Omaha Daily Bee Newspaper, March 30, 1894, Page 2

2 feronce wculd result differently and bring about a settlement. To refer the matter to master or three masters would only result in delay, and the wholo matter would have to bo settied in court finally, If the parties wished it the court would proceed to hear and decide the case now. 1f the men wer not satisfied with the findings of the court they could quit the service of the court, but the recelvers must abide by the decision of the court, as the court had more authority over them. The judge again stated that the old schedules were prima facie correct and Just, and the burden of proof was on the re celvers to prove to the contrary. The court thought the rules and rogulations had botter e taken up first. Per, Thurston stated that Mr. Clark sick and unable to appear in court, but the hearing was postponed until today would probably be present, and he alono capable of handling these questions hearing of the case, from the very nature of it, must be largely conducted by the of ficials of the company and the representa- tives of the men, who were alone capzhle of elucidating the mysteries of ratiroad operation. Mr. Hodges agreed with Mr Thurston that raiiroad operations and the effect of the varfous rules were beyond the ken of the ge lawyers, ahd the pres ence and advice of officials were absolutely indispensable. He thought the hearing had better go over until morning, when Mr. ‘lark could be present under which the Union Pacific company and the receivers had so far operated should taken up and when one intered over which there was a difference it would be discussed and decided by the court, the rules relating to the engineers and firemen to Kken up first. OLD RULES THE BASIS. Mr. Thurston suggested that the new rules be. taken up and discussed, but the court again aMrmed its position that the old rules «hould be the basis of the hearing In passing, Judge Caldwell said that if Mr Clark and the heads of the organtzations of employs were to largely conduct the case, to the exclusion of the lawyers, It would doubt less be the best conducted lawsuit it had heen his pleasure to hear. At the coming Into court this morning the recelvers will present a copy of the old rule: with the portions to which they object marked and state their reasons for th change desired, and the men will present their reasons why they should remain in force. Court was then adjourned until this morning. The men thoroughly appreciate the fact that the holding of the hearing on the basis of the old schedule Is a great victory, inas- much as the consideration of t lule was utterly eliminated from the conference with Mr. Glark, and the throwing of the bur- den of proof upon the recelvers is also an advantage not to be despised. Just before the adjournment of Mr. Hodges called up the portion of the re- port of Mr. Clark, which referred to the sottlement of the pending difficultics with the telegraphers and the receivers and the court approved of the settlement and it is now in full force and effect. The exnct sehedule is not obtainable, but from the very best of authorily it Is learned that tlie new schedule does mot provide for any reduction fn the gross amount that the con ny will have to pay for telegraph sefvice. While the salaries are cut in some instances the allowances for overtime and extra calls will make up for it on the basis of the present amount of work of this kind done the operators on the system. The ads vantage the men claim for this even over the present schedule is that every man on the system will know just what he is to receive for his services and if he is called upon to do more work than the hours of duty require him to do he will not fecl that he s doing it for nothing for he knows Just what he is to receive for it. It will Wlso stop the practice which has been prevalent to some extent of keeping men duty for the simple reason that they might possibly be wanted. was it he avel was ¢ court MR. CLARK'S REPORT. Spociile Tteasons for Disagresing with the M ~An Exhaustive Review, At tha opening of court Mr. Thurston Pre- sented the report of Mr. Clark of his doings as referce in hearing the case of the men on the system. So far as the report was com- pleted at that time it was published ex clusivoly in The Bee yesterday mo addition to the matter contained therein the report says that one reason for the a settlement was arrived at with the opera- tors was the fact that the w of the op- erators had not been increased any for sev- eral years, and in many instances they had previously’ been -reduced, while the report says the wages paid enginemen and trainmen 1ad been in lato years increased until they | wero about 15 per cent more than was paid ten years ago. At the first meeting Mr. Clark states he told the men that le understood he was ap- d or bring FOUR coupons and ton ernts incoin to this offcr_ and recelve the Sl part Of this supcrh work-he story of the \ to1d by the leadiug g s on both sides. MAGNIFICENTLY ILLUSTRA VED, SERIES NO. 5. DICTIONARY. Only that numbor of ths book o With the seri presented, wiil b Sunday and Thres Weelk-da coupons, with 15 cantsin oin, will buy one part of The Amorioan Eneyelopadic Die- tionary, Send or bring to Tho Beo ONi ¢ 24Dond - number of the eoupons dslivered. Mail should be aadressen to DICTICNARY DEPARTNENT. SERIES SEVENTEEN MARCH 30, 1894, THRERE BER COUPON. World’s Fair pointed to adjust with them the rates of pay nd the rules and regulations that were to govern the systern and that it was his pur pose to reach a result which would be fair in view of the present situation. Mr. Clark reeftes that as the conference pi ressed in the discussion of the new rules and sched ules of pay proposed by the receivers the men objected to all or nearly all of the pro. 14 A changes, for reasons which did not cppear to him to be well founded, and seeing an agreement on that basis was likely he asked the men to prepare a sot of rules and schedules for discussion, which they did Without going into details In discussing these Mr. Clark states that careful estimates on them showed that if put Into force on the system they would Inerease the oxpense of operating the lines several hundred thousand dollars per year over the amount now pald under the oxist- ing rules. The men themselves admitted, aid Mr. Clark, that the new rules would not o the expense of operating tho 1, but they said théy were the rules y proposed to stand upon. Mr. Clark o0 states in his report that the effect of the rulos proposed by the men would largely have the offect of taking the manngement of the road out of th hands of the re- celvars and place It in the hands of the men. Mr. Clark further states that previous to the appointment of the receivers fully half the time of the officers of the road was taken up in hearing the gricvances of tho men, and one of the objects of the proposed new rules was to do away with this dim- culty It appeared to him that from the poaition taken by the employes that in- accepting the present conditions participating in any n Ary econo- mies they were Insisting upon an Increase wages at present d on the He becane convinced that nothing complished by the conference and t that with very few exceptions the men objected to all the proposed new rules, and could not consistently approve the ones proposed by them for the following reasons: First, because they would increaso tho expenses of the system several hundred thousand dollars annually. Second, because the rules proposed by them would only aug- ment instead of decrease disputes, which would require more time for settlement. RELATIONS TO THIE MEN. Mr. Clark states that it is with profound regret that he is compelled to make this re- port, and in this connection he states that during his long service with the company, dating ack to 1867, in positions ranging from division superintendent to president, it Nhad been his aim to so perform his duty to merit the respect of both his employers and employes. Mr. Clark refers to the fact that he has always been the friend of the men employed on' the system and has o deavored in all w and at all times to treat them fai nd justly and hag tried to secure subordinates who would do the same. It is only from a knowledge of the necess ties that exist, Mr. Clark says, that he asks the court to put into effect the proposed rules and schedules of pay. After gencrally reviewing the wage conference, which are now thor- oughly well known to the readers of The Bee, Mr. Clark, in his report, gives specific sons for his inability to agree with the schedules, rules and regulations as proposed by the enginemen and trainmen and which e made a part of the document sub- mitted to the court yesterday, As to the basis of pay, which the engineers seek to have made the same as per schedule of November 1, 1891, Mr. Clark says that this proposition would revive the old sched- ule and place in effect the old rate of pay and excess mileage as allowed on the several divisions and allow no reduction in the rate of pay of engineers and firemen, and which leads” him to observe that this article is practically a demand for the continuation of the old rates. Article 2 of the engincers’ schedule, which is entitled *‘engines to run first in and first out,” Mr. Clark takes exception to on the ground that it would cause an in- crease in cost per mile for engineers and firemen, from the fact that the old rules specify “‘fast mail,” “passenger” and ‘‘pas- senger freight” service, while the rules of the engineers as proposed by them leave out “‘passenger freikht” ~ service, thereby leaving claim for a class of service which has nor heretofore been allowed. In article 3, which in the engineers' schedule is entitled “time begins and ends,” Mr. Clark states certain words are omitted which the old schedule contains. As to the second section he states that no increase will be made. This section alludes in the engineers’ schedule to the charges of overtime. Section 3, which provides for switching and unload- ing stock at “all terminals,” would, in Mr. Clark’s cyes, cause an increase in view of the fact that the old rulo applied only to main line district terminals, Article 4 is the same as now in force, which is also true of article 9. Article 10, relating to ‘“senl- ority of rights,” is taken up and discussed at considerable length. —The report states that by the rule proposed on the part of the men_ the officials are left without discretion in the selection of men for important and preferred runs, as the rule requires that the oldest man in the service must be given the position, regardless of his ability, character, habits or fitness for the position or past service rendered by him to the company. The sccond section of the “seniority of rights” clause, the report states, has been the cause of a great deal of dissatisfaction at all points on the road between engineers, particularly on the Rocky Mountain division where a special committer has been ap- pointed to regulate and locate the different men in tho district, but which works a hard- ship on some of the men and which gives freight engineers an opportunity to run pas- senger engines regardless of ability to give satisfaction on a passenger run. CAUSED DISSATISFACTION. The effect of the old rules, In many in- stances, has been very unsatisfactory, says the report, particularly the rule referring to the assignment of engineers, the rule re- | terring to sleeping hours, overhauling en- giaas ond engines laid up with snow plow. As to "article 8, which provides that the company shall not assign any more engines than necessary to move the trafiic, Mr. Clark states that it has been the practice of the engineers through their brotherhoods, when business has fallen off on the road and the men were not making enough time, to pass resolutions in their lodges demanding that the master mechanic should take of cor- tain extra men in order that the men re- maining might make more pay per month. ! By this means it has added largely to the extra list when trafic on the road was light. In support of this Mr. Clark states | he has a number of letters from divisions of engineers in the west requesting the di- vision foreman to reduce the extra on the ground that there were too many men on the extra list to make a living. Then he recelved communications from other divis fons of engineers condemning the action of certain other divisions asking for this change inthe extra service, and so the story con- tinues. Then follows a recital of the posed by the engineers regard leeping hours,” “overhauling engines engines laid up with snow plows.” As to the latter rule, which reads: ‘When an engine is laid up for snow serv- ice an engineer shall have the care of the engine in order to keep it in proper readi- ness for snow service. ngines with snow plows attachod. which engineers cannot see over will not be reguired to pull a train Engincers will not bo required to flanges with snow plow engines, except in | ea f special emergency.” By this rule, s the report, the company has been com- | pelled to pay men during the winter months for doing absolutely nothing. There have been cases where engines lave be sta tloned with snow plow and not used for sixty days; the engineer and fireman hav ing nothing to do and refustng to perfor: any service on aceount of this rule requir ing them to have the care of the eugine When it is necessary to put an engine in snow plow service an cngineer and fire man has to be asslgued to the care of that engine, and unless used in snow plow lee are not expected to do any work, ex cept It might be to make a trip on the road. The company has had engineers | absolutely refuse to do anything, falling back on this rule for pretection, claiming that the scheduls gave them protection in that divection. could be to repa the phases of rul 08 pro- Art Portfolio. "Io secure this superb souvenir send or bring six coupons of this serles bearing different dates with 10 cents in coin to ART PORTFOLIO DEP'T, Bee Office, Omaha. ‘0 carry out this rule it is estimated that it would necessitate placing & crew on fif- teen snow plows at a salary of $183 per month and & crew on six rotary plows at a salary of $230 per month for five months each year, making a total expense for five months of $14,875. .4 aking up the rules prapose men the report states they n those put in force Novemb | an addition of & few new Article 20, concerning cleaning, which lays down the rule that firemen shall not be compelled to | paint front ends nor stacks, nor to clean, by the fire- the same as 1891, with not | use | THE OMAHA DAILY BEE: FRIDAY, MARCH 30, 1891 to pull switchos Mr. Clark soour or polish thelr engines, nor pins, make couplings or thro under any circumstances, giv an opportunity to introduce some figures Ho states that the adoption of this rule would add very largely to the company's expense in operating the motive power d partment. By this rule firemen would be re- lieved of the care of their engines, and it is the object and intent of this rule that they he relieved of all cleaning on locomotives, both Inside and outside of cab, and to keep the engines in their present condition it would be necessary to employ 200 men on the Union Paclfic system to take care of the work that properly belongs to the firemen, and to do this would increase expenses $144,- 000 per annum. The latter clause of the rule, which reads: fremen will not be compelled to pull pins, make couplings or throw switches under any circumstances,” would necessitate the plac- ing of a brakeman on every helping engine on service in the Unfon Pacific system, says the report. This would necessitate putting on thirty brakemen on these engines, at an expense of $60 per month each, or $21,000 nnum. The enforcement of this rule cost the Unfon Pacific system $165,900 per year more than at present. Its object is to relieve the firemen of every duty in connection with a locomotive except putting coal in fire box. The custom practiced on other roads fs, where firemon have regular engines, they do the cleaning in cab and above running board; where engines are pooled and have no regular men assigned to them the management keeps the engine clean and the firemen are not expected to do that. On the Unfon Pacific system all engines have regular crews assigned them, except in cases where helping engines are doubled crewed and are in twenty-four hours service As a general proposition the president of the Unfon Pacific states that the schedule with the engineers and firemen has been the means of increasing the cost per mile for wages of engincers, firemen, hostlers and wipers from 637 cents per mile In 1883 to0 9.19 cents per mile In 1893, or an Increase of 44 per cent. The reasons for this Increase are stated to be on account of concesslons made to the organizations above mentioned, due in most part to changes In the manner of fix- ing wages. For many years the wages of enginemen and trainmen were by the month, says Mr. Clark. Eventually, at tho earnest solicitation of the employes, this system of monthly compensation was changed to a_mileage b and to this mileage basis has been added, from time to time, certaln arbitrary allowances of mile- go not run, and for overtime, which have tended to considerably Increase the rate: of pay as formerly established. AS TO HEAVIER TRAINS. In answer to the claims of the men that they are operating engines of greater hauling capacity than formerly and that trainmen now run trains pf greatly fn creased tonnage and that thereby the value of their services s much greater than in former years, the president says: “But it will be found that in every instance the rates have fallen so much more rapidly than the capacity of the rolling stock and the motive power has increased that much less revenue is received today for the same train service than ‘was received In those former years of less powerful engines, smaller cars and lighter trains. “The only person whose actual labor has been increased by reason of the mere im- provement in motive power is the fireman, who, perhaps, shovels more coal than he formerly did. But to offset this is the fact that by concessions made to the demands of the enginemen, the firemen have been relieved from a considerable portion of the actual work formerly imposed upon them. Such is also the case with the engineers. And it is a fact today, that less actual labor is performed by hoth engineers and firemen in running the same number of miles than was performed ten years ago. Attached to the report is a statement showing the cost per mile for engineeers, firemen, wipers and hostlers on the Union Pacific for 1893, and a comparison showing how much more it costs the Union Pacific for the same service than the roads speci- fied. The engine mileage on the Union Pa- cific for the year 1803 was 28,669,472 miles; the cost for wages of engineers, firemen, hostlers. and ‘wipers for- this period was $2,635,316.31, or 9.19 cents per mile. This is shown In a recapitulation as fol- Tows: Cost per mile for engineers, firemen host- lers and wipers for the year 1893, furnished by auditing department: |Cost] Cost Iper | milef 7 Lows than. ROAD. famt.p'd for Great Norther outhy Missouri_Pacific M., K. & Texas...... Louisville & Nashvilia C., M. & St P.. € R L & Pacliic QLB & QL ¢ & N, W nicago & Alton..... Cost per mile for engineers, firemen, hostlers and wipers on the Union Pacific system at the rate proposed In new schedule March 1, 1894, 8.60 cents per mile, compared with cost of same service on following roads: Cost Cost for Less than per e “amt. paid mile. P. [8.78¢|s2, 2, K14.50 3.089.03 Unlon Pacific Great Northern.... Southern Pacifi AN &8 Missour! Pa: M K. & T Louis. & Na C. M. & St F IGARRT & B, B, & n in cents orthern is figured . which has I OBJECTIONS TO NEW RULES. Then follows specific objections on Mr. Clark’s part to the proposed rules and regu- submitted by the trainmen. Articles 4,5, 6, 8, 9, 11, 13, 15, 20 are thought 10 be objectionable to the recelvers, and the reasons given. As to arlicle 3, relati to overtime, the report says the words ‘“‘ove time will bo paid for on passenger runs less than two hours” objected to; passenger men are paid on a monthly basis and the com- pensation is fixed to cover all the service re- quired of them. Article 5, relating to “‘work trains,” finds little favor for the reason that the brake- man's rate is too high: should be $6) per month, Also object to the words “per cal- endar working month’ and the words “ex- cept that runs before and after regular work- ing hours shall be computed on mileage bas| The reccivers cont $50 and $00 per month, in their proposed schedule, ars fair and equitable and cover all of the service required. This is on the basis of 3 and 2 cents per 100 miles per day, thirty days per month, and the receivers expect to pay overtime after twelve hours Article 11, relating to “extra service,” ls pummeled for the reason that it provides for extra pay for assigned crews on branches when required to perform extra service, There are a great many short runs where the compensation fixed is with a view of using them occasionally for extra service without additional pay. Section 2, objected to; it shoull read “‘handling main line pas- senger trains will be allowed mileage rates.” The receive belleve that on brauch lines, where there are assigned crews whose sery- jce is light, it is not unfair to require extra service from them occasionally; the matter to be left to the Judgment of the aperintendent, who will give them oxtra compensation, if, in his judgment, they should bave it Article 13, relating to “‘doubling hills is opposed as follows: “Objected to; ailow- ance should be made for doubliug hills only when the train is made up with the inten- tion of having it double; the rule as pro- posed by the trainmen places a premium on doublin and would nd to increase such service; and the deluy caused by such doub pg would, in many cas be paid for a sec- ond time uoder the overtime rule.” Article 20, treating of “‘what constitutes a crew,"” ia given a black eye as follows: ““The receivers object to this rule in its entirety; this is a question of managemont and must be left o the management. If accepted, it would add to the expenses of operation at least $36,000 per annum aud not imcrease or benefit the service." CONCERNING STRIKE TALK Upon the general proposition of the pro. posed cut Mr. Clark stales that the general wages of enginemen and trainwen as pro posed by the r still be consider- ably in excess of those which had prevailed on the Union Pacific system up to 1885, b | also respectfully submit,” says Mr. Clark, “that 1 have a full stenographic report of all the proceedings of the conference with the cumployes, which | am ready to submit for nd that the rates | your honor's examipation and consideration, and [ think it WAIL Bear me out In all of the statements I hAve made with respect to my offorts to bring abbut an adjustment of ex- Isting differences with the employes. [ have been mosh pagious to efect & sottle- ment of differdhced’ In order to avert any possibility of a strike on the Unfon Pacific system. This systom Is so vast n cxtent and %0 much bf ¥ fs operated through a sparsely settledv eountry, that it would be almost impossiblp o avold frreparable fn- Jury if it were expoaed to the dangers and disasters Incident ' general walkout of its employes, “I have the utmost confidence in the in- teliigence, loyalty and law abiding character of the great body of employes on the Union Pacific system, but I also have the most cortain and reflable information that there are men in Ity employ who are endeavoring to bring on a general strike and who do not hesitate to threaten all sorts of injury and “disaster to the property In charge of your receivers unless what they term their de- mands are complied with."” In support of this startling assertion the report contains a letter fron ohn Galligher, residing at Mountpelier, Idaho, addressed to rallway employes west of the Mississippl, stating the action taken at a union meeting of all the branches of labor, and reciting the resolutions adopted at the meeting, which were in effect that should any reduc- tion be made [n wages these labor organi- zations had coreluded to strike, disregarding the heads of the different organizations to which they belonged. This letter Is sub- mitted without comment And then Mr. Clark concludes the recom- mendation that a man be appointed by the court to go over lines of railroad situated similarly to the Unfon Pacific, examining overy condition pertaining thereto that can affect the question of wages, and report his finding of facts and recommendation as to pay on the Union Pacific, which, on being approved by the court shall be considered as a settlement of the controversy. Denlal from Debs. In an interview esterda Fugene Debs denled the utterance of the incendlary re- marks to which Recelver Clark refers in his report to the circult court. Mr. Debs says both his order and himselt’ have been misrepresented In this mattes MILLER BOUND OVER. Must Stand Trinl for Shooting and Robbing Frank Ribak. who W arreste shooting ank ibak, the and who been con- Ribak’'s condition Martin Mille a few weeks ago for k street grocer, fined in jail waiting till would permit him to appear against him, was placed on trial yesterday afternoon. Ribak was there to appear and also his wife, As was stated when Miller was taken to their_residence for identification, both Mr. and Mrs, Ribak positively identified him as the assailant, and shortly after Ribak filed two complaints against him, one for shoot- ing with intent to kil and another for rob- bery. The trial consumed the greater part of the afternoon. Half a dozen witnesses were produced for the defense to show that Miller was not in the vicinity of Clark street at the time the robbery and shoot- ing are alleged o have taken place, When it came to the point, however, of proving an alibi, none of them were su to the time they saw Miller, and as near could say for certuin was that he sometime during the evening in the ity of Eleventh and Dodge. The_ former identification by both and Mrs. Ribak, was not shaken | least, and they were just as positive y day ‘that he was the right man were the day he was taken to their resi- dence. , Judge Berka suid that as Mr. and Mrs Ribak were both 5o certain that Miller was the man, and as'the other witnesses when closely questioned were not positive, he thought he was Justified in binding Miller ove the first that of Mr. His bond for count, shooting with intent to kill, was' placed at 31,000, and-a like!amount was fixed for the charge of robbery. D WEATHER FORECASTS. It Will Be Fair and Colder Throughout Ne- braska Toda; WASHINGTON, Mar Forecast for Friday: For Nebraska, South Dakota and Colorado—Fair; south winds; colder Satur- day morning. y For Kansas, Mi¥souri and Towa—Fair; warmer; south winds. —-— NOUNCEMENTS. The largest advance sale of the present season indicates that Herrmann will be grected tonight by one of the largest audience of the season. Herrmann has the happy faculty of catering equally to all sorts and conditions of mankind. His ad- mirers are legion, and range from states- men and ministers to the humble gallery god. A feature of the performance the dancing done by Mme. Herrmann, who has proved herself an artist of a high order of merit. She dances the “Serpentine,” “La Blanche,” “Butterfly” and other unique dances with marked effect. Movements of Seagoing Vessels March 20. At San_Francisco—Cleared—City of Pe- Kking, for Yokohama and Hong Kong; Dyn- omneé, for Queenstown; Jane A. Falken- berg, for fishing; Iremont, for fishing schooner Mald of Orleans, for Kahua Departed—8t. Paul, for Guaymas; W Crave, for Port Townsend; bark Sea King, for Naniams ‘At Eurcka—Arrived—Tainer, At Departure Bay—Sailed for San I'rancisco, At Naniamo—Sailed for San At from At from New York. s Intermittent Are Lights Reports have been received by ‘he chief of police from patrolmen resarding the electric street lights, The e lights on South Tenth street fi Williams ta Bancroft str 5 went out Wednesday nigi at and not a glimmer came from them untl A, m., when the lamps stavted up again and’ shéd their light\ for fifty-five minutes and then went out. On South Thir- teenth street from M m to Vinton streets six arc lights went out shortly after mid- night and stayed out until almost daybreak. The lights on eventh street south of Jac son street acted the same w Costa Rica, Gene Tairchild, d—Carthagenian, Fuerst Bismarck, “The Garroters, “The Garrote one of farces, will be given In the parlor Unitarian church, Seventeenth and Cass streets, this ung. The ch cters in this farce Roberts, AMr. 1toberts, Mrs. Crashaw nphell, Dr. Lawton, Mr. Bemis, Mrs, Bemis, Mr. Alfred Bemis and Belli. The entertainment is free to members of the Unity club and netl- cally so others, but 10 cents being taken at the door. Howells' best DENVER, March, rnor Waite has refused a request tosendorse the Coxey move: ment and issue a call for the unemployed of Denver to march to Washington. e i PERSONAL | PARAGRAPHS, Captain Tibbetls, the oldest traveling passenger agent in the United States, is at the Paxton. Mrs. Carrle Cummings has returned from Tipton, Ia., wherg; she went to visit her father, who is il Nebraskans in Omal At the Murraybfalelin Bratt Platte vl At the Mercer—¥. Ba L. Harvey of Seward. At the Dresel—P. Chotty of Norfolk and N. Mann of Hastings. At the Millard-"f" Blish of J. M. Wertz and wife of Grand [slan At the Colonnad R. Watts and H. I, Savage of Waterloo, C. F. Bailey of Rush villo, At the Dellone--M. Waldron of W. Frank of Grand Igand, M. B Sumner, At the Arcade—J. K. How of Norfolk, M E. Cowen of Tecuinseh and J. R. Cain of Falls City. At the Paxt C. C. Burch of Wymore, wife of Ravenna, At of North : ey of Fairmont, Lincoln, Lincoln, Irvin of P. Shaw of Kearney, H. A, Hugles and P. Hammond B. Cox of David Qity and A McDowell of MeCook. At the Merchants—James 1 North Platte, George Krumm of L. Perkins of David City, A. R. Fullerton of H. conard Tilden, Nisbet of W of Grinding: Razors. shears, cutlery and edge 5. Stanlleld & Co,, 1518 Dodge. of the | DECIDED AGAINST THE GULF Judge Sanborn Completoly Vindicates the Action of the Receivers, OBLIGATIONS NOT ASSUMED BY COURTS Question of Jurisdietion Declded in Favor of the Nebraska Courts—Guit OMeial [ nod ot Judge Sanborn surprised the attorneys in- terested In the argument fn the Gulf case yesterday on the convening of the cir cult court by announcing that the court had listened with patie to the arguments in the case, but had come to the conclusion that further arguments were useloss, as the court had prepared an opinion in the case, Judge Thurston was ready to proceed to the close of his argument, but when Judge anborn announced that a decision had been ched Mr. Thurston quietly took his seat while the legal lights hitched up their chalrs to_catch the words of the court. In effect the opinion was a completa vindi- catlon of the course taken by the recefvers of the Union Pacific, and leaves the Gulf company with little to stand upon except that It does not deprive Receiver Trumbull of his line of rafls. The question of jurisdiction was also decided In favor of the Nebraska court, the court, however, deciding that par- ties having suits against the Union company would not be compelled to come Into the circuit court of Nebraska, but could begin proceedings in the district In which they re sided. The effect of the ruling, the court de- cided, will be that the recelvers are to re- port to the circuit court of Nebraska, and as to the Juleshurg branch the receivers are res lieved absolutely from the terms of the con- tract of April 1, 1800, but the court, upon in- terrogation by . Mr. Hobson, sald that he thought traflc arrangements satista to all the receivers could be made. Mr. Anderson said could be done he thought on a mileage basis. Tl court then appointed William D, Cornish of St. Paul special master in chancery to whom the receivers will make monthly reports and afte mination by Mr. Cornish they will be referred to the eircnit court of Omaha, the court of original jurisdiction. Cor- nish s also empowered to hear evidence on the interest features of the Gulf c: nd re- port his findings to the circuit court As to the general accounting belween the companies which the court ordered in its rulings, the master is directed to sit either in Denver or Omaha upon agreement of both parties to the suit. Orders will be ma main features of th at once covering the opinion. Judge San- born then announced that he was comey pelled to leave for St. Paul and would not participate in the wage matter next on the calendar, but that Judge Riner would sit with Judge Caldwell on the hearing. Mr. Thurston endeavored to have Sanborn remain until he could r Clark’s report and recommendation, Thurston_announced _would at 2 o'clock. But Judge Sanborn was ? hearing one side and refused to partic in the hearing on the ground that he would e unable to remain until the close of the hearing. Mr. Thurston then announced that Mr. Clark's special report would be ready at 2 o'clock, and the court took a recess until that hour. JUDIE SANBORN'S OPINION. Following is the opinion delivered by Judge Sanborn: “The question presented to the court in this rehearing is Lo what extent, if any, the receivers of the Pacific company are bound by the trafc agreements between the Pa- cific_company aud the Gulf company dated April 1, 1890, and July 5, 1863, “For’ the purpose of this hearing these contracts will be treated as vaiid agree- ments of the contracting parties. The cove- nants of the Pacific company contained in these agrecments do not run with or bind any of the real or personal property and what is said in this opinfon has no reference to contracts or covenants that do. “It is well settled that the receivers of an insolvent railroad corporation appointed a court of chancery to preserve its prop- erty and operate its railroads do not stand in the shoes of the corporation. They are neither the representatives of the insolvent corporation nor its creditors nor stockhold- ers; they are the officers and representatives of the court, in which it holds the prop crty while it operates the raflroads of the insolvent corporation for the benefit of those ultimately entltled to the property and the income. NOT BOUND TO PAY DEBTS. “The court is not bound to pay the debts nor to perform the obligations of the in- solvent, nor are its receivers. No one ever contends that the obligations of the insolvent corporation to pay its debts are assumed by tts receivers. The only difference between the liability of such receivers to pay the debts and to perform the executory contracts of an insolvent corporation s that the con- sideration of the former is generally received by the insolvent, whil> the consideration of the latter may be obtained by the receivers, and if after an unreasonable length of time ¢ accept the benefits they may thereby sume the labilitles of sucl contracts, rhe possibility of such an assumption of liability has imposed ~upon these re- ceivers a corresponding duty. This duty was to carefully examine every lease, traflic or other executory contract of the Paei company amd to determine in each o whether or not it was for the best interests of all the creditors and stockholders of the insolvent corporation for whose ultimate ben- efit they held itx propesty that they should coept the benefits and assume the burdens such lease or contract. They were titled to a reasonable time aftor their ap- pointment to make this examination and d. termination. They were appinted Octobe they renounced these contracts Jan- uary 15, 1804, In view of the great number of executory coniracts the acific company was a party to, and the heavy interests in- volved in this receivership, this was not an unreasonable’ time, in our opinion, to use in the examination and determination of this question, “Moreover, tion for the pany of its tracts wag that tho operated in harmony under the supervision Pacifle company itself. THE GULE'S DIVORCE ACTION, “December 12, 1883, a separate receiver for the Gult company was appointed, who, on Decemher 18, 1893, took from the weceivers of the Pacific company possession and con- trol of the Gulf company. This receiver has since operated the rallroad of the Gulf company free from supervision and control of the receivers of the Pacific company, and has thus withdrawn from them that’ con- sideration, This of itself is, In our opinion, sufficient reason why the receivers of the Pacific company shonld not be re quired to perform the covenants of that comyp y contained in th contracts sub. sequent to Deccmber 18, 1893, Specific performances of such contracti as the cannot be enforced against receivers who have not assumed the obligations therein by any word or ct of their own, because, was well sald by Mr. Justice Brewe ific performance by the receiv be a form of satisfaction or payment hie cannot be required to make. As might it be decreed to satisfy th lant's demands by money as by sought to be enforced.’ “The result is that the not bound by the covenants of the Paclfiec company counlained in these contracts, by virtue of the order appoint ing them. They had the option within a reasopable time after their appointment to aceept these leases and assume th obli gations, or to renounce the former and re f to be bound by the latter They ex cised this option within a ble time and wisely renounced the ¢ 5. Then followed @ citation of cases port of the principles laid down RESCINDED AN IMFORTANT ORDER Continuing, Judge Sanborn said: “In ac cor s with the ews the order direct in the i to oper the Julesburg branch will be rescinded and the receivers of both companies will agree upon falr and Just trafic arrangements, carefully consid K& the wants and interests of the publie well as the parties they represent, and Judge ad Mr. which we think the chief considera- assumption by the Pacific com- labilities under these con- Gulf company should be with and practically and control of the wh well ppel- service Ay were and obligation in as Pacific | i all the claims of the will and it they are unable so to submit_their difterences to they will be at once settled 80 far as tha claim of the If company or its re vers to the amount of interest which accrued on its bonds prior to the appofntment of the recelyers of the Paclflc company Is concerned, we are aware of no principle of law of equitable considera tion that will take this claim out of the category of the simple contract labilities of the Pacific company of like date and character, or relieve from th ot of any valid offsets or count claims Pacific company may have against the Gulf com- pany. This claim must be considered in A general accounting between these corpora tlons. “But insist agree this they court the the recelver of ithe Guif company that by operating the railroad of pany from October 13 to December and by varfous acts and state ments during that time the receivers of the Pacific company accepted the benefits and assumed the labilities of thess contracts for that period, and that they ought to bo directed to pay at once and in preference to all other claims, the interest on the bonds of the Gulf company that accrued during that time. The authorities to which we have refe leave no doubt of the follow ing propositions “First. The appointment of receivers did not, ipso facto, make them lable to pay this fnterest according to these contracts “Second. The fact that they took pos- session of and operated the railroad of the Gulf company for sixty-five Gays would not of itself establish an assumption by them of the Pacific company's labilities under these contracts, because they had the right td ate the road for a reasonable time to ascertain if it was (o the interest of 1l the parties for whom they held the Pa cific company's property that they should assume their labilities, and sixty-five days was not an unrcasonable time to use in de termining this question (hird. The burden the recelver of the Gulf to_establish the proposition that ceivers did assume this liability. The re ceivers strenuously deny that they did so. This issue is squarely made by the peti tions of the parties and the arguments of As we understand it, it involve the disposition of some $200,000. o tes timony has been taken, no witnesses amined on this question, but it is submitte to us and was, as we are informed, to the courts on earlier rings, on_allegations and denials and extracts from afidavits and statements of individual reccivers and others found in files of the courts and generally made with no reference to this fssue, but with special wce to questions entir foreign to it. This evidence is fragmentary and entirely unsatistactory that these re- ceivers ever did or intended to pay the in- terest of the Gulf bonds for theso sixty- five days. This may be estimated by sub- sequent proof and opportunity will be given to do so. “Nor are we willing to sa and in the face of the very unsatisfactory condition of the evidence relative to the financial condition and to the accruing lia- bilities of the Pacific company, that it would be just and equitable to (he parties in interest to pay to the receivers of the Gult now a full amount of this Inter- mpensation for the use of the during these sixty-five d of their assumption of thelr of f is on company these re pre at this time, gardles bilities, POWERS OF SPECIAL MASTER. “It is too early in the administration of this vast trust to tell to what extent the ob- ligations of the Pacific company can be met by its earnings and the earnings of its con- stituent or allied companfes. We cannot yet learn how many of the latter companies may present claims for preference in payment like that before us. The payment of the re- ceiver of the Gulf company as a preferred creditor now at the contract rate fixed by the traffic contract for the sixty-five days the receivers of the Pacific company operated that road might deprive creditors of the same or a higher rank of any payment at all. For these reasons we think it is unwise at this time to require the receivers to pay for the use or operation of any of the con- stituent lines any larger amount than tho amount those lines have actually earned. Accordingly the orders made in the Colorado district on February 12 and February 14, 1804, and the like orders made in the Wy- oming district will be rescinded. A specfal master will be appointed in this cause. All the claims of the Gulf company against the Pacific company prior to October 13, 1593, and all the claims of the Pacific com- pany against the Guif company accruing prior to that date will be referred to him; Tulf company and its receiver against the Pacific company or its civers which have accrued subsequent to October 13, 1893, and all the claims of the receivers of the Pacific com- pany agalust the Gulf company or its receiver which have accrued subsequent to that date will likewise be referred to him; he will be directed to determine the law and the facts in these controversies and directed to report the general balance due from the Gulf company to the Paciflc com- pany or from the Pacific company to the Gulf company, as the case may be, on ac- count of the claims of the respective parties accruing prior to October 13, 18 He will also be directed to report ihe general bal- ance due from the receivers of the Pacific company to the Gulf company or its re- ceiver, or from the Gulf company or its receiver to the receivers of the Pacific com- pany, as the case may be, on account of their’ respective claims aceruing subsequent to October 13, 153, and to find and to re- port to this court what amount, if any, of the balance so found to be due should be treated as a preferred claim by the re- ceivers of the Pacific company iu the ad- ministration of the trust imposed upon them. JURISDICTION OF COUR' “It is unnecessary to discuss or decide here whether the eircuit court sitting in Colorado or Wyoming is a court of auxiliary Jurisdiction in’ the matter of this receiver- ship. These receivers were first ap- pointed in this court, sitting in Nebraska. So far as the general management of the trust imposed upon_them, the general opera- tion of the railroad system in their charge in this circuit and their general accounting is concerned, they must report to and be governed by this court sitting in Nebrask; The impracticability of properly admi istering this great trust under any other practice and the intolerable confusion which would result from contradictory orders re- garding these subjects made fn the different districts in the eircuit will commend this rule of practice to every judge within the juris- diction and prevent any interference or mod- ification of orders issued in thesc matters by the circuit court for the distri of M lia- braska, excopt by appeal or upon rehea rings but the clreult courts in the districts of Cole rado and Wyomi hear and detormin, zens of those dis yrporation and the receive | det emination equally resnected Nebraska: citizons be required to go sert thelr claims a by the courts of GARDNER AND V Omahn Kid Gives ng N th lots a, laims of the s of it, those matters by the court sittin of one district will to another district gainst receivers appo both districts - IN HEEST TO anny and will Day Hard Ran for Fifty-One MINNEAPOLIS, to T Gardner, t away at e before th night. The leciaion of gram Oscar mered unds here t dectared off The men cach we 2, and were stirted off briskly lead 0 earnest fwenty round having th vant more clover and took punishment 1 hinges ut e In the sixth roy have Van Heest in the twentieth, rounded to and '« time. agreed deciston, continue, could not do_effec forty-first rou o ) draw and_ the W last night discover a window in the store, Fisher to stop strange the wa escaped. AMUS Bee,) in In the twenty 1 was finished many « had left tehman James 1311 Douglas street, footsteps and ran, and on refusing March 29, John Van he “Omaha ach other Twin City o rofere Heest Kid," for forty Athleti Hank no contest, and bets ed in at a trife s condition. The \d the ditte men « glve and tal 1 then the ¢ \ he CKIDT wi quicker, but Van | tke a glutton, and 1 it st of on ind the “Kid o almost landed, nind ut \an He e up smil fourth round both , but the club wante referce ordered the work tve and when and the refe e about midn ‘e e man h, of tehman ' fived, but HMMENTS. Jurisdiction te oltt- Inst the insolvent thele be K In not 0 as- inted Lo, one wera nder flght were for sther + the Toest nade 1 to 50 t next men d n ta th men were o wenk thit they tha of th night man trying to raise Bun card the — |BOYD'S i | RERRMANN TONIGHT, TOMORROW AFTER- NOON AND NIGHT. The cromantiaue Comedian, HERRMANN THE GREAT NEW THE APTER HME. And Alded by, NIGHT PRICES & MAT KE PRICES Iree list suspend THE MYSTELR IN HIS 10US SWIN THE BALL HE NEW SPIRIT SEA MARVELOUS ~ ENTERTAINMENT NOR HERRMANN 1., 31180 SFECTACULAR DANCE CREATIONS. 1.50, $1.00, #1.00, ded. BOYD'S um SUNpay, MONDAY, VENT OF TEMPEST APRIL 1 and 2. TIE FASHIONABLE PHE SEASON. And the Whitney Opera Company in the FENCING MASTER Presented with a G Voicos The orlzinal metr Al Cast-A Chorus o Orchestra. production. reat opolitan shieats will open Saturday mornbi Free list suspended, ¢ 50 Box BOYD'S | "Sp A HQETH DE WOLF HOPPER AND HIS MERRY COMPANY PRESENTING The Gorgeous Comie Opera Specticla, | PENJANDRUM | DIRECT FROM The Broadway Theater, New York City. Box sheets will Free list suspend iBOYpi s éfrgm 3 NIGHTS .. open Monday, April 2. WM. H. CRANE, And His Ad; THURSDAY, FRIDAY and SATUKDAY Matiuee, - mirable Compang, ALl e bt April Ba - BROTHER JOHN. SATURDAY NIGHT, THE SENATOR. Seats on Sale Wednesday, April 4* PRICES L, MATINEE P 15th § reet Tfieatrc [ #1_and fiz2] Lower floor. and doe. el PRICI TONIGHT. ONCI THE MILLIC AGAINI1 INATRES OF FUN logr, $1.00; Baleony, Tocand 00 700 HENSHAW AND TEN BROECK IN THE NEW “‘NABOBS.” Matine: i5th Street T 4 NIGHTS-Comm AP THE FAMOUS HOOSIER COMEDY Spectal See funny, t00. e Saturday. heater||" encing Sunday Math RIL 151 OPULAIS PRIOBY 1o, It's a unto '---. SODOPOOPPOOPOPTTIOCTOOCO Needs to change his p able - He depends a g his garments for spring 1% noticed at his oflice ard commented upon stir him up your neighbor- Bring him become mtere business. ed rousers at $6—$6-$7—$8 or a Suit at $20 o to 10t Hin T o A Ll L Mail Sawples 1), on the He's apt to get point out to him the neat appearance of Mi who placed his order with us w week (your husband, not Mr. Brown in our fubrics He'll place an order for either cal upon your juc allow hin t stroet—at th carele our prices $26 Perioctly, ssent apparel for something more scason Igment in selectin O appear shabby e club—everywhore »5 in this respect Browu ago to our store,—He'll our way of doing $30 207 8. 16th STRERT od things '6‘-50»»--...»' > [} é (] [} [ [ [ [ [} [} ¢ - - « >