New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-08
HIGH-PRICED RECEIVERS.
WALL. STREETS COMMENTS ON UNION
PACIFIC MANAGEMENT

WALL STREETS COMMENTS ON UNION
PACIFIC MANAGEMENT.
DIRECTIONS TO THE BIG SALARIES PROPOSED
AND TO THE LARGE NUMBER OF RECEIVERS
BAD INFLUENCE on THE LABOR PROBLEM
uAND1CAPPING A COMPANY IN MIS-
FORTUNE WHAT THE RECEIVERS.
SAY on THE QUESTION.
Wall Street yesterday echoed with emphasis
the criticism Of The Tribune the eXtravagant
basis of the recevership management OF the
Union Pacific Railway Company. Considerations
Of various sorts deferred many men from openly
expressing their dsapprova Of the suggestion
that five men should draw $4,000 from the treas
ury of the company in salaries as receivers.
while the bondholders and stockholders are left
without prospect of early relief from msfort
une But private opinions were freely given in
condemnation of the present organization of the
company and the policy of cutting down the
wages of employees while heavy payments are to
ne made to the men whose duties will for long
time consist Of little more than the operation
of the property. The abuses Of receiverships
have often been a subject of complaint among
the investors in roads which have by stress of
circumstances been forced into bankruptcy, and
the spirit of securty-hoders is not now such as
to brook any policy of tolerating high-prced
figureheads for companies which are unable to
earn fixed charges.
Friends Of the Union Pacific fear for its fate
at the hands Of INSCRIPTIONS politicians. The
complications growing out Of the Government
aid bonds offer to Congress a splendid opportu-
nifty for speculative manipulation Of this prop
erty, particularly as the Populist sentiment Is
now running riot in the Democratic party. The
work Of recognizing Union Pacific is met at the
start by this problem of how a reasonable set
Element can be effected with unreasonable poll
ticians. And while the struggle goes on, stock
holders and bondholders may ask themselves
how far will the unfortunate company be
.mked" for the benefit of friends who
"hgh at court? The operating of the Union
Pacific railroad men say. could fall into no bet
ter hands than those of the one receiver VINO Is
thoroughly familiar by years OF experience with
every point of strength and weakness or the sys-
TEN. But as one broker put the case yester-
day. II the road is to have superfiuous staff Of
managers under the authority Of the court-men
who are warm friends Of President Cleveland
who. can draw princely salaries out of the prop
erty's shrinking receipts what hope is there for
a speedy restoration of the company to its
owners. or for liquidation that will preserve
the rights Of creditors?
THE FALL IN SILVER COMPLEXITIES MATTERS.
Outside Of the troubles that lie In the way
Of extorting an equitable settlement with the
Government, the workers for reorganization
Of the Union Pacific have met obstacles on &C
count Of the continued decrease in earnings and
the aims Of some interests to partition the
property to strip the main line of profitable |
or necessary branches. The prostration Of the |
silver mining industry. accentuated now by the |
fall in the price of silver the lowest point |
ever reached. present a serious problem in the |
earnings of the Union Pacific. which lies in the |
heart Of the Western mining regions. If 10 this |
gloomy condition IS TO be added receiver
ship management. at excessive salaries and with |
superhuous members Wall Street people say
the outlook is far from bright. The question |
was asked by indignant brokers yesterday: How |
effectually can the receivers cope with the labor
troubles which may grow out Of the proposed
reductions in wages OF employees when the dis
contented workers expensive managing
establishment maintained for the benefit Of a
few lawyers. who are warm adherents Of the
Administration now in power? Financial men
anxious to weather the hard times with as
little friction between employer and employee as
possible. and general regret is felt that the
labor question on the great roads reaching to the
tacle OF high salaries paid to men who are pre-
pairing to cut down expenses by reducing the
earnings Of workers who are the least able to
bear the loss
The views Of Wall Street men, where canddly |
expressed, might be summarized by the remarks |
Of two brokers who generally represent opposite !
poles Of the speculation. W. b. Wheeler Is |
usually classed as bear but he spoke with |
moderation, although with decision, yesterday |
when asked for his opinion Of Judge Dundy's |
recent order relating to the right Of the Union |
Pacific employees to strike. mo Judge" said |
Mr.. Wheeler, who is conscious Of his obligations
will show any prejudice in dealing with the |
interests Of labor as they come under his J
jurisdiction. The liberty OF any man to leave his |
employment may not be abridged and the stand |
ing OF the employees of the railroads within their |
rights is as important and fully entitled |
TO protection as that of the employer whether he |
is an officer OF the court representative Of |
the stockholders. 1t seems unnecessary to have |
five men as receivers to manage the Union |
Pacific when did the work efficiently and |
successfully under the conditions prior to the |
receivership and the payment Of excessive |
salaries for their labors will not assist In the |
restoration of the company to solvency. The |
public interest would be subserved by the rigid !
scrutiny of expenses Of properties in the control |
Of the courts, for every one knows that In the |
instance Of many roads stiil a solvent basis
abuses of control IA ba