The record-union., 1894-03-31
UNION PACIFIC WAGE SCHEDULE.
RECEIVERS SEVERELY REBUKED
BY JUDGE CALDWELL.
Admission that the Cut Had Been
Made Without Giving the Men
Proper Notice.
snecial to the RrcoRn.uN1ox.

OMAHA, March 30.-In the hearing of
the Union Pacific wage schedule, Master
Mechanic Mcconnell testified the rules
proposed by the receivers were equitable
and should have been adopted long ago.
"Why were they not adopted long
ago." interrupted Judge Caldwell.
Because we would have had trouble
ali along the line,' replied Mcconnell.
"Do you mean to say you came before
this court asking it to do something the
managers of the road never dared to do?"
asked Judge Caldwell.
Later the Judge referred to the fact that
one of the receivers was a merchant in
Chicago, and another a lawyer in New
York, and added: 81 don't see why these
receivers should come into this court and
ask changes in rules they don't know
ANYTHING about when it is conceded that
the practical men who managed the road
did not dare to make the changes"
After recess McConnell's examination
was continued. 1t was mostly on the
cost of engine service. Mcconnell, in
answer to questions from the attorneys
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 admitted
that the reduction in wages had been
ordered without sufficient notice having
been given the men. 1t was made be-
cause the earnings of the road had fallen
OF greatly during the year, and the man
ayers thought something must be done.
There was an agreement that notice
should be given the men OF any pending
reduction Even the monthly SalaIied
men were reduced. In August the COM
pany invited all the employees into con-
ference on the matter. Later the engine
men and trainmen had sent replies that
they would not agree to reduction in
paw. When the cut was made, in the
form Of an order given from the court, it
was considered that the men had sutfi-
cient notice.
Judpe Caldwell pressed Dickinson on
this point and he admitted sufficient no.
tice had not been given. 1t was the in
tention to make a reduction IN wages
anyhow, although the receiyershlp mat
ter intervened and for time delayed the
intended scaling down. The Union Pa
citic had always aimed to pay as high
and in some cases higher wages than on
neighboring roads.
Judge Caldwell went down the details
of the work and drew from Dickinson
much information in regard to the prac-
tical working of a railroad.
Oliver w. Mink, Comptroller and one
| of the receivers. followed Dickinson on
! the stand. His testimony was in regard
! TO the financial condition of the road. He
said the Union Pacific had not paid a
dividend in ten years. There had been a
! decrease of So, 900. 900 in the net earnings
1 of 1898 from those of 1892. In 1893 the
company operated 1850 miles of road.
! The total earnings were $50, ,652, ,066; oper-
ating expenses. including taxes, Sl4, 474,
! 1 20. Tn tJ,o
mileage was 1913; earnings, S27, los. .050;
expenses, S1I ,357, 70S; net earnings, So
! 750, 81.
| Judge Caldwell inquired concerning
! Governor Pattison's report, which
showed that the bonds of the company
we're secured on mortgages covering
| Droperty not worth two cents on the dol
| lar. Mink sald Pattlson had Deen mis-
! led.
The court read Pattison's report, which
showed that of the Sl09, 900 of debt
+ covering the system, S73, 100000 was profit
/ OF construction. Mink said the report of
/ governor Pattison's conferees in the in-
vestigation, which placed the proht at
i S43 600 600. was not correct. The court
I said he would rather the Government
j lost every dollar that it had invested than
/ +bat the men should suffer. He would
see that the employees OF the company
were properly compensated. and that
their W ages would not be cut TO ADMIT OF
payment OF divldends,
President Clark followed Mink: DE
was not sworn. Judge Caldwell saying II
was unnecessary. He was on the stand
/ b,,t o few minutes, his health being so
/ teeble that he could not stand the strain.
/ The examination threw but little or no
/ light on the question.
In conclusion, the court peremptorily
J ordered that Clark take vacation OF sew
eral months. 'You shall not commit
sujcide in the service of the company"
said Judge Caldwell. I'VE neeo you,
and the country needs you. For six
months we will manage the line without
you"
When court adjourned it was the I'M
preston that the hearing would be con-
cluded tomorrow.