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Show COURT ORDERS OREM ROAD TO BESOLD Sale of Interurban Line To Take Place In Three Months SALT LAKE CITY, July 20 (U.R) The Salt Lake & Utah railroad, known as the Orem line, running between Payson and Salt Lake City, will be sold, probably in about three months, under an oral order by Federal Judge Tillman Till-man J. Johnson today. Sale of the Interurban road, which has been in receivership since 1925, was asked in a petition peti-tion by the Walker Bank and Trust Co. and the Reconstruction Finance Corporation, which together to-gether hold $400,000 worth of unpaid un-paid receivers' certificates. Objections Overruled Judge Johnson overruled objections objec-tions of a bondholders' committee which opposed the sale on the grounds that interest of the bondholders bond-holders would be better served by sale at a later date. The committee com-mittee represented $1,617,400 of $2,645,000 in outstanding bonds. The petition of the bank and the RFC asked that an "upset" or minimum price be set by the court to cover at least the amount of obligations against the receivership, receiver-ship, and also that B. L. Ball, present receiver, be allowed to bid . at the sale "to increase competi-' competi-' tion." The bondholders, in addition, asked that the minimum price be set high enough to insure a return re-turn on the company's bonds. Judge Johnson ordered that a further hearing be held to determine deter-mine priority of claims against the Salt Lake & Utah, and also to fix amount of minimum bid. After that the sale would be advertised ad-vertised and bids received 30 days later. The judge took occasion to criticize criti-cize "tendency of various federal agencies to work at cross purposes" purpos-es" when a representative of the treasury departament, which holds nearly $1,000,000 worth of company com-pany bonds, protested Ball being allowed to bid for the road. The RFC, another federal agency, agen-cy, had made the request which the treasury opposed. . Judge Johnson disallowed the objection. Wm. W. Ray and R.' L. Snod-grass Snod-grass represented the petitioners, Cal Rawlings, federal district attorney, at-torney, and E. T. Connolly, Boston, Bos-ton, the bondholders, and A. L. Hoppaugh, the receiver, who was neutral in the action. |