New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-07-28
THE OMAHA BRIDGE.
rur UNION PACIFIC's LEASE TO THE ROCK
ISLAND AND ST. PAUL STANDS
supeE BREWERS DECISION DEFEATS THE GOULD
rNTEREsTs-eoULD INVITES CON-

il
FERENCE FOR ARBITRAT1oN.
omaha. July 81 (SpeciaI.-The famous contest over
m. Union Pacific bridge between that company ana
Az. Rock Island and st. Paul lines decided in the
suureme Court day by Justice Brewer. The GouIo
interests defeated The contract as MADE by 'e
Adams administration for the lease of the bridge 10
those roads, decided to be legal In every respect
The court reviewed the building of the line from soutn
omaha TO Beatrice by the Rock Island the attempt oi
an, latter 10 use the tracks OF the Union Pacific In &C
cordance with tile terms of the contract, the suose
ouen appeal to the State court and the Nmoval Oh te
case TO the Federal courts.
The questions presented are: First, was the instru
ent so authorized and executed to be contract OF
the corporations7 Second If 1t was authorized ana
executed was il ultra wires Third, II not ultra
yies Is II contract Of which court OIL equity may
compel specific performance Fourth, II IL may ousht
specific performance to be decreeda
The instrument was signed and attested by the
proper officers. II approved by the executive
committee to which was granted. by the Board OF
Directors all their powers. Authority 10 mdNe ou0"
a delegation of power given to the ooaiu ny inc
bylaws Power to make such bylaws was nes'o"eu
by the act of incorporation sson the stocRouers nv
the regular meeting the contract was approved ny al
the stockholders present being wothros Oh inc eno
number The Union Pacific renamed IN 'uluisV"oou
possession Of its track. could operate au i'e ""is
and Discharge all the duties 1t owed the government
a. Tho nnblc II was not compelled to hold Its track
- rronertv hevond the use of any other corporation
II might do all the business offered and st'li nave
surpus use of its tracks II is for the interest OF
ths Government that such surplus use be converted
into money.
on.roc+ was not Objectionable. To the contention
1ot the term of the contract for 900 years. and
that before it expired the growing business OF the
Union Pacific would demand the use OF all its tracks.
the Court stated that while the business Of the Union
Pacific would probably increase, yet with increased
business as a rule come increased facilities. It was
not to be expected that the business Of railroad
would increase in the next twenty years in the
ratio as in the last Electric lines might supersede the
railroads.
II changed condition Of affairs should make the full
use Of it's tracks TO the Union Pacific the
powers OF a court Of equity would be equal to the
emergency The Government may step in at any
time when It's rights disturbed and compel the
Union Pacific fully TO discharge its duties.
The court took up the question OF the remuneration
provided for in the contract. Gentlemen of long ex
perience fixed $4,000 the to be demanded
and $4,000 that to be accepted. 1t was not IN
reasonable hold that $4,000 entirely adequate
1t was further objected that the Union Pacific did
large local business between Council Bluffs and South
Omaha. and that under this contract the Rock Island
might itself put on local trains and practically cut
off this source of revenue from the Union Pacific
while If built separate bridge the cost would be
80 great that II would be compelled to keep up rates.
Aside from the existence of quarrel selfinterest
would prompt tho Rock Island and st. Paul TO maintain
any rates which reasonable. If the Rock Island
should in any way abuse the privileges given by this
lease the courts open to furnish protection even
IL it is necessary 10 cancel the lease.
On the other hand the Rock Island had constructed
a lire from Lincoln to Omaha, and had expended
81 100000 in reliance upon this contract it and the
st. Paul abandoned their scheme Of building new
bridge II specific performance were refused, what
became of the investment? Long would be the delay
in prosecuting an action for damages and was there
any certainty in view of the heavily morgaged cond
Ton Of the Union Pacific that judgment could be
collected
The decree went for the plaintiff as prayed for
The considerations require that like decree be
entered in the case Of the Chicago, Milwaukee and
st. Paul Railway Company.
At the conclusion Of Justice Brewers decision, Judge
Dundy gave his views, dissenting entirely from his
colleagues. He stated that the Union Pacific guaran-
teed the Rock Island the use Of station, which the
no right to lease 1t to another company than II
had lease the house Of private citizen to another
person. The Union Pacific could never be released
unless the opinion reversed by the supreme
Court. 1t tied up the Union Pacific for 900 years,
while the other company might dissolve the contract
held that the laws of the State would be violated if
the contract enforced
Mr.. Gould Immediately invited the Rock Island and
Milwaukee people to conference Wednesday, that
further litigation might be avoided by submitting all
differences to arbitration.