Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-09-20

turn II over to the Union Pacific company
because of it's coal bearing value. l had
a conference also with Judge Kelly Of
the Union Pacific on this same matter of
the Abbott and the deal was finally
contaminated and land was turned over TO
the Union Pacific and the papers delivered
to Judge Kelly. The title to the property
was made in the name of Erastus Young,
the consideration being $4,000, which was
paid by the treasurer of the Union Pacific
Railroad company. | was not obliged to
| pay Abbott any more for the land than he
received from the railroad cornpany, but
fair valuation of the land t,,that time
| to the Union Pacific people was from $4,000
TO 100000 The acquiring of this Abbott
land was suggested to Saunders as a
! friendly act"
origin of the Case.
The Sioux City & Rock Springs Coal COM
| pany had as stated by Mr., Saunders a
suit against the Union Pacific Railroad
company for $4,000 damages for failure to
furnish it railway facilities for getting its
| coal to market.
The formal demand of the complainant
company was read In evidence and calls
for not only trsckage facilities, but for a
depot and telegraph service. This demand
Julius Krutschnitt, director of maintenance
of the Union Pacific Railroad company
also was read in which he gave reasons
why the petition of the complainants could
not be granted. this reply bearing date OF
October q. 1905. These letters were writ
ten after the Abbott land transaction.
The witness was not cross-examlned by
Mr. Baldwin.
Megeath on the stand.
q. w, Megeath. president of the Sheridan
Coal company, and general manager of the
| Union Pacific Coal company from 1890 tC
1895, told of his purchase of the properties
!, of the Van Dyke. Rock Springs & Sweet
water Coal company properties at Rocl
! Springs. and that they were ostenssbls
bought for the Union Pacific Coal com
/ pany. This purchase was made during tho
] receivership Of the Union Pacific and the
witness held onto the property until after
/ the reorganization. Witness paid $3.50 oot
for the Sweetwater. $4,000 for the Rock
| Springs and $4,000 for the Van Dyke mines
He operated the mines at a profit for about
| five years for the company. The mines
were sold in 1901 to the Central Coal and
Coke company of Kansas City. Mo.
Dickinson Not In Deal
In the continuation OF his evidence Mr.
Megeath stated that Ed. Dickinson was
general manager OF the Union Pacific Rail-
! way company during the time that the wit
ness was in charge of the Union Pacific
/ Coal company's interests but that Mr.
| Dickinson was not interested In the pur
chase OF the coal company In any manner.
| The purchase of these independent com
/ panies by Mr.. Megeath was ostensibly in
the interest OF the Union Pacific Coal com
pany and railway and was devised the
! only way to wipe out competition in the
coal business as arrayed against the Union
Pacific. The Union Pacific at this time con-
trolled the coal mines at Hanna and ,ex-
acted a dlfferential rate of 70 TO SO cents
per ton in hauling against the Rock
Springs companies in favor of the
Hanna mines. The price on the, coal rate
was raised but the selling price was low
cred The effect was to stop the shipment
of coal from the Rock Springs district by
the independent companies and ultimate
resulted in the change of ownership OF
these properties. At this time about 10
per cent of the shipments, from the Rock
Springs independent properties was over