The Idaho Springs siftings-news., 1921-03-08
WAY CLEARED FOR
BURLINGTON R. R.
BUILDING PLANS
Dismissal of Suit Over Purchase
of Denver & Rio Graflde-
Government to Make Inn
mediate Payment of $780,
600, 900 Guaranteed Railroad.
(Routt County Scr tiasl.)


Two developments durutg the
past week, the DISMISSAL oi the suit
blocking conf, nation of the re-
ownership of the Denver & Rio
GrsBde railroad and the decision
by the government TO immed alely
pay the $500, 100000 guaranteed to
the railroads o, The connlry for the
period immediately following their
return TO private control, have an
important bearing upon the ful-
tilment of the plans 10 III ke ihe
Burlington system a trunk line from
coast to coast and to vastly improve the
transportation facilities of northwestern
! Colorado,
For over three months it has been
publicly known that the interests con-
trolling the Burlington were preparing
to connect the Moifat road, the Denver
e. Rio Grande and the Westeen Pacific
for use as an outlet to the Pacific coast
for the Burlington's Chicago Dsnyer
line.
While the plans, which include maxi
ing the Moffat road from Orostod to
Denver a link IN the new Burlin tan
! thru line, have been in progress for
Thong while, thry WEREN'T ciSclosef ID
I the public until last fail, when it became
/ known that the owners Of the Burlington
were the owners of majority Of ths
bonds of the Western Pacific, that the
committee of Western Pacific bond
holders which purchased the Denver &
Rio Grande at the receivership sale last
November represented the Burlington
interests. and that the same interests
already held some SO per cent OF the
bonds of the Moffat road.
The purchase of the Rio Grande was
necessary in order to allow an immedi-
ate Inauguration Of the transcontjaen-
tai service proposed. and ,hru friendly
interests controlling the Rio Grande
bonds the receivership sale was de-
nanded and held. Ne objection TO it
came from any quarter until it was
learned that the purchase was to be
made by members OF the Burlington
private family. Then attorneys identi-
fed with the Union Pacific brought suit
in the United States district court in
Denver. in behalf Of certain Rio Grande
stockholders, to prevent the sale. This
suit was denied aud the sale took place,
after which other suits were brought to
have confirmation of the sale withheld
by the court and TO have the sale set
aside on the ground of eollusion of inter-
locking directorates.
The sale of the Rio Grande to the
Burlington interests was on Monday
practically confirmed by the United
States circuit court of appeals iu St.
Louis, which upheld the action Of the
federal district court in Denver in de-
nying the stockholders the right 10 in
tervene.
At the time of the Rio Grande sale it
was announced by the purchasers that
the road, although owned by the same
interests as the Burlington and the
Western Pacific, would be raorgauized
and operated as an independent line.
thus avoiding conflict with the fedars
laws. It was also announced that az
proximateiy s12, coo, 00o woald be speni
in immediate betterments. ard Rio
Grande offieills have since disclosed that
those betterments will consist princi-
pally Of shortening the main line be-
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