The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-01-23
U. P. FORECLOSURE.
Proceedings to Foreclose the Union
Pacific Are Begun.

racine are begun.
ST Louis, Jan. 23.-United States Cir
cult Judge Sanborn has issued an order
authorizing a foreclosure suit against
the receivers of the Union Pacific rail-.
way
The government representative who
appeared before Judge Sanborn is Gen.
j. G. Gowan of Omaha Gen. Gowan
kept his mission a secret but quietly in
timated to Judge SanbOrn during the
course of the day that he might pro-
badly desire an audience before the
night ended. At a late hour last night
Gen GOWan appeared at the hotel and
was Immediately admitted to the room
| of Judge Sanborn, where a proceeding
| in chambers was duly begun with the
| usual formalities.
The attorney for the government was
| provided with a VOluminOuS document
| which was produced and proved to be
| a bill praying that the lien of the Uni
ted States on the Union division of the
Union Pacific railway be foreclosed. 1t
| is the practice of the United States
| court in proceedings against properties
| in the hands of receivers not to permit
suits to be filed against them without
| the permission first had been obtained
| from the judge in whose circuit the
property is located.
Accordingly, Gen. Gowan asked for
an order of court for leave to sue the
| receivers, who were appointed at the
| instance of the first mortgage bond
holders 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 condition that the govern
ment appear in the suit brought by
Dexter and others, trustees for the first
mortgage bondhOlders of the Union Pa
cific railway, the United States, and
others.
Gen. Gowan entered an appearance
for the government in the Dexter suit
and asked leave to answer on or before
the rule day of the court in March. The
permission was granted, the necessary
orders were Immediately made, and
messenger was at once dispatched to
Omaha, Neb., where the orders and the
bill for foreclosure will be filed.
The Union division of the Union Pa
cific railway on which the government
seeks to fOreclose its second mortgage,
! extends from Council Bluffs, Ia, to Og
| den, Utah, and embraces 1,O43 miles out
of a total mileage operated by the COM
pany of 4,903 miles. Receivers for the
! entire property were appointed in OctO-
| Der, 1898. The receivers are S. H. H.
| Clark, oliver w. Mink, E. Ellery An
derson. John w. Doane and Frederick
THE NEWS AT OMAHA.
Chicago, ILL.,. Jan. pa special to
! the Tribune from Omaha. Neb., says:
The announcement of the plan of set
| Element of the great Union Pacific debt
| created a sensation in Omaha. Much
| speculation is INDUCED in, but officers
| of the company are not inclined to talk.
President and Managing Receiver S.
II
! There is absolutely nothing in Union
| Pacific affairs that has not been pub
| Iished. I have noticed in the press
| dispatches from New York that Mr..
| Sage and Mr.. Gould and the Union and
| United States Trust companies were
! opposed to eliminating the government
| interests in the Union Pacific, but that
| is all that 1 know of it. l know moth
| ing personally of the matter. The fact
| is that L know comparatively little re-
garding the plan of the reorganization
| committee and the government direct
| ors of the road"
The situation as at resentinterpreted
| means of course, that Mr.. Clark will
| continue the head of the great system
which has so long been in his care.
| of the Union Pacific who are in touch
! with the powers believe that the Segre-
| gated lines will soon be again a part of
! the whole There is a growing belief
| among those officials that the reorgan-
| ization committee which few days
| ago purchased the Oregon Short Line
| and Utah Northern will buy in the re-
naming fragments of the system when
| offered for foreclosure sale by the gov
! eminent They are particularly anx-
| ious to believe such a purchase to be
| most likely, as that would indicate that
! there would be no changes in the man
| agement and the roster of officials
would then remain just as it appears
| today.
| frmed the belief of the hopeful that the
| purchasers of the Union Pacific will be
| identified with those who bought the
Short Line is the issuance of an order
by the receivers directing the Union
Pacific to make contracts for the an
nuaI supply of cross ties for the Oregon
Short Line and the Utah Northern rail-
way. They will be cut in Oregon and
used on the Short Line.