The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-06-28

Meaning of Bamberger'S Suit in
Light & Power Company Case.
RIVALRY FOR CONTROL
REPORTED MOVE OF TIE OLD
CoMPANY's STOCKHOLDERS.

When the time arrives for the settle
ment, by sale, of the foreclosure suit of
the Fa1mers' Loan & Trust company
VS.. the Union Light & Power company,
it is possible that there may be at least
two bidders in the field for the proper
ties covered by the old issue of mort
gage bonds.
In fact, it is admitted that the suit
of Simon Bamberger filed in the federal
court Tuesday, asking that he be per-
mitted to appear as intervenor in the
case. and also that a receiver be ap-
pointed to take charge of the property,
may mean that the present holders of
the bonds will not be permitted to Sc
cure the property at their own figures
without a contest.
1t is said that no thought of OppOsi-
ton had entered the minds of those
who supposed they had the situation
we'll in hand until Mr.. BambeFger made
this latest move, and there has been
much speculation as to who the rival
bidders might be.
1t is generally accepted, however.
that there is being formed a syndicate
Union Light & Power company, who
claim that they were frozen out when
the reorganization occurred and the
Utah Light & Power company was
formed, and they viii make an effort
to secure control of the property.
Will Have Strong Opposition.
Mr.. Bamberger was out of town last
evening, and no definite information on
this point could be obtained, but it is
said by some conVersant with the sit
uatiOn that the Utah Light & Power
company, which is acting only passive
ly in the premises, will have fOrmid-
able opposition from the financial
hackers of the minority shareholders
in the old company. Officials of the re-
organized company admit that they
will have to prepare for the anticipat-
ed sale, and if they expect to retain
control they know they must also be
prepared to out-bid rivals for the mas
terry of the situation.
In his petition to the court asking
that he be allowed to file a complaint
in intervention against the old com
pany and have a voice in the matter of
the appointment of a receiver, Mr..
Bamberger alleges that unless a re-
ceiver is appointed it will be impOs-
company to realize the full value Of
their property. AS one of the old share
holders who refused to go into the lat
est reorganization scheme, the petit
toner asserts his right to intervene
with his complaint in the foreclosure
proceedings.
The hearing on his petition will be in
the federal court on Monday.
Situation is Explained.
Mr.. Critchlow of the law firm of
Pierce, CritchlOw & Barrette. who
drafted the petition for Mr.. Bamberger,
threw more light on the case yester-
day in statement to The Herald. He
said:
Mr.. Bamberger was a stakeholder
in the Union Light & Power company
when it was organized, and the reor-
ganizatiOn, when it became the Utah
Light & Power company, took place
his assent. This suit brought
by the trust company to quiet the title
is friendly one, and as we allege, they
are acting only in the interest of the |
present power company. But Mr.. Bam-
berger is a member only of the old
and unless he looks out for his
rights it will mean a whole lot to him,
in this way:
Everything over and above that |
mortgage held by the Trust company,
after the sale of the property, goes to |
the stockholders of the Union company.
They of course. for that reason, want |
It to sell for as much as possible. On |
the other hand, the present stOckhOld- |
ars, being in the new company, do not |
care what the property brings. A small |
figure would be just as satisfactory to |
them as a larger one, and if they are |
IDr
chances are they would let the property
go on the basis of its original appTaise-
ment of $4,500.000 made in 1897, at the |
time the company was organized, when |
as q matter of fact the value Of the !
property is far greater-the improve
ment and enlargement has been great |
than the Indebtedness of the COM
pany.
Want Receiver.
Now, unless a receiver is appointed, |
this fact will not be taken into consid- |
grafton. There must be some one to
get the property together and advise
the prospective purchasers as to what
is there, before they can bid inteIH-
gently, and thus make matters fair for
Mr.. Bamberger and the stockholders
situated similarly with him. That is the |
ground upon which our petition is
made"
Explaining further, Attorney Critch- |
low said that the bondhoIders, many of
whom are shareholders in the old or
Union company, as well as in the new
Utah company, had consented to scale |
down the amount of securities held by
them and take bonds and preferred
stock in the new company. AS far as it |
'elates to his client it meant that shares |
IN the new company would be subjected |
to such heavy fixed charges that the !
matter of dividends would be very re-
mote before getting around to his COM |
mon shares.
Another consideration is that there |
are said to be a large number of prior !
len hnndS out ST ndincc hut 1rhat hnr.