St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-07-28
union PACIFIC LOSES.
The Omaha Bridge Case Is
Settled for the Time
Being.
Justice Brewer Decides for
the Rock Island and
Milwaukee.
Full Text of the Opinion
Touching the Differ
ent Points.
Charges Against the Wiscon-
sin Central Are Not
Proven.

OMAHA. Neb., July 81. - Justice
Brewer decided the famous bridge case
this morning against the Union Pacific
and in favor of the Rock Island and
Milwaukee roads. Four questions were
presented and argued. They are:
First-Was the instrument as thus signed
and attested so authorized and executed as 10
become a contract OF the cOrpOratlonSt
SecOnd-If II was so authorized ana exc
cuted, was II ultra wires:
Third-If not ultra wires. was II contract
of which a court Of equity may compel spe-
cilc performance:
Fourth-lf il NAV. ought specific perform
ance to be decreed?
Regarding the first question, the court says:
THE instrument was signed by the proper
officers, duly authorized, approved, and was
binding" On the second point the court
held that the contract would not operate at
present to disable the Pacific from dlscharg-
ing its duties; while the Rock Island was let
into possession and use, the Paclhc.
was not put out of possession ana
use. The Pacific remained in undlsturbed
possession of its track, could operate all us
trains and discharge all the duties 1t owed;
The power to make such laws was bestowed
by the act of incorporation upon the stock
holders at the regular meeting; the contract
was approved by all the stockholders pres
ent, being two-thirds OF the entire number
Under these circumstances, the contract was
one which the corporation could make with
the government or the public. 1t was not
compelled by its obligations to the govern
ment to hold its track or property beyond tne
use of any other corporation. To the con
tention that the term of the contract was for
ninety-nine years, and that before 1t expired
the growing business OF the Union racine
would demand the entire, possession ana use
of all its tracks and facilities, and that the
lendgth of the term made that VOID
when might have been valid for years,
the court stated that no one could
foresee the future. If changed condilon
of affairs twenty years hence should MAKE
the full use of its tracks necessary TO the Fa-
cifc, the powers of a court OF equity would
be equal to the emergency. Furthermore
the government was not prevented DIV the
contract from stepping in any time whenever
its rights are abused, and compelling tne Fa-
cifc to fully discharge its duties. Neither
could it be said the contract was beyond the
powers of the Pacific 10 grant This contract
was simply one to convert to money the sur
plus use of part of its property. In con-
cIusion the court held that neither OF the OBJ
jections were well taken, and that the con-
tract was lot ultra wires.
Referring to the Republican Valley road,
the court said the Union Pacific company
owned substantially all the stock OF the
former and contracts by q company, the re
suit for the partial use Of It's property, snail
be paid directly to the stockholders, was
surely beyond the powers of the corporation.
The Judge entered into a general discussion
of the railroad situation. The court stated
that there was in the case a public interest
deserving of protection. The testimony
disclosed that before the contract was en-
tered into the Rock Island had deter
mined 10 build To- bridge across the
Missouri river at Omaha. and fill the gap be-
tween Council Bluffs and Beatrice by Its own
line. In conjunction with the chicago, NIL
Waukee & ST. Paul company 1t had secured
charter from congress and negotiations were
pending 10 secure the capital. s., 100000 or
So. 900, necessary for doing the work. Az
this point the officers of the Pacific sought
those of the Rock Island and prevented the
building of the bridge by means of the con-
tract now in question. The court held that
this was q case in which court OF equity
may decree specific performance.
On the question of compensation. the
court SAID that it was not unreasonable to
hold that $4,000, the sum fixed in the con-
tract, was entirely adequate. In closing the
court said the defendant sought the contract.
Its executive officers were gentlemen OF long
experience with the property and d 1I
gulshed ability as railroad officials. Ihere
was no concealment or deception no fraud
or unfairness on the part Of the officers OF
the plaintiff Relying on this contract the
plaintiff abandoned plans and negotiations
for an INDEPENDENT line, and has expended
over 81, 100000 in buildings from Omaha to
Lincoln. The decree will go for the plant
if as prayed for, and the same considera-
tons require that like decree be entered in
the case of the Chicago, Milwaukee d St.
Paul Railroad company.
At the conclusion of Justice Brewers
decision Judge Dundy proceeded to
give his views on the case dissenting
entirely from the opinion of his col
league. 1t was agreed that confer
ence be held between the parties, and a
decree of the differences between the
parties be submitted 10 Justice Brewer
on Wednesday morning.