Newspaper Page Text
4. .. ESTABLISHED 1860- )
) J. H. Eh TILL, Editor and Proprietor, f
SUBSIDIZED RAILROADS.
the pacific commissioners
MAKE THEIR REPORT.
Messrs. Anderson and Littler Sign the
Majority Report and Mr. Pattleon
That of the Minority—The Union
Pacific Road and Branches the First
Considered.
H AbKiNHTON, Dec. 60—Under the act'of
Congress approved March 6, 1887. entitled
“An act authorizing an investigation of the
books, and methods of railroads
which have received aid from the United
States and for other purpose*,” the Presi
dent appointed Messrs. Robert E. Pattison,
of Pennsylvania; E. Ellery Anderson, of
New York, and David F. Littler, of Illinois,
commissioners to carry on the
investigation. Two reports have
been submitted to the President, a majority
report by Messrs. Anderson and Little and
a minority report by Air. Pattison. The
majority report opens with a statement of
the methods pursued by the Commissioners,
showing the laborious nature of the work.
Tbe commissson examined the dierctors
and officers of the respective roads and all
witnesses whom they judged possessed of
knowledge of the subject matter of tbe in
vestigation.
THE UNION PACIFIC.
The Union Pacific railway is first consid
ered, its total mileage, exclusive of branches,
being stated at 1,815.17 miles, including the
..railways formerly known as the Kansas
Pacific, and Denver Pacific, while the total
mileage of the connecting branches, accord
ing to the company’s report for 1886, is
2.761.98 miles. It is explained that the
United States subsidy lionds did
not apply to the entire lengths of these
roads, the branch lines being excepted from
■t he lien. The commission has taken a great
•leal of evidence relating to the cost of the
branches, their operation and their effect
on the system. The almost unanimous
voice of all the witnesses examined de
clared that the branch roads add largely to
the earning power of the Union Pacific
railway. Many of them go so far as to as
sert that without these feeders the Union
Pacific would be bankrupted in a few years.
NOT SELF-SUPPORTING.
It appears from the account of these
branches that, having regurd only to the op
eration of the branches themselves, some
of them do not pay the expense of opera
tion. Many of them do not earn enough to
pay the interest on their cost in addition to
the expense of their operation, and only a
few of them succeed in earning a surplus
beyond fixed charges. But the offi
cers of the road and many other intelligent
witnesses declare that the circumstance has
no bearing on the question whether the
branches are or are not an advantage.
- They assert that in addition to the actual
earnings derived from local oj>cration there
is a large profit derived from earnings of
all business interchanged between the
branches and main road by reason of the
liaul over the main road. In the opinion of
the commission this statement is correct
and the argument unanswerable.
THE BEAL QUESTION.
There is a difference of opinion among
the Commissioners in regard to the
value of these branches, but the ma
jority argue that the branches exist, but
tbe money spent in their purchase or con
struction cannot be reclaimed, and the
practical question is whether their opera
tion. irrespective of their cost, is or
is not an advantage. The Union Pacific
railway is itself a holder of a large major
ity of their lionds, and could effect no im
portant saving of interest payments by dis
continuing them. But as a matter ot fact
the investment in branch lt.\?>, taken in its
entirety, does pay a larjj surplus. The
evidence of several witnr*ts examined on
this subject is cited in support of the posi
tion of the majority of the commission,
among • whom were E. P.
Alexander, President of the Central
Railroad and Banking Company, of
.Georgia, who served as government director
in 1885, and declares “that the existing
system of branch lines has been the actual
salvation of the road.” Charles F. Adonis
and ex-Glov. Warren, of Wyoming Terri
tory, the opinions of the United States
Commissioners of Railroads, Messrs. French
and Armstrong, and the reports of the
government directors are quotal to the
same effect.
EVEUy MILE WORTH THOUSANDS.
It is also urged that “apart from the
mere financial question, the communities
served by tbe branch roads demand their
construction and extension. They are of
immense service to farmers, settlers and
miners, and transform the barren
nrairies into grain-liearing farms. Every
■)i]e of road adds many thousands of dollars
o the value of the lands adjacent. The
fficy ot branch line development is bene
■ial to the railroads, to the local coniniu
ties and increases the solvent power of
e corporation. It is not sufficient
iswer to the conclusion that this
iliey has been abused by improvident and
en fraudulent expenditures in the past,
he remedy is to punish the wrong-doer and
it to suppress the natural growth of the
ilroad.
MUTUALLY DEPENDENT.
“The conclusion is reached that the
anches and main line are mutually de
ndent on each other for support and de
dopment, and that, through their union,
ey represent a vastly greater relative
riling power than would either tho
•anches or the main line itself if they were
ismambered. The net earnings of the
■stem taken for the past two years, by
inch is now meant their gross earnings,
ss their operating expenses and taxes,
ive average, $0,800,000, of which sum
1,300,000 should tie credited to the parent
f ne, aud $1,000,000 to the branch system.
i'he actual value of the system, as gathered
from Col. Morgan’s intelligent examina
tion. based both on the cost
of construction, on the increased value
of the Terminal facilities and the right-of
vay, and also on the close and critical ex
amination of the earning powers of the main
line, may be approximately stated at $150,-
000,000.
A TREMENDOUS TOTAL.
“The total fund debt of tho Union Pacific
Railway Company on Dec. 31,1886, fexclu
sive of the obligations to the United States,
is placed at $881,900,137 50, of which $83,-
539,000 was prior to the United Ntutex’
tatntory lien. The total of the subsidy debt
f the Union Pacific and Kansas Pacific
. t maturity, including priucqial and inter
sst, and deducting tho credits of
both companies in bond and interest ac
count. November 1, 1887, la stated at $78,-
: 189,741. 00. The average date of maturity
of the bonds of Ixith companies is July,
1807.”
The report adds that it is universally con
ceded by every intelligent jiersoir who has
studied'the subject that Union Pacific rail
way proper, or its system, cannot pay its in
debtedness to the United States at maturity.
It was decided, therefore, “to submit a
Mrem which shall secure to the United
lutes full payment of all debts due it from
rid oomimny, with a reasonable rate of
Merest, having due regard to the financial
bility of said company, and profier con
ct, of its business in such a manner as
, U afford efficient service to the Dubiic.”
Wi* Ittofning
AN UNDESIRABLE PLAN.
“The system of requiring annual payments
of a percentage of the net earnings, 'is de
clared to be. nudesirahie. as leading to end
less disputes involving iocesssnt litigation
to which the sovereign power of t he United
States should not be subjected. In the bills
submitted herewith, the payments to be
mu ie by the respective companies are
fixed by the semi-annual amount of
interest accruing on their lionds. which is
directed to bo paid annually into the sink -
ing fund. In the event of a refusal on the
part of the companies to accept the terms
offered to them by these bills the commis
sion has found it impossible to substitute
for the present system a method ot fixed
payment, however earnestly desiring to
do so.” After saying that the history
of the Union Pacific railway
will show that its assets have been in former
years largely misapplied, ond that its flnan •
ciul ability to meet its just obligations has
been largely impaired by (he action of men
who laid fiduciary relations to the corpora
tion, but that under the decision of the
United States Supreme Court the United
States stands to these companion only
in the relation of an ordinary creditor, and
until the debt is due cannot initiate legal
proceedings looking to greater security or
ultimate paymeht of its claim, the report
says: “We have, therefore, inserted in the
bill which we recommend a section requir
ing the Union Pacific Railway Company, in
accepting the terms of adjustment offered,
to consent that as to all causes of action
existing or to exist against any
trustee, director or officer of
the company for any cause whatsoever, the
company shall, on application of the De
partment of Justice of the United States,
bring any suit or take any proceedings that
shall be directed by that Department ami
prosecute such suit- or proceedings, under
its direction, to final consummation."
COMBINED MILEAGE.
The mileage of the Central Pacific and
Western Pacific (being that part of the Cen
tral Pacific system covered by the bonded
lfen) is stated at 787 miles, and its branches
(exempt from lien) at 137 miles. The entire
system is now leased to a Kentucky cor
poration known as the Southern Pacific
Company. Its value is estimated at sllO,-
000,000, but the commission lielieve this
valuation excessive, and that it could lie
duplicated for $50,000,000. The total funded
debt of the system is $57,000,000, exclusive
of the obligation to the United States. The
ultimate debt to the United States is a little
more than $71,000,000. The same consider
ations which have influenced the action
of the committee in regard to
the Union Pacific apply to
the Central Pacific. It is equally desirable
to substitute for the percentage system the
payment of fixed sums, but. says the re
port: “Tbe application of the remedy to
the Central Pacific Railway Company is a
difficult task. It is hardly to be expected
that any act resembling the act submitted
in tbe case of the Union Pacific Railway
Company will be accepted by the Central
Pacific Railway Company.
DON’T EARN THE INTEREST.
“On the other band, in tbe event of a re
fusal to accept the application of the entire
net earnings resulting from that por
tion of the read, in considera
tion of which bonds were issued, is in
sufficient to meet the accruing interest
paid and to be paid by the United St tes,
it is also insufficient to accomplish the re
payment of the present worth of the obli
gation, even at the reduced rate of 3 per
cent, per annum, for the reason that the
entire net earnings will not amount to 3
per cent, of the present value of the debt.
An enforcement of its statutory lien, either
at the maturity of the debt or an earlier
period, if the debt, or any portion of the
same, could be made to mature before tbe
date now fixed by law, would result in a
sale at which it could hardly be expected
that any bid in excess of the amount due
on the first mortgage bonds would be
made.
wouldn’t bid high.
“The Union Pacific railway bow extend
ing their roads westward, might become
competitors, but it is not to lie supposed
that any of them would give for this prop
erty, in addition to the amount of me first
mortgage debt a sum in any way approxi
mating the amount due the government.
The probable result would hr, as
in the case of a compulsory sale of the
Union Pacific railway, that the indebted
corporation, or some of its prohiinent
officers, acting in their own behalf, would
acquire the title to this road; so that the
ultimate effect would Le merely Dres*:iting
to them as a gift 'substantially
the whole amount due lot the
United States. We herewith .iibmit
a bill applicable to the Central Pacific
Railroad Company prepared on tha.xuue
principle applicable to the Union its rifle
Railroad Company, except that in the Cent
of a refusal to accept its provisions tin en
tire net earnings of the subsidized p<; ion
of the road shall be applied to the siifciug
fund ami interest account as dire -tad bv
the Thurman aid. The financial
inability of the company to meet these re
quirements is the result, as before stlted,
of profligate and wanton dispersion of the
assets of the coin[>any in dividends, the ag
gregate amount of which excelled
$34,000,000, and extravagant cont.Ais,
persisted in to the present time, as Evi
denced lu the case of construction
tracts for the northerly end of the Califor
nia and Oregon railroad, by the Pacific Jm.
provement Company, entered into Oetoier
1886.”
LITTLE SPACE GIVEN OTHER ROADS.i
Comparatively little space is devotee* lo
the other railroads, whose affairs wereln
vestigated by the commission. They sh.ir
in the condemnation of the methods of thair
builders and managers which is bestowth
its the cases of tho Union and Centfci
Pacific, and appropriate legislation for eafch
of them is recommended.
In discussing the question of legislation,
looking to the adjustment of the relatioa
between the Pacific railway companies a ra!
tho government, tho commission declar*
that in its judgment it would have been ill
possible to have enforced the provision,
which was contained in all the bills pending
in the Forty-ninth Congress, calling
for immediate maturity of the
entire demand of the United States!
in the event of any default in the payment
of any of the installments provided fori
The contemplated provision requiring (Ini
companies to agree to institute, on deinanra
of the Department of Justice, all such suit*
and proceedings as may be required by in
to be brought against any officers on
agents against, whom misappropriation of
assets or other cause of action is or may
"hereafter lie nlleged, seems, m the opinion
of the commission, to lie the only practica
ble remedy for violation of duty which it is
believed has occurred.
THE CONCLUSION REACHED.
After some general observations upon tho
financial operations of l>ond aided roads, the
conclusion is reached by this commission,
liosed on their own examinations of tbeoffi
oera of the respective oompauiae, upon ex
amination of the accounts by the
experts of the com mission, and
upon the import of the inspecting engineer
ot tho commission, that, with the single
exception, to lie presently noted, all of the
duties and obligations of the builders of
these roods have been persistently disre
garded. The result is that those who have
controlled and directed the construc
tion and development of these com
SAVANNAH, GA., SATURDAY. DECEMBER 31, IsB7.
panics have become possessed of
their surplus assets through issues of bonds,
stocks and payments of dividends, voted by
themselves, while the great creditor, the
United States, finds itself substantially
without adequate security for the repay
ment of its loans.
THE SINGLE EXCEPTION.
“The single exception above referred to,
we desire, at the threshold of this portion
of the report, to indicate and emphasize.
We refer to the administration of the Union
Pacific Railway Company since the spring
of 1884. in our judgment it is fully aud
entirely exonerated from the condemnation
to be passed on the transactions of
other roads and relating to other
periods. We are satisfied that this
administration has devoted itself honestly
and intelligently to the herculean task of
rescuing the Union Pileitic railway ’ from
the insolvency which threatened it at the
inception of its work; that it has devoted
itself by rigid economy, by intelligent man
agement. and by an application of every
dollar of the earning capacity of the system
to its improvement and betterment
to place that compauy on a sound ami en
during financial foundation. This effort
has been continued during the past year
with increased intelligence and vigor, and
we think it to be largely due to this admin
istration that the United States to-day, in
our judgment, holds the Union Pacific rail
way, and through the value which it de
rives as an integral part of the Union
Pacific system (if protected by legislation)
full security for the repayment of its whole
debt of interest. ”
JAY GOULD’S ENTRY.
The purchase of a controlling interest by
Jay Gould in 1873, the subsequent increase
of the capital stock to 200,000 shares, the
inauguration of the policy of constructing
branch lines in 1877, the events leading up
to tbe^consolidation of the Union Pacific
and Kansas Central Pacific, aud that con
solidation itself are detailed at great length
and visited with sweeping condemna
tion. It ultimately resulted that
the consolidation worked no other
harm to the combined organization than ex
cess, ve capitalization, but in the opinion of
the commission this circumstance does not
justify the methods followed in bringing
the consolidation about. Tbo financial op
eration of the Central Pacific Railroad Com
pany and its branches are discussed at
fieat length, and various transactions of
lirectors Stanford, Huntington, Hopkins
aud Crocker, who are declared to have had
absolute control of its affairs, are gone into
with great minuteness. The construction
contract entered into with Charles Crocker
& Cos. is criticised. It is asserted that the
profits arising therefrom were divided
among Stanford, Huntington, Hopkins and
Crocker, by whose votes they had been
awarded, and: “In the opinion of the com
mission the course pursued m this respect is
wholly indefensible.
AGREEMENT OF THE COMPANY.
“The agreement of the company when it
received the munificent aid extended by tbe
United States was to repay the loan, and so
much of the interest as bad not been repaid
by transportation or percentages of net
earnings at the expiration of thirty years.
The course pursued by .Stanford, Hunting
ton, Hopkins and Crocker was necessarily
absolutely destructive of any possible
security.
*********
“The commission has made a diligent
effort to ascertain tho actual cost of the con
struction of the railroad to the Contract
and Finance Company (the corporation
which constructed section 138 and Promon
tory Point, and in which Stanford, Hunt
ingtou, Hopkins and Crocker were substan
tially the sole stockholders), and, in their
opinion, have arrived at a con
clusion which cannot be far
from the truth. An accurate answer
to this question would be shown from the
books of Charles Crocker & Cos ., a: id,of the
Contract anil Finance Company. These,
books were not produced, and in the opinion
of the commission were purposely destroyed
by direction of Stanford, Huntington, Hop
kins and Crocker. The evidence on this
point appears to be conclusive.”
HUNTINGTON’S VERACITY.
The evidence of Mr. Huntington before
the Wilson committee in 1873, to the effect
that bis share of the profits of the construc
tion of the Central Pacific amounted to
$1,000,000 of the stock of tho company, is
quoted, and the commission says he
must have known when testify
ing “that his statement was not
true, inasmuch as Stanford has testified
that each of tbe parties in the interest re
ceived $13,000,000 of the stock of the com
pany as his share of the profits.” In the
report is inserted a table giving the cost of
the Central Pacific railroad, us that cor
poration exists to-day as determined by the
evidence before the commission and also the
consideration paid therefor in bond-,
stock and cash. From this
it appears lhat the company
paid for the construction in cash $41,573,-
711147, in bonds f 18,718,000, in stock
$60,588,810 23; total $120,872,529 (Ml, The
total cost of the construction, as determined
by the commission, is $58,301,Nil 85.
leaving surplus rolits of $62,570,6 )7 81, of
which #60,585,810 33 was in stocks and sl,-
984,887 62 in bonds. All of this considera
tion was paid to Stanford Huntington Hop
kins and Crocker, and was voted to them
selves by their own votes.
THE BRANCHES.
In the construction of the branch roads
the surplus profit above the cost of con
struction is stated at $55,5:10,554. Refer
ence is made to the “constant, practice of
the directors of this company to permit ex
penditures of very largo sums cf money
without the requiring of sufficient vouchers
disclosing the purposes to which they wore
applied,” aud the report says: “There is m>
room for doubt that a large portion of
this money was used for the purpose of in
fluencing legislation and of preventing tho
passage of measures deemed to be hostile to
to the interests of the company, and for the
purpose of influencing elections. It is im
possible to read Mr. Huntington's evidence
relating to these expenditures, and
especially extracts from the Colton
letters, written by Mr. Huntington himself,
without reaching the conclusion that, large
sums of money were expended by .Mr.
Huntington in liis efforts to defeat the pas
sage of various bills pending in Congress.
If this vast amount of money had been ap
plied to legitimate purpose* no motive lor
concealment would exist. It must, there
fore, be assumed that, the object was illegiti
mate. and as Mr. Huntingtons own state
ment ami his letters establish conclusively
that moneys were used with reference to
the company’* businctMin the departments
:it Washington and in Congress, the con
tusion is inevitable that it was used for im
proper purposes.”
> SO EXCUSE.
[ The commission bear testimony to the
Itreat energy and intelligence displayed by
Stanford, Huutington, Hopkins and Crocker
Bn the work of building and developing
She railroad. but find therein no
f justifl cation for the themselves
Si the entire franchise of this company
in its stock, aud of a oousider-
Ible portion of it assets obtained through
♦hi tracts made by their own votes.”
BEGINNING a GREAT SYSTEM.
I the commi*sfolose* this review of the
(leitral Pacific Railroad Company by
Ann calling attention to the fact
tf it the policy of the original promoters of
the Central Pacific Railroad Company,
now managers of the Southern Pacific Com
ity, of Kentucky, has evidently been tocon
struct and develop a great system of rail
roads starting from Portland, in the State
of Oregon, following the line of the co istto
Los Angeles with communications and
branches and connections suitable for
the requirements of the entire country
through which this line passes, including;
the business of San Francisco and the busi
ness of Southern California. Their enter
prise then turns to the East, and pausing
through Arizona, New Mexico, Texas and
part of Louisiana. reaches the Culf of
Mexico at New Orleans. From this point
i-omnuinication with New York is laid by
water. Noportion of this network of railroad
is subject to tho lien of the United States,
and a glance at the map shows the result of
the dismemberment or separation, leaving
the aided line of the Central Pacific Rail
road Company to itself and organizing the
railroad just described into a complete sys
tem of communication of its own.” In re
ply to various questions propounded in the
Dill creating the commission tho query as
to whether aided companies "have
observed all the obligations im
posed on them, the corn mission
among other things says the obligations re
qir ng assessments upon the stockholders of
not less than $5 per share at six -mouths in
tervals until the pur value should be fully
paid has not been kept by any road. It is
the judgment of the commission that no
dividends of any of the bond-aided com
panies have ever been paid in violation of
the law, but it does not wish to lie under
stood as approving of tbe policy of dis
tributing the assets of the respective com
panies in this manner.
INFLUENCING LEGISLATION.
Replying to the question as to whether
money or ether valuable consideration had
been paid for influencing legislation, the
report says the moneys of all the Irond
aided roads have been so used, but adds that
there is no direct proof that actual bribery
was resorted to. The evidence is said, bovv
ev r, to have established frequent use by
the officials of the Union Pacific of money
and passes for the purpose of influencing
legislation.
The minority report of Commissioner
Pattison is harsher in itscharacterizHtionof
the men who constructed and managed
these subsidized reads, and their methods,
and his recommendations are more radical,
nothing less than an immediate winding up
of the affairs of all the companies,
enabling the government to withdraw at
once from all connection with the
running of railroads or sharing
in the profits of their manage
ment. His differences with bis
brether commissioners in setting forth tbe
details of the evidence upon which ho bases
his conclusions is chiefly one of degree. He
calculates that the total aid extended to the
six coinjianies amounts to over $447,000,000.
Ouly $2,000,000 was received for stock, and
$97,000,000 of stock was issued These roads
were built for less than $90,000,000, while
1 tends and stocks were issued amounting
to $268,000,000. He characterizes the man
agement of the subsidized roads as a na
tional disgrace, and says thesi men chose
dishonest methods. Huntington, "rloolrins,
Stanford and Crocker, he says, through
contracts made by themselves with them
selves for construction, leases and repairs,
tlivided over $142,000,000 in cash and securi
ties. The entire report in fact is one long
bill of indictment against the management
of the subsidized roads, and his final recom
mendation is a receivership.
GLADSTONE THUNDERSTRUCK.
The Rent Reduction Decree Declared
a Tremendous Decision.
Paris, Dec. 80.—The Temps to-day pub
lished an interview with Mr. Gladstone, in
which the ex-Premier describes the Insh
Land Commisioners’ rent reduction decree
as “a tremendous decision” and said he was
thunderstruck at the news. He also said
that the Tory Cabinet, having alienated the
tenants, would now alienate the landlords.
THREE MONTHS WITH HARD LABOR.
Dublin, Dec. 30.—At Newmarket, county
Cork, to-day, five persons were sentenced to
three months imprisonment each, with hard
labor, for attending a meeting of a sup
pressed branch of the national league. An
appeal was taken in each case.
The blacksmiths and harnessmakers of
Kildysart have received letters threatening
them with death if they do any work for
the police or for persons who have been
boycotted. The blacksmiths have, in con
sequence, refused to work for the parties
mentioned.
PRECARIOUS PEACE.
Bismarck Said to Have Averted War
for the Present.
Berlin. Dec. 30. —The National Zeitung
in an article on the political situation says:
'‘Germany neither expects nor desires war.
Prince Bismarck has thrown in the scale a
decisive word in favor of peace. It is hardly
probable that Russia will be in a position to
force war upon Germany and tier allies.
The chances are, therefore, that peace will
prevail, although this peace cannot bo tnk-m
as synonymous with the restoration of Eu
ropean tranquillity, a fact for which Russia
must answer to the world.”
SPAIN’S PRETENDER.
He Does Not Waive His Rigrhta to the
French Throne.
Paris, Dec. 30.—Don Carlos, in reply to
an address from the French “loyalist, del
egation” which recently waited upon him,
said that, although dovoting himself totbe
service of Spain, he reserved his rights to
the French throne as head of the Bourbon
family. Don Carlos enjoined the delegation
to trust in Providence and not to take part
in revolutions, which ho decared to. be
ruinous to both church and State.
A British Colonization Scheme.
Brussels, Dei-. 30.— The Movl'ement
Geographiqne says advices from Zanzibar
are to the effect that the British East Afri
can Association has concluded a treaty under
which the Sultan of Zauzilwir cede* to the
Association for fifty years sovereignty over
the territory between Port Wanga
at the mouth of the Oumba riv.-r,
and Vitu, a distance of over thirty-five
kilometres. This will facilitate the opening
of routes to Victoria Nyariza and shows
that England is desirous of founding a
colon} - which will oxtend her influence to
the source of tho Nile. It is probable that
w hen Stanley returns he will bo asked to
undertake this work of extending civiliza
tion. _
Suicide in a Theatre.
M aphid, Dec. 30.—During a performance
in the theatre at Carthageua this evening a
broker occupying one of the stalls com
mitted suicide by exploding a dynamite
cartridge. The concussion extinguished all
the lights in tho house, and the audience
becoming innie stricken fled from the
building. During the excitement over too
persons were more or less injured.
Mackenzie's Optimistic View.
London. Dec. 80.—Dr. Mackenzie has re
turned to Londou from Han Rerat). He is
inclined to take an optimistic view of the
German Crown Prince's case.
I A STKIKK EDICT IGNORED
THE READING RAILROAD HANDS
STICK TO THEIR POSTS.
The Convention Decided That They
Should Quit Work at Noon but They
Failed to Obey—The Miners May Go
Out After Jan. 1, When Their
Contracts Expire.
Reading, Doc. 30.—The convention of
Reading railroad employes, after a contin
uous session of nearly eight hours, ad
journed at 3:30 o’clock this morning. At
that time it was decided to issue orders for
a general strike to take place at 13 o’clock
to-day, every man in the employ of the
Reading Conqinny with the exception of
he passenger train crews, train men and
ignal tower men and crossing watchmen,
to strike fifteen minutes after the signal
was passed across the wires to Philadelphia
and Williamsport. Tho resolution said
that the men should strike and remain out
until the company should agree to arbitrate
all differences. This included the shopmen
in this city who took the initiative in refus
ing to go out early this week, thus breaking
the backbone of the strike at that time,
and every man who belongs to tho Knights.
A resolution was also passed offering a re
ward of $2,000 for the arrest of any person
who in any way destroys or injures any of
the company’s property. The order in
cluded not only the hands on the main lino
but those over the whole system.
DECISION OF THE MINERS.
After the adjournment of the convention
the miners hold a separate session aud did
not adjourn until 5 o’clock this morning.
They transacted nothing definite with refer
ence to striking, but agreed to give a full
financial and moral support to the strikers
on tho railroad, The Schuylkill county
delegation consisted of 135 delegates, and
they almost to a man predicted that the
company’s 30,000 miners would strike if
they were not continued the 8 |>er cent, ad
vance. The miners did not decide to strike
with the railroaders, because they are work
ing by an agreement with the company,
which is binding until Jan. 1, and because
they still have hopes that the company will
continue the 8 per cent, advance.
Chairman Lee, of the Executive Commit
tee, before be left Reading this morning,
declared that if a strike of the miners did
take place it would not onlv affect the
Bchuy Ikill miners but those in the Wyoming
coal fields, as well as the Lehigh miners.
He felt sure that they would all remain
firm, thus placing on strike at one time
100,000 miners, and not a pound of coal
could then be mined.
VERY SECRET.
Ijast night’s convention consisted exactly
of 363 delegates, a majority ot whom came
from the coal regions, the Lehigh and
Wyoming miners Being also represented.
The convention was entirely secret. Hardly
a delegate arrived before sundown last
evening, and every one had disappeared
-from the city before daylight.
The company’s officers in this city this
morning were not greatly excited over the
new order to the railroaders to strike.
They said that the trains were all running
on time; that they had all the men they
wanted and others in reserve, and that the
only danger was of a coal famine if the
miners should strike.
The trades unionists of Reading, com
posed of such bodies as printers, hatters,
molders. bakers, carpenters, hod carriers,
cigarmakers, barbers, etc., have organized
themselves into a body known as a Trade
and Labor Council, which it is estimated
represents LBOO men. They do not affiliate
with tbo Knights of Labor. At a lato
hour last night after a lengthy meeting the
council passed the following resolutions:
Ettolivd, That the Trade and Labor Council
of Reading do censure the Philadelphia and
Reading Company for their direct attack on or
ganize l labor, and request all unions to extend
their sympathy and aid to those directly injured
by the company.
Resi l'M-d. That we severely condemn the
Brotherhood of Locomotive Engineers for their
very ready offer of assistance to the company
in the present difficulties on the road, merely
for the purpose of seeking revenge.
NO SIGN or A STRIKE.
No attention had been paid to the order
to the Reading employes to strike, so far as
appearances up to _:45 p. m. indicated. So
far as known not a single man any wiiere on
the Reading lines had yet left his post, and
a very heavy business had boon done all
day.
Some concern is expressed about what
may happen in the coal regions after Jan.
1, at which time the contracts expire.
Representatives of the Reading shop men
in last night's convention say thojvoice of
the miners' delegates was all for war,
while the railroad men were for peace, but
the latter were outvoted.
• STILL AT WORK.
Reading, Pa., Dec. 30, 9 r. m.— The situ
ation to-night remains practically un
changed as Far as the Reading railroaders
are concerned hereabouts. The road con
tinues in full operation and the shop hands
show no disposition to strike at anytime.
T’ne Knights of Labor are evidently lodng
ground in this vicinity, This week three
trades unions withdrew from the order in
this city aud will be mustered into member
ship with the Trade and Later Council of
the Federation of Labor, the great rival of
the Knights.
Seven hundred men on the Hhamokinand
Mahanoy division of the Reading rail
road at Sbamokin, Mahanoy Plane and
Ashland struck to-day. This may prevent
the shipment of coal for a while, even if the
miners consent to continue work. The
Reading convention’s order to strike seems
to have been obeyed in the- coal regions
only.
LOOKED PEACEFUL.
Philadelphia, Dec. 30. At Port Rich
mond and at the de|X>ts and along the lines
of the various branches of the company in
this city, there was the usual activity this
afternoon, and the officials reported that
none of the employes hail yet quit work. A
large body of Pinkerton detectives, together
with squads of city policemen, *'e still on
duty at the coal wharves at Port Richmond
and at the freight depots, but thus far the
striker; who went out several days
ago, have shown no dis|xs!tion to
interfere with the men at work. The
Reading company to-day advertised for
men to take the place, of the striking coal
handlers at Port Richmond, guaranteeing
permanent employment, good iwiv and pro
tection to all who are accepted, hut giving
notice that the men who were discharged
on Dec. 84 for refusing to handle coal need
not apply. About 150 men came down
from New York on a tug and were set to
work this morning.
the crisis.
Philadelphia, Dec. SO, 11:50 P. M. —The
crisis in the strike will be reached to-mor
row morning if the declared iutentions of
the nine local assemblies, which are made
up of the entire number of Reading rail
road employes in this city, are lived up to.
An unusually large meeting of
Local Assembly No. 5890 was
held to-night and 'there were present, be
sides, representative* t eight other assem
blies. The meeting was enthusiastic, and
at its conclusion, about midnight, it wax
state! that Local Assembly No. 5890 had
resolved to abide by tuo action of the Read-
ing convention and refuse to go to
work at ti o’clock to-morrow morn
ing. Delegates from eight other
assemblies, it was said, had pledged their
locals to take similar action. Local Assem
bly No. 58St0 is made up of the freight
handlers, stevedores, engineers, conductors,
brake]non and others on the Philadelphia
division of the main line and is one of the
largest assemblies on the system. Local
Assembly No. 7032 is composed of
freight handlers at Port Richmond.
I-oca I Assembly No. 6535 includes the
freight handlers atother.stations in the city.
I-ocal Assembly No. 8285 comprises the coal
handlers at fort Richmond, who have
been out since Tuesday, and As
seniblies Nos. 8810, 10107, 2120, 3835 and
2175 are made up from other depart
ments of the road. Assembly No. 5800
appointed a committee of three to notify
the Reading officials of their action, and
this committee will visit the company's
olliee for that purpose to-morrow. The
leaders of Assomby No. 5800, which body
are the moving spirits in the proposed gen
eral action, declare that all the men are
firm, and have only delayed because
they wanted to take concerted action.
They assert that the entire systeuij with the
exception of the mail service, will lie tied
up to- morrow. It. was also resolved at to
night’s meeting to bring suit for damages
against the Heading Company for allege-1
willful delaying of telegrams between this
city and points on the company’s lines in
reference to the present troubles.
WYOMING MINKBB WON’T BTBIKE.
Wilkksbahrk, Fa., Dee. 30. —There will
be no strike of the miners in the Wyoming
region. The miners here and in this vicin
ity are net thoroughly organized, and of
course would not obey the inundates
of the Schuylkill union. Attempts
have been made for some time past to get
the miners and laborers here to join the
Amalgamated Association hut very littlo
success is being mot with. No anxiety is
felt here at present. The region is working
regularly, the production of coal is enor
mous and the miners all seem to bo happy
and contented.
ENOINKEBB EOB TUE READING.
New Yohk, Dec. 30.—Thirty engineers
who were discharged from the Brooklyn
Elevated Railroad Company’s employ be
cause of their connection with the strike
which recently took place on that road
have been engaged to take the places of
some of the strikers on the Reading road,
and left Brooklyn for Philadelphia yester
day.
PRINTERS AT THEIR CASES.
Non-Union Men Who Took Their
Places Walk the Plank.
Chicago, Dec. 30.—The job and book
printers’ strike has terminated, and the de
feated strikers are Blowly returning to work.
The non union men are heing discharged as
fast as the st rikers return, noth withstand
ing that most of the employing printers
swore that not a man who came to their aid
should ever be discharged to make
way for strikers, no matter how
good a workman said striker might be. The
gradual end of the strike, or more properly
lock-out, is appreciated by the newspaper
printers and such job printers as were uot
involved in the general wreck. They have
been paying a weekly assessment of 10 per
cent, toward the support of the strikers
and were much relieved Wednesday when it
was cut down to 5 per cent., owing to the
small uumlier of strikers and the liberal aid
of other unions.
Labor to Fight with Ballots.
Chicago. Dee. 30. At a special session of
the Trade of Labor Assembly of Chicago last
night, for the purpose of instructing the
delegates to the coming session of the Illin
ois State Labor Convention at Peoria, a
declaration was unanimously adopted that
the time had come for indejiendent, political
action by workers. Strikes and boycotts
against great corporations were pronounced
to have lost all usefulness, and tiie delegates
to Peoria were instructed to induce the
State Association to call upon nuxilliary
bodies to organize at once for separate ex
ercise of their political power.
Glass Workers to be Locked Out.
Sandwich, Mash., Dec. 30. —Local Union
No. Id, of the American Flint Glass Work
ers’ Association, having informed the Bos
ton and Sandwich Glass Company that cer
tain of their propositions would not be ac
cepted, General Manager Bpurr ordered
that the pots be not Ailed with glass this
afternoon as is the general custom. A shut
down of the works uere on Monday is in
evitable.
HANGED BY VIGILANTES.
■i . ii ■ ■ ... •
Strung up on the Tree Under Which
He Slept.
Little Rock, Ark., Dec. 30.— A special
to the Gazette from Ht. Francis, Ark., says:
“William Herrig, who murdered Ins young
wife and her paramour near here Thursday,
was banged lost night by a band of vigi
lant*. After the murder Herrig set out
toward the northern boundary lino with the
purpose evidently of escaping’into Missouri.
Directly after the crime war. discovered
a force of men set out to And linn. This
was done about 11 o’clock last night, four
miles north of Rector. When found he
was asleep under a large tree. He was in
formed that he must die and he made no
protest, in fact he said he was willing and
rea<iy and that he had nothing to regret.
Hif wife had been untrue to him aud
he bad killed her lover, and this be regarded
ns justice. In regard to the shooting ol
bis wife, he said bo could offer nothing in
the way of defense. He was then hanged
on the very tree under which hfe was found
sleeping. His wife’s stage name was J ulia
Bennet before her marriage.
An Article Censured.
London, Dec.|lo.—The Russian press cen
sures the Russian article in the November
number of the Century Magazine. The
article is entitled, ’•'The last appeal of the
Uuifsian Literals,” and is by George Ken
nan, an American who has re
cently returned from Russia, and
Siberia. It contains the text of nn address
sent to the late Czar by the Liberals of Mos
cow, sotting forth the evils of the present
system of government in Russia and asking
for a national assembly and constitution.
A Year On ’Change.
New York, Dec. 80.—The total sale* of
stocks at the New York Block Exchange
during the past year were 86,921,MS shares,
against. 100,*>2,050 shares for the year 18*0.
The sales of (State and railroad bonds
amounted to *3rto,9fjfi,2s3, par value, against
<i'07,031,9l 1 iu the previous year, and of
government bonds to $9,047,100, against
$12,798,500 in the previous year.
Franco and the New Hebrides.
Paris, Dec. 30.—Ex-Colonial Secretary
Etienne lias written a letter, in which he
say* that the plan for a mixed government
over the New Hebrides is impracticable.
Division of the Archi|ielagobetweep France
and England he declares to be the only log
ical solution of the matter.
Rome's Syndic i.emoved.
Rome, Dec. 80. —Hie Duke of Torlonia,
Syndic of Rosie, has been dismissed for re
quest ing the Vicar of Rome t convey to
ttie Pone the city’s iubHee vreetings.
< FRHIEBIO A VBAR >
i fICKYra a cop y f
REPUBLICANS VERY FOXY
HOW THEY WILL TRY TO STEAL
DEMOCRATIC CREDIT.
A Tar ff Bill to Anticipate Any Com
promise Measure the Democrats
May Have In View to be Rushed
Before the Ways and Means Com
mltte of the House at Once.
\Y ashinoton, Dec. 30. —The Republicans
of the House are tasting about for some
means of forestalling the Democrats in tax
reduction. They know very well that the
country expects the advice of the President
to be followed, so far as the reduction of
taxation is concerned, and they are afraid
that they niriy not be able to vote against
the tax reduction bill which the Democrat*
will bring forward, and so may help to pass
a bill for which the Democrats will get the
credit. The leaders talked around among
the Republicans before the holiday reeea*
began to see what the general opinion was.
WHAT THEY FOUND.
They found that almost all the Republi
cans were In favor of taking off the to
lincco tax aud the tax on alcohol used in
the arts, that some favored the reduction
aud some the re|>eal of the sugar duties,
while a few favored free raw materials ami
free salt. As to the course of the parlia
mentary action to be taken the majority
favored such means as would enable the
Senate and a conference committee to re
peat as nearly as possible the juggling of
1883 so as to keep protection in every possi
ble instance just where it is and increasing
it in such cases as that of worsted goods.
MB. BROWNE’S BILL.
To-uigbt the B'far has the following sug
gestive statement: “Representative Browne,
of Indiana, who was a member of the Ways
and Means Committee in the last Congress
and will again be assigned to that commit
tee, is preparing a tariff bill which he pro
poses to submit to his oolleag les on the Re
publican side of the House for their ap
froval, as a substitute for any tariff bill the
tamocrats may bring. He thinks
that there is a chance of the Demo
crats bringing into the House
a tariff bill or such character that the Re
publicans could not afford to vote against
it, and then whatever credit accrued from
the measure would go to the Democrats,
lie proposes t hat the Republicans shall have
a bill of their own, and then if the Demo
crats adopt one of the same sort the Repub
licans can claim that they first made the
suggestion.
NOT QUITE BEADY.
“He has not his bill entirely ready yet,
but he expects to complete it in time to sub
mit it to hi* party friends, and get it to the
\Vays and Means Committee before they
have time to report a bill. In character lU
will net differ widely from what is liable to
be taken by the Democrats. A* a compro
mise it will propose the repeal of the
tobacco tux, and of the entire duty on
sugar, salt and iuinlier. It will reduoe tb*
duty on some grades of wool, or probably
place the coarser grades of wool on the free
list. The aim will lie to take the tariffed
article* entirely that have an every day
consumption as far as iiossible without dis
turbing needed protection.”
POSTAL TELEGRAPH TOLLS.
Senator Cullom to Introduce an
Amendment to Hie BUI.
Washington, Dec. 30.—Senator CuUora
will introduce an amendment to bis postal
telegraph bill immediately after the reas
sembling of Congress changing the rate*
nam'd in the original bill; more especial
ly those for the transmission of press mat
ter. While hsbelieves that Congress
ought to prescribe rates for the use of
government wires as prescribes rates
for use of the mails, instead of leav
ing it to the discretion of officials, yet
the rates named In his bill wored e
ignated merely as a suggestion to tba
committee which should have the bill in
charge. U|>on subsequent review and with
information which has gone to him from
many sources, he has reached the conclusion
that there ought to te no difference upon
government lines between services of like
character rendered to evening pupers and
those to morning papers.
THE PRESENT EXCUSE.
He says he appreciates the weight of rea
son which leads private companies to charge
more for day than night service, namelyc
the fact that the wires are in great
demand for commercial messages
at a comparatively high rate during the
hours from 10 o'clock in the morning to 3
or 3 o’clock in the afternoon, but be behave#
tiiat. such reasons should not operate as re
gards governmental lilies, ann that the gov
ernment should know no preferred pat
rons as to rates of like classes of business or
as to the order of transmission. The rate*
to be named in the amendment are based
upon the unit of 100 words or fraction
thereof, and are as foUows: For
500 miles or less, 25c.; between 500and 1.000
miles, 30c.; between 1,000 and 1,500 miles,
35c.; between 1,500 and 2,090 miles, 40c.;
between 2,000 and 8,000 miles, 45c., and for
more than 3,000 mUes, 50c. When mors
than one copy of the same dispatch is sent
to different newsoapers at the same or dif
ferent oAlces the 'Postmaster General is to
prescrite the rate to te charged for “drop”
copies.
SNOW KNEE DEEP.
Trains Delayed on Every Road In th*
Northwest.
Bt. Paul. Minn., Dec. 30.—A driving
snow storm set in at 10 o’clock this morn
ing and is still raging to night. The snow
has drifted heavily and trains are delayed
all over the Northwest.
A Jamestown, Dak., special reports that
the Northern PaciAc road east bound
Limited passenger train urrived there
eleven hours late.
A Watertown, Dak., special says that all
trains on the Burlington, Cedar Rapid* and
Northern road have been abandoned.
Bismarck, Dak., telegraphs: “Snow be
gan to fall early thi* morning and Juts con
-tiuued steadily since. Trains tram aU di
rections arrived here very late this morn
ing. All night trains have beeu abandoned.
CHATTANOOGA AND THE TARIFF.
The Chamber of Commerce Adopts a
Series of Resolutions.
Chattanooga, Dec. 30.—At a meetingof
the Chamber of Commerce to-night the fob
lowing resolutions wero adopted:
Resolved, By the Chamber of Commerce of
Chattanooga that our Senators and Representa
tives in Congress be requested:
1. To favor raising the necessary revenue for
the support of tte government by a tariff upon
Imports so adjust*-d as to prevent unequal Dur
dens and encourage the development of our
material resoui-ces, and at the same time afford
ji st compensation to labor.
2. That it <s the sentiment of the people of
Chattanooga, and the territory contiguous, that
no reduction should be made on the duties oa
coal, iron ore or their products, as such reduc
tion would to vitally detrimental to the inter
eats of large sections of country of which this
la the commercial centre.
a That the secretary be instmcled to forward
a copy of these resolutions to each Senator aud
liopriwcntaUve in Coiigro-ss.