Farmers' Loan & Trust Co. v. Northern Pac. R.

60 F. 803, 25 L.R.A. 414, 1894 U.S. App. LEXIS 2761
CourtU.S. Circuit Court for the District of Eastern Wisconsin
DecidedApril 6, 1894
StatusPublished
Cited by16 cases

This text of 60 F. 803 (Farmers' Loan & Trust Co. v. Northern Pac. R.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers' Loan & Trust Co. v. Northern Pac. R., 60 F. 803, 25 L.R.A. 414, 1894 U.S. App. LEXIS 2761 (circtedwi 1894).

Opinion

JENKINS, Circuit Judge.

On the 19th day of December, 1893, the receivers of the defendant company presented to the court their verified petition representing that on the 17th day of August, 1893, and within two days after their appointment, and in view of the insolvent condition of the railroad company, they ordered a reduction varying from Í0 to 20 per cent, in the salaries of all employés (including the general manager and other general officers of the company) amounting to $1,200 per annum or more, which reduction was acquiesced in by the employés to whom the same applied. On the 25th of August, 1893, in view of the increasing depression in the transportation business, the consequent falling off of earnings, and- the necessity of greater retrenchment in operating expenses, the receivers ordered a further reduction in salaries and wages of employés, amounting to 5 per cent, on all salaries aggregating $50 a month and under $75, and to 10 per cent, on all salaries aggregating from $75 to $100 per month. This latter order was to take effect immediately, but upon consideration its operation was suspended by the receivers until the entire subject of salaries and wages could be more fully considered, especially with reference to certain schedules covering the pay and employment of certain classes of employés. The receivers informed the court that some of these schedules, which had been in existence for many years, were not justified by conditions now existing; that they had been amended from time to time, and extended so that they had become voluminous, and in some respects obscure, and had produced in operation inequalities and results unjust to the property, and unjust to many employés; that they thereupon revised and rearranged the schedules, and, instead ' of putting into operation the reduction contemplated by the order of August 25th, they determined and ordered on the 28th of Oc-_ tober, 1893 (giving general notice thereof to the employés of the* road), that all existing schedules covering the rates of pay of employés should, on the 1st of January then next ensuing, be abrogated, and that certain new schedules prepared by them should take effect on that day; and the general manager was instructed on and after that day to reduce all salaries and wages aggregating $50 per month and less than $75 per month 5 per cent., and all salaries and wages aggregating $75 per month 10 per cent The revised schedules corrected supposed inequalities between the different classes of employés, and did away with certain ob-.’ noxious regulations which were supposed to militate against the proper management of the property. The receivers further rep[805]*805resented to the court that the reduction made in salaries and wages was justified in view of the large shrinkage of business, growing out of the financial revulsion throughout the country; that the rates of compensation provided for were fair and just to the employés to whom they related, in view of the then present conditions. It was made to appear to the court that the gross earnings of the property during the year 1893 were continuing to greatly decrease; that the decrease for the month of September, 1893, as compared with the month of September, 1892, amounted to $753,000; that the decrease for the month of December, 1893, as compared with the month of December, 1892, would amount to $730,000, decreasing by more than one-half the entire estimated gross earnings for the month. That by the revised schedules the average reduction in the rates of compensation to the various classes of employés was about as follows: Engineers, 8 per cent.; firemen, 7 per cent.; trainmen and freight conductors, 8 per cent.; passenger conductors, 1.0 per cent.; telegraphers, 5 per cent. The receivers further advised the court that many of their employés claimed that the schedules and rates in force when the receivers took possession constituted contracts between the several employés and the receivers, terminable only by the consent of the employés, in which view the receivers could not concur; and that discontent and opposition to the enforcement of the schedule were rife among the employés, based upon the assumption that no power existed in the receivers to change the schedule. The receivers further advised the court that some of the employés threatened that, in the event that the revised schedules should be put into operation, they would suddenly quit the service of the receivers, and would compel by threats and force and violence other employés to quit the service; that they would prevent, by an organized effort, and by force and intimidation, others from taking service under the receivers in the place of those who might leave such service; and that they would thereby, as the means of forcing the receivers to abandon the proposed revised schedules, disable the receivers from operating the road, and from discharging their duty to the public as common carrier. The receivers further rejjresented to the court that some of the employés threatened, if the revised schedules should be put in operation, to disable locomotives and cars so that the same could not be safely used at all without expensive repairs; that they would take possession of the cars, engines, shops, roadbed, and other property in possession of the receivers, and that they would destroy and prevent the use of the property, and would so conduct themselves with regard thereto as to hinder and embarrass the receivers in the management of the property, in the operation of the trains thereover, and would bring about incalculable loss to the trust property, and inflict great inconvenience and hardship upon the public. The receivers further represented to the court that, unless the parties were restrained and prohibited by order of the court, they would carry out such threats, and the receivers would be prevented from operating the road, from carrying the mails [806]*806of the United States thereover, from performing the duties of a common carrier thereon, and that great loss of property and jeopardy to life would ensue; that the parties referred to (whose names the receivers were unable to state) were contriving secretly to perpetrate the acts of violence and wrong described, and to interfere with the possession and operation by the court, through the receivers, of the property; that such combination included not only dissatisfied employés of the receivers, but others not. in the service of the receivers, who, from a spirit of sympathy or mischief, threaten to join the employés in perpetrating the wrongful acts and things stated; and that they would so do unless restrained by the court. The receivers thereupon asked, among other things, for an order authorizing them to put in operation and maintain on and after January 1st, then proximo, the revised schedules in such petition described, and that a writ of injunction might issue as prayed for in the petition.

Upon consideration of the petition the court on that day entered its order authorizing the receivers to adopt the revised schedules, and directing the issue of a writ of injunction as prayed for in the petition, and directing its delivery to the marshal for execution, ordering him to protect the receivers of the Northern Pacific Railroad in their possession of the property of the railroad, and in their operation thereof; and directing the receivers to file, in the courts wherein they had been appointed receivers of said property upon ancillary bills, petitions similar to that on which the order was based, to the end that the power of each court might be seasonably invoked for the protection of the receivers in the possession and management of the property within its territorial jurisdiction.

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Bluebook (online)
60 F. 803, 25 L.R.A. 414, 1894 U.S. App. LEXIS 2761, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-loan-trust-co-v-northern-pac-r-circtedwi-1894.