The morning call., 1894-03-27
AR. TRUMBULL'S SURPRISE.
An Answer on Behalf of the
Gulf Road.
rHURsToN GOES INTO DETAIL.
Shows Some Facts Heretofore Hid.
den as Well as Good Deal
of Feeling.


Denver and Gulf case came up for hearing
this morning before Judge Caldwell, and a
surprise was sprung by attorneys for
the receiver, Frank Trumbull. They with
drew the demurrer already filed and SUBJ
mitted an answer. in which, it is alleged,
the Union Pacific Company is not bank
rupt, but that it is in a fiuurishing cOndi-
tion, and its earnings cover the interest on
its bonded indebtedness, its operating ex-
penses and the payment due by law to the
United States Government, and in addi-
tion thereto a surplus.
Judge Willard Teller of Denver opened
the argument. He briefly reviewed the
action Of Judge Hallett in appointing a
separate receiver for the Denver and Gulf
road and placed before the court the differ
ences between Judge Dundy and Judge
Hallett. Judge Teller contended that
Judge Dundy's order absolviug the Union
Pacific from its contracts with the Denver
and Gulf was good law. The question Of
ultra wires was raised and thoroughly dis
cussed by Judge Teller.
E. Ellery Anderson, one of the receivers,
devoted his argument to the relation of the
receivers to the property. He went into
the different obligations laid on the re-
ceivers by the orders of Judges Dundy and
Halett. and held.that the receivers would
have to decide for themselves which court
TO obey.
Judge Thurston closed for the receivers
and went into the points of the contro-
versy in detail. He closed by stating that
tile Gulf Company existed under separate
organizations. At different meetings an
nuai elections were held, directors being
chosen and different officers selected. By
the same corporate power it came about
that both companies selected the same
officers One could no more say that the
Union Pacific operated the Gulf than that
the Gulf operated the Union Pacific.
The statement that the Union Pacific
operated through train from Council
Bluffs to Denver was not true. 1t was
joint train operated by two companies, the
Gulf and the Union Pacific. Judge Hal
letfs order appointing Mr.. Trumbull re-
ceiver called upon the receivers Of the
Union Pacific to deliver up The property of
the Gulf in the hands of the Union Pacific.
The Union Pacific had never operated
single line except its chartered line
given 1t by act of Congress. The
Union Pacific was never In possession
of the Gulf property except as Ii
operated the line In conjunction
with the Gulf Company. In the contract
they got no power on God Almighty's earth
except harmonious relations. He stated
the Gulf was in the hole nearly SS00,000.
and the Union Pacific had to take this
amount out of its treasury to make good
the deficit, Notwithstanding the construc-
tive mileage of three to one, which has
been growing for years. The ference
in arbitrary mileage would amount to
about 100000. In addition to that it
would require 100000 to make up the
Cuffs deficit, requiring the Union Pacific
to take out OF its treasury S1,20Q000 TO
make good the hocus pocus under which
the Union Pacific had worked.
One of the features of the contract was
that the Union Pacific should DO free
switching at Denver. In response to Judge
Halletts order 1t was doing tue Cuffs
switching at Denver and was getting moth
ing in return. 1t would be- noticed that in
the contract the Union Pacific was getting
nothing IN return. Judge Hallett also
ordered that the receivers should pay over
to Frank Trumbull moneys accrung be-
tween July and October 13
"By what power" said Mr.. Thurston,
'had Judge Hailett the right to name
these particular dates?"
The mode of procedure having been
somewhat questioned by the court, Judge
Thnrston proceeded to Tell the court what
had been done. Judge Caldwell, after
listening for some time to the argument of
Judge Thurston, remarked sententiously
that had there been hearing such as this
is he thought there would not have been
the differences now existing. He said that
as the proceedings had been ex parte it
had worked badly for all interested.
"You have rot Invited Mr. Trumbull
into this COURT" said Judge Caldwell.
NO." said Judge Thurston. because l
did not believe he would come, and had no
means whereby we could bring him into
this court of primary Jurisdiction because
of our inability to secure service, and il
was only through your Honor that he is
now In court"
Attorney Hobson stated that he would
regard 1t favor III the court would adjourn
until morning before being asked to CON-
mence for Receiver Trum bull, and Il then
being O'clock court adjourned until 10
O'Clock tomorrow morning.