The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1894-03-30
CALLED TO ORDER BY CALDWELL
Courtroom Crowded With Spectators
Thurston Defended Judge Dundy
and His Action.

/ blQ6IdDI6 Sp1rf10g anu some Ir1cIlO4 IN
the proceedings before Judge Caldwell
Tuesday in the case Of the Denver and
Gulf receivership. Attorneys Thurston
and Hobson INDUCED in several little
passages, until finally Judge Caldwell
suggested to Mr.. Hobson, who was
speaking, that he confine himself to mat
tiers of record and cease the discussion OF
extraneous topics.
The courtroom was crowded when
Henry w. Hobson, representing Frank
Trumbull, receiver of the Union Pacific,
Denver and Gulf road, began his adj
dress. At the very outset he took issue
with the position taken by Judge Thurs
ton in his address Monday, when it was
claimed that the Denver and Gulf had
not been absorbed by the Union Pacific.
Mr.. Hobson commended that since the
LIST day of April, 1890, 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
a representative of the Union Pacific
than the receivers themselves.
Hot Exchange Between Attorneys.
This imputation of a sinister interest
on the part of the receivers was promptly
challenged by Mr.. Thurston, and a
rather hot exchange occurred between
the attorneys. Hardly had this passed,
when Mr.. Hobson took up Judge Dundy's
order directing the Union Pacific receiv-
ers to cease operating the Julesburg cut
off, thus depriving the Denver and Gulf
of its direct outlet.
Again Mr. Thurston came in, defend
ing Judge Dundy's action in the matter.
Mr.. Hobson pursued his argument, tell
ing the story of the consolidation. He
said:
LAS to the hocus pocus alluded to by
Mr.. Thurston, and the dark means which
he intimated had been at the bottom of
the constructive mileage features and tie
bonuses, if there was any hocus pocus, it
was between President S. H. H Clark of
the Union Pacific, and S. H. H. Clark,
president of the Union Pacific, Denver
and Gulf
Judge Thurston said Frank Trumbull
had opened an Office in New York and
had his solicitors at work there, as well
as in Denver, scalping all the business he
could get and giving it to the Gulf road.
HObson Denied 1t In Toto.
Mr.. Hobson said, eve deny that III
toto. You made that charge in Denver
and was called down because you could
not substantiate the charge
81 can now,'' said Mr. Thurston, show
ing considerable warmth. 81 have veri-
fed my statements and if you will bring
in your pay rolls I will show you what
you are doing" The court intimated
that the speaker had better go on with
his argument.
Mr.. Hobson maintained that the Union
Pacific should pay the interest on the
Gulf bonds from Oct. ID to Dec. 10. 1--WE
do not claim that it should be on con-
structive mileage of to 1, but upon a
fair basis of division" said Mr.. HobsOn.
Judge Sanborn asked Mr.. Hobson
whether he contended these claims were
binding on the receivers on the ground
that they were fair and equitable.
Must Look at the Equity of the Case.
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 the bird sing. The underlying and
consolidated bonds of the Gulf company
amount to $22, 426, 600, all told, of which
the Union Pacific owns $13, 028, 900, the
public owning the balance.
These bonds were pledged, together
with large number of other securities,
to secure the payment of collateral trust
notes amounting to about $4,000, 600,
which had been issued by the Union Pa
cific; that the par value of the securities
SO pledged exceeded $111, 1000, 0OO, and
that prior to the panic of 80 the actual
market value of the securities exceeded
So, 900, 600, and consequently the Union
Pacific had very large equity in these
securities, and was bound for the indebt-
edness, whether the securities were worth
the amount thereof or not.
Gulf Earnings In 1898.
In 1898 the Gulf road earned above its
expenses and taxes enough to pay all OF
its interest charges on bonds other than
those owned by the Union Pacific. The
earnings for 1898, despite disastrous
times, despite the fact that the Union
P:cific had to use this line as break
w..5er against competition, the Cuffs
.lsaings were over $3.50, 1000 net.
IL, made the allegation that the Union
tic company had charged up to the
,sf company $4,000 for taxes per
,lth, which he stated the receivers
lsed to pay back to the Gulf company,
.nsequence of which the Gulf COM
y is In default for its taxes for 1898.
10 show that it was the intention of
Union Pacific receivers to carry out
> terms of the contract of April /.
%, relative to the Gulf company, Mr..
bison read an affidavit from Mr. S. h.
/ Clark, wherein he stated that if he
.sould be permitted to continue as re
ever he would insist upon the specific
,erformance Of the terms of the contract
with the Gulf company This affidavit
was made Oct. %, 1888, 10 days after
the Union Pacific road had passed into
the hands of the receivers.
It being after O'Clock, Mr.. Hobson
asked permission Of the court to conclude
his argument IN the morning, and the
court adjourned.
Won the Lincolnshire Handicap.
IsoNDnN March - the Tsincolrsbire