The morning call., 1894-03-28
WANTS ITS OWN.
Hobson Speaks for the
Gulf Road.
JUDGE THURSTON NETTLED.
Will Prove His Case When the
Time Comes.
ONE POINT SETTLED ANYWAY.
The Union Pacific Will Have No More
Trouble With Its Telegraph
Operators.

erable rmth and some friction in the
proceeding before Judge Cald we'll to-day
IN the case of the Denver and Gulf re-
ceivershiD. Attorneys Thurston and Hob
son indulged in several little passages un-
Til finally Judge Caldwell suggested to
Mr.. Hobson. who was speaking. that he
confiDe himself TO matters of record and
cease the discussion of extraneous topics.
The courtroom was crowded when
| Henry w. HobsoD, representing Frank
| Trumbull, receiver of the Union Pacific
and Gulf road, began his address. Al the
very outset he took issue with the position
taken by Judge Thurston in his address of
yesterday. when it was claimed that the
Denver and Gulf had lot been absorbed by
he Un on Pacific. Mr.. Hobson contended
that since the 1st day of April, 1890, the
Denver and Gull had been entirely ab-
| sorbed by the Union Pacific. He said the
| records and reports of the Union Pacific
would show this. Mr.. Trumbull repre-
sented no faction, but came before the
court more as a representative of the
| Union Pacific than the receivers them
selves.
| This imputation of a sinister motive on
! the part of the receivers was promptly
i
hot exchange occurred between the attor-
neys. Hardly had this passed when Mr..
| HobsOn took up Judge Dundy's order
directing the Union Pacific receivers to
cease operating the Julesburg cutoff, thus
| depriving the Denver aLd Gulf of its direct
| outlet.
Again Mr.. Thurston came in defending
Judge Dundy's actin in the matter. but
Mr. Hobson pursued bis argument, telling
the story of the consolidation. He said :
| AS to the hOcus pocus referred to yester-
| day by Mr.. TnurstOn, and the dark means
which he intimated had been at the bottom
OF the constructive mileage features, and
the bonuses, if there was any hocus pncus
it was between President S. H. ii. Clark
of the Union Pacific and the Denver and
Gulf"
Judge Tburston said Frank Trumbull
had opened al Office In New York and had
his solicitors at work there. as well as in
Denver. scalpiDg all the business be could
get and giving it TO the Gulf road.
I'VE deny that in TOTO" Mr.. Hobson
said. You made that charge in Denver
and was called down because you could
not su ubstantiare the charge"
II can now." REPLIED Thurston, warmly.
II have verified my statements, and if you
will bring in your payrolIs Will show you
what you are doing"
Mr.. Hobson maintained that the Union
Pacific should pay the interest on the Gulf
bonds from October Is to December 49,
I'VE DO not claim that it should be on a
constructive mileage of 3 to !. but on fair
basis of DIVISION" said Mr.. Hobson.
Judge Sanborn asked Mr.. Hobson
whether he contended that these claims
were binding on the receivers on the
ground that they were fair and equitable.
| Mr.. Hobson then asked the court to look
at all the equity of the case in deciding the
case itself. The court might decree that n
bird should sing. but that would not no AXE
bird sing. The underlying and consoli-
| dated bonds of the Gulf company amou Mt
to $50. 1000 all told. of which the Union
Pacific owns Sl3.02S. 200, the public owning
! the balance. These bonds were pledged.
together with large number of other secu-
rites. TO secure the payment of collateral
| trust notes, amounting to about S29. coo, 600,
which had been issued by the Union Pa-
cifc. The par value of the securities so
| pledged exceeded $4,000. .OC0, ard prior to
the anic of 1898 The actual market value
of the securities exceeded $50, ,000 O0O 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 1898 the Gulf road earned above its
expenses and taxes enough to pay all its
interest charges on bonds other than
those owned by the Union Pacific. In
1898, despite the disastrous times, despite
the fact that the Union Pacific had to use
the line as break W ater against competi-
tion, the Cuffs earnings were over $780,
600 net. He made the allegation tina. the
Union Pacific had charged up to the Gulf
company $4,000 for taxes per month,
which he stated the receivers had refused
to pay back to the Gulf company. in con-
sequence of which the Gulf company is
10 default for the taxes for 1898.
To show that it was the intention of the
Union Pacific receivers to carry out the
terms of the contract of April 1, 1891.
read an affidavit from Mr.. S. II. Il. Clark,
wherein he stated that if he should be per-
mitted to continue as receiver, he would
insist upon the specific performance of the
terms of the contract with the Gulf Com
| Ddny. uiS dluudNlt was mau0 on Oc-
| tober %, 1S93 ten days after the Union
! Pacific road had passed into the hands of
the receivers.
1t being after 5 o'clock, Mr.. Hobson
asked permission of the court to conclude
his argument in the morning. and court
adjourned until 10 O'Clock tomorrow.
The wage schedule case will not come
up before Thursday. The employees this
! afternoon filed an answer moving to set
aside the orders OF Judge Dundy In which
the statements made by the receivers in
relation to the wage schedule were denied.
The document is signed by the chairmeD of
the engineers. firemen. conductors, teeg-
raphers. trainmeD. switchmen and Knights
of Labor and the attorneys. They also
deny any intention of striking.
This afternoon the :elegraphers reached
a full agreement with the receivers and
ended their long session with Receiver
Clark. General Manager Dickinson and
Superintendent Korty, having SO tied the
wage question TO the satisfaction OF all