The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-02-08
MILLIONS AT
STAKE IN SUIT
Action to Recover Mortgage
Bonds Of Hartman Syndicate.
DURKEE ESTATE PLAINTIFF
CASE IN WHICH OVER s55,ooo,-
600 IS INVOLVED.
DURKEE ESTATE PLAINTIFF

All the wealth represented in the
Hartman system of railroads is in
Volved in a suit entered yesterday
morning in the federal court The lit
5gation is the most important ever con-
sidered in the United States courts of
Utah, owing to the enormous interests
which enter into the legal controversy
and the vast sum threatened by the
action. The suit is brought by John
A. Kuykendall as administrator of the
estate of Charles Durkee, deceased,
and the amount at stake is over $55,-
900, 600. The defendants to the action
are the officials of the Hartman sys-
tenn and the officers of the lines which
eventually were merged into what is
now the Union Pacific railroad and
the Southern Pacific system.
The suit has created a sensation in
legal and railroad circles, owing to the
magnitude Of the interests involved. In
the petition it is stated that Charles
Durkee was the owner of the first
mortgage bonds issued by the COM
panies in the action and it is alleged
that the principal and interest are I'M
paid although the bonds are now due.
An accounting of the bonds is asked
for and the complainant asks that
judgment for the full amount be grant
ed by the court.
Execution OF Mortgages.
Under an act of congress approved
in July. 1866. the West Pacific Rail-
road company and the Central Pacific
Railway company executed and deliv-
cred number of mortgages bearing
dates July 25. 1865; Jan. 1. 1867; Nov.
70, 1896, and Aug. 5, 1897. Subsequent
~ the Western Pacific, a California
road, was consolidated with the Cen
trail Pacific. The first named road ex-
ecuted a first mortgage bond dated
July 1. 1859, for 81, 735. 900 and maturing
July, 1899, Nith per cent interest,
payable in gold. The Central Pacific
railroad executed a mortgage to secure
Its first mortgage bonds dated July 25
1865, for the sum of $6,37S 600, due Dec
]. 1899. The Central Pacific railroad of
California executed a, mortgage to Sc
cure its first mortgage bonds, dated
Jan 1, 1867, for the sum of $19, 500, 000
due in June, 1901, series E of the bonds
falling due in June, 1900. and series G,
H and l falling due in 1901, as stated
and all bearing per cent interest The
principal and interest on the bonds re-
main unpaid.
Durkee Bought Bonds.
The petitioner states that Charles
Durkee, in his life, bought, owned and
controlled all of the first mortgage
bonds. secured by the mortgages, equal
to the amount of the United States
government subsidy bonds. namely
2S.616,OO0. with per cent interest due
thirty years after date; that the said
bonds are due. both principal and in
terest. and unpaid to the estate of
Charles Durkee, deceased.
The petitioner further states that
the Central Pacific Railroad company
of California executed a mortgage of
Nov. %. 1895. TO cover the extension of
the Central Pacific extension first
v-fc 1c L 4
closes the fact that William E. Bar
ron, one of the trustees in the first
mortgage, was deceased. and that D.
.. Mills, one of the trustees under the
first mortgage bonds, and Ogden Mills
were made trustees under the mort
gage of November, 1896. The company,
1T is set forth. executed a mortgage to
these trustees Aug. 8 1897.
It is charged in the complaint that
these trustees. with Charles H. Tweed.
Isaac +. Gates. Maxwell Evarts, H. F.
Huntington and the officials of the fol-
lowing railroad corporations. the West
ern and Central Pacific of California,
the Central Pacific of Utah. the South
ern Pacific Railroad company, the
Southern Pacific Of Kentucky and the
Central Trust company of New York
have knowledge and have been parties
to the various schemes, devices, manip-
ulations. combinations. transfers and
sales, and the various interpretations
of the various companies for the pur-
pose of defeating the payment of the
first mortgage bonds given by the COM
panies Of California.
Bonds in Mills Hands.
1t is further charged that the par
ties named in the action, by contracts
and by stipulation with the United
States government officials, have sue
ceeded in placing all of the first mort
gage bonds in the hands of d. o. Mills,
the trustee named under the said mort
gage.
The petitioner therefore prays that