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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (Nov. 13, 1894)
THE OMAIIA DAJJ r BEE : TUESDAY , NOYEMUEK 13 , 1804. the section 18 of act 12 , statute 497 , us fol lows ; 'And bo It further enacted , that when ever U appears that the net earnings of the entire road and telegraph , Including the amount allowed for aervlces rendered for the United States , after deducting all expendi tures. Including repairs and the furnishing , running and managing of said road , shall exceed 10 per cent upon Its cost , exclusive of the G per cent to be paid to the United Statoj , congress may reduce the rates ot fare thereon , If unreasonable , In amount , and may flx nnd establish the fame by law. ' "There U In these words a ppeclnl reserva tion of the power to fix rates , and when this is taken In connection with the general pro vision In the same section , reserving the right to 'add to , alter , amend or repeal this act , ' there Is much force In the contention that congress Intended to reserve to Itself absolute control ot all the rates charged by the company. I am not fully satisfied that this language warrants such a conclusion. If the Union Pacific company l i not exempt from thlj act , no other company Is. STATE AND NATIONAL LAW. "Again , It Is Insisted that the act 'Is ob noxious 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 the United States , and this because all the roads In the slate are not subject to Its provisions. Section 4 U rolled upon to sustain : this charge : " 'All railroads or parts thereof which have been built In this state since the 1st day of January , 1889 , 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. ' "Tho right to classify Is conceded , but It Is said that this classification Is arbitrary nnd 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 Omaha to Lincoln which Is a part of Its main line from Chicago to Denver , that In all of Its business the Rock Island Is In active competition with the several companies whoso roads are subject to ths provisions of this act , and that It Is an unreasonable and unjust discrimination to ex empt the Hock Island company from like subjection. I cannot concur in these views. The principle of classification adopted by the legislature , whether wise or unwise , Is within Ha power. To divide railroads Into two classe , placing In the one all that had been constructed and In operation for a length of tlmo 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 arb'trary distinction , nnd this notwithstanding that It may be one of the recently constructed roads Is so for tunate to have Immediately secured a large business. The protection , of Infant Industries Is a term of frequent use In the political dis cussions and history ot 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 sarlly reduces the rates on Interstate busi ness. Neither of these objections seems to me to bo well taken. In the first place , the classification of freights by railroads Is a purely voluntary act not compelled by any statute and not uniform throughout the country. There Is one system which pre vails cast of Chicago nnd one west. It might bo convenient If the classification es tablished by this act harmonized with that adopted by the railroad companies doing I * business west of Chicago , but surely the k voluntary act of the railroad 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 railroad companies have voluntarily placed flour In a certain cla&s , on which a specified rate is to be changed , such volun tary act of mere classification destroys the powder of the state to establish a classifica tion which puts flour In another class and subject to another rate Is , to my mind , n most extravagant pretcntloiu Nqlthcr can I understand hdw the reduction of local rates as a matter of law Interferes with the Inter state rates. It Is trud That the companies may for their own convenience , 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 their own convenience or the effects of competition between themselves and other companies In restraint of the otherwise un deniable power ot the state. QUESTION OF JURISDICTION" . It Is further Insisted by defendants that this court has no jurisdiction over these ac- tlans ; first , because , In the act Itself , an ade quate legal remedy Is provided by petition to the supreme court of the state , and courts of equity may not Interfere when adequate legal remedies are provided ; secondly , because - cause the rates are prescribed by direct act of the legislature and not fixed by any com mission. I am unable to assent to either ol UICSB contentions. * * * Theie can be no doubt ot the jurisdiction of this court In ac- tldns like these , and Its duty to protect the property rights of the plaintiffs against any wrongful Invns'on thereof by the stile through legislation In any form. ARE TUB RATES UNREASONAHLE ? But the grave question still remains , are the rates prescribed In this act , as the maximum o\er 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 bo presented than this. There are so many matters which enter into It , am which must bo taken Into consideration be fore a satisfactory answer can be reached "What Is the test by which the reasonable ness ot rates Is determined ? This Is no yet fully settled. Indeed , It Is doubtfu whether any single rule can be laid down applicable to all cases. It It be said Urn the rates must be such as to secure to the owners a reasonable per cent on the money Invested , It will be remembered that man ; things have happened to make Investments far In excess of the actual \aluo ot the prop erty Injudicious contracts , poor engineer Ing , unusually high cost of material , rascal tty on the part of those engaged In the con Dtructlon or management of the property These , and many Other things , as Is wel known , are factors which have largely entered Into the Investments with \\hlcl many railroad properties stand charged Now , It the public was seeking to 'jiko title to the railroads by condemnation , tha prescn valup ot the property , and not Its cjst. [ 3 tha which U would have to pay. In Ilka manner It may be argued that when the legislature assumes the right to reduce rates the rates do reduced cannot bo adjudged unrensonalil If under them there Is earned by the rail road company a fair Interest on tha uctua valueof the property. U Is not easy to al ways determine the value ot railroad property and U there Is no other testimony In rcspec thereto than the amount of stock and bond SERIES NO. 47-48 HIE AMERICAN EXCKLOPAEJ1G DICTIONARY. 4 2CO Pftgcs. 260,003 , Worih A JL'uip iJdiotrfafra. . and a Wnt > / Utrfulticti. Thfro nro more Ihlnra Instnicllro ua rui ind riitc taliilnr In that ttv.it Uiotc , Tha American EiicjclopotUo Dlclluuarv , " tluuitn any similar publication utrr luimxl. fTliH ! ermi work , now for tlia tlrat tnw plicctl wittiln UIQ loach of meryuno , last unique publication , ( or U 1 * nt the B.IIIIO tlmj , \ perfect ftlcUoiury urn ! u Lomplrt j encyclo pedia. Only tlial number ot the Ixxfc corwipoad- luc with llio hcrli-u numbur of the cuupa. ! crccentcd wU bo dolh cretl. ONKSmirtnyi nd Tlirra Week-day coupjji , vllli la ccntu In coin , will Uiiy on jiuri of Tlio American KiM-yrloiHxIU Dlollja- rjr , fi-nU orders la TUolhuOiIloj. ntm'crn ohoulJ Uj arWrosssll ) DIOTIONAEY DEPAKTilEHT outstanding or the construction account , It nay be fairly assumed that one or other f these representatives nnd computation as a the compensatory quality of rates , ho case before us , however , there Is abundant testimony that the cost of repro ducing these reads Is less than the cost of the Block and bond account or the cost of construction , nnd that the present value of he property Is not accurately represented > y cither the stocks and bonds or the original construction account. Nevertheless , ho amount of money that has gene Into rail road property , the actual Investment , as cx- irtssed theoretically by the amount of stocks and bonds , Is not to be Ignored , oven though such sum Is far In excess of the present \nlue. 1 It was eald In the case of Reagan against Farmers Loan and Trust company. 'It Is unnecessary to decide , nnd we do not wish to be understood as laying down an absolute rule that In pvery case a failure to pro- luco 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 reccUo some compensation 'or the use of his money or property , If It ie 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 .ho time the government created the corpora tion , to Induce the building of this trans continental line through a largely unoccu- iled tenltory , It loaned to the company [ 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 lone. There Is testimony tending to show .hat the road ID Nebraska could be built .oclay for $20,0(0 a mile. Would It lo full Justice to the govern ment , would It satisfy the common sense of right and wrong , would 11 bo 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 J20.000 a mile , and so , the holders ot the first lien being paid their Interest , the government be Torced to be content with only Interest on one- fourth of Us Investment ? Or. to put the case 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 bo constructed today for only $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 Inter ist nnd 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 mo to say I thlnK there is no hard and fast test which can 30 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 reduction upon the earnings is the first and principal matter to be considered. This Is a matter of computation. " CONCLUSION AND FINDINGS. Justice Drewer then enters Into a lengthy and elaborate discussion of the matter of local freight 'business In Nebraska , quoting from statistics prepared by Secretary Dll- worth of the State Doard ot Transportation and Commissioner Utt of the Omaha Com mercial club. In conclusion he says : "The conclusion to which I have come Is that , having regard tp the present condition of affairs In this state , the present volume of business done over these roads nnd any piobablllty of a change in that volume , a re duction of 2S % per cent In the rates for local freight Is unjust and unreasonable to those who have Invested their money in these railroad properties. I appreciate fully the embarrassnient and difficulties attending an Investigation of this kind. I am re luctant , ns every judge should be , to Inter fere with the deliberate Judgment of the legislature. I have taken much tlmo to con sider this case In nil Jts relations. $ nd have come , though reluctantly , to the conclusion I have stated , and am , therefore , constrained to order decrees In behalf of the plaintiffs staying the enforcement of this tariff Upon the companies named in the bills. It may bo said that even If furnishing no reasonable remuneration today the result might bo differ ent under an Increase of business. That , ol course , Is possible ; and It may be that , as the 'volume of business Increases , the tlmo 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 tlmo that they ore so advised to move the court for a reln/estlgatlon'.of the question of the reasonableness of these rates. " Before closing Judge Dundy stated that whllo ho concurred In the decision , there were several points upon which he .dissented , chle ! among which was that the state had a right to flx rates for the Union Pacific , and later he would reduce his opinion tc writing. itir.uiATiNu ; Ito.ids I'roposu to Ilnve Cerllllcufci \ I - BUIH ! by H ( jcnornl Committee. CHICAGO , Nov. 12. A special meeting of the Western Passenger association has been called for November 14. The first tiling to betaken taken up will be the Issuance of permits for halt faro tickets during the coming year. It Is proposed that all applications for half fare shall bo made In the handwriting of the applicant to a committee of the western lines and that permits will only be- Issued after a certificate hfis been granted by this com mittee. The Burlington road , which objects to this plan on account of the extra labor which It will ) entail upon the passenger de partments of nil roads. Will present a mi nority report favoring tlio Issue ol all half faro permits In the old way. After the general association hos con cluded Its \vork the eastern committee will take up the matter of rates from Waterloo , la. , to Montana and northern Pacific coast points. This Is to consider the rates made last week by the Burlington , Cedar Rapids & Northern. The lines of the Central Traffic association and those of tho. Western Passenger as sociation have finally got together on the question of short line rates , over which they have been squabbling for several months. The basis of the agreement Is to put the question back where It was before the dls- puto began .and leave It alone. Private advices were received In this city today from Now York stating that the mission of A. F. Walker , receiver of the Sarta Fe , had been successful. An agree ment had been reached between his road and the Southern Pacific on all differences that have divided them for moro than a year past. The Santa Fo , It Is understood , practically secures all for \vhlch It has been contesting. Its right to ticket passengers to San I'ranclsco via Los Angeles at short line rates Is admitted and fully secured for the future. Furthermore , the Santa Fo has secured a guarantee from the Southern Pacific that It will be allowed the right of ticketing passengers to San Francisco and touthcrn California points over Southern Pacific tracks on as favorable terms as are given any of the other Southern Pacific oonrccttons from any other directions. lly bestowal ot highest honors at the Chicago and Midwinter fairs on Dr. Price's Baking Powder , the government experts and Jury of awards confirm it'ns superior to any other JMC.IL JIJllifiyjES. Custer Women's Relict corps No. 8 will give a social Wednesday evening at the residence of Mrs. George H. Rhodes , 1614 North Eighteenth street. The Omaha Woman's Christian Temperance union will meet WcJucaday , November 14 , at 3 p. in. , In the Commercial club rooms. Every one Interested Is cordially Invited to bo present. The executive committee will hold a itsslon at S p , m. preceding the gen eral meeting. Superintendent Marble of ths public schools ha received Intelligence of the serious Ill ness of his daughter , who U suffering from a severe attack ot lulig trouble. Her Ill ness has taken luch a form that Mr. Marble ulll probably ask for a leave ot absence from the Board of Education to return to the oazt. where his family U xoendlnc the , winter. STRIKE COMMISSION REPORT tfot Very Complimentary to tlio Action of the Corporation Managers. GENERAL MANAGERS ASSOCIATION ILLEGA NoVnrrnnt In the Article * of Incorpora tion of the Itonds fur tlio Forimillou of the AtHoclutlun Homo btnto- iiifills About I'lillmnii. CHICAGO , Nor. 12. The United States government report on the great railway strike. In connection with the Pullman trou- tjlo was made public today. Tho' report , which Is signed by the federal labor com missioner , Carrel I ) . Wright and his fellow Investigators , John D. Kernan of New York and Nicholas I } . Worthlngton of Illinois , Is addressed to President Cleveland nnd abounds In passages which will attract wide attention , particularly the portion referring to the now famous General Managers asso ciation , the organization of high railway offi cials that encompassed the memorable de feat of the A. R. U. The report says the capitalization ot the twenty-four railroads directly In the General Managers associa tion was $2,108,552,617. The number ot em ployes was 221,097. The commission con tinues : "This voluntary unincorporated as sociation was formed In 1886. In Its con stitution the object is stated to bo 'The consideration of problems of management arising from the operations ot railways ter minating at Chicago. ' It further provides that 'all funds needed shall bo raised by assessment , divided equally among the mem bers. ' There are no limitations as to 'con sideration of problems or funds' except the will ot the managers and the resources ot the railroad corporations. Until June , 1S94 , the association's possibilities as 11 strlko 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 cluded they were paid 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 association , concluded his reply as follows : " '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 up'on association roads are treated as under subjection to the General Managers association , 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 ciation 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- paied and presented a uniform schedule for all membership roads. It was deetned 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 'equalizer1. ' As the result during 1893 It being ihen \ ell understood that as to wages , etc. , it was an Incident of , the General Managers association to 'assist' , each road In case of trouble over such matters , one. . form ot assistance bplng for tthe association , ' to secure men enough through Its agencies to take tliq. places of all strikers reductions were , hero ' , and there , made on the different roads , the tendency and effort apparently being to equalize tlip pay on all lines. It Is admitted tie | action of the association has great weight with outsMo lines and thus tends to establish one uniform scale throughout the country. The further single step ot 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 features ot the association , which have come to light in this investigation. If wo regard its practical workings rather than Its protesslons , as expressed In Its constitution , the General Managers association has no more standing In law than the old trunk lln.o pool. WAS A USURPATION OF POWER. It cannot : Incorporate because railroad charters do not authorize railroads to form corporations or associations to flx rates for services nor to force their acceptance , ' nor to battle with strikers. It Is a usurpation ot power not granted. It such an association 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 cither directly or by clear Inference , Wo do not think the power has been granted In either way In this caso. The association is an Illustration of the per sistent and shrewdly disguised plan of cor porations to overreach their limitations and to usurp Indirectly powers and rights nol contemplated In their charters and not ob tainable from the people or their legisla tures. An extension of this association , as nbovo suggested , nnd 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 shal control , the government or the railways , nnt the end would fnevltnbly bo government own ershlp. Unless ready for that result and al that It implies , the government must re strain corporations within their law am1 prevent them from forming unlawful am dangerous combinations. At least , so long as railroads are thus permitted to combine to flx wages and tor their joint protection , I would be rank Injustice to deny the right o : all labor upon railroads to unite for similar purposes. It should bo noted that until the railroads set the example a great union o : railway employes was never attempted. The unions had not gone beyond enlisting the men on. different systems In separate trade organizations. These neutralize and chock each other to some , extent and hayo no , such scope tor capacity for good or evil as Is possible under the universal combination idea Inaugurated by the railroads and fol lowed by the A. R. U. The refusal o ; the general managers to recognize and dea with such a combination of labor as the A. R. U. seems arrogant and absurd when we consider its standing before the. IAW , its assumptions and Its past and obviously con templated future action. * - TOUCHED UP PULLMAN. ! , K. Taking up the subject of the Pullman Palace Car company , the report says' "This IH a corporation organized In 1867 , with a capital of $1.000,000. It has grown untl Its present paid up capital. Is $36,000,000. It 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 ot undivided profits. " . Speaking of the town ot Pullman , of which the report states the company Is owner ant landlord , the commission says : "The prln clpal church and its parsonage are very attractive structures , but often are not oc cupled , becuuro the rental required Is higher than any church society is willing Jo pay to obtnln the gospel privileges to be thereby secured. In the arcade Is a tasteful library of books , carefully selected and cared for by the company. Three dollars per year Is charged for its use , and as many as 250.per sons a year out of from 4,000 to 5,000 enj- ployes and residents , hive at time , as statec by the librarian In choree , avail-d tbenv trlves ot Its opportunities. It Is possible that the air of business strictly maintains : there , as elsewhere , and their exclusion from any part of Us management , prevent more universal and grateful acceptance of Us ad vnntncos Cysfihplojres. As a rule , oven , cm- jloyes profoivJpJcpomlpnco to paternalism In juch mal ir lr The company pays a physi cian and Surgeon by the year to furnish to Injured employes necessary treatment and drugs. It Is , however , also a part ot his em ployment f to ifpcure from the Injured party i written Vtiillment us to the causes of In- lury and Hsli his custom to urge the nc- : eptanco ot any offered settlement. If suit fallows the doctor Is usually a witness for the compjjmfl We- have no evidence that the doctor lias ever abused his confidential relation toward the Injured employes , but the system hL.ndmtrably conceived , from a business tfd/nfftalnt. / 'to secure speedy ttlo- ment of 'tfdMls for damaRos upon terms offered bjnirtftbicotlipany and to protect the company from litigation and Its results. SITUATION IN 1803. "As the result of the Pullman system and Its growth , when the depression of 1893 came , morally calling for mutual concessions as to nagos , rents , etc. , vo find on the one side a very wealthy and unyielding corporation and upon the other a multitude of employes of comparatively excellent character ani skill , but withoutlocal , attachments , or any Interested responsibility In the town , Its. business , tenements or surroundings. The conditions created at Pullman cnablo the management nt nil times to assert with great vigor Its nt'flumed 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. dn the other hand , It is an economic principle Generally reccgntzed that the shutting down of such a plant and scattering of Its forces usually results In a greater loss than that'exhibited by the rontlmmnco of business. To continue running was for Its obvious and fair advan tage , EO long as It could divide losses equally with Its laborers. The men at Pullman claim that the company , during 1S93-D4 , set the pace through experts , so that with theli forced losa of time the overage mon could earn little More than the rent of his homo , owned by the company. The company al leges that It simply readjusted piece work prices to suit the necessities ot the times. Some witnesses swear that at times for the work done In two weeks they received In checks from 4 cents to $1 over and above their reit. The cbmpany 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 no bava been so severely felt , but would have shown good faith , would have relieved 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 , tlio company represents that Its object la all It"dld was to continue opera tions for tilebenefit of Its worklngmen and of tradespeople In and about Pullman and to tavo the public from annoyance of Inter rupted travel. COMPANY WAS SELFISH. "Ths committee thinks the evidence shows that It sought to keep running mainly for Its own benefit as A manufacturer ; that its plant might not rust ; tliat its competitors ml ht not Invade Itarterrltorv : that It might keep Its ars In'repair ; that It might be ready for resumption when business revived with a live plant and : ) competent help and that Its revenue from Its tenements might continue. If we cxclud&'thotaesthctlc ' and sanitary fea tures at Pirtlmail , the rents there are from 20 to 25 per cent higher than rents In Chicago cage or surrounding towns for similar ac commodations. ? The aesthetic features are admired byj'vlsjfors , but have Httlo money value to emplijjfej' , especially when they lack bread. The company makes all repairs and heretofore Ijaj-not compelled.tenants tp pay for them. Under the printed leases , however , which tenants i pst .sign , they Agree to- pay for all repalrpiVhlch ( are either necessary ( ordinary wif\r } aifd damages by the elements not exceptedifjoi ? which the company chooses to make , otbpj company's clajtn { bat the workmen nccjj/ijbt hlro Ita tenements 'an < I can live elsqwjietp U.thoy choose Is npt.en- tlrejy tenaMp , 3"lie fear of losing1 work kqeps them 11 rullniafi , as eng , AS'there ar < ! tenements unoccupied , becausp the company/ isfiuppoqwliQB. a njatler.of business , to give preferpacp tet.lt * tenants wheniwork Is slaclw White reduelng\WagtJs , the company made-no reduction In rents' . US position Is that the twbmatlers anJ.dli lnct and , that none Of the rcasons , , , 'urged , as justifying ; .wage. Deduction tty , it KB an employer can be considered by the company as n landlord. The company claims It IS'iJlmply legitimate business to use Its posltloh and resources ,10 hire In tfie labor .market as cheaply as possible and at the same Unie to keep rents up reeardless 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 reducing wages and to dlsre- , sard' these saiuo conditions as to rents. No vulld reason Israsslgned for this position , ex cept simply that the copipany had the power and the lesal rlghtj to do ( t. HOW HDNTS WEnri COLLECTED. "Prior to ihe so-colled 'truck * law In Illi nois rent V.AS deducted from the wages. Slnco. then a check.Is given fqr the amount of the rent and another-for the balance duo for wage * . There" Is nothing' to prevent the payee bf the cHeek1 from cashing it outside of the bank , but-ns the bank Is rent collector. It presses for the rent and Is aiding in col- lectliig It by a 'knowledge on the part of the tenant that by arrears he may lose his job. "Tho reduetlons'at Pullman after Septembn- 1 , 1893 , were the result of conferences among the managers ; the employers for the first time knew , of them when they took effect. The jCOpipany 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 nave 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 coat , etc. . In Us most seriously crippled depart ment , excluding from consideration the facts as to wages In the repair department. "Tho demand of the employes for the wages of June , 1893 , was clearly unjustinable. The business In May , 1891 , 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 , 1893. 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 thl position , but as between man and man the demand for some rent reduction was fair nnd reatonable under all the circumstances. Some slight concession In this regard would , probably have averted the strike , provjlejl the promise not to dis charge men. Vflioiasrved upon the committee had been mormatrlctly regarded. The strike occurred on Hay , } > , and from that time un til the soldiery vppt to Pullman , about July 4 , 300 Btrlkersrlwefe placed about the com pany's properljVJ professedly to guard It from destructlpn _ Or Interference. This guarding of property1 In strikes Is , as a rule , a mere pretence. jtffoo often the real object of guards is ( p prevent new comers from taking the st kera' places. The Pullman company clalnjai this was the real object of these guards. ) iTrr | | strikers at Pullman are entitled to be believed to the contrary In this matter , bccaust BPthelr conduct and forbear ance after May ll. It Is In evidence and un- contradlcted Wif-no violence or destruction of property by'srtrlVers ' or their sympathizers took place at UuUtrura. and that until July 3 no oxtraordlnajfj protcctlon was had from the police or miry ' ; ( ) against even antlclr paled disorder. - j | r CONDUCT OF 'MEN EXEMPLARY. "Such dlcnlfleiL.tnQ.nU' and conservative conduct In the jnidst of excitement and threatened starvations worthy of the high est type of American citizenship , and , with like prudence la all other directions , will result In duo time In the lawful and orderly redress of labor wrongs. To deny this Is to forswear patriotism and to declare this Government and Its people a failure. " i As to the great railroad strike proper , the report says : "It Is apparent that the readi ness to strike sympathetically was promoted by the disturbed and apprehensive condi tion of railroad employes resulting from wage reductions otf different lines , blackltft- Ine , etc , and from the recent growth of the General Managers association , which seemed to them a menace * . " ! Farther on the report tays"It Is ierl- ously quettloneJ. , , a'nd with much force , whether courts liaVe Jurisdiction to enjoin cltl- zoiu from 'persuading' each other In Indus trial or other matters of common Interest However , It la generally recognized among good citizens that a mandate of n court la to be obcyul until It Is modified nnd corrected by the court that Issued It The policy , " the report says , "ot both the Pullman com * pany and the Hallway Managers association In reference to applications to arbitrate closed the doors to all attempts at concilia tion nnd settlement of differences. "Thn committee Is Impressed with the belief , by the evidence and by the utteml- ont circumstances as disclosed , that a differ ent policy would have prevented the lose of life and great loss of property nnd wages oc casioned by the strike. " The report declares "tho arrival of the troops at Chicago was op portune nnd that policemen sympathized with the strikers rather than with the cor porations cannot be doubted , nor would It bo surprising to find the same sentiment rife among the military. These forces are largely recruited from the laboring classes. Indeed , the danger Is growing that In strike wars between corporations and employes military duty will 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 association and ot Us railroads. They were armed nnd jmld by the railroads and acted In the double capacity ot railroad em ployes and United States ofllcers. While operating the railroads they assumed and exercised unrestricted United States author ity when BO ordered by their employers or whenever they regarded It as necessary. Thev were not under the direct control of any government official while exercising au thority. ThisIs placing officers of the gov ernment under control of a combination of railroads. It Is n 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 govrcnment and shall protect each of them against Invasion , and , im application of the legislature or ot the cxccutlvo ( when the legislature cannot be convened ) , against domestic violence. ' "United States troops wer not sent Into Illinois upon the application of the legisla ture nor ot the executive against domestic violence , I. c. , violence affecting the state and Us government as such. The president ordered the troops to Chicago : "First , To protect federal property ; second , to prevent obstruction in the carrying of the malls ; third , to prevent Interference with In terstate commerce ; and , fourth , to enforce the decrees and mandates ot the federal courts. He did this under the authority of section 5,298 ot the Ilcvlsed Statutes ot the United States , which provides : 'Whenever , 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 bq lawful for the president to call forth the militia of any or all of the states nnd to cm- ploy such parts of the land or naval forces of the United States as ho may deem neces sary to enforce the laws of the United Spates or to suppress such rebellion In whatever state or territory thereof the laws of the United States may be forcibly opposed or the execution thereof forcibly obstructed. ' " Section 5,299 Is also quoted , and the report adds : "Other statutes tend to confer au thority In the same Direction. ' 'There ' Is no evidence before the committee that the ofllccrs of the A. II. U. at any time participated in or advised Intimidation , violence lence or destruction of property. They knew 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 speeches are similar to those to bo found In the maga zines and Industrial works of the day "From the testimony It Is fair to conclude that strikers Were concerned In the outrages against law nnd order * , although the number was undoubtedly small as compared with the whole number out. " The report adds , how ever : "Many impartial 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 tabor atul redress Its wrongs. No one asserts that laws can com- plejqly remedy contentions as to wages , etc. , but may and da Insist that something sub stantial cap be accomplished In this direc tion If attempted honestly and reasonably and In good faith , " In conclusion , the report says. : "Since nations have grown to the wisdom of pvold- Ing disputes by conciliation , and even of MtUlng them by arbitration , why should capital and labor. In their dependence upon each other , persist In cutting each other's throats na a settlement of differences ? OflN clal reports show that much progress has been made In the more sane direction of conciliation and arbitration , e\cn 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. Wo also have employers who obstruct progress by pervertIng - Ing and misapplying the law ot supply and demand , and who , whllo Insisting upon In dividualism for workmen , demand that they shall bo let alone to combine as they please and that society and all Us forces shall protect them In their resulting contentions. INDUSTRIAL CONDITIONS CHANGED. "Tho rapid concentration of power nnd wealth under stimulating legislative condi tions. In persons , corporations , and monopo lies , has greatly changed the business and In dustrial situation. Our railroads 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 largely 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 those who demand as well as among those who supply It , For instance , as wo 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 nnd competing employers ; they are virtually one. "However men may differ about the pro priety and legality of labor unions , we must all recognize the fact that we have them with 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 enJoyed - Joyed by corporations , with like proper re strictions and regulations ? The growth of corporation power and wealth has been the marvel of the past five years. Corporations have undoubtedly benefited the country and brought Its rcsouces to our doors. It will not be surprising It the marvel of the next fifty years be the advancement of labor to a posi tion of like power and resi > onslblllty. We have heretofore encouraged the one and comparatively neglected the other. Doea not wisdom demand that each bo encouraced to prosper legitimately and to grow Into har monious relations of equal standing and re sponsibility before the law ? This involves nothing hostile to the true Interests and rlsbts of either. DISCUSSION OF THE REMEDY. The committee deems recommendations of specific remedies premature. Such n problem , for Instance , as universal government gwncr- Bhfp of railroads Is too vast , many-sided and faraway. If attempted to be considered at an Immediate , practical remedy , U belongs to the socialistic group of public questions where government ownership Is advocated of monopolies such as telegraphs , telephones , pxpress companies and municipal ownership of water works , gas and electric lighting and street railways. These questions are prees. Ing more urgently an tlmo goes on. They need to be wall studied and considered In every aspect by all citizens. Should combi nations nnd consolidations result In half a ( Continued on Th.nl Page. ) SIGNIFICANT NEGOTIATIONS Burlington May Qlvo Union Faoifio Lively Competition Into Portland ! SHORTENING Or DISTANCE CONTEMPLATED If Accomplished , It Will Ho Over tlio Orojrou l.lnt KITorl * nt llrnumptlon nt the Chojomio bhupv Other Jtullnwil NUXTH. ThereIs a great deal of significance In the telegram from Portland regarding the reopening of the Columbia river country between Wallula Junction nnd Portland by the Northern Pacific , tor It very materially concerns the Interests ot the 1J. & M. company In that territory. Should 'the Northern Pacific bo able to make favorable traffics arrangements with the Oregon Rail way and Navigation company , as now appears more than likely , It will glvo the Burlington a line Into Portland almost equal In dlrcct- nosa to the Union Pacific's from Omaha and make It twenty miles shorter from Kansas City via Billings. Freight , according to the Northern Pacific tariff sheets , may bo routed via Wallula Junction , but passenger business has gene ever the Northern Pacific via Pasco Junction , Tacoma , Into Portland , which has extended the distance very considerably. Should the Northern Pacific , however , suc ceed In making traffic arrangements with the Oregon Railway and Navigation company Instead of having to describe two sides ot a triangle to get Into Portland , trains would 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 , whllo 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 bo made , will bo 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 now road would present for midable complications to other transconti nental lines nnd bring Into the field for Sound business n new Richmond whose past has been one of success so far as railroad ma nipulations are concerned. At Burlington headquarters little was known regarding the contemplated action on the part of the Northern Pacific , but It seemed 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 been the accepted route for the freight traffic. LITTLK I'l 1,1:3 Ills Uii'OKT. : shimlne of rnrnlnjjs ami DcflvlcncloH on tha Atulilsim S > otclll NGW YORK , Nov. 12. The report of Ex pert Little , who has been Investigating the accounts of the Atchlson , Topeka & Santa Fo Railroad company , has just been made public , being Issued at the same tlmo In Noiv York , London and Amsterdam. It Is addressed to R. S. Hayes , chairman of the Atchlson general reorganization committee. Its salient points are as follows : First , the net revenue for the year ending Juno 30 , 1S94 , exclusive ot the Atlantic & Pacific , Colorado Midland and St. Louis & San Francisco lines , was JJ5,95GC14. This In cludes an Installment of $350,000 of the Sonora Railway company subsidy , which .should bo deducted In considering earnings as a basis for a plan of reorganization. If this subsidy is deducted the net earnings would bo reduced to | 5COCG14. Interest charges which'fire prior liens to the Interest on the 4 per Cent general gotd bonds leaves the sum of $4,816,264 applicable to the Inter est on $128,365,005 of these bonds outstanding in the hands of the public , which is equal to only 3,75' per cent. The Atchlson company lost $95,324 by oper ating ths St. Louis , Kansas City & Colorado railroad and the net earnings would have been Increased $341,401. being the amount contributed by the Atchlson company under the tripartite agreements with the Atlantic & Pacific and St. Louis & San Francisco Railway companies. These two sums added to the net earnings would bring them up to 4.09 per cent. In accepting these flgurej as a basis for reorganization It must be taken for granted that the present floating debt ot the company will bo provided for and will not bea charge against futuie revenue. But while U may bo said that Interest on the general 4s has been substantially earned , the earnings depend - pond to some extent on the maintenance of the integrity of the entire system. The aux iliary companies are a severe drain upon the Atchlson under the present system of fixed charges , the loss for the year on the Atlantic & Pacific being $1,360,034 , one-half being chargeable to the Atcliixon ; the loss on the Colorado -Midland being ? G47,751 and on the St. Louis & San Francisco $599C62 , all chargeable to the Atchlson. On the results of the adjustment that may bo reached with these companies , if retained In the syitem , depends the real surplus available for pay ment of Interest on the Atchlson general 4s , taking the earnings from the year endIng - Ing June 30 , 1894 , as n basis. The net floating debt ot the entire system , exclusive of the Indebtedness of one company to an other , now overdue , and accrued Interest on funded debt , Is $9,149,5SS. On the Atlantic & Pacific It Is $589,503 , on the Colorado Mid land $183,358 and on the St. Lauh ft San Francisco $487,752. The gross unfunded debt Is $15,106,381 ; the gros > s as ets $4,695,179 , making the total net unfunded debt $10,410- 202. 202.The The Indebtedness April 30 , 1S9I , of the Atlantic & Pacific was $5SS9B35 to the Atchi- san company , and $0,819,200 to the St. Louis & Snn Francisco. The indebtedness ot the St , Louis & San Francisco to the AtchUon waj ? 1CG1,29 and of the Colorado Midland to the Atchfson $1,595,910 , which vUlms , aggregating ? 1G,010. 20 , are appar ently worthless nnd should ba written to the debit of profit and loss. The Interest on the funded nnd unfunded debt nnd the deficiency In each > enr from 1891 to 1894 is an follows : 1S91 , interest $7,169.161 ; deficiency , $1,904,285 ; 1S92. Inter est $7,914,111 ; deficiency , $60.938 ; 18U3 , Inter est $8,220,133 ; deficiency. $131,825 ; 1891 , Inter est $8,964,857 ; deficiency , > $1,09S,242 , making a total deficiency for the four years of $5,168,292. KKbtMiiaioN' i .neon nicbiitni ) . Shopmen nt Uniyi-iuiD Muko Overtures to Km Union I'mlllo K.-i cVcr ! < . There has been considerable talk of late over the- complete resumption ot work at the Cheyenne shops by the Union Pacific , but nothing has come ol the matter. Sun day the various trades connected with the s.hops held a meeting , at which the general expression prevailed that if a small reduction In wages stood In the way of the shops being fully manned the employes were willing to equalize the wages In order that the un employed might be given employment. This decision was submitted to the receivers of the company , but nothing , ho far as could bo learned , has resulted. The decision contem plated the ro-cmplayment ot those who went out In the Pullman strike , but from the beet obtainable Information It Is 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 recelvert have taken the matter under advisement and will hand down an opinion shortly. In view df the pressure brought to bear by Che > enne business men and others Interested In the resumption of work In the Cheyenne shops. Ilullwny M > U' . K. C. Morehouse of the Ulkliorn went to Chicago last night. J , J , Cox , commercial agent of the Hurling- ton at Lincoln , was In Ilia city yesterday. J , K , Preston of the Milwaukee la at his desk again after a ton days' severe Illness. K. H. Stokes ut the Lehlgli Valley and No ) , son Vanderpool of the New York Central are In the city , pushing the claims ot their re spective roads. -fl KNOWLEDGE Brings comfort nnd improvement mitf tends to personal enjoyment when rightly IIROU. The ninny , who Hvo bet ter than others And enjoy life more , with less cxpviullturo , by moro promptly /idAptiag the vrorltl's bott products to the needs of physical being , will attest the value to health of the pure liquid Icxntivo principles embraced in the remedy , Syrup of Figs. ltd excellence > s duo to its presenting in the form most acceptable nnd pleas ant to the taste , the refreshing and truly beneficial properties of n perfect lax- ntUts ; cdfecttmlly ciunnsing the system , dispelling colds , headaches Mid fcycra ami permanently curing constipation. It has given satisfaction to millions and met with the approval of the medical profession , because it ncto on the Kid- noyr , Liver and Bowels without weak ening them nnd it is perfectly free from every objectionable substance. Syrup of Fics is for bale by nil drug- vists in r > 0c and $1 bottles , bat it is man- ifncturcd by the California Fig Syrap C/o. only , whose name is printed on every -ackai e , also the name , Syrup of Figs ' .nd being well infnnncd , you will not ntitnv nulwtUwo if ( if ! ° n > d. A.MUS1SM lii THEATRE 3 NIGH1S Ijiifl / / f/ni a 'HOV , 15 r BUBGESS' COMEDY COMPANY , PHESBNTINO HIS SUCCESSFUL PLAY , The County Fair With the most n'nllstlc hnrto-nico in or WlttU'SS'Ml. No Dutid lie-its ! No Muddy Tracks ! Sec Cold Molasses win the race ! prices. § nlo of seats opens Wednesday , BOYD'S Coming-SUNDAY AND HONDAY-Coming NOV. 18 ami 19. Tim bnuutlful QUIMMI of Ll 'ht Opera , PAULINE HALL AND 11 Kit MJl'UItn CO ill'A NY. fSTH ST. " Tuluphonu 1531. All this Week Tonight nt 8:15. Albini'a ' Li douEipi'oEatc.tainor. , 30-AUTISTS-30 lloadod by The Klna AI.BIHI The of Cuids IncoinpnrlblQ EVERY AHTIST A STAK. , Matinee Wednesday and Saturday sat Coning Week of Nov. 13 : "On llie'Suwanca Hlvcr. " DUFFST'S PURE Mil WHSSKEY. All THE ATLANTIC MONTHLY Always eontains articles upon current. topics of interest. There have been two papers on Tammany Hull. Tammany Hall in the FuunuARY ISSUE. Tammany Points the Way in the NOVUMIIEU Issui : . Seward'a Attitude Toward Com promise and Secession , Uy Die. FUEDEHIC BANCKOIT. The two closing issues of 1894 will beef of unusual interest. They will contain n story complete in two parts , called THE TRUMPETER , i IJy Mary JIallojk Footu. A Story of llio Coxi-y Troubles In the North wont , The Issue of Janunry , 18'j ) will contain The Survival of tiif American Spirit. Au article ! of iiiinir.il Interest toncliln ? ll upon thu ri u nt llio A , 1 * . A. On nil paid-up subscriptions received before December 'M , wo will mail the November and December Issues without fhnrpro. Ha cents a copy. $1.00 a year Hougliton , f/iifflin / & Go , , Piirk Street , Hoston , Mass , MELTON OVERCOATS , $10.25 and up to Order. Fit and Style The hard times enabled us to secure Hill ere.it drive In MELTON. Ourpalransrtc lv the full benefit. Others charge double. Never before suUi cloths at the price as we. this year , put Into our Suits , I'antj and Overcoats Cut to Fit. 4 $ Pants Company 408 North tOth , Omaha. BAILEY , Dentist , Paxton Hlock , lOlhond Vurnani Painless Extraction of Teoth-PdnlosaFillinj Q Full not IctlU $5.00 , Sllre lUllim * 1.03. Pur * old J.OJ Uaia Crowns .03 pjr too Hi aad M acbincnt. Velepuono 1083. LadyAttttndant Uerm&n Spoisi UBB DR. DAIUCra TOOTH
