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Show WESTERN PACIFIC BONDS HELD GOOD Right of Old Bondholders to Recover on Guarantee by D. & R. G. Confirmed Con-firmed by Court. VNEW YORK, Jan. 4. The right of the old bondholders of the WesternTa-cifie WesternTa-cifie railway to recover on the guarantee guar-antee of their .bonds by the Denver Rio Grande involving about $32,000,-000, $32,000,-000, was confirmed today in a decision handed down in the United States circuit cir-cuit court of appeals here. It is stated that this decision which denied appeal from a ruling of the district court is final, since no question of constitutionality constitution-ality are involved. Nevertheless, it was announced after a meeting of the directors of the road that application for a review bv the United States supreme su-preme court probably would be made. The decision under ordinary conditions condi-tions would result in a receivership for the company, it was stated, but it is thought this would be averted on account ac-count of a provision in the president's proclamation placing the railroads under un-der government control by which attachments attach-ments cannot be levied against a railroad's rail-road's property. Shortly after the announcement of the decision Denver & Rio Grande stocks, both preferred and common, fell off sharply iu the stock market. The principal amount involved in the decision de-cision is $32,000,000, but the total amount it was said will be brought up to $38,000,000 by accrued interest to date. |