| Show IXVOLVIXG HALF A MILLION II IAn I I-An Important UnIon Pacific Cuse Begun Be-gun at Portland I Portland Ore March PA railroad j i case involving over a half 1 million dollars dol-lars was begun in the United States dIstrIct dIs-trIct court today The case was that of I Henry Reed and other bondholders of the Oregon Railway 8s Navigation company I together with E McNeill receiver of the I Oregon Railway Navigation and the I Farmers Loan and Trust Company n trustee under the consolidation mor te consoldaton morgage i Of the Oregon Railroad Navigation I company to have the order appointing r ae McNeil receiver so modified as to absolve I him from the payment of the Indebted ness contrcte by the Union Pacific receivers re-ceivers in their operation of the Oregon Railway Navigation company Andrew P Btirleigh counsel for the Oreon Improvement Im-provement company and the Pacific Coast Steamship company asked to be made an I Intervener in order to secure 0 claim of about 515000 for coal furnished the Ore gon Railway Navigation company for the operation of the steamers Eider and Columbia and also t secure a claim of caIm SS000 due on the lease of the steamer State of California W W Cotton sec I rotary of the O R N was put on the i stand to show that Henry ReCd and others were stockholders of the Oregon Railway Navigation C B S Wood i then opened argument in behlaf of the 0 i R N He said the order appointing I McNeill which practically requIred Mo Nell to pay the outstanding claims was made throURh a misunderstanding 1 a of an I agreement previously made In New York by Interested parties pqrtes locking toward an amicable transference from the Union Pacific receivers to ReceIver McJTeli j The agreement arrived at In New York contemplated having the equity of the I claims adjudicated but owing to the fact that the agreement was reached during the great railroad strike last year the correspondence was carried on by wire and the counsel In fhs city did not fully ciy understand the nature of the agree 1he ment They therefore ask that the ar order be modified and that tlat orer modif tlat the cliimg po bP ore a masterlnchancerv to determine whether they shall ha paid by the Oregon Railway R Novation receiver or the Union Pacific receivers The answer of Te the Union Pacific re ceivers to the complaint of the Farm ers Loan and Trust company under which Mr McNeil vas appointed lfaNei receiver re-ceiver for the Oregon Railway Nay Igatlon company alleges there is du them as receivers about 117535 from operation of the O R N lines thaf the receivers expended in = pen1ed excess of ell receipts about 222706 In the operation of the lines and there wa < Wf outstanding Indebtedness amounting tf about S250723 all of which was ended e-nded in their operation of the O R tk N They allege thev expended bon 224000 for fuel supplies rails tie etc necessitated 9Y the flood of las May and June all of which WAS turn A nver to Receiver McNeil The pet tion for a separate reoejver for thr reeron Short Dine fe Ufth NoHherT will not ronje up before nsx t TJindava Judge Gibertf kite United tate Circuit court will not reach here fron San Francisco until that Sn Prncisco unti time |
