The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-05-14

. gage of November. 1886 The company. it
/ is set forth, executed a mortgage TO these
3 trustees Aug >. 1881
I 1t is charged in the complaint that
/ these trustees with Charles II. Tweed,
/ isaac T. Gates. Maxwell Evarts h L.
Huntington and the officials % the follow
I ing railroad corporations. the Western
! and Central Pacific Of California, the
2 Central Pacific of Utah. the Southern
Pacific Railroad company. the Southern
/ Pacific of Kentucky and the Central
Z Trust company of New York. have knOWl-
/ edge and have been parties to the va
! ri0us schemes. devices manipulatiOuss
/ combina tiOns. transfers and sales. and the
various incorpora lions of the various
/ companies for the purpose of defeating
I the payment of the first mortgage bonds
given by the companies of California
Bonds in Mills Hands.
1T is further charged that the parties
named I'm the action by contracts am
by stipulation with the United States
f government officials. have succeeded in
pldcing All Of the first mortgage bonds
In the hands of II o. Mills the trustee
named under the said mortgage.
The petitioner therefore prays that the
defendants be compelled 90 render
sworn statement and make a fun and
I perfect ACCOUNTING OF the money and
bonds liz their hands or under their con-
troll or that come 70 their knowledge,
. known as the first mortgage bonds on the
Western Central P9cifie Railroad com
I'any OF California. being TlIOTrga yes on
/ the roadbe0, telegraph lines and an its
/ franchises. and that upon "a final hear
/ ing this court may decree that at the time
I of the death of Charles 1lIrkee7 June a.
I 1870. he was -the sole owner in his own
/ right OF all the first mortzage boisds- on
I the property named 10 the extent ef ana
/ equal 10 the amount of The government
bonds namely S-S-6l6.000, with per cent
interest from the date Of the issue Of the
( bonds payable in gold. and the ItetitoneTr
prays the court 70 name Il DAY upon
which the sum shall be paid or a judg-
ment rendered. in favor of the admins
I traitor, John A. Ku-kendall.
ForecIosure Of Mortsagee4
/ In the second action similar petition
| is made for foreclosure Of mort CAGES
against the Union Pacific company. The
defendants I'm this action are the Union
! Pacific Railroad company. + Gordon
/ Dexter, oliver AmeS. Union Pacific Rail
] w. D. Cornish, WinslOw S. Pierce, ChaIIn-
/ Cey NJ Depew. Marvin Hewiee. John +.
1 Dillon, George J. Gould, Louis Fitzgerald.
/ Alva W. Kreicht, Alex Millar, Jacob
! Schiff r jefferson Coolidge. IT.. Kuhn,
1 Loeb Co, J. PierpOnt Morgan, South
{ ern Pacific company OF Kentucky. South
{ camille Trust company. the Northwestern
Trust company, the Sioux City & Pacific
Central Railroad company
Caused the BLACK Friday"
1t is an interesting fact that the bonds
involved in the litigation were respon-
sible for the famous panic known as
/ Black Friday They had been held IN
trust in the New York sub-treasury
vaults, but i'm some way they got into
circulation. Charles Folger. then secre-
tary Of the treasury. called them in and
this shrinkage in the money market
/ brought on the panic Before his death
President Mckinley had interested him
self in the recovery Of the bonds Tor
the estate.
There is also an interesting story con
nected with the appointment OF John a
FuykendaU as administrator Some of
these affairs have been familiar to the
people of Utah and the United states,
but in the long lapses of time they nave
faded from the public memory The pres
eut valuable bonds which. it IS alleged,
are held by the estate of Charles Dur
Jzee were secured at a time when all the
Pacific roads were in their infancy and
when the transcOntinental road which Is
now known as the Hartman system was
first building across the country.
Contractors Paid in Bonds.
At that time the contractors of the Union
Pacific and of the other Pacific roads
all the bonds they could upon the con-
tractors. The Union Pacific was an eX-
[ pertinent and IL was not believed that
| the road would ever be a paying VEN
ture. Half the money for the cOustruc-
ton of the road was through an act OF
/ congress furnished by the government.
I Subsequently Mr. Durkee. who was a
wealthy man then residing in Salt Lake,
bought them up Most OF the bonds were
bought for as low as 10 ard 10 cents on
[ the dollar. Some Of the bonds of the
roads which afterwards became part of
the Southern Pacific system We're sold
By c. p. Huntington for as low as .
[ cents on the dollar.
me bonds had to run for thirty years,
I and il was not until last year that the
I last Of them expired. The government
loans were secured by only second mort
gage bonds This fact. ii is suspected
accounts fer the interest Of the govern
! ment in assisting to avoid the pay InenJ
of the first mortgage bonds. Were these
paid at this time there would be nothing
] left to secure the government
Death of Charles Durkee.
At the time of his death Charles Durkee,
o who was member Of the banking Ilrm
] OF Durkee & Kerr, had started east 10
Z negotiate for the sale OF the bonds. which
Z were becoming valuable lie mad hoi
20 been in good health, and when ne reachee
D.. : Omaha ne had 20 give up the journey
: His illness took an alarming turn and ne
: died The shock affected his wife. whe
has never recovered. She Is now living
B. ia Wisconsin but She fHas prevented by
- nervous difficulties from taking an in
: Jerest in the business affairs OF her nus
band and there was no one. appareltlS
left 70 take mp the work where Mr. Dur
, 1ee dropped il. Gradually the bonds Drift
! ed into the hands of the trustees OF The
: first mortgage bonds.
The salt TO recover the Va ne Of INK
bonds wa first brought against che gov
/ eminent because il was believed that the
COVER ument held them il was sh0TT
that the government did have possession
z of the bonds. although the fact was siren
2 u0usiy denied. The suit was first entered
{ in the court of claims AT washington. IT
2 . the fall of Sc. Congress appointed com
= mittee To pay eff the Indebtedness anc
p settle uB the matter. some Of the mos
I distinguished men Of that tiIae were upOT
T. Z the committee among them president
r. Harrison, who was the Chairman. Tn
+ secretary of The interior. the secretary OF
[ the treasury and the attorney genera
e I were also anon the committee
Never Thrown Out of Court
r. The statement has been made that tn
e case was thrown out of the court by tn
{ government such a statement was MADE
S bv Secretary Gage. but ii was untrue
. The case was dismissed UDOu tho peu
H. zion of Mr. Euykendail, thc admins
y [ traitor so mo asserts. because the ease has
= Seen turned over 10 this COMMITTEES