The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1894-03-28

OMAHA, Nebl, March a..-Thers was co.,
siderable warmth and some friction Ia
the proceedings before Judge Caldwell to-
day in the case of the Denver and Gulf re-
Ownership ATTORNEYS Thurston aud
Hobson INDUCED in several little passages.
until finally judge Caldwell suggested
to Mr. Hobsou, who was speaking. tsat hs
eonfine himself TO matters o. record and
cease the discussion OF extraneous topics
The court was crowded when Heary w
Hobson. representing Frank Trumbuii re-
ce;ver OF the Union Pacific. Denvcr AMI
Gull road began his address. At the
very outset he took issue with the posi-
ton taken by Judge Thurston in his adj
dress Yesterday, when u was claimed tina.
the Denver aud Gut had not tsea sb.
sorbed by the Uuion Pacific. Mr. Hobson
cont=nded thai since the first day OF Apr.
1880. the Denver and Gnlf had been Ell
tirely absorbed by the Union Paci6r III.
said the records aud reports of thr Casou
Pacific would show this. Mr.. Trulnbuil
represented no faction, but came before
the court more rs representative af the
Union Pacific than the receivers theta
selves
This imputation OF a sinister motive ON
the part OF the receivers was promp IL
challenged by MIR ThnrS,"n aasi a
rather hot exchange occurred bst VEGA ti.,,
attorneys. Hardly had tails passed when
Mr.. Hooson took up Judge Dunay's or.irr
directing the Union Paeiic receivers 10
cease operating the Julesbarg eli. ihu-
de2riving the Denver and Gulf OF its direct
outlet. Again Mr.. Thurs on csule in. de-
Tending Judge Dundy's action Ia ths. mat
ter. Mr.. Hobsoa pursued h;s srgancat.
telling the story OF the consolidation. lie
said:
As to the hoeus pocus alluded % yes;eF-
day by Mr.. Thurston, ani tle dark sans
which he intimated had been a; the Hot ON
of the constructive mileage features, and
the bonuses. In there WAS any hocs.s pSclls
IL WAS between President ;. III H. Clark III
the Union Pacific AMI . H. III Clark
president OF the Union Pacific. Deayeg aud
Gulf
Judge Thurston said Frank Trum5ali
had opened an Office in New York AID bad
his solicitors at work there. we'll as la
Denver. scaiplng all the business be could
get aud giving it 10 the Gulf road
Mr.. Hobson-"We deny that in tote
You made that charge in Denver aud were
called down because you could not substan-
tiate the charge"
Mr.. ThurstoD, warmly-'I can now.
1 hsve verified my statements aud II you
will bring in your pay rolls / will show
you what you are doing"
MIR. Hobson maintained that the Union
Pacific should pay the interest on the Gulf
bonds from October Is To December Is
I'VE do not claim that it should DO on "a
constructive mileage OF 8 10 1, but upon n
fair basis OF division" said Mr. Hobson.
Judge Sanborn asked Mr.. Hobson
whether he conteuded that these claims
were binding upon the receivers on the
ground that they were fair aud equitable
Mr. Hobson then ssked the court TO look
at all the equity OF the case in deciding the
case itself The court might deere.
that bird should si0g, but
that would not make a bird slag
The underlying aud consolidated BOMBS OF
the Cult company amount TO e. ~. o0o
all told, OF which tue Union Pacific owns
Si3. U2s. 900. the pablo owning the balance
These bonds we're pledged, together with
a large number Of oth her securities. 10 Sc
cure the amount OF collateral trust notes
amounting u about SIS. 600 coo which bad
been issued by the u sioa Pacific. that the
par values OF the securities SO pledged ex-
ceeded sii0 OO0. 600 aud that prior TO the
panic OF s3 the actual market value Of the
securities exceeded 81 900 600, and con.s.
quentiy the Union Pacific had a very isr.se
equity in these securities AID Was
bound for the Indebtedness whether the
securities were wort the amount thereof
or not. Ia 1898 the Guit road esrI.d.
above It's expenses aud taxes, enough To
pay all OF its interest charges on bond.
other than those owned By the Union Pa
cific. The earnings for 1898. despite the
disastrous times. despite the fact that the
Union Pacific had TO use the iins As a
breakwater against COMPOSITION, thu
Cuffs earnings were over ts50 900
He made the allegation that the Union
Pacific company had charged up To theGnif
$1,000 for taxes per month,
which he stated the receivers had refused
to pay back 10 the Gulf Company. Ia con
sequence OF which the Gulf compaET 10
la default for It's taxes for 1895
To show that IL was the intention OF the
Union Pacific receivers 10 carry ouS
tho terms Of the contract OF April
!, 1890, relative To the cuff
company, Mr. Hobsoa read an AFFIDAVIT
ffom Mr.. 5. III. III. Clark. wherein bs statesi
that II be should be permitted to coatiDas
rs receiver be would insist upon ths sps
cifc performances of the contract With ths
5uf company. This affidavit was made
October Is. 1893, Ten days xfser the Unioa
Pacific road bad passed into the hands of
he receivers.
IL being after o'clock. Mr. Hob-on
asked permission Of the court 20 ccpciuds
-is argument in the morning. sad court
adjourned until 10 O'Clock sOrnorr0w.