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Show • • • J a:nua;ny 8, 1889 This evening, Hon. John Sharp and I.e Grande Young,, Esq., will leave for the east-. They will be · in Boston on the 16th, and attend the meeting of the Union Pacific directors. The principal business to be brought forward, effeot ·ing this region, is the extesnion of the road from Milford to California. · There seems to be ~ery probabi lity that this step will be favorably considered, and that within a· few months operations will commence on the e xtension. Another subjeet for discussion is the transfer of the Utah & Norther:p, ~' irhen i it shall be made into a broad gauge, into Malad Valley, thus retiring from Cache Valley,. As to changes relative to Union Pacific interests in this city, if any are made, it is probable that the Utah Central will become the representative of the u. P. and will maintai n its posit ion as a distinct organization. --·- - -- ---·-, ______ _ July 16, 1895 Judge Bellinger, in ordering the foreclosure of the consolidated mortgage • gave a brief oral decision. He paid little attention to the question of jurisdiction raised by the defense. He s ±d that the road was now in the hands of the Union Pacific receivers, who wene appointed by the court and were officers of the court. The road was controlled by the court, and the suits concerning it had · to be d e cided here. He said that the consolidate_d ~.mort g age, amounting to $10,000,000 was not -disputed by the Short Lines attorneys. They had not denied that it was valid, n0r that the interest due on the bonds issued under it had not been paid. In answer to the bill of complai nt filed by the trust companythey had not set up any claim aga .nst the legality of the mortgage. Then he went on to say that in the arguments which the Short Line attorneys made agai nst ·foreclesure, no objection to the plai n:tiff 's right to collect had been made. The objections ·were purely technical. They concerned merely the form of procedure i n the courts. The answer had said that the martgage was not f ully described in the bill, but it was not deni ed that the copy of the mortgage was ., true copy, a.nd it ·was therefore t0 be inferred that it was a correct copy. This decision means thl t the Or~gon Short Line & Utah Northern, or such ·.-. must be sold at public auction to satisfy the _Clo_nsolidated mortgage. The foreclosure is upon the failure of the company to pay its interest. Before any aation can be taken, the case must be heara and decided by two other United States judges-Sanborn of st. Paul and Merritt of Salt Lake. Part of the company's ·property is in Wyomi ng, which is in Judge Sanborn's circuit, and part in Utah, which is in Judge Merritt's district. It is presumed that Judges Sanborn and Merritt will concur in the opinion, 'and make decrees ta cover the entire property of the company. There may be much delay about it, because these judges may permit the Short Line attorneys to withdraw their answer to the bill of complaint, and file another, as they tried to do here. Should this be permitted by the other judges, it will mean further delay • It is understood that the road will be bought in at the foreclosure sale by the Ameriaan Loan & Trust company, subject to the first mortgage held by the Farmers' Loan & Trust company) and thus · secure · control of the road, as it desired to do by the appointment of separate receivers. |
