The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1897-01-24
GREAT SUIT BEGUN
Filing Of The Bill Of Foreclosure Of
the Union Pacific.
TT CAUSES LITTLE STIR
At Headquarters Prevailing sentl-
ment Is That the Move Is the
Best Thing That Could
Have Happened.

Omaha, Neb.. Jan. s3-Attorney Cen
eTal Judson l.. Harmon. through Spe-
cial Counsel John &. COrwin, filed In
the office Of the clerk OF the circuit
court Of the United States at noon to-
day Il bill calling for the foreclosure
Of the governments second mortgage
on the Union Pacific main line from
Omaha to ogden. and the Kansas Pa
ellie from Kansas City Ia Denver The
bill recites the acts OF congress prior
to the organization Of the company and
shows how the government got into the
ease, then recites the defaults In the
terms of the mortgage and calls for
decree OF foreclosure and sale In ac-
cordance with the terms of the mort
gage. Under the rules OF the court the
defendants have until the first Monday
In March Ia answer the bill. The re-
ceivers Of the Union Pacific. trust
companies and first mortgage bond
holders are made defendants.
Denver. Jan. 23-The clerk OF the
United States court at Denver received
n telegram to-day from John G, Corwin.
special counsel in the United States
foreclosure suit. saying he would arr
rive in Denver tomorrow to file u bill
In the foreclosure proceedings.
Omaha, Jan. s3,-lt Is believed In Off
the reorganization committee which
bought the oregon short Line and Utah
Northern will buy the main line under
foreclosure and again bring together
the segregated lines Of the Union Pa
cific system.
Washington. Jan. 93.-Chairman Pow
ers Of the Pacific railroad committee Of
the house says the de.erminatlo of
the government To foreclose the lien
against the Union Pacific will not af-
fect the action of the committee In pre-
pairing and urging the adoption Of the
cabinet commission bill.
Washington. Jan. 23.-Thc confreres
OF the two houses reached an agree
ment to-day on the bill for the reor-
ganization Of the Atlantic a. Pacific
railroad. Many provisions contained in
the house amendments are retained.
but the language OF most OF them were
changed.
St Louis. Jan. 23.-tTnited States Cir
cult Judge Sanborn has issued an order
authorizing the government foreclosure
suit against the receivers Of the Union
Pacific railroad.
Although the filing of the hill had
been long looked for there was no
demonstration at its reception. Clerk
Hills OF the circuit court was not in
his office when the private secretary OF
General Collector Kelly OF the Union
Pacific came I'm with the papers. Two
lonely reporters welcomed him. Clerk
Hills came In and the papers were
formally filed and thus the great suit
was begun with as little display as n
II were the most ordinary court rou-
tine OF the office. Al the Union Pacific
Headquarters there was little stir but
the officers declined to talk for publica.
tion. President and Managing Receiv-
er =. III. II. Clark expressed satisfac-
tion at the state of affairs. nut declined
to go into detail In discussing the
matter. II Is the prevailing sentiment
at the headquarters that the move liz
the best thing that could have come.
II IL in line with the policy advocated
by President Clark since the road fell
into It's present straits.
The petition describes the organiza-
tion of the Union Pacific railway and
recites all the acts of congress In re-
lation thereto. showing how the provi-
sions of the several acts have been
complied with by the company and by
the government. IL sets out that the
amount OF the first mortgage Is s29.-
22S's00 which is represented by the
trustees made defendants In the suit.
| The second mortgage is placed at $2I.-
| 236.5l2. IL also asserts that there has
been no payment on any of the bonds
except by the government. The peti-
tion also recites the building of the
Union Pacific bridge between Omaha
and Council Bluffs. and the issuance of
bonds as provided for by special act
OF congress and mentions J. Pierpont
Morgan and Elisha Adkins and the
| Central Trust company Of New York
as trustees for these bonds. II says
| that of the bonds yet to mature SIS.
| 9ls.512 will come due Jan. I, 1898 and
| s3.l57. 900 Jan. I. 1889: that all other
bonds have matured and have been
| paid by the United States and that the
value of the security held is not sufii-
eient to protect the debt.
The petition then gives a history of
the litigation In which the road has
been involved. and shows by wha,
steps the different defendants have
been brought In connection with the
| case, and ASK that the court determine
the priority OF the different liens and
how much money would become due
| after the decree has been issued. that
the lien OF the United States be ad-
| judged to be in It's proper order law
|
property: that the court determine
which. II any. lien is prior to the lien
| Of the United States. and that provi-
sion be made to protect said prior lien;
that upon the non-payment after a
reasonable time OF the amount. which
may be ascertained by the court To be
/ due and owing To the United States
government after giving all proper
/ credits. said lien mortgage and all
statutory rights of the United States
may be foreclosed and the premises
and franchises embraced therein sold
and the proceeds paid into the treas
ury of the United States and applied
| 20 the credit of the company, that the
master In chancery make true de-
scription OF the property Of the road
| subject 10 the lien Of the United States
| and liable To De sold TO satisfy said
lien: that the receivers OF the road be
! continued 10 this cause for the protec-
| tion and preservation OF the interests
of all parties hereto
one of the officials at headquarter,
when told that the hill In foreclosur,
had been fled this noon. said: TO tel
the truth, that Is one of the best things
that ever happened To the Union Pa
| cinc. Now We can break away from
the government and operate the road
along better lines. We can do busines:
| az the other roads do. free from ans
4 en,angleuents ~ the court Tp be- sure
il IL a long way to look ahead 10 tbs
complete solution Of the affair. hut not
| so far that we cannot see In the dir
future what the final solution Will he