The record-union., 1894-03-28
UNION PACIFIC SYSTEM.
WITH TELEGRAPH
ERS SETTLED.
Some Friction in the Proceedings in
the Case of the Denver and
Gulf Receivership.
snecisl to the REcoRp-UNToS.


OMAHA, March 27.-The hearing of the
Union Pacific-Gulf case was resumed
this morning in the United States Circuit
Court. The court allowed the Gulf road
to withdraw the demurrer already filed
and substitute an answer, but the attor-
neys of the Union Pacific were granted
the right to make replication. The wage
schedule will not come up before Thurs
day. The employees this afternoon filed
an answer moving to set aside the orders
Of Judge Dundy. Statements made by
the receivers in relation to the wage
schedule. ETC., were denied. a document
signed by the Chairmen of engineers,
firemen, conductors, telegraphers, train
men. switchmen and Knights of Labor
and attorneys was presented. They deny
any intention of striking.
This afternoon the telegraphers reached
a full agreement with the receivers, and
ended the long session with Receiver
Clark, General Manager Dickinson and
Superintendent korty, having settled
the wage question TO the satisfaction of
all concerned. The rules and regulations
governing wages and employment had
been settled yesterday, and to-day's
work was over the general wage sched-
ule. The agreement and contract Will go
to the court for confirmation tomorrow.
peal to the court by the telegraphers or
receivers in the affair of the telegraphers.
Until the agreement is filed In Court
nothing can be ascertained as to the de-
tails of it, but it is reasonable to suppose
that in view of the fact that the company
conceded all the men asked In the way
of rules and overtime pay for extra calls,
the men have made some concessions IN
the matter of wages. In fact, early in
the conference, when they were going
over the matter station by station with
Mr.. Korty, the men made several con-
cessions in The matter of salary and
specific points. 1t is likely, however,
that the concessions made in the matter
of wages are more in the line OF correct
ing inequalities and reduction where con-
ditiOnS have changed since the salary was
first fixed under the present schedule.
There was considerable warmth and
some friction in the proceedings before
Judge Caldwell in the case OF the Denver
and Gulf receivership. Attorneys Thurs
ton and Hobson indulged in several little
passages, until finally Judge Caldwell
suggested to Mr.. Hobson, who was
speaking, that he contine himself to mat
ters Of record, and cease the discussion of
extraneous topics.
The court was crowded when Henry
W. Hobson, representing Frank Trum-
bull, receiver of the Union Pacific and
Gulf road began his address. At the
very outset he took issue with the posi-
ton taken by Judge Thurston in his ad-
dress yesterday, when it was claimed
that the Denver and Gulf had not been
absorbed by the Union Pacific. MIR.
Hobson contended that since the Ist Gay
OF April, $780, the Denver and Gulf had
been entirely absorbed by the Union
Pacific. He said the records and reports
of the Union Pacific would show this.
Mr.. Trumbull represented no faction, but
came before the court more as repre-
sentative of the Union Pacific than the
receivers themselves.
This imputation OF sinister motive on
the part Of the receivers was promptly
challenged by Mr.. Thurston, and a rather
hot exchange occurred between the at
torneys. Hardly had this passed when
Mr.. Hobson took up Judge Dundy's
order directing the Union Pacific Rail-
road receivers to cease operating the
Julesburg cutoff, thus depriving the
Denver 4 Gulf of it's direct outlet.
Again, MIR. 1hurston came in, defend
ing Judge Dundy's action in the matter.
Mr.. Hobson asked the court to look at
all the equity of the case in deciding the
case itself. The court might decree that
bird should sing, but that would not
make a bird sing. The underlying and
consolidated bonds of the Gulf Company
amount to So, ,i26,000 all told, of which
the Union Pacific owns Sl3, ,02S, 900, the
public owning the balance. These bonds
were pledged, together with number of
other securities to secure the payment OF
collateral trust notes amounting to about
Sl9.O00,000 which had been issued by the
Union Pacific; that the par value of the
securities so pledged exceeded SlI0, ,000,-
600, and that prior to the panic OF 1893 the
actual market value Of the securities ex-
ceeded 500, 100000, and consequently the
Union Pacific had very large equity IN
these securities, and was bound for the
indebtedness whether the securities were
worth the amount thereof or not. In
1888 the Gulf Road earned, above
it's expenses and taxes, enough to pay all
it's interest charges on bonds other than
those owned by the Union Pacific. The
earnings for 1898, despite the disastrous
times, despite the fact that the Union Pa
citic had 10 use the line as break water
against competition, the Cuffs earnings
were over S450.00O.
He made the allegation that the Union
Pacific had charged up to the Gulf Com
pany $4,000 for taxes per month, which
be stated the receivers bad refused to pay
back to the Gulf Company, IN conse-
quence of which the Gulf Company is in
default for it's taxes for 1893. To show
that it was the intention of the Union Pa
cific receivers to carry out the terms of
the contract of April /, 1871, relative TO
the Gulf Company, Mr.. Hobson read an
affidavit from S. II. III. Clark, wherein
he stated that if he should be permitted
to continue as receiver he would insist
upon the specific performance of the
terms of the contract with the Gulf Com
pany. This affidavit was made on Octo-
ber 23. 1898, ten days after the Union Pa
cific road had passed into the hands of the
receivers.
1t being after o'clock Mr.. Hobson
asked permission of the court to con-
clude his argument in the morning, and
court adjourned until 10 o'clock to-mor-
row snorniDU