The herald., 1894-03-31
THE UNION PACIF|C'S CONDITION.
Master Mechanic Mcconnell
Testities About Rules.
A Road That Has Paid No Dividends
for Ten Years.
Judge oaidwslPS Searching ExsmIna-
tion Into this Causss That Led toa
Reduction OF the En-
ployees' Wages.
B the Assnciatnd press

the Associated Press
OMAHA, March 30.-In hearing OF the
Union Pacific wage schedule, Master
Mechanic Mcdonnell testified that the
rules proposed by the receivers were
equable and should have been adopted
long hgo.
why were they not adopted long
ago2" interrupted Judge Caldwell.
because we would have had trouble
all along the line," replied Mcdonnell.
"Do you mean to say you came before
this court asking 1t to do something the
managers OF the road never dared to
DO 2" asked Judge Caldwell.
Later, the judge referred to the fact
that one OF the receivers is q merchant
in Chicago and another a lawyer in
New York, and added: Il don't see
why the receivers should come into
this court and ask changes in rules they
don't know anything about, when 1t is
conceded by the practical men who
managed the road that they did not dare
to make any changes"
After the recess, Mr.. McConnell's ex-
animation was continued. 1t was mostly
on the cost of engine service. Mr. Nc
Connell, in anewer to questions from at
torneys 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 long
and searching examination, in which
the court took an active part. He ad-
mitted that the reduction in wages had
been ordered without 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 something
must be done. There was an agreement
that notice should be given the men of
any pending reduction. When the
monthly salaried men we're reduced in
August the company had invited all the
employees into a conference on the mat
ter. 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, it WAS considered
the men had sufficient notice. Judge
Caldwell pressed Mr.. Dickinson on this
point, and he admitted that sufficient
notice had not been given. 1t was the
intention to make reduction in wages
anyhow, although the receivership mat
ter intervened and for q time delayed
the intended scaling down. The Union
Pacific has always aimed to pay as high
and in some cases higher wages than
neighboring roads. Judge Caldwell
went down the details of the work and
drew from Mr.. Dickinson much infor-
nation in regard to the practical opera
tion of railroad.
Oliver W. Mink, comptroller and one
of the receivers, followed Mr.. Dickinson
on the stand. His testimony was in re-
not paid 1;n condition ba OF the
had been decrease of 1000, 900 in the
net earnings of 1898 as compared with
thoHe OF 1892. In 1898 the company op-
Grated 1890 miles OF road total earnings
$40, ,652, ,066; operating expenses, includ-
ing taxes, $l4,474, l48; net earnings,
$6,177 ,9lS. In 1892 the mileage was
7673 earnings, $27, ,l0S 050: expenses,
S17, 1857, ,708; net earnings, $9.750, ,34I.
Judge Caldwell inquired concerning
Governor Pattson's report, which
showed that the bonds of the company
were secured and that the mortgages
covering the property were not worth
two cents on the dollar.
Mr.. Mink said that Pattison had been
misled.
The court read Pattison's report, which
showed that of the $109, 600, 900 of debt
covering the system $73,000OOO was
profit OF construction.
Mr.. Mink said the report of Governor
Pattison's conferees in the investigation.
which placed the profit at $43, ,0OO. 600
was not correct.
The court said he would rather the
government bad lost every dollar
it had invested than that the
men should suffer. He would see that
employees OF the company were prop
erly compensated and that their wages
would not be cut to admit of payment
OF the dividends. President CLARK fol-
lowed Mr.. Mink. He was not sworn.
Judge Caldwell saying it was unneces-
Hary. He was on the stand but a few
moments, his health being go feeble
that he could not stand the strain.
The examination threw but little 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
Caldwell. "We need you and the
county needs you. For six months we
will manage the road withou you"
When court adjourned it was the i'm
pression that the investigation would
be concluded tomorrow.
New YoRK, March 30.-A revised
statement of the earnings of the Union
Pacific for January. including the Union
Pacific, Denver and Gulf and the Den.
yer, Fort Worth and Texas, shows gross
earnings of $2,272,0 ,04l, a decrease OF
$889,35l. Net, $5s7, 23l; decrease, $4l9.
428.
NO CONCESSION GRANTED.
Tennessee Railroadors Arc Prsparinp