The herald., 1894-03-27
THE UNION PACIFIC IS SOLVENT
Arguments in the Denver and
Gulf Case.
A Big Surprise Sprung on the Union
Pacific Attorneys.
Brighter Prospects for the RsAtoratI on
OF Western Passenger Rates.
Local and Genexal RaiI-
road Notes.
Bv the Associated Press.

OMAHA, Neb., March 25.-The Union
Pacific, Denver and Gulfcase came up for
hearing this morning before Judge Cald-
we'll ,land surprise was sprung by the
attorneys for Receiver Frank Trum bull.
They Withdrew the demurrer already
filed and submitted an answer. II
alleges that the Union Pacific company
is not bankrupt, but that it is in -four
iehing condition, and its earnings cover
the interest and pay ment due by law to
the United States government and in
addition thereto a surplus.
Judge Willard Teller OF Denver opened
Gao argument. He briefly reviewed the
antion of Judge Hallet 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 con-
tended that Judgs Dundy's order abb
solving the Union Pacific from its con-
tracts with the Denver and Gulf was
good law. fN-
The question of ultra wires WAS raised
and thoroughly discussed by Judge
Teller.
e. 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 receiv-
ere would have to decide for themselves
which court TO obey.
Judge Thurston closed for the receiv-
ers. lie went into the points of the con.
troversy in detail. Judge Thurston
closed by stating that the Gulf company
and the Union Pacific company existed
under separate organizations. AT differ
ent meetings annual elections were
held. directors being chosen and differ
ent officers selected. BY the same cor
porate power it came about that both
companies selected the same officers. 1t
could no more be eaid that the Union
Pacific operated the Gulf then that the
Gulf operated the Union Pacific.
Thureton continued:
THE statement that the Union Pa
cifc operated q through train from
Council Bluffs TO Denver il not true. 1t
was Joint train operated by two COM
panies, the Gulf and the Union Pacific.
Judge Hallstt's order appointing MIR.
Trumbull receiver called upon the re-
ceivefs of the Union Pacific to deliver
up the property OF the Gulf in the hands
of the Union Pacific. The Union Pa
cifc has never operated single line ex-
cept its chartered line, given it by the
act of congress. The Union Pacific was
never in possession OF the Gull property
except ah it operated the line in con-
junction with the Gull company. In
the contract they got no power on God
Almighty's earth except harmonious re-
lations."
hole nearfg that the. Gull ~sHl5 ia Pie
cifc had to take this amount out OF it's
treasury to make good the deficit. Not
withstanding the constructive mileage
OF three to one, which has been growing
for years, the difference in arbitrary
mileage will amount to about $500, 900.
In addition to that it will require $780,
600 to make up the Cuffs deficit, requir-
ing the Union Pacific to take out Of it's
treasury $l,200,000 to make good the
hocus pocus under which the Union Pa
ciic has worked.
One of the features of the contract was
that the Union Pacific should do free
switching at Denver. In response to
Judge Ha!lett's order, in doing the Cuffs
switching at Denver the Union Pacific is
getting nothing in return. It 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 accruing between
July and October 10.
by what power" said Mr.. Thurston,
"had Judge Hallett the right to name
these particular dates?"
The mode of procedure having been
somewhat questioned by the court,
Judge ThurBton proceeded to tell the
court what had been done. Judge Cald-
we'll, after listening for some time to the
argument of Judge Thurston, remarked
sententiously that had there been a
hearing such as this 10 he thought there
would not have been the differences
now existing. He said as the proceed
ings had been ex parte it had worked
badly for all interested.
You have not invited Mr.. Trumbull
into this court" said Judge Caldwell.
me" said Judge Thureton, "because
did not believe be would come. and
had no means whereby we could bring
him into this court of primary iurisdie-
tion, because OF our inability to secure
service, and it is only through your
honors that he is not in court"
Attorney Hobson stated that he would
regard it favor If the court would ad-
journ until morning before being asked
to commence for Receiver Trumbull. and
1t then being o'clock, court adjourned
until III o'clock tomorrow morning.
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