The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-12-28
JUDGE SANBORN'S ORDER,

|
Circuit Judge Sanborn Of the federal
court has directed the receivers of the
st. Louis & San Francisco Railroad
company to bring restitution suits
against certain present and former
directors Of the company. The petit
tion Of Niles, one Of the stockholders,
for permission to begin the action was
denied, but his attorneys were named
as special counsel for the receivers.
Furthermore, exclusive control of the
suits is vested in James w. Lusk,
chairman of the receivers, who lives in
st, Paul, and had no connection with
the Frisco prior to his appointment.
The suits are to be based on the
sale to the Frisco of feeder lines that
were promoted by syndicates in which
officials Of the road played a promi-
nent part, and by which they are
said to have profted to the ex-
tent Of many thousands The court
expresses GO opinion as to the
merits of the case. but makes the order
TO clear the atmosphere and place the
blame for wrecking the property.
Ever since the road was thrown into
bankruptcy there have been many
scandalous stories afloat, and the
French investors, who are numerous and
heavily interested, have claimed they
were victims of downright robbery.
Many of the American stockholders are
equally vehement in their deDuncia-
tion Of the men who controlled the
fortunes of the system. Unlike E. n.
Hartman who was builder instead
Of wrecker, and left magnificently
| equipped railroad system as his mouu-
ment, the Frisco directors are accused
of feathering their own nests while
tho property was allowed TO deteriorate
and finally pass into the hands Of
receivers.
| From time immemorial Hinsiders'
have been allowed to make enormous
profits in the construction of railroads,
and some immense fortunes have been
! built up by methods which would not
pass unnoticed in these days, even If
they did not result in criminal prose.
cutioD. There are some practices still
in vogue which are not prohibited by
law. but which merit the condemnation
of all fair-miuded mon. Here is a fla
grant example in the history of the
Frisco road:
Before constructing one Of the branch
lines, which were unloaded On the ST.
Louis & San Francisco, Gland ard
cash donations were secured as an in
dueenlent 70 the syndicate TO build the
road. out of which was taken sufficient
10 furnish right of way. depot grounds
and terminals. From the balance of
land and cash donations was realized
the sum of $4,000" These are the
words Of one Of the "insidersD who
reaped the harvest, but the whole story
is not contained in the admission. That
viii doubtless come TO light when the
matter is thresbed out in court,
The wrecking of the st. Louis g. San
Francisco aud the passing Of the divi.
ieni by the New Haven on account OF
the deplorable financial snnrl in which
that road finds itself as the result Of
high finance and an attempt 70 mo-
nopolize the traffic Of the New England
states, have given a black eye to every
legitimate railroad enterprise in the
United States. Investors are unwilling
TO risk their money in enterprises and
be left TO hold the bag while those In
control grab everything in sight and
mortgage the future
We have no sympathy with the popu-
listic war being waged upon the rail.
roads; we believe they are entitled 10
reasonable rates for tho services ren.
dered; We believe that the government
should make haste in providing addi-
tional compensation for the enormous
burden placed upon the ronds By the
inauguration of the parcel post sys.
TEN; We also believe that tho prosper
ity of the whole country depends 10
some extent upon fair treatment being
accorded the carriers.
But the rights of stockholders should