Omaha Daily Bee Newspaper, November 13, 1894, Page 2

the section 18 of act 12, statute 497, us fol- lows: ‘And be it further enacted, that when- ever it appears that the net earnings of the entire road and telegraph, Inclnding the amount allowed for services rendered for the United States, after deducting all expendi- tares, including repairs and the furnishing, running and managing of said road, shall exceed 10 per cent upon its cost, exclusive of the 6 per cent to be pald to the United States, congress may reduce the rates of fare thereon, if unreasonable, in amount, and may fix and establish the same by law.’ “There Is In these words a special reserva- tion of the power to fix rates, and when this is taken in connection with the general pro- vislon In the same section, reserving the right to ‘add to, alter, amend or repeal this act,’ there fs much force in the contention that congress Intended to reserve to itselt absolute control of all the rates charged by the company. I am not fully satisfied that this language warrants such conclusion. 1f the Union Pacific company is not exempt from this act, no other company 8. STATE AND NATIONAL LAW. “Again, it is {neisted that the act s obs noxlous to the charge of denying to the rail- roads the equal protection of the laws se- cured to them by the fourteenth amendment to the constitution of the United States, and this bécanse all the roads in the siate are not subject to its provisions. Section 4 refled upon to sustain this charge: “All railroads or parts thereof which have been built in this state since the 1st day of January, 1859, or may be built before the 31st day of September, 1899, shall be exempt from the provisions of this act until the 31st day of September, 1899." “The right to classify is conceded, but it fa sald that this classification is arbitrary and depends upon no fair and reasonable dif- ference. Attention is called to the fact that since January 1, 1889, the Rock Island com- pany has built a road from Omaba to Lincoln which is a part of its main line from Chicago to Denver, that in all of its business the Rock Island s in active competition with the several companies whoso roads are subject to the provisions of this act, and that it is an unreasonable and unjust discrimination to ex- empt the Rock Island company from like subjection. I cannot concyr In these views. The principle of classification adopted by the legislature, whether wise or unwise, is within its power. To divide railroads into two clas placing in the one all that had been constructed and in operation for a length of time and whose business must, therefore, be presumed to have been thoroughly estab- lished, and in the other all only recently con- structed is clearly not an arbitrary distinction, and this notwithstanding that it may be one of the recently constructed roads s so for- tunate to have immediately secured a large business. The protection of infant industries 18 a term of frequent use in the political dis- cussions and history of this country, and to rule that a classification based upon such a principle Is purely arbitrary and therefore unconstitutional would certainly be a judicial novelty. INTERSTATE COMMERCE UNAFFECTED. “Again, It is insisted that the act interferes with Interstate commerce in two ways: First, that it establishes a classification of freights different from that which prevails west of Chicago, and, In the second place, by reducing local rates It neces- sarily reduces the rates on Interstate busi- ness. Neither of these objections seems to me to be well taken. In the first place, the classification of freights by railroads 1s a purely voluntary act—not compelled by any statute and not uniform throughout the country. There is one system which pre- valls east of Chicago and one west. It might be convenient if the classification es- tublished by this act harmonized with that adopted by the railroad companies doing business west of Chicago, but surely the voluntary act of the rallroad companies in establishing a uniform classification for cer- tain _territory can- work no limitation on the power of the state to establish a different classification. To say, for instance, that be- cause the railrond companies have yoluntarily placed flour in a certain class, on which a specified rate is to be changed, such volun- tary act of mere classification destroys the power of the state to establish a classifica- tion” which puts flour in another class and subject to arother rate is, to my mind, a most extravagant pretention. Neither can I understind how the reduction of local rates as a matter of law interferes with the inter- state rates. It fs true that the companies may for their own convenlence, to securp business or for any other reasons, rearrange their Interstate rates and make them conform to the local rates prescribed by the statutes, but surely there is no legal compulsion. The statute of the state does not work a change in interstate rates any more than an act of congress prescribing Interstate rates would legally work a change in local rates. Railroad companies cannot plead thelr own convenience or the effects of competition between themselves and other companfes in restraint of the otherwise un- deniable power of the state. QUESTION OF JURISDICTION. It is further insisted by defendants that this court has no jurisdiction over these ac tions; first, because, in the act itself, an ade- quate legal remedy is provided by petition 10 the supreme court of the state, and courts of equity may not interfere when adequate legal Temedies are provided; secondly, be- cause the rates are prescribed by direct act of the legislature and not fixed by any com- mission. T am unable to assent to either of dhese contentions.* * * There can be no doubt of the jurisdiction of this court in ac- tions like these, and its duty to protect the property rights of the plaintiffs against any wrongful invas'on thereof by the stite through leglslation in any form. ARE THE RATES UNREASONABLE? But the grave question still remains, are the rates prescribed In tuls act, as the maximum over which the railroad compa- nies may not go, unreasonable, and so un- reasonable as to justify the courts in stay- ing its operation? No; more difficult prob- lem can be presented than this. There are 80 many matters which enter into it, and which must be taken Into consideration be- fore a satistactory answer can be reached. ““What is the test by which the reasonable- ness of rates Is determined? This is not yet fully settled. Indeced, it is doubtful Wwhether any single rule can be laid down applicable to all cases. It it be sald that the rates must be such as to secure to the owners a reasonable per cent on the money invested, it will be remembered that many things have happened to make investments far In excess of the actuai value of the prop- erty—injudicious contracts, poor engineer- ing, unusually high cost of material, rascal- ity on the part of those engaged In the con- struction or management of the property. These, and inany other things, as is well known, are - factors which have largely entered -into the investments with which many * rallroad properties stand charged. Now, It the public was seeking to take title to the railroads by condemnation, the present | value of the property, and not its cast, is that which it would have to pay. In like manner, it may be argued that when the legislature assumes the right to reduce rates the rates 0 reduced cannot be adjudged unreasonable if under them there is earned by the rail- road company a fair Interest on the actual value of the property. It is not easy to al- ways determine the value of rallroad property, and It there is no other testimony in respect thereto than the amount of stock and bonds SERIES NO. 47-48 THE AMERICAN ENCYCLOPAZ)IC DICTIONARY. 4260 Pages. 260,000 Wordy JAMIKUCIIVE AND USEWUL 4 e of Xuowledre and o Mint »p Usculnoss. There are more things instruotive, useful .-n.z\umlnm in that great qu&, “The A an Bueyelopedie Dicilonary,” than la by simlar publicliion over laaind: i great work, now for the first tma Within tho' reach of everyone, 18 & BRlaue publication, for it 1s ut ‘tho Aame w A pericel dieUonary and A ¢OMpIFL) oucylo: 'Only that number of tho Look correspoad- 'Wilh the Mories NBIIOF Of the S30004 S annted whi bs Gelvere, o "Sunday s nd Three Week-day coupoas, ‘With 15 centa in coln, will Dty o’ paei of The Amcrican Encyelopedia Dietloas ary. Send orders 10 Tho Bos Ofos. Muorders should bs addrossst i) DIOTIONARY DEPARTMENT outstanding or the construction account, it may be falrly assumed that one or other of these representatives and eomputation to the compensatory quality of rates, the case before us, however, there Is abundant testimony that the cost of repro ducing these roads s less than the cost of the stock and bond account or the cost of construction, and that the present value of the property is not accurately represented by either the stocks and bonds or the original construction account. Nevertheless, the amount of money that has gone Into rall- road property, the actual investment, as ex- pressed theoretically by the amos of stocks and bonds, is not to be ignored, even though | such sum Is far in excess of the present value. ““It was sald in the case of Reagan against Farmers Loan and Trust company: ‘It is unnecessary to decide, and we do not wish to be understood as laying down an absolute rule that in every case a fallure to pro- duce some profit to those who have invested their money in the building of a road is con- clusive that the tariff is unjust and un reasonable. And yet, justice demands that every one should reccive some compensation for the use of his money or property, if it be possible without prejudice to the rights of others.' WHAT RATES ARE JUST. “It is not always reasonable to cast the entire burden of the depreciation on those who have invested their money in railroads. Take the Union Pacific for illustration. At the time the government created the corpora- tion, to induce the building of this trans- continental line through a largely unoccu- pled territory, it loaned to the ecompany $16,000 a mile, taking as security therefor a second lien on the property and granting to the corporation the right to create a prior lien to an equal amount, which was done. There is testimony tending to show that road iy Nebraska could be built today for $20,060 a mile. Would it be full justice to the govern- mont, would it satisfy the common sense of right and wrong, would it be rea- sonable for the state of Nebraska to so re- duce the rates that the earnings of the road would only pay ordinary interest on $26,000 a mile, and so, the holders of the first iien being paid their interest, the government be forced to be content with only interest on one- fourth of its investment? Or, to put the caso in a little stronger light; suppose the promoter of this enterprise had been some private citizen, who had advanced his $16,000 a mile as a second lien, and that the road could be constructed today for oniy $16,000 a mile, would It be reasonable and just to so reduce rates as to simply pay to the holders of the first lien reasonable interst and leave him without any recompense for his investment? “Is there not an element of equity which puts the reduction of rates in a different at- titude from the absolute taking of the prop- erty by virtue of eminent domain? In the latter case, while only the value is paid yet that value is actually paid and the owners may reinvest and take the chances of gain elsewhere, whereas, if the property is not taken, the owners have no other recourse than to receive the sum which the property they must continue to own will earn under the reduced rates. Considerations such as these compel me to say I think there s no hard and fast test which can be laid down to determine in all cases whether the rates prescribed by the legislature are Just and reasonable, and that often many factors enter into a discrimination of the problem. Obviously, however, the effect of the reftuction upon the earnings is the first and principal matter to be considered. This is a matter of computation.” CONCLUSION AND FINDINGS. Justice Brewer then enters into a lengthy and elaborate discussion of the matter of local freight “business in Nebraska, quoting from statistics prepared by Secretary Dil- worth of the State Board of Transportation and Commissioner Utt of the Omaha Com- mereial club. In conclusion he says: “The conclusion to which I have come Is that, having regard to the present condition of affairs in this state, the present volume of business done over these roads and any probability of a change in that volume, a re- duction of 20% per cent in the rates for local freight s unjust and.unreasonable to those who have invested their money in these railroad properties. 1 appreciate fuily the embarrassment and difficulties attending an_investigation of this kind. 1 am re- luctant, as every judge should be, to inter- fere with the deliberate judgment of the Iegislature. I have taken much time'to con- sider this case in all its relations, and have come, though reluctantly, to the conclusion T have stated, and am, therefore, constrained to order decroes in behalf of the plaintiffs staying the enforcement of this. tarift upon the companies named in the bills. It may be said that even if furnishing no reasonable remuneration today the result might be djffer- ent under an fncrease of business. That, of course, is possible; and it may be that, as the ‘volume of business increases, the {ime may come when the rates fixed by this house roll 33 will be reasonable and just. So there should be entered as a proviso to the decrees that leave is reserved to the defendants at any time that they are so advised to move the court for a reinvestigation,of the question of the reasonableness of these rates.” Before closing Judge Dundy stated while he concurred -in the decision, were several points upon which he dissented, chie? among which was that the state had a right to fix rates for the Unlon Pacific, and later he would reduce .his opinion to writing. th that there REGULATING MALF FARES. Roads Propose to Have All Certificates Is- sued by a General Committee. CHICAGO, Nov. 12.—A special meeting of the Western Passenger assocfation has been called for November 14. The first. thing to be taken up will be the issuance of permits for half fare tickets during the coming year. It Is proposed that all applications for half fare shall be made in the handwriting of the applicant to a committec of the western lines and that permits will only be issued after a certificate his been granted by this cow- mittee. The Burlington road, which objects to this plan on account of the extra labor which it wilb entail upon the passenger de- partments of all roads, will present a mi- nority report favoring the issue of all halt fare permits in the old way. After the general assoclation hne con- cluded its work the eastern committee will take up the matter of rates from Waterloo, | Ia., to Montana and northern Pacific coast | points. This is to consider the rates made | last week by the Burlington, Cedar Rapids & Northe The lines of the Central Traffic association | and those of the Western Passenger as-| sociation have finally got together on the question of short line rates, over which they | have been squabbling for several months. Tho basis of the agreement is to put tho | question back where it was before the dls- pute began and leave it alone. | Private advices were received in this city today from New York stating that the mission of A. F. Walker, recelver of the cta Fe, had been successful. An agree- ment had been reached between his road | and the Southern Pacific on all differences Pthat have divided them for more than a | year past. The Santa Fe, it is understood, practically secures all for Which it has been | eontesting. Its right to ticket passengers to San Francisco via Los Angeles at short line rates is admitted and fully secured for | the future. Furthermore, the Santa Fe has secured a guarantee from the Southern Pacific that It will be allowed the right of ticketing passengers to San Francisco | and routhern California points over Southern Pacific tracks on as favorable terms as are given any of the other Southeérn Pacific conrections from any other directions. e By bestowal of highest honors at the Chicago and Midwinter fairs on Dr. Price's Baking Powder, the government experts and | Jury of awards'confirm it“as superior to any other. —_— LOCAL BREVITIES, Custer Women's Reliel give a social Wednesday residenco of Mrs. George North Bighteenth street. The Omaha Woman's Christian Temperance union will meet Welnesday, November 14, at 8 p. m., in the Commercial club rooms. Every one interested is cordially Invited to be present. The executive committes will hold a session at 2 p. m. preceding the gen- eral meeting. Superintendent Marble of the public schools has received intelligenoe of the serious ill- ness of his daughter, who is suffering from & severe attack of lung trouble. Her {ll- ness has taken such a form that Mr. Marble will probably ask for a leave of absence corps No. 8 eveniog at H. Rhodes, will the 1614 from the Board of Education to return to the east. where his family is spending the winter. | directly | lowed THE OMAHA DAILY STRIKE COMMISSION REPORT| Not Very Complimentary to the Action of the Corporation Managers. GENERAL MANAGERS ASSOCIATION ILLEGA No Warrant the Articles of Incorpora- tion of the Koads for the Formation of the Assoclution—So State- ments About Pallman. CHICAGO, Nov. 12.—The United States government report on the great rallway strike bo connection with the Pullman trou- ble was made public today. The' report, which is signed by the federal labor com- missioner, Carrol D. Wright and his tellow investigators, John D. Kernan of New York and Nicholas B. Worthington of Illinols, is addressed to President Cleveland and abounds in passages which will attract wide attention, particularly the portion referring to the now famous General Managers asso- clation, the organization of high railway offi- cials that encompassed the memorable de- feat of the A. R. U. The report says the capitalization of the twenty-four railroads in the General Managers associa- tion was $2,108 The number of em- ployes was 221,007, The commission con- tinues: Phis voluntary unincorporated as- soclation was formed in 1886. In its con- stitution the object is stated to be ‘The consideration of problems of management arising from the operations of rallways ter- minating at Chicago It further provides that ‘all funds needed shall be raised by assessment, divided equally among the mem- bers.' There are no limitations as to ‘con- sideraticn of problems or funds’' except the wili of the managers and the resources of the railroad corporations. Until June, 1894, the association’s possibilities as @ strike fighter and wage arbiter lay rather dormant. Its roads fixed a ‘Chicago scale for switch- men, covering all lines at Chicago.” In March, 1893, the switchmen demanded more pay from each road. The association con- ciuded they were pald enough, if anything, too much. The roads so informed the men. The Switchmen’s Mutual Aid Association of North America wrote to Mr. St. John as chairman, acquiescing. He, as chairman of the General Managers assoclation, coneluded his reply as folows: *“ “The association approves the course taken by your body and desires to deal fairly with all employes and believes our switchmen are receiving due consideration,’ This seems to show, the report says, that employes upon assoclation roads are treated as under subjection to the General Managers assoclation, and the report, after detailing the action of the association in establishing agencies and employing men adds: HAD TWENTY-FOUR ROADS TO FIGHT. “This was the first time when men upon each line were brought sharply face to face with the fact that in questions as to rules, wages, etc., each line was supported by twenty-four combined railroads. This asso- clation likewise prepared for its use elaborate schedules of the wages paid upon the entire lines of its twenty-four members. The pro- posed object of these schedules was to let each road know what other roads paid. Finding the men upon some lines urged in- creases to correspond with wages paid else- where, a committee of the association pre- pared and presented a uniform echedule for all membership roads. It was deemed wise not to act upon the report. It was distrib- uted to members in November, 1893. This distribution alone enabled the report to be used with efficiency as an ‘equalizer.’ As the result during 1893—It being then well understood that as to wages, etc., it was an incident of the General Managers association to ‘assist’, each road fn case of trouble over such matters, one form of assistance being for the association, to secure men enough through its agencies to take the places of all strikers—reductions were here and there made on the different roads, the tendency and effort apparently being to equalize the pay on all lines. It is admitted the action of the association has great weight with outside lines and thus tends to establsh. one uniform scale throughout the country. The further single step of admitting lines not running into Chicago to membership would certainly have the effect of combining all railroads in wage contentions against all em- ployes thereon." The committee questions whether any legal authority, statutory or otherwise, can be found to justify some of the Teatures of the association, which have come to light in this investigation. If we regard its practical workings rather than its professions, as expressed in its constitution, the Genera) Managers association has no more standing in law than the cld trunk line pool. ‘WAS A USURPATION OF POWER. It cannot incorporate because railroad charters do not authorize railroads to form corporations or assoclations to fix rates for services nor to force their acceptance; nor to battle with strikers. It is a usurpation of power not granted. If such an assoclation is necessary, from a business or economic standpoint, the right to form and maintain must come from the state that granted its charters. In theory corporations are limited to the powers granted either directly or by clear inference. We do not think the power has been granted in either way in this case. The assoclation is an {llustration of the per- sistent and shrewdly disguised plan of cor- porations to overreach: their limitations and to usurp indirectly powers and rights not contemplated in their charters and not ob- tainable from the people or their legisla- tures. An extension of this assoclation, as above suggested, and the proposed legaliza- tion of “‘pooling” would result in an aggre- gation of power and capital dangerous to the people and their. liberties as well as to employes and their rights. The question would then certainly arise as to which shall control, the government or the railways, and the end would fnevitably be government own- ership. Unless ready for that result and all that it fmplies, the government must re- strain corporations within their law and prevent them from forming unlawful and dangerous combinations. At least, so long as railroads are thus permitted to combine to fix wages and for their joint protection, it would be rank injustice to deny the right of all labor upon railroads to unite for similar purposes. It should be noted that until the rallroads set the example a great unlon of railway employes was never attempted. The unions had not gone beyond enlisting the men on different systems in separate trade organizations. These neutralize and check each other to some extent and have no such scope,, or capacity for good or evll as is possible under the universal combination idea inaugurated by the railroads and fol- by the A. R. U. The refusal of the general managers to recognize and deal with such a combination of labor as the A. R. U. seems arrogant and absurd when we consider its standing before the law, its assumptions and its past and obviously con- | templated future action. TOUCHED UP PULLMAN. Taking up the subject of the Pullman Palace Car company, the report says: *This is a corporation organized in 1867, with a capital of $1,000,000. It has grown until its present paid up capital is $36,000,000. .Its prosperity has enabled the company for over twenty years to pay 2 per cent quarterly dividends. and, in addition, to lay up a sur- plus of nearly $25,000,000 of undivided profits.” . Speaking of the town of Pullman, of which the report states the eompany is owner and landlord. the commission says: “The prin- cipal church and its parsonage are very attractive structures, but often are not oc- cupled, because the rental required is higher than any church society is willing to pay to obtain the gospel privileges to be thereby secured. In the arcade s a tasteful library of buoks, carefully selected and cared for by the company. Three dollars per year is charged for its use, and as many as 250, per- Hns a year out of from 4,000 to 5,000 em- ployes and residents, have at time, as stated by the librarian in charge, avai~d them- solves of its opportunities. It Is possible that the air of business strictly maintained there, as elsewhere, and their exclusion from any part of its management, prevent more unlyersal and grateful acceptance of its ad- vantages BF Fployes. As & rule, even em- ployes prafer.dndependence to paternalism in such matfrsf| The company pays a physi- cian and Surddon by the year to furnish to infured employes necessary treatment and drugs. It is, however, also a part of his em- ployment {9 jppeure from the injured party a written' Mdtbment as to the causes of in- jury and itedy his eustom to urge the ac- ceptance of any offered settlement, If suit follows the doctor fs usually a witness for the com We have no evidence that the" dociof S0). ever ebubed his conigen relation toward the Injured employes, the system is admirably conceived, from a business S0AtBoint. Co decure speedy settle: ment of “AdM\s for damages upon terms offered byn#he company and to protect the company from litigation and its results. SITUATION IN 1893, “As the result of the Pullman system and its growth, when the depression of 1893 came, morally ealling for mutual concessions as to wagos, rents, etc, we find on the one side a very wealthy and unylelding corporation and upon the other a maltitude of employes of comparatively excellent character an% skill, but without local attachments, or any interested responsibility In the town, its business, tenements or surroundings. The conditions created at Pullman enable the management at all times to assert with great vigor its assumed right to fix wages and rents. absolutely, and to repress that sort of independence which leads to labor or- ganizations and their attempts at mediation, arbitration of strikes, etc. On the other hand, it is an economic principle generally recognized that the shutting down of such a plant and seattering of its forces usually results in a greater loss than that “exhibited by the continuance of business. To continue running was for its obvious and fair advan- tage, 50 long as It could divide losses equally with its laborers. The men at Pullman claim that the company, during 18! the pace through experts, so that with thel» forced loss of time the average men could earn little more than the rent of his home, owned by the company. The company m- but leges that it simply readjusted plece work prices to suit the necessities of the times. Some witnesses swear that at times for the work done jn two weeks they recelved in checks from 4 cents to $1 over and above their rent. The company has not produced its checks in rebuttal. During all of this reduction and its attendant suffering, none of the salaries of the officers, managers or superintendents were reduced. Deductions in these would not have been so severely felt, but would have shown good faith, would have relleved the harshness of the situation and would have evinced genuine sympathy with labor in the disasters of the times. In its statements to the public, which are in evidence, the company represents that its obfect in all it''did was to continue opera- tions for the' benefit of its workingmen and of tradespeoplé in and about Pullman and to savo the public from annoyance of inter- rupted travel. COMPANY WAS SELFISH. “The committee thinks the evidence shows that it sought to keep running mainly for its own beneflt as a manufacturer; that its plant might not rust; that its competitors might not invade ‘its territory; that it might keep its cars in'repair; that it might be ready for resumption when business revived with a live plant and’ competent heip and that its revenue from its tenements might continue. If we exclude thesaesthetic and sanitary fea- tures at Pulimad, the rents there are from 20 to 25 per eent higher than rents in Chi- cago or surrounding towns for similar ac- commodations. *The - aesthetic features are admired by visifors, but have little money value to employes, especially when they lack bread. The company makes all repairs and hergtofors las -not. compelled tenants to pay for them. Under the printed leases, however, which tenante must sign, they agree to pay for all repajgs;which are. either necessary (ordinary woar and damages by the elements not excepted)on which the company chooses to make, The; company’s claim that the workmen need..not hire its tenements and can live elsewherp If they choose is not en- tirely cenul%g, The fear of losing work keeps them in Pullman as long as there are tenements yngccupied, becduse the company is supposed;,; a8 & matter of busipess, to give preferance ter it8 tenants when work is slack. While reducing, wages, the company made no reduction In rents. Its position is that the two matters are dlstinct and that none of the reagons urged as justifying wage reduction by, it ag an employer can be considered by the company’ as a landlord. The company claims it is'simply legitimate business: to use its position and resources to hire In the labor market as cbeaply as possible and at the same time to keep rents up regardless of what wages are paid to its tenants. or. what similar tenements rent for elsewhere; to avail itself to the full extent of business depression In reduclng wages and to disre- gard these same conditions as to rents. .No valid reason Is assigned for this position, ex- cept simply that the company had the power and the legal right to do it. HOW RENTS WERE COLLECTED, “Prior to the so-called ‘truck’ law in Ilii- nois rent was deducted from the wages. Since then a check.is given for the amount of the rent and another -for the balance duc for wages. Theré is ‘nothing to prevent the payee of the cleck from cashing it outside of the bank, butas the bank is rent collector, it presses for the Yent and fs aiding in col- lecting it by akmowledge on the part of the tenant that by arrears he may lose his job. “The reductions'at Pullman after Septembar 1, 1893, were the result of conferences among the managers; the employers for the first time knew of them when they took effect. The company based its entire pre- tension as to every department upon the facts in reference to car building, to which we have alluded, and offered to show its books and figures as to the cost and selling’ prices of cars, This offer, on account of the strike Intervening, was not acted upon. Had it been it would haye resulted in the figures as to car building contracts being known. The purpose of the management was ob- viously to rest the whole matter upon cost, etc., In Its most seriously crippled depart- ment, excluding from consideration the facts as to wages in the repair department. “The demand of the employes for the wages of June, 1893, was clearly unjustifiable. The business in May, 1894, could not pay the wages of June, 1893. Reduction was carried to excess, but the company was hardly more at fault therein than were the employes in insisting upon the wages of June, 1803 There was little discussion as to rents, the company maintaining that its rents had noth- ing to do with its wages and that its revenue | from its tenements was no greater than it ought to receive. The company had a legal right to take this position, but as between | man and man the demand for some rent reduction was fair' and reasonable under all the circumstances. Some slight concession | in this regard would probably have averted the strike, provided the promise not to dis- charge men who (served upon- the committee had been moreitrictly regarded. The strike occurred on May 4, and from that time un- til the soldlers went to Pullman, about July 4, 300 strikersrwese placed about the com- pany's property,’ professedly to guard it from destruction _Or interference. This guarding of propesty-in strikes is, as a rule, a mero pretenge.;,Too often the real object of guards is tp prevent new comers from taking the stylkess' places. The Pullman company claims, this was the real object of these guards. . The strikers at Pullman are entitled to be believed to the contrary in this matter, becaust*dtheir conduct and forbear- ance after May 11 Tt is in evidence and un- contradicted tHAtiHo violence or destruction of property by!#rikers or their sympathizers took place at Pullman and that until July 3 no extraordinggy, protection was bad from tho police or mydiary against even antici- pated disorder. CONDUCT OF "MEN EXEMPLARY. “Such dignified. manly and conservative conduct in the midst of excitement and threatened starvationds worthy of the high- est type of Ameriean citizenship, and, with like prudence In: all other directions, will result in due time In the lawful and orderly redress of labor wrongs. To deny this s to forswear patriotism and to declare this government and its people a failure.” As to the great railroad strike proper, the roport says: “It Is apparent that the readi- uess to strike sympathetically was promoted by the disturbed and . apprehensive condi- tion of rallroad employes resulting from wage reductions of different lines, blacklist- ing, ete., and trom the recent growth of the General Managers assoclation, which seemed to them a menace. Farther oo the veport says: “It is seri- ously questioned, gnd with much force, whelher courts have jurisdiction to enjoln citi- | it. trial or other matters of common Interest. However, It Is generally recognized among #00d citizens that a mandate of a court is to be obeyud until it is modified and corrected by the court that fssued it. The policy,” the report says, “‘of both the Pullman com- pany and the Rallway Managers association In reference to applications to arbitrate closed the doors to all attempts at concilia- tion_and settlement of differences. “The committee Is Impressed with the bellef, by the evidence and by the attend- wnt circumstances as disclosed, that a differ ent policy would have prevented the loss of life and great loss of property and wages oc- casioned by the strike.” The report declares “the arrival of the troops at Chicago was op. portune and that policemen sympathized with the strikers rather than with the cor- porations cannot be doubted, nor would it be surprising to find the same sentiment rife among the military. These forces are largely recruited from the laboring classes, Indeed, the danger s growing that in strike wars between corporations and employes miltary duty wiil ultimately have to be done by others than volunteers from labor ranks. UNWISE USE OF DEPUTIES. “United States deputy marshals to the num- ber of 3,600 were selected by and ap- pointed at the request of the General Man- agers assoclation and of its railroads. They were armed and paid by the railroads and acted. 1n the double capabity of railroad ‘em- ployes and United States officers. While operating the raliroads they assumed and exercised unrestricted United States author- ity when so ordered by their employers or whenever they regarded It as necessary. They were not under the direct control of any government official while exercising au- thority. This is placing officers of the gov- ernment under control of a combination of railroads. It is a bad precedent that might well lead to serious consequences.” The committee briefly disposes in this way of the matter of the use of federal troops: “Section 4 of article 4 of the federal con- stitution reads as follows: “The United States shall guarantee to every state in this union a republican form of govrenment and shall protect each of them against invasion, and, un application of the leglslature or of the executive (when the legislature cannot be convened), against domestic violence.” “‘United States troops wer not sent into Tllinois upon the application of the legisla- ture nor of the executive against domestic violence, 1. e., violence affecting the state and its government as such. The president ordered the troops to Chicago: “First, To protect federal property; second, to prevent obstruction in the carrying of the mails; third, to prevent interference with i terstate commerce; and, fourth, to enfor the decrees and mandates of the federal courts. He did this under the authority of section 5,298 of the Revised Statutes of the United States, which provides: henever, by reason of unlawful obstructions, combina- tions or asesmblages of persons or rebellion against the authority of the government of the United States, it shall become imprac- ticable in the judgment of the president to enforce by the ordinary course of judicial procedure . the laws of the United States within any state or territory, it shall be lawful for the president to call forth the militia of any or all of the states and to em- ploy such parts of the land or naval forces of the United States as he may deem neces- sary to enforce the laws of the United §tates or to suppress such rebellion in whatever state or territory thereof the laws of the United States may be foreibly opposed or the execution thereof forcibly obstructed.’ Section 5,299 1s also quoted, and the report adds: “Other statutes tend to confer au- thority in the same direction. “There Is no evidence before the committec that the officers of the A. R. U. at any time participated in or advised intimidation, vio- lenge or destruction of property. They kneyw and fully appreciated that as soon as mobs ruled the organized forces of society would crush the mobs and all responsible for them in the remotest degree, and that this meant defeat. The attacks upon. corporations and monopolies by the leaders in their speoches are similar to those to be found in the maga- zines and Industrial works of the day, “From the testimony it is fair to conclude that strikers wero concerned in the outrages against law and order, although the number was undoubtedly small as compared with the whole number out.”” The report adds, how- ever: “Many fmpartial observers are reach- ing the view that much of the real respon- sibility for these disorders rests with the people themselves and with the government for not adequately controlling monopolies and corporations and for falling reasonably to protect the rights,of labor and redress its wrongs. No one asserts that laws can com- pletely remedy contentions as to wages, etc., but may and do insist that something sub- stantial can be accomplished in this dire tion It attempted homestly and reasonably and in good faith."” In . conclusion, the report says: ‘‘Since nations have grown to the wisdom of ayoid- ing _disputes by conciliation, and even of settling them by arbitration, why should capital and labor, in their dependence upon each other, persist in cutting each other's throats as a settiement of differences? Offi~ cial reports show that much prosress has been made in the more sane direction of couclliation and arbitration, even in America. Abroad they were in advance of us in this policy. Were our population as dense and opportunities as limited as abroad the present Industrial condition would keep us much more disturbed than we now are by contests between capital and labor. Some of our courts are still poring over the law re- ports of antiquity in order to construe con- spiracy out of labor unions. We also have employers who obstruct progress by pervert- ing and misapplying the law of supply and demand, and who, while insisting upon in- dividualism for workmen, demand that they shall be let alone to combine as they please and that society and all its forces shall protect them in their resulting contentions. INDUSTRIAL CONDITIONS CHANGED. “The rapid concentration of power and wealth under stimulating legislative condi- tions, In persons, corporations, and monopo- lies, has greatly changed the business and in- dustrial situation. Our rallroads were con- structed upon the theory that their compe- tition would amply protect shippers as to rates, etc., and employes as to wages and other conditions. Combination has largeiy destroyed this theory ,and has seriously disturbed the natural working of the laws of supply and demand, which, in theory, was based upon competition between demand as well as among those who supply For instance, as we have shown, there is no longer any competitive demand among the twenty-four railroads at Chicago for switchmen. They have ceased competing with each other; they are no longer twenty four separate and competing employers; they | | are virtually one. “However men may differ about priety and legality of labor all recognize the fact that w us to stay, and they grow more numerous and powerful. Is it not wise to fully recog- nize them by law: to admit their necessity as labor guides and protectors, to conserve their usefulness, Increase their responsibility and prevent their follies and aggressions by. conferring upon them the privileges en- joyed by corporations, with like proper re- strictions and regulations? The growth corporation power and wealth has been (I marvel of the past five years. Corporations have undoubtedly benefited the country and brought its resouces to our doors. It will not be surprising 1f the marvel of the next fifty yoars be the advancement of labor to a posi- tion of like power and responsibility. We have heretofore encouraged the one and gomparatively neglected the other. Does not wisdom demand that each be encouraged to prosper legitimately and to grow into har- monlous relations of equal standing and re- sponsibility before the law? This involves nothing hostile to the true Interests and rights of either. DISCUSSION OF THE REMEDY, The committee deems recommendations of specific remedies premature. Such a problem, for Instance, as universal government owner- ship of rallroads Is too vast, many-sided and taraway, if attempted to be considered as an immediate, practical remedy. It belongs to the socialistic group of public questions where government ownership is advocated of monopolies such as telegraphs, telephones, express companies and municipal ownership of water works, gas and electric lighting and street raillways. These questions are press. the pro- anfons, we must have them with SIGNIFICANT ~ NEGOTIATIONS Burlington May Give Union Facific Lively Competition Into Portland, SHCRTENING OF DISTANCE CONTEMPLATED 1t Accomplished, It Wil Be Over Oregon Line—Efforts at Resumption At the Cheyenne Shops—Other Raliroad Nows, There s a great the telegram from deal of significance in Portland regarding the reopening of the Columbla river country between Wallula Junction and Portland by the Northern Pacific, for it very materially concerns the interests of the B. & M. company {n that territory. Should ‘the Northern Pacific be able to make favorable traffic arrangements with the Oregon Rail- way and Navigation company, as now appears more than likely, it will give the Burlington a line Into Portland almost equal in direct- ness to the Union Pacific’s from Omaha and make it twenty miles shorter from Kansas City via Billings. Freight, according to the Northern Pacific tarifi sheets, may be routed via Wallula Junction, but passenger business has gone over the Northern Pacific via Pasco Junction, Tacoma, into Portland, which has extended the distance very considerably. Should the Northern Pacific, however, suc veed in making traflic arrangements with the Oregon Railway and Navigation company instead of having to describe two sides of a triangle to get into Portland, trains wouid run direct from Wallula Junction into the Oregon metropolis, thereby shortening the distance nearly 170 miles. The distance via Wallula Junction to Portland over the Northern Pacific is 382 miles, while the dis- tance via the Oregon Railway and Navigation company line from the same point is 213 miles, The distance from Omaha to Portland via the Union Pacific is 1,820 miles, while the distance via the Burlington and Northern Pacific, should the contemplated arrange- ments be made, will be 1,887 miles, sixty- seven miles In favor of the Union Pacific. But from Kansas City the Burlington would have the advantage by twenty miles. In any event the new road would present for- midable complications to other transconti- nental lines and bring into the field for Sound business a new Richmond whose past has been one of success so far as railroad ma- nipulations are concerned. At Burlington headquarters litile was known regarding the contemplated action on the part of the Northern Pacific, but it scemed to give general satisfaction to the passenger department, although the freight department showed little interest in the new route for the reason Wallula Junction has lum{v;l the accepted route for the freight traffic. LITTLE FIL HI> REPORT. Showing of Earnings and Defle the Atchison System. NEW YORK, Nov. 12.—The report of Ex- pert Little, who has been investigating the accounts of the Atchison, Topeka & Santa I'e Railroad company, has just been made vublic, being Issued at the same time In New York, London and Amsterdam. It is addressed to R. S. Hayes, chairman of the Atchison general reorganization committee, 1ts salient points are as follows: First, the net revenue for the year ending June 80, 1894, exclusive of the Atlamtic & Pacific, Colorado Midiand and St. Louis & San Francisco lines, was $§5,956,614. This in- cludes an instaliment of $350,000 of the Sonora Railway company subsidy, which should be deducted in eon:idering earnings as o basis for a plan of reorganization. If this subsidy is deducted the net earnings would bo reduced to $5,606,614. Interest charges which'are prior liens to the Interest on the 4 per cent general gold bonds leaves the sum of $4,816,264 applicable to the inter- est on $128,365,605 of these bonds outstanding in the hands of the public, which is equal to only ‘.75 per cent. The Atchison company lost ating the St. Louis, Kansas City Colorado railroad and the net carnings would have been increased $341,401, being the amount contributed by the Atchison company under the tripartite agrecments with the Atlantic & Pacific and St. Louls & San Francisco Railway companies. These two sums added to the net earnings would bring them up to 4.09 per cent. In accepting these figures as a basis for reorganization it must be taken for granted that the present floating debt of the company will be provided for and will not be a charge against future revenue. But while it may be aid that interest on the general 45 has been substantially earned, the carnings de- pend to some extent on the maintenance of the integrity of the entire system. The aux- iliary companies are a severe upon the ‘Atchison under the present system of fixed charges, the loss for the on the Atlantic & Pacific being $1,360,034, one-half being chargeable to the Atchison; the loss on the Colorado Midland being $647,76¢ and on the St. Louls & San Francisco $599,062, all chargeable to the Atchison. On the results of the adjustment that may be reached with theso companies, if retained in the system, depends the real surplus available for pay- ment of interest on the Atchison general 48, taking the earnings from the year end. ing June 30, 1894, as a basis. The net floating debt of the entire system, exclusive of the indebtedness of one company to an-| other, now overdue, and accrued interest on | funded debt, 18 $9,149,688. On the Atlantie & Pacific it Is §589,509, on the Colorado Mid- land $183,358 and on the St. Louis & San Francisco $487,752. The gross unfunded debt is $15,106,381; the gross as-ets $4,095 malking the total net unfunded debt $10 202, The indebtedness April Atlantic & Pacific was $5,580 san company, and $6,849,200 to the St Louis & San Francisco, The indebtedness of the St. Louis Francisco to the Atchison was §1, 9 and of the Colorado ncles on dr: 10,- 0, 1894, of the to the Atchi- those who | ing more urgently as time goes on. They need to be well studied and considered in every aspect by all citizens, Should combi nations and consolidations result In half a (Coutinued on Thrd Page.) Midland to the Atchison $1,695,916, which claims, aggregating $16,040,920, ‘ure appar- | ently worthless and should be written to the debit of profit and loss. The interest on the funded and unfunded debt and the deficiency In each year from | 1891 to 1894 is as follows: 1891, interest | $7,169,164; deficiency, $1,964,285; 1892, inter- est $7,914,111; deficiency, $60.938; 1893, futer- est $8,220,433; deficienicy, $134,825 , Inte est $5,964,857; deficiency,~$3/008,242, making a deficiency for the 5 - of 1 four RESUMPTION 5 MUCH DESIRED. on at Cheyenne Muke the Union Pacifie There has been considerable over the complete resumption of the Cheyenne shops by the Unlon but nothing has come of the matter. day the various trades connected with shops held a meeting, at which the genc expression prevailed that if a small reductic in wages stood in the way of the shops being fully manned the employes were willing to equalize the ges In order that the un- employed might be given employment. This decision was submitted to the receivers of the company, but nothing, so far as could be learued, has ‘resulted. The decision contem- plated the ro-employment of those who went out In the Pullman strike, but from the best obtainable information it s thought the receivers will not depart from their orig- inal position, that the strikers materially in- terfered with the running of the road and should not go without punishment. How- ever, the receivers have taken the matter under advisement and will hand down an opinfon shortly, in view of the pressure brought to bear by Cheyenne business men and otlers interested in the resumption of | work in the Cheyenne shops. | | | Overtures Receivers, talk | of late | work at Pacifie, ui the al Rallway Notes K. C. Morehouse of the Elkhorn went to Chicago last night. ! J. J. Cox, commerclal agent of the Burling- ton’ at Lincoln, was in the city yesterday. J. E. Preston of the Milwaukee s at his desk again after a ten days' severe iness, E. H. 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