The Sun. [volume] (Price, Utah) 1915-1932, 1920-10-01
COURT ORDER FOR SALE
RIO GRANDE ROAD
IS GIVEN
FEDERAL JUDGE SIGNS ORDER
FOR IMPENDING TRANSFER.
elimination Of Numerous Troubles
and Much Gossip-Westsru Pacific
Likely TO Take Control - George
Gould's Operations Brought This
State Of Affairs-Rsoe Recalled.

An order for the sale of the Denver
and Rio Grande railroad was signed in
federal court ut Denver, Colo, last
Friday by Judge Walter II. Sandborn.
Tho order was the result Of action
brought by the Equitable Trust com
pany Of New York A petition Of the
stockholders committee for post
ponement was heard and rejected.
The order must be signed by Judge
Robert T.. Lewis also before il be-
comes effective. Judge Lewis was
said to be in Western Colorado. The
order instructs William A. jackson,
special master, to advertise the sale
of the road for four weeks before It's
sale TO satisfy judgment Of $50, l07, r
4l1.43.
The action of the federal court in
ordering the sale of the Denver and
Rio 0randc road, was a realization of
the expected. According to law, the
sale will be held thirty days following
notice of sale. II is expected the no
tice will be published without delay.
There has been for some time wide
spread gossip ~ 10 the purchaser. The
general impression is that IL will be
the Western Pacific, which means
either n merger, or a common manage
ment That this presumption has
some official backing, is instanced in
the quoted remark Of prominent
Denver and Rio Grande official from
Denver recently, who when walking
through the Salt Lake City round
house, pointed 10 the "W. p. 10i" on
q Western Pacific engine, and said to
an accompanying local official, at
won't be long before you will be
working for those people. - Other,
and somewhat pcrsisteas beliefs are
that the Santa Fc aud The Burlington
may be bidders, more Likely the Inter.
As TO the Santa Fe, It will be reine'n-
bercd that there was n great race he
tween that company and the Rio
Grandc 10 reach the Royal Gorge
first, when the latter rond was started
west from Pueblo; but the matter was
compromised by the Rio Gfande
agreeing not 10 build south TO III
Paso, and the Sana Fe giving up fur
Their attempts to build west of Can
yon City.
The present court proceedings are
the elimination of suits begun some
. four years ago. when the Western
Pacific was sold. The Denver and
Rio 0rande had previously guarantee
ed through is directory, bonds of the
Western Pacific wherewith means
was raised TO build the road amount
ing 10 eighteen or nineteen millions
of dollars. The responsibility for this
is laid at the door of George Gould
who held a controlling interest in both
the Denver and Rio Gludc. and
Western Pacific roads. II was found
by the directors of the latter com.
pany, after the sale and reconstne-
ton, that the proceeds of the same
were insufficient 10 meet the road =
obligations, aud therefore called on the
Denver aud Rio Grande road to pay
ON is guarantee. But in the nenn
time il was found that the company
was entirely unable 10 meet any such
obligation. The New Western Pa
citio directorate Herewith applied TO
the courts through the Equitable
Trust company of New York for re-
lief, demanding that the deficit
, amounting then 10 approximately
! S32, 600 be made up with plus in
terest. Judgment was entered against
the Denver and Rio Grande in the
United States court for the southern
district of New York. The defendant
appealed The circuit court of APP
peals, however, affirmed the action of
the lower court, and the United States
! supreme court declined 10 interfere.
Following this the ease was trans
ferred 10 the federal court at Den
: Yer, which appointed "A receiver, A.
: S. Baldwin, who is also general
counsel for the Western Pacific. All
; creditors of the Denver and Rio
Grande were then ordered TO present
their claims within a given time. As
it was apparent the Judgment could
I not be satisfied except by wri. Of eX-
y eoution, the court at Denver ordered
J. "A sale.