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Show COLORADO- FEDERAL DISTRICT JUDGE ORDERS PROCEEDINGS f HELD If! D. a It G. TRANSFER Price to Owners of Road's Paper Set at $10,000,000 Under Conditions Residents of Utah Said to Be Financially Interested in Unfinished Deal KANSAS CITT, Mo.. March . Postponement of confirmation of the sale of the Benver & Rio , Orande railroad until March 25, daVlng which time the stockholders would be given an opportunity to purchase pur-chase the road Tor $10,000,000, - waa ordered today by Federal District Judge Lewis of Colorado sitting with Federal Judge Walter H. Sanborn. Attorneys for the stockholders, who are opposing the sale of the properties ordered by the court but not confirmed, con-firmed, presented objections to the confirmation and argued for a preliminary pre-liminary Injunction to restrain the confirmation. Leave also waa asked to file an amendment ancillary bill In equity to vacate all orders and Judgments Judg-ments relating to the Denver Rio Grande. Attorneys for the Equitable Trust company of New York, truatees for the bondholders of the road, opposed efforts to prevent confirmation of the sale. The Colorado Judge sat here for the convenience of the litigants who had to come from distant parts of the country. HEARD- ALL DAY. . Judge Lewis announced .the decision after an all-day hearing on an action to enjoin confirmation of the sale filed by the court November to st $5,000,000. "It ,1a ordered," the court Instructed, "unless the stockholders shall make s deposit of $100,000 with the clerk of the court and also cause such depositary deposi-tary to consent in writing that aald $100,000 may be and shall be- nald over to the receiver for the benefit of the property under administration, if the depositary falls to hid and purchase pur-chase the equities In the properties described In the masters sale for the sum of $10,000,000 or more wl'hlnj twenty avs after MarclTTi. t'nless no higher, bid is made or accepted. Ihe sate alrendv made will he confirmed." The court took under advisement several briefs filed by 'parties to the litigation. The order ss made In Kansaa City Is reflected locally, In that several Utah residents are believe to be Stockholders of the Denver Rio Grande railroad. Recently an order was made whereby where-by the Denver ft Rio Orande rhould be sold. The Western Taclflc Railroad Rail-road company became the owner at a public sale. 8lnce that time the court has been asked to confirm the sale, heading upon same taking place at Kansas City yesterday. The order of the court Is believed to meet the wlnhes of the stockholders stockhold-ers In that comment wss rife following follow-ing the sale to the Western Pacific that the Denver Rio Orande was worth vastly more than what the former for-mer pajd for It. j COVERS YEARS. The litigation affecting the Denver ft Rio Grande in the premisea dates, back several years. Tha Denver & Rio Grande railroad guaranteed the bonds of tha Western Pacific at the time of the construction of the latter road. It defaulted on the bonds which , were held by the Equitable Trust j company of New York. The trust company instituted proceedings and i obtained Judgment, calling ' for the payment of about $35,000,000. The the Judgment and the road went into the hands of a receiver A. R. Baldwin, Bald-win, vice president of the Western Pacific. The next proceeding was the suit Instituted to sell the road, the sale: being ordered and tile Western Pacific Pa-cific being declared the buyer. This j latest step aroused the stockholders of tha Denver ft Rio Grande who were successful yesterday In having confirmation con-firmation of the sale of the road delayed de-layed pending their making an offr to purchase the road for $10,000,000. MORE INVOLVED. While the offer of $10,000,000 will probably be made. It Is explained that this does, not mean the total liability I to be borne by the stockholders? It is assumed that all the stock the thareboldeia have will be added to the $1100,000 as assets for the road. 1 This la made clear In the fact that while the Western Pacific agreed to I pay $5,000.00 cash for the road, it Is understood that a certain amount of I shsres woud be given to the share-I share-I holders of the Denver A ,R:o Grande i under reorganisation for. as railroad officials point out. It would be superfluous super-fluous to consider that the Denver ft Rio Grande could be bought for $5,000.00 when the roadbed aione irrespective ir-respective of equipment, cost several times that amouoL |