The record-union., 1894-03-27
UNION PACIFIC RAILWAY.
SURPRISE SPRUNG by COUNSEL
FOR A RECEIVER.
Claim Made That the Company is No
Bankrupt, But in Flourish
ing Condition.
Special to the REcoRp-UN1ox.

OMAHA, March 26.-The Union Pacific,
Denver and Gulf case came up for hear
ing this morning before Judge Caldwell,
and surprise was sprung by the at
torney for the receiver, Frank Trum-
bull. They withdrew the demurrer al
ready filed and submitted an answer, in
which, it is alleged, the Union Pacific
Company is not bankrupt, but that it is
in tiourishing condition. and its earn
ings cover the interest on it's bonded in
oebtedness, its operating expenses and
the payment due by law to the United
States Government, and in addition
thereto 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
differences between Judge Dundy and
Judge Hallett. Judge Teller contended
that Judge Dundy's order absolving the
Union Pacific from its contracts with the
Denver and Gulf was good law. The
question OF ultra wires was raised and
thoroughly discussed by Judge Teller.
f.. Ellery Anderson of the receivers
devoted his argument to the relation of
the receivers to the property. He went
into the different obligations laid on the
receivers by the orders of Judges Dundy
and Hallett. He held that the receivers
would have to decide for themselves
which court to obey.
Judge Thurston closed for the receiv-
ers. He went into the points of the con-
troyersy in detail. Judge Thurston
closed by stating that the Gulf Company
and Union Pacific Company existed un-
der separate organizations. At different
meetings annual elections were held, di-
rectors 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 is not
true. 1t was joint train operated by
two companies, the Gulf and the Union
Pacific. Judge Hallett's order appoint
lug Mr.. Trumbull called upon the re-
ceivers of the Union Pacific to deliver up
the property of the Gulf in the hands of
the Union Pacific. The Union Pacific
has never operated a single line except
its chartered line, given it by Act of Con-
gress. The Union Pacific was never in
possession of the Gulf property, except as
it 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 a hole nearly
$500, 900, and the Union Pacific had to
take this amount out of its treasury to
make good the deficit, Notwithstanding
the constructive mileage of 3 to !, which
has been growing for years. The differ
ence in arbitrary mileage will amount to
about S500.000. In addition to that it will
require 100000 to make up the Cuffs
deficit, requiring the Union Pacific to
take out OF its treasury 81 ,200, 900 to make
good the hocus pocus under which the
Union Pacific has worked. One of the
features of the contract was that the
Union Pacific should do free switching
at Denver. In response to Judge Hal
lett's order, it, in doing the Cuffs switch
ing at Denver, is getting nothing in re-
turn. 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 accru-
ing between July lst and October 13th
"By what power" said Mr.. Thurston.
had Judge Hallett the right to name
these particular dates?" The mode of
procedure having been somewhat ques-
toned by the court, Judge Thurston
pEOCOGQtO W Icll LhO NOu1O villa bdu DS6u
done.
Judge Caldwell, after listening for
some time to the argument of Judge
Tnurston, remarked, sententiously, that
had there been hearing such as this is,
he thought there would not have been the
differences now existing. He said, as the
proceedings had been ex parte, it had
worked badly for all interested.
You have not invited Mr.. Trumbull
int Tn cai1 oil
NO" said Judge Thurston, because I
did not believe be 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 it was only through your honors that
he is now in court"
Attorney Hobsen stated that he would
regard it favor if the court would adj
journ until morning before being asked
TO commence with Receiver Trumbull,
and it then being O'Clock, the court ad-
journed until 10 o'clock tomorrow.