The morning call., 1894-03-31
Why WAGES WERE REDUCED
Judge Caldwell Shows a Little
Temper.
MANAGERS DID NOT DARE DO 1T
the Court to Perform Work
Not at All to Its
Liking.

OMAHA, March 30.-In the hearing of
the Union Pacific wage schedule to-day
Master Mechanic Mcconnell testified that
the rules proposed by the receivers were
equitable and should have been adopted
long ago.
why were they not adopted long ago."
interrupted Judge Caldwell.
Because we would have had trouble all
along the line." replied Mcconnell.
do you mean TO say you come before
this court asking it to do something the
managers of the road never dared to dU?"
asked Judge Caldwell. Later the Judge
referred to the fact that one of the receiv-
ers was a merchant in Chicago, and an
other lawyer in New York. and added
Il don't see why these receivers should
come into this court and ask changes in
rules they don't know anything about,
when 1t is conceded that the principal men
who managed the road did not dare to
make the changes"
After the recess Mr.. McConnelPs exami-
nation was continued. 1t was mostly on
the cost of engine service. Mr.. Mcconnell,
In answer to questions from the attorneys
and the court, admitted that the cut in
wages had been made without giving the
men proper notice.
General Manager Dickinson was put on
the stand and subjected to a long and
searching examination. in which the court
took an active part. He admitted that the
reduction in wages had been ordered with
out sufficient notice having been given the
men. 1t was made because the earnings
of the road had fallen off greatly during
the year and the managers thought some
thing must be done. There was an agree
ment that notice should be given the men
of any pending reduction. When the
monthly salaried men were reduced in
August the company had invited all the
employees into conference on the matter.
Later the enginemen and trainmen had
sent replies that they would not agree to
reduction in pay. When the cut was
made in the form OF an order given from
the court ii was considered the men had
sufficient notice.
Judge Caldwell pressed Dickinson on
this point and he admitted that sufficient
notice had.n been gi ven. 1t was the in
tenlion to make reduction in wages, any
how, although the receivership matter in
tervened and for a time delayed the in
tended scaling down. The Union Pacific
some cases higher. wages than neighbor-
ing roads. Judge Caldwell went down
into the details of the matter and drew
from Dickinson much information in re-
gard 10 the practical operation of q rail-
road.
Oliver W. Mink, controller and one of
the receivers, followed Dickinson on the
stand. His testimony was in regard to
the financial condition of the road. He
said the Union Pacific had not paid divi-
dend in ten years. There had been de-
crease Of S3.000.O00 in net earnings of 1893
from those of 1892. Ia 1898 the company
operated 1890 miles of road. The total
earnings were $40. 662, ,O66; operating ex-
penses, including taxes, S14, ,474, 148: net
earnings. S6.177.91S. In 1892 the mileage
was 1913; earnings, S27, 10S. .050; expenses.
SIT 357, 7OS; net earnings. $3.50. .341.
Judge Caldwell inquired concerning
Governor Pattison's report, which showed
that the bonds of the company were
secured with mortgages covering property
not worth cents on the dollar. MIR.
Mink said Pattison had been misled. The
court read Pattison's report. which showed
that of the Sl09,0O0.000 of debt covering
the system, S73, ,000, 900 was profit of cou-
StIuCklODs AlbA edlQ tuO lCpOtt VI
Governor Pattison's conferrees in the in
vestigatioU, which placed the profit at
S43. 600. 900, was not correct. The court
said he would rather the Government lost
every dollar it had invested than that the
men should suffer. He would see that the
employees OF the company were properly
compensated. and that their wages would
not be cut to admit of the payment of
dividends.
President Clark followed Mr.. Mink. He
was not sworn, Judge Caldwell saying it
was unnecessary. He was on the stand
but few moments, his health being so
feeble that he could not stand the strain.
The examination threw but little or no
! light on the question. In conclusion the
court peremptorily ordered that Mr.
Clark take vacation of several months.
you shall not commit suicide in the
service OF the company" said Judge Cald-
well. I'VE need you aud the country
needs you. For six months we will man.
| age the line without you."
Whsn court adjourned it was the i'm
preston that the hearing would be con-
| cluded Tomorrow.
NEW YORK, March 3o.-A revised state
ment OF the earnings of the Union Pacific.
| Denver, Gulf and Denver, Texas and Fort
| Worth. show gross earnings of S2,272. 041.
decrease of $3.50. 351. Net S537,231. de-
crease S419. 42S.