United States must
fix the place of connection with the
Union Pacific railroad before any COM
pany desiring the same can be sure
that its incorporated location will con-
form Herewith.
Mr.. Coombs gave a full history Of
the building of the Union Pacific. He
let the light in on some of the pro-
ceedings, and scathingly denounced the
Union Pacific officials for misapplying
the governments funds and shutting
out the middle Northwest.
He asked for his rights, he said, af-
ter a generation Of deprivation. The
wrongs inflicted for the benefit Of this
single system were untold. He claimed
that the Union Pacific and the North
western systems had entire control Of
the middle Northwest, and had per-
slstently shut out competition.
Judge Sanborn asked the attorneys
for the respondents if they would be
willing to have inserted in the decree
a provision that the petitioner be al
lowed to make connection with the
Union Pacific.
Mr.. Pierce replied that the law COW
j., cred this point. They would agree to
"a mechanical connection.
, Gov. Hoadley said he would con-
sent to nothing, so far as Mr.. Coombs
nn6 I, i
he would be obliged to make further
concessions.
Mr.. Coombs said that his road had
not only the right to connect with the
Union Pacific, now in default, but also
with the Central Pacific, not in de-
fault.
There was no scope in the original
Union Pacific act for foreclosure on
behalf of the United States, in respect
to property which had already re-
verted to it. The attorney general was
ordered. to see that foreclosure was
judici9lly enforced. His interpreta-
ton of foreclosure was that it meant
The supreme object of the construc-
tlon of the road was to promote the
public interest and welfare, and to the
use and benefit Of which the govern
ment was at all times entitled.
The arguments will be resumed this
mornGng.
Minnesota has an interest in the out
come of the case to some extent 1t is
claimed by the Credits Communication
company that. If the reorganization is
carried into effect under the plan now
completed, that the Vanderbilt inter-
ests will secure monopoly Of all the
mammoth grain and corn interests Of
>the middle Northwest, and that in
stead Of having the benefit Of lake and
rail competition, that Iowa, Nebraska.
Wyoming, Kansas and Missouri must
pay tribune to the Eastern lines and