B 451805 TRANSPO]R I'Al! I IqA. y -S8 5521), PROP ERTY OF 117 8 1 7 A RTES SCIENTIA Vti TAS,,... ~,, -..::..~..., I REPORT OF THE SPECIAL COMMITTEE OF THE ASSEMBLY APPOINTED TO INVESTIGATE THE CAUSES OF THE STRIKE OF THE SURFACE RAILROADS IN THE CITY OF BROOKLYN. TRANSMITTED TO THE LEGISLATURE APRIL, 1895 ALBANY: JAMES B. LYON, STATE PRINTER. 1895. I ' }. I....A iransportstioi Libray N'36^ ~. S8 COMMITTEE. VIILLIAM H. FRIDAY, JAMES A. DONNELLY THOMAS B. TUTTLE, JOHN B. STANCHFIELD, E. LA GRANGE SMITH. TA~~ R..Ae;IN SIENATE~, APRIL 8, 1895. REP OJRT OF THE SPEGIAL COMMI13TEE OF THE ASSEMBLY APPOINTED TO INVESTIGATE THE CAUSES OF THE STRIKE OF THE SURFACE RAILROADS IN THE CITY OF BROOKLYN. To the Aqsembly qf the State of New York: On the 7th day of Februiary the Assembly adopted the following resolution, relative to the state of the public peatce. in the city of Brooklyn as incident to the strike of the employes of the surface railroads in that city: "On moftion of Mr. Friday, as amended by. the Oonmittee on Ways and Means: Whleras, the. city of Booklyn is now mn a state of siege and undier martial law, arising from the disturibaCnces incident to the great trolly strike; and, whereasi, the First and Second Brigades of the National Guard of the State have been summoned to perform aictive duty to, protect the lives and property of the residents of that city; and, whereas, Mts the rail. road comipanies refuse to accede to the demands of their employes, and the nwn are firm in their deterninatimo to hold out for waht, yhey claJm are but just and reasonable demandis nd fairr complensa'tion for service rendered; and, wherea s, the lives of the citizens of Brooklyn have been and are being irperled in ie6 quence, property hias been destroyed;and the ci ty put to intold 4 expense for the mYaintenance of military forces to enforce the la~ws of our common people: Now, therefore, be it resolxved, for a better protection of the lives and property of our citizens, this Legislature appoint a, special committee of five of its members to examine into thhe causes leading up to the strike, fix the basis of responsibility tlierefor, and report to thfs ILegisl2ature at the earliest possible moment their conclusions, with such, recoin. mendattions as will prevent a recurrence of the siame. That said coniniittee shall have full power alnd authority to. investigate all and singular the aforesaid m1natters and chaMrges, and t-hat such committee have full power to prosecute its inquiries in any and every direction in its judginent necessary and proper to enable it to obtain and report th~e information required by this, resolution. That said committee report to the Assembly rwith such recommendation~s as, in its judgmaient, the public interests require. Said oomniittee is gri'ven. authority to send for books, persons and papers, and to employ one stenographer, one counsel and one, messenger, and to hold its Seasions at such timin-e and places. as they may deem proper. -But the total expense authorized by this resolution shall not exceed the sumn of $(i,000, alnd the report of said committee shall be presented to the Assemllrily not laIter than March 15th, 1895. The sergeunt-Cat-armns of the Ass-emnbly shall attend such comimittee and serve all subpoenas issued thereby, and perform all duties as sergeaunt-at-arms of said commnittee." The time to report was subsequently extended toi April 8, 18 9 5. Your coutuiittee held its first meeting in t-he city of New York' on the 7thl day of Februarry, and by unaniminouis resolution employed Mr. William. M1. Ivins to act as its counsel in the prosecution of the investiga tion u nde-r the terirmslr; of the foregoing resolution. Ift bega-n to takl~e testimiony in the city of lIeooldlvn on the 14th dlay of Februiary, and hTas prosecuted its inquiry w"ithi expedition and thtorougj(,h-ness, beniarjugiS in mind the limitation of time imposed by the resolution and its ameneudmients. Sujbject to this limitati-n, it haes, e,0hausted all he means withini ts coima nd to discover the true ctauise of the strikcl its- extent andl duraition, its cornsequences, an-d thoste -bin giis wh ici ha V4 (fivntrcibuite to its prolongation; to fix the responsibility, not only for the strike 5 itself, but for the (lisorders consequeut upon it, and particularly for the calling out of an aimed force of abrxout 7,,00 men to! maintain the public peanc~e. It has, moreover, taken all steps possible within the I-mne given, thorouglyl N to consider what legi(rslative rem~edies, if aniy thlere mi.!ay hi e for e ptimT(Wt4Utiofl, in the future, of similar social antiud economic disorders wiiin this State. THIE STRIKE. The strike began on the 14th of Januaryr, 1-895, and resulted in disIorders wh.ich continued until Iabout the 24th dJay of February, 1-895. Duriig th-ei grea,(Iter pai-,t of this tfinie about 5,000 men, who had left their employmiient, remained, so far as your coMDmitiea is able to ascertain, entirely unemniployed. The operation, of the surface rair.oaidcs upon which thie strike occurred. was, for then time being, niore or less completely paralyzed, and the fear of serious breaches of the public peace led to the calling out of the Fitsc and Second Brigades, N. G. S. N. Y. Your committee have taken over 1,100 pages of testimony, representing all phases of th-e trocuble aInd the, conditions that brought about this great labecr disturbance.' It was no ordinary strike. It was a culmination of negotiations that had been going on betw-een employer and employc foir a period of eight years. Five thousand motonieji, concin ctors, ca!r-cleaners, switch-turners, truclimen and other eniploycs on four of the largest sysrtems, of street-surface railroads, emfbrbiacing nearly 50 different lines of caros. had agreed to sstrike on Sunday evening, January 13, by vohe of the execuative board of the Knights of Labor, and, before the strike could be officially declared, and in anticipation ot a. general tie-up. the next morning, the railroad com-apanies took the precaution of dismissing until further orders, the pitmen and electrical workers, in the various, sheds, barns and shops where motor calis a-re housed anid repaire, d-. Thl~ere was no timne during the. strike when the railroad contpanics- so vx-holly failed to perform. the-ir duty as carriers as to jistil-y a forfeiture of their charters; bhuit from the 13th and -9t-h (if J ailu nary such, performance was technical and nominal rathlLer thaun actual, owNNing to the inability, on the ptart of the roads, at that time to secure men to act as motormen and conductors, in 0 sufficienit number to riun the customary number of cars and! the cfustomally number of triips, witbout. submitting to the terms of their late employe0. The companies ad-vertilsedi in Brooklyn, Boston, Pittsburgh, Philad-lphi'a, Chicago, and other cOties in this State, and elsewhere in the United States5 for employes. Men came, from, all parts of the country, and, as a result, -the railroad companies, wiere able entirely to, reorganize their working staffs, although' the strike of the former employes was not offlci'ally declared off -until the 24th day of Februaity. During all of this' time the. commurnity was' receiving oinly a. prtial senrice atthe hands of -the compan'ies; for the first fortnight, the most incomplete and unsatisfactotry, and, for the last fortnight, gradually approximating the usual and customary, condition. During the greater part of thi"s time, also, the miunicipal police force was, in the- opinion of the mayor, inadequate to secure the public order, and peace was, maintained- by ani armed military force ranging from 3,000 to 7,500 men. The strike was declared.by the Knights of Lablor, District A~ssembly No. 75, and -affected the ermpl'oyes of the 13rooklyn Heights Railroad Complany, Broklyn, Queenis County and Subufrb~an Railroad Company, Brooklyn City and: Newtown Railroad Company, and the Atlantic Avenue Rtailroad Comnpany. The ciondruc-tors and motormen- of these ciompanies, were practically all. members of the Knil(ghts; of Labor, belonging to District Amembly No. 75. Up to the 1st -of January preceding -the strike they had' been employed under contracts -negotiated and: entered into' between the railroad companies on the one part, and the Executive Board of District Assembly No. 7i5, Knights of Labor, on the other part, except in the case of the Brooklyn City and Newtown Railroad Company, as will hereafter appear. For many years the emiployee of -tlese roads have -consitituted a district assembly of thie K-njights of Lajbor, and the contriaots entered into between the Brooklyn City Railroad. Oomipaiiy and the companies now merged in it, on the one part, and their conductoms, drivers or motorien, had been made, not between the 7 companies and the employes individually, but between the companies and the employes througih the intermediation of the Executive Board of the Knights of Labor, and these contractsso made have govereed the cotpaniies and the men it their relatiens to each other. None of the corporations have of late years shown any disposition to discriminiate aganst organized labor, but have, in fact, favored dealing with tiheir employes through the intermediaion of labor organbaatioj In treating with the companies for a renewal of the contract for the year 1895, these: meni had all been represented by the Executive Board of the Knights of Labor, consisting of Messrs. Martin J. Connolly, John Giblin, Andrew Best, Willimm H. Hoilcomb, W. H. Davidson, and P. J. Collin& Previous to January 14th the emnployes of the companies were receivinig wages on the following scale: Each. Linemen.......................................... 3 00 Trolleym en......................................... 2 50 Trackwirers........................................ 2 25 Conductors and motormen, on full day cars............. 2 00 Conductors and motormen, on so-called tripper cars.... 1 50 Laborers and employes at the depots, such as car-cleaners and others..................................... 5 A careful estimate shows that the loss to the employes who went out on the strike, and who were whoily out of employmnent from the 13th of January to the 24th of February, was not less than $350,000, and that the loss to these men as a body, the great majority of them being still unemployed, may be estimated from the beginning of the strike to the date of this report at not less than $750,000. The interests of these persons and their welfare, and that of their families, were entirely in the hands of the representatives of the railroad companies, on the one part, and of the executive board above named, on the other. The District Assembly of the Knights of Labor, to which they belonged, covers the territory of the county of Kings, and is divided into twenty-one local assemblies, each of which assemblies is made up of the employes of one or more of the surface railway lines. On Sunday, txe 13th of January, each of these local assemblies received a communication from the executive council, stating the conditions of the negotiations between the council and the companies, and thereupon each local assembly passed a vote instructing its delegates to the district assembly to vote in support of whatsoever might be done by the executive council. The council having determined to stand by certain demands which were refused by the officers of the corporations, the disdrict assembly on the evening of January 13th voted in favor of a strike, and notified the local assemblies of their actions whereupon the men went out. One of the witnesses, Mr. Connolly, the master workman of District Assembly 75, K. of L., testified that, in 'his optnion, thre had beeen no strike, that the entire difficulty had been caused by the so-called lockout of the electrical workmen upon one of the lines of the Brooklyn City road. When asked the question: "When did the men strike; on the 14th of January?" His answer was, "Did not strike at all." "Q. When did they stop work? A. On the 14th. "Q. That was on Monday, was it not? A. Yes. "Q. This matter of the proposed increase of wages was abandoned by your committee on Saturday, was it? A. On Saturday; yes, sir. "Q. Was that abandoned in the negotiation with all of the companies on that Saturday? A. So far as I know. " Q. So that that was no longer in the controversy at the time the men stopped work? A. Yes, sir. "Q. And in your opinion, then, the matter is confined for its real causes to the infraction of the ten-hour law, and to the question of the trippers and the payment by trip rate? A. And the locking out of the electricians. "Q. And the locking out of the electricians? A. Yes, sir." This witness had already testified to the matter of the so-called lockout, although his testimony in this regard was entirely hearsay, so far as touches the occurrences connected 9 with the refusal on the part of the railroad company to allow the electricians to go to work on the night of Sunday, January 13th, and the early morning of Monday, January 14th, after the meeting of the District Assembly on the evening of January 13th, which had voted in favor of a strike. Having referred to several of the matters of difference between the companies and the men, the question was asked of Mr. Oonnolly: "Q. Was there any other cause of disagreement? A. Yesa sir; on January 13th there was a lot of men employed known as electricians; they fixed the wires, and they (meaning the company) commenced to loick them out on the 13th of January; in other words, they asked them if they would take the motormen's places, and they refused, and when they wouldn't do it they would lock them out, and that created a kind of fire among the men." The actual facts as to the manner in which the strike was declared, are stated concisely by Mr. Andrew Best, one of the executive board of the District Assembly, who testified as follows: "Q. Now, Mr. Best, the testimony here has been a little confusing and conflicting as to the strike, as to whether or not there really was a strike; now, what is your opinion as to that; was there or was there not a strike? A. I think there was a strike. "Q. A strike was ordered, wasn't it? A. It was ordered; yes, sir. "Q. Tell us how, please? A. The question was, the men in the various local assemblies had presented or had agreed upon a schedule of wages and hours of work, and general working condition for the coming year, and these had.all been submitted to the District Assembly; the District Assembly agreed upon the conditions as submitted, cutting out some of the more radical ones of that proposal, because some thought they were entitled to $2.50 for a day's wages, and some of those things were eliminated, and a general universal scale of wages and condition of labor generally was agreed upon, which were drawn up and presented to the different railroad companies, and the railroad companies having refused some of the most vital points in those agreements presented, led up to the strike, I believe. B. 2 10; "Q. Now, agreement was come to, however, was it not, on the wage question before a strike was decided on? A. The question of advance of wages was waived. "Q. Well, now, when did the executive committee first make up its mind to declare a strike? A. The executive committee did not declare any strike. " Q. When did it first make up its mind to recommend a strike? A. The executive committee did' not recommend a strike. Q. When did it make up its mind to submit the question of a strike to locals? A. I think it was submitted on the 9th of January. "Q. Now, will you tell us what the modus operandi of that submission is? A. The question is submitted to the locals to vote either for or against the proposition. Q. The proposition is submitted; is it? A. Yes, sir. "Q. In what form was the proposition submitted in this case? A. The question is. never formally submitted as a proposition, because it has been held that we have never clearly understood whether we were not liable under the Penal Code to have the liberty as workingmen to strike or not, and the question has always been submitted as to whether or not they would stand by the demands made; in this case it was submitted, I believe, on the 9th of January. " Q. That is whether or not they would stand by the demands made by the committee? A. By the executive board, the execu.tive board having submitted the demands as intsructed by the organization; I might say in connection with that, a letter from Mr. Lewis, president of the Brooklyn Heights Company, was also sent out in connection with it, explaining the company's side of it; there was a copy of it here, if you desire to have it in evidence. "Q. I would like to see it, yes; then it took this form, that it was understood that a vote in favor of standing by the executive council was a determination to strike work? A. Yes. "Q. And that a vote opposed to supporting the executive council was equivalent to a determination or declaration not to strike work? A. Exactly. "Q. And having been submitted to all of the locals they all 11 passed their resolutio n some form or other in favor of standing by the council? A. By a secret ballot. "Q. In favor of standing by tihe committee? A. Yes, sir. "Q. And that, when the vote was taken, was construed as a declaration on the part of all of the Knights of Lanbor inl the district that they were to strike? A. Yes. " Q. Then when the word came back from, each of these local assemblies, what was done; did the Distirct Assembly act or did. the council act alone? A. A meeting of the district was called, that is, the vote, etc., and the conditions and all the negotiations which had been held upi to that time with various companies were reported to the district "Q. And then did the District Assembly pass' a; resolution or declare in favolr of a strike? A. The district passed a, resolution granting permission to all members of the organization desiring to quit work in a body to do so "Q. Or refuse to work if they so desired? A. Yes. "Q. Without imparing their standing in the organization? A. Yes. " Q. And the men would not have so stopped work without such permission, would they? A. I hardly think so. "Q. Isn't there a provision in the constitution that the men shall not stop work without permission? A. When a question of this kind is submitted to the organization it requires a threequarter vote to order a cessation of work of all the men implicated in the affair, and unless three-quarter vote in favor of the cessation, it won't be allowed. "Q. In your opinion all the men generally desired this strike? A. Well, I can only answer the question in this way, tha,t about 98 per cent of all the men voted in favor,of it. " Q. And it was on that you took such action as you did individually? A. Yes, sir. "Q. Believing your action to be thoroughly representative of the desires of the mien;? A: Yes, sir. "Q. Well, after the vote is passed in the Local Assembly, then the men do not go back to work any more, do they? A. Not until a settlement is arrived at. " Q. But, so far as they are concerned inP relation, to their walk, 12 that is definitive inx that Local Assembly? A. Yes, sir; at any time five local organizaltions have a right to call the district together and submit any question for their consideration, and the district executive board have the right to call the district together and submit any question for their consideration; so there is always a way of reaiching- of calling the district togethier, and our by-laws provide that from time to time a vote shall be taken as to whether the cessation shall continue or not; if it falls below a majority, then the best terms are to be accepted and the strike declared off." * * * The following is a transcript from the minutes of the meeting of the District Assembly, held at 162 Throop, avenue, Brooklyn, on the evening of January 13, 1895: "Special meeting held in above hall by District Master Workman M. J. Connelly. The meeting opened at 11 o'clock p. m., and some of the electrical workers who had been locked out earlier in the evening being present. "The district master workman reported the interview he had had the evening before with President Lewis on behalf of the Brooklyn City employes at some length, and stated that the president insisted on being permitted to put on extra trips and refused to grant the Isame prportion of full day cars as in the last years of agreement. 'Bro. Giblin reported his interview with President Nolrtot for the Atlantic men, stating that Mr. Norton refused to be restricted in any way whatever as to full day cars. Bro. Collins, for the Broadway system, made a sim;ilar report to that made by Bro. Oornelly. "Moved, that the employes of the Atlantic Avenue Railroad Company, the Brooklyn Heights Railroad Company and the Queens County and Suburban Railroad Company and Brooklyn and Newtown Railroad Company having asked permission of this District Assembly to quit work, moved and seconded that their request be granted by this District Assembly., u" (Signed) JOHN GIBLIN, " D. R. Sec." This evidence shows clearly what the facts were; that the meeting referred to by, Mr. Best, at wihich thie executive board decided it favor of quitting work, was held on the evening of Sunday, the 13th of January; thait the Local Assemlies had asked to striake before the so-called lockout occurred. With this fact in mind, we may refer to the. tesrti'ony of Mr. Lewis, the president of the Brooklyn Heights RIllroad Cmpany, as to what led up to the so-called lockout of the electricia workers on some of the Brooklyn City (ompany's lines. The last meeting between the executive council and Mr. Lewis, had, been;held on the aftermnoon of Saturday, the 12th of January, anld theire hlad been a failure of agreement, for the reasons which the cornmittee refers tbo fully hereafter.! Mr. Lewis testified~: "At the close of the last meeting between the executive oounci!l and myself, I suggested, to the committee berfore they left thait I wanted to su'bmit, by circular letter to our men, the proposition wihich the company had to make in,its own way..I thadd believed thlat I icould,have suiceed'ed in averrlng a tie-up by reaching the men with 'an explanatory letter of this l4ind. I told them, further, if the road were tied up withntr givin!g me the opportunity, th'at I should hold, aind I believed the public would hold, them persoinally responsble. I got through with the committee about half-past 7; I then had regular durtie to finish, and got through at the office at 12 oclock Saturday night. I got to my house uat half-pasit 12,. anmd set ait the dsk until half-ast 3 Sunday mornming corrpleting that letter, to put im the typesetter's hands to get a proof. Being Sunday, it was difficult to do. I st'arted a messenge with it, and did not get the proof until half-past 8 Sunday night. I had to make a great many corections, and I did not finish the corretions bto be mmle to ithat circular; it was in a very: much unfinished condition when the teleplhone rang, and I was informed tait the meeting which was to consider the tie-up wvas in favor of a tie-up. "Q. That a meeting had been held which deided that there should be a tie-up? A. Yes, sir. "Q. Whart do youL know about ithe meeting of the committee? A. I dmon't know anything about the meeting of the committee; I was called up on the telephone, and was told thlat our roads would be tied up the next m norning. 14 "Q. Who told you that? A. Mr. Cameroe thei sperintendevtt" Page 185: "Q. That is what we want to get at; tell us what it is that was claimed as a lock-ourt? A. As I undersitand it, they claim that the company locked out the electrical workers in the pits in the varaious depots of the company. Q. How many of!such workers were there? A. I don't know. "Q. Was there a hundred? A. Yes, sir; over. "Q. Two hundred? A. I don't know whether there was or not "Q. I think Connolly thought there may have been 200, as; a rough estimate? A. I don't remember that. "Q. Do you think that is a fair estimate? A. I think it was a full estimate. "Q. Were they locked out? A. No, sir. "Q. What are the facts? A. The facts are these; on Sunday night we had such information that would lead us to believe that there was going to be a tie-up on Monday morning; these electrical workers being at work in the pits of the company at the various depots had access to! the machinery of all the cars; we thought it was an act of prudence on our part to say to them when they reported for work Sunday night that we would not require them until. they were sent for or saw cars in operation; that message went to each depot over the telephone, sent by Mr. Whittlesey, the superintendent of electrical equipment, and his assistant, I think, Mr. Van Deveer; in addition to that there were insttructins which were sealed, and sent to, eacth depot, or they were ordered sent —I presume they were sent, and all to be opened in case of a, tie-up, and that is in' evidence in the examinatioi, or, rather, the hearing before the Board of Mediation and Arbitration. " Q. That notice is? A. Yes, sir. "Q. That communication? A. Yes, sir; the written notice, but that was not to be opened unless a tie-up took place, and was done as a precaution, so that there would be no attempt made to destroy our property by the electricians who worked in the pits; we felt it was desirable to lay them off that night until we knew further what action the men were going to take; we 15 felt it was our duty in order to protect the property and have the cars ready for operation as soon as men were had to run them; we ordered the niglhrtmen and the diaymen to remain in the depot during their respective hours, and that would have been sufficient to take care of any ordinary repairs to cars for a week or two." THE NEGOTIATIONS BETWEEN THE CORPORATIONS AND THE KNIGHTS OF LABORP Negotiations looking to the execution of a contract for the year 1895, between the employes of the roads and the companies, had been pending since the latter part of December, 1894. These negotiations were conducted on the part of the employes by Executive Ooiuncl of the Knights of Labor, of which Mr. Martin J. Connolly, master workman of District Assembly No. 75, K. of L., was the head. On the part of the railroad they were conducted for the Brooklyn Heights Railroad Company, by Daniel F. Lewis, president; for the Brloddyn', Queens COorty and Suburbsan Railroad Company, by Ca.ssius M. Wicker, vice-president; for the Atlantic Avenue Railroad Company, by Benjamin Norton, president; and for the Brooklyn City and Newtown Railroad Company, by John N. Partridge, president. The contracts sought to be entered into with each of these roads were practically the same in all respects, save that the contract with each company made special provisions with regard to the number and proportion of regular cars and so-called trippers to be operated upon particular lines of road. Negotiation continued until the 12th day of Janaary, when, the companies being unwilling to accept the terms proposed by the executive council, and the executive council in its turn unwilling to accept the terms proposed by the companies, Mr. Lewis had asked for an opportunity to send a notice to the employes individually, bunt before he was able toX do so the District Assembly ended the matter at its meeting on the evening of January 13tih, and laiter on that night Mr. Lewis refused to let the electrical workers have the cars; The.reafter, and duiring the strike, an effort was made by third Parx iea to bring about a, reconcilatio.through airbitratiom. Arbi 16 tration had not been resorted to, and not even been suggested, by either party previous to the declaration of the strike. IHad,that been done, and an arbitration had, there is no doubt in the minds of your committee that the entire difficulty might have been avoided and the men have been saved from their present condition of distress, the companies saved from a heavy loss, the public saved from the temporary paralysis of its means of transportation, and the attendant losses' and disorders, and the city saved from both the cost of the employment of 7,500 armed men to maintain the publaic peace, and the shame of the confession on the part of the municipal government that it was unable to maintain the public peace by ordinary cvil means. It seems that arbitration was first suggested by General lcLeer on the 19th of January, the militia having already been called out. The suggestion had been made by General McLeer to the mayor, and the facts are thus testified to by the latter: "Q. Do you remember who made that suggestion for an arbitration? A. I think General McLeer. "Q. Now, will you tell us whether the railroad preslidents who were there at the time acquiesced in the suggestion? A. They did, L believe "Q. And the matter was left for final adjustment or settlement until the following day, was it not? A. Yes, sir. " Q. And then on that following day you made some endeavor, did you not, to bring about the conclusion of that plrogramme? A. Yes. "Q. Will you tell us what you did? A. Some of the gentlemen of the committee that called at my house"Q. You mean the comittee o the ot Knights of Labor? A. Yes, sir; I requested them to call and they responded. "Q. What day was that? A. Saturday, in the morwing. "Q. And did they express their willingness to arbitrate? A. Well, yes, they were willing to arbitrate and leave it to myself as arbitrator, personally, or to a committee of thiree whom I wouild appioint- the whole subject. "Q. Who were those gentlemen, do you remember —the committee? A. Yes'; I think there was one gentleman named COonolly; I am very hard on namesi 17 Q.Mr. Giblin.? A. Yeu, s~ir. Q.11Mr. Jiolcomibe, was he there? A. No, Mir; I doii't think he was; Mr. Rest was therq, and another gentleman called afterwardis;,he came in late; I don't remember his name. Q.Davidson? A. I think that was it. Q.Then, in the afternoon, did you, see the presidents? A. Yes, sir; I oalled the presidents together. "Q. Who attended? A. Well, there was Mr. Lewis, Mr. Wicker and Mr. Norton. CQ olonel Partridge? A. No,, 0ir. 'Q.His matter had been settled by this tie had~n't it? A.. Yes, sir. "1Q. What did they say as to. iarrying out the sulggestion for arbitration? A. Well, it was submitted to them, the proposition of the men:, and the condition was in that proposition that they should all go back on all roads, and Mr. Norton spoke up:a-a-d said he was so placed that he would not conusider it. Q.You mean to, say that the proposition to arbitrates was.,oiupled with a condition? A. Yes, sir. "1Q. And what was that condition? A. The men made the condition that all the roads would have to acquiesce in -- that all go hlack. "Q. That all the men wh~o were -out on the strike should 1in consideration for a -submission to arbitration of all the questions be taken back into the employ of the company? A. Yes,. stir. "tQ. Pending or even before the axbitration, was that it, as a condition precedent? A. Yes,,sir; they W_ ould start up thle next day. "Q. Do you know of anyre-ason why that was not a fair request on their part, if they declared, their wilhnllgaess to abide by thie result of -the arbitration which. shou.iW inciiue everythi'ng? A. I1 think it was fair. Q.You thjnk~ it was fair.? A. Yes, sir. "Q. Did Mr. Lewis express any feelings as to the unfairness of this proposition on the part of the meu? A.. I don't remnember what Mr. Lewis said, but Mr. Lewiis didn't say mnuch;- Us directors said a great deal there with hi= and his couawel * * "Q. Did they. ob~ject to tbis c-onditioo? A. WeAl Khety hdlutt 13. 3 18 object, but they stated that it would simply defer this matter, it wouldn't settle it, that they were afraid it would not come to a settlement; but Mr. Norton positively stated that he would not consider the matter; that ended the conference. "Q. Was there a written proposition submitted by the committee? A. Yes, sir." The written proposition made by the Executive Council of the Knights of Labor was as follows: It is proposed to submit to the mayor, or to a committee to be appointed by the mayor, that the companies restore to their payrolls and positions, as occupied January 12, all of the employes employed at that date (without any condition to discharge those now employed), the whole case then to be submitted to the mayor, or such committee, for settlement in order to details- as to whom should be permanently retained; as to the matters of trippers and extras, and all other matters which have been in controversy- the men and the railroad companies to agree in any manner that may be desired to bring about the result. The committee to give full hearings before conclusion of the matter. Continuing, Mayor Schieren testified further: "Q. Then, as you understand it, at the time, it was the definite declaration of Mr. Norton that he would not submit? A. He was positive. "Q. And it was not any particular act of either Mr. Wicker's company or Mr. Lewis'? A. Yes, sir. "Q. The Suburban Company is Mr. Wicker's company? A. Yes, sir. " Q. Then it was the definite act of Mr. Norton rather than the act of Mr. Wicker or Lewis? A. Yes, sir; I think the others would have been more inclined to the matter, but as the condition was positive on all the roads there was no use of negotiating the matter further. "Q. Are you sure that the condition was positive from the men that all roads should come in? A. I think so." Thus, it appears, the proposed arbitration failed for two reosons: First, the absolute refusal on the part of Mr. Norton to arbitrate; and, second, the fact that the executive council was unwilling to submit the controversy with any of the com 19 panies to arbitration unless the controversy with all of the companies was so submitted, It appears that the representatives of the Brooklyn Heights system and of the Brooklyn, Queens County and Suburban system were willing to submit to arbitration, but the refusal of Mr. Norton, and the requirements of the Knights of Labor that they would not arbitrate with either company unless all companies agreed to arbitrate, resulted in preventing an arbitration of the matters in controversy between the men and the Brooklyn Heights and Suburban systems, although these two roads employed about nine-tenths of the men who were then represented by the executive council. HISTORY OF THE CONTRACTS BE1WEEN THE i RAILWAY COMPANIES AND THIR EMPLOYES The first general agreement between any of the companies and the representatives of its employes was made by the Brooklyn City R. R. Co. in 1886. The first contract (which we annex, and marked " Exhibit A ") Is dated April 2d, 1886. It provides, first: "That no employe of this company shall be required to work more than twelve consecutive hours per day, with thirty minutes for dinner and fifteen minutes for breakfast or supper, as the case may be." It then states what number of trips shall constitute a "straight," or full day's work. on each of its seven lines; these trips varying from nine on the shortest, or Fort Hamilton line, to five on the longer lines, such as that on Fulton avenue, running from Fulton Ferry to East New York. The next provision is to the effect that a reasonable number of cars shall be run as trippers, "l not to exceed one-fifth of the number of cars run on straight runs, tripper cars running out mornings and evenings, and run by two sets of men, provided that they can not be run inside of twelve hours; each man running a tripper car to be paid at the same rate per trip as 'straight runs,' and if they do not run sufficient trips so that the trips do not amount to $1.50 per day, the amount should be made $1.50." No conductor or driver was required to clean his car inside or out whlen it went in at night, but this was to be done by carcleaners, so that the car should be ready to start in the morn 20 ung. The drivers were to see that the outside of the cars, except the windows, were kept reasonably clean while in use, and the conductors were to see that the inside of the cars, the windows and the platforms were kept reasonably clean while the cars were in use. Drivers were not required to harness or unharness their horses, and the company agreed that this should be doue by " change men," who should be in readiness for the driver at the "change room." The express provision was made thait conductors, according to seniority in the service, who were entitled to a straight run on April 1st, 1886, should take the first run, and so on down until all the straight runs are filled, and that the same rule should apply to the trippers. In cases where passengers should prefer complaints against the employes, the latter were to be given a hearing in presence of the accuser, so that they might have an opportunity to defend themselves, and this was to apply as well to complaints made by the officials of the company. Hostlers, hitchers, changers, car-cleaners, and all employes working in and about the depot, were not to be required to work more than twelve consecutive hours per day, less one hour for breakfast and one hour for dinner. Special provisions were made for other classes of employes, which will be foumd in the copy of the contract itself. No man was to be discharged for belonging to the Empire Protective Association, or for belonging to any labor organization, so long as he did nJot injure the company's property or business. Whenever an employe was so discharged, he was entitled to a notification of the cause of his discharge, and, if he so desired, to have the same certified to him in writing. ertain specific matters referring to the cases of particular individuals were disposed of in the contract Provisions was made that drivers and conductors were to have two dollars per day for a full day's work, laborers and persons employed about the depot, $1.75 per day, and certain other classes of employes special rates of wages and compensation for the work performed by them, as set out. This agreement is thus fully summarized because it became a type, and has been followed more or less closely in all of the contracts which have since been entered into between the Knights of Labor and the compamied 21 The chief points Jin this contract Are: Firstthe provlsMio with regard to the length, of the work-ing day; second, the, agreement between the comnpanles a'nd the -men, as to how many trips should be run daily over eaicih limie to constitute ai full day's. work;,third, that the company agreed with its men as to the proportion -of so-called tripper to so-called regular oars; fouirith, the recognition of the principle of seioilrity among the employes themselves; fifth-, that the e~mployes should have the right to hearing before discharge; sixth, that the cleaning of the cars and the changing of the horses should be done 'by persons other than conductors and drivers, thusirelieving the formler while on, "stand;"1 seventh, the rlvvision as to the meal time; and, eigrhth, the estabhoishent of the $2 rate for conductors and drivers on full-day cars, and $1.50 for those on tripper cars or cars runn[inMg a, part of the day. The ciontract for 1887 was, to all intents and pupses, the stame as that for 1886. The agreement of 1888, which wais the last 'agreement made prior to the passage of thie so-called Tenn-Hour Law, provided that nio, conductor, driver, brak-eman, or gripm-an, shouldi be required to work more than, twelve 'hours per day, out of whic'h the men,were to have 20 minutes for breakfast, or'supper, and 30 minutes for dinner. Conduict~ors and drivers were to be relieved rcf all responsibility while at meals, and, at suzch times, it was -agreed that there should be relief at all deports; that is to- say, extras to do all the work and to be paid one trip for each meal. The proportion between the number, of tripper cars ond the nmnher of regualar cars was changed,- so, that not more than oneqiiart~er of the ontire nimnfber of ca-rs run should be -trippers, and not less than three-quarters of the en-tire, number of care run should be full-day cears,; and -no car run Las a regular tripper was to pay le-ss than $1.50 per day,'Ibpe work on trippers to be perfmmned with-in 14 ecnsiecuti-ve hours..This agreement, which is marked "1Exhibit C,"Y more closely defined the rights- and obligations of the respectivo paflies, and accorded important and muaterital advanta~ges to:the eimployes of the road. It wa's formally executed, in behalf of -the emnIpoyes, by the members of the committee representing the Knights of Labor. The contract for the year 1889, being the first one made after the passage of the Ten-Hour Law, contained the following provision, among others: "No conductor, driver, brakeman or gripman shall be required to work more than 10 hours per day, the work to be performed within 12 consecutive hours, the said 10 hours to be calculated as follows, namely: "The time consumed in running from one end of the line to, the other and return only, and shall not include any other time, such as stand time, meal time, etc." The effect of this was that the men were to work 10 hours a day while their cars were actually in motion. Out of the 12 houris within which the 10 hours day's labor was to be performed, tihe men were to be,allowed 20 mrinutes for breakfast or supper and 30 minutes for dinner, with a margin of two minutes on this 'time when necegsaary. The prop)ortion of trippers to regular,c!ars was continued as in the previous contract, viz., one-quarter and three-quarters. It was provided, that no employe should be discharged without a good and sufficient reason, given him, or his representatives, in writing, and all employes, before discharge, were to have. a, full and impartial hearing, and, if found innoeent, were to be paid for their lost time. If cars were detained upon the road through fire or unavoidable accident, not the fault of the employe, the latter was to be paid as if the car was actually under way; that is, "as if iruining on the road." No employe was to be discharged or discriminated against because of his connection with any labor organization. A special agreement was made with regard to the time-tables for Sundays, hlo.!idays, etc., which should be made on what was known as a " wet day slip." "In case said slip make's swings of any straight runs, such runs shall pay at least $1.50. In case the said slip takes off the first paIrt of any run, it shall pay at least $1.50, and in case said slip takes trips off the latter pairt of any run, it shall be paid for at trip rate, according to the number of trips, run." All timetables were required to be posted at 3 o'clock, prior to the day they were to run, and to be submitted to the regular committee of the employes of the road for approval before run. In case the committee wished to refer the approval of time-tables to executive board, it should do so immedliately, whena the executive board should sign any table made in accordance with the _.. 23 a.greemnl:alt. The provisions a;s to rates of wages, remained unaltered. This agreement is of great importance, as showing, first, the phraseology of the article.proriding for the number of hours to constitute a day's work, and,!second, als showing that the company hald already quo ad hoc agreed to the principle of giving its employes a voice in the management of the road, in fixing, first, the number of trips to be run regularly over each line; sec;ond, the proportion of tripper ciars to regular cars; and, third, the right on the part of the employes to take part, througlh their repyresentaitives, in making and approval and acceptance of the time-tables. The importance of these matters will appear hereafter; inasmuch las the two points upon which all parties are agreed as having constituted the immediate causes of the strike, are these questions as to the phraseology of the article with regard to the number of hours which constitute a day's work, and that of the article fixing the proportion of regular cars and tripper cars. In both of these respects the contracts for the years 1890, 1891, 1892 and 1893 were identical wiith the terms of the oontract for 1889. Contract for 1893 is;submitted as "Exhibit E;" contracts for the intermediate years between 1889 and 1893 not being of material importance. Contract for 1894 (Exhibit F), which is the last contra.ct had between the companies arose, differefd in form from those of previous years. It was a confirmation of the provisions of the last prior contract, with the exception of certain amendments whi4oh were especially named. Te contract for 1894, therefore, consisted of the conltract of 1893 and 1889, plus the additions and modifications contained in the memorandum for 1894, and these two documents have to be read together inm order to understand! the contractual relations as of the 31st of December, 1894. The first and more important was the provision with regard to the hours of labor, which was that " no driver, conductor, motorman, brakeman or gripmann slhall be required to work more than 10 hours per day the work to be performed within 12 consecutive hours, to be calculated in the same manner as provided for year 1889. All men going to work befoae 7 a. m. shall have at least 20 minutes for breakfast and 30 minutes for dinner, and all men going to work after 7 a. m. shall have at least 30 minutoe for dinner, and as far as possible 30 minutes for supper, and, if not possible, to remaihs the same 'as 1892, which ishall include night cars. All men going out after 7 a. m. shll not have the 20 minutes for breakfiast; after 12 o'clock noon will not have the 30 minutes for dinner, and after 6 p. mI will not have the 30 miurtes for supper. It is understood that a margin of two minutes be allowed from the above time when neeessary but in making out time-tables, where tie margin of two minutes is used, t4hiisame number of runs shall be over the required' time for breakfast, dinner and supper, as there are under the required time." 1 No change whatever was made in the proportion of tripper cars or regular cars, or with reference to the time-tables, but it was provided that all extra trips, that is to say, all single extra trips, " were to be run at the direction of the company and the option of the employes, and that such extra trips were to be paid for at double regular trip rates." Such extra trips I hereby define as meaning in addition to the number of trips on the time-table then posted and in the event of a change in the time-table, an addition of a trip shall not be deemed as an extra in this clause. It should be stated here that the so-called regular cars and the so-called tripper cars were both run regularly, on the schedule fixed in the time-table, and that the so-called extra car or extra trip was a car or a trip extra the time-table, which provided for the full-day ears and the regular trippers, the tripper car being a car which, while regularly run, was nevertheless only run at certain hours of the day in lieu of all day. The contracts of 1893, 1894 and 1889, should be read together and in their entirety, as illustrative of the extent to which the company and its employes had reached a satisfactory understanding with regard to their respective rights and obligations, and to the operation of the properties for their mutual benefit. Through a series of years the employes had been able thus to acquire a position definitely fixed by contract which was a great advantage over that which they enjoyed, let us say, 10 years before, and which really constituted a most valuable property, and something rot lightly to be disregarded. 25 As was the custom, a proposed form of agreement was drawn up by the representatives of the employes during December of 1894 for the year 1895; which was duly submitted to the presidents of the companies. This proposed agreement for 1895 is annexed and marked' "Exhibit G." Article I. of this proposed agreement provides " that no conductor, motorman, gripman or brakeman be required to work more than 10 hours per day, the work to be performed within 12 consecutive hours as provided for by State law." The men were to be allowed 20 minutes for breakfast and 30 minutes for dinner and 30 minutes for supper. Time-tables were to be made on the basis of three-quarter full-day cars and one-quarter trippers on the Brooklyn City lines, and in other proportions on other lines. The scale of wages was to be increased by the payment of $2.25 insfead of $2 to conductors and motormen on full-day car, and $1.75 on trippers, but these demands were not insisted on by the Knights of Labor. The other provisions of the proposed contract did not differ materially from the agreement which was then actually in force. Very full provision was made with regard to the making of the time-tables and their submission to the regularly-authorized committee of the employes. So far as the Brooklyn City Railroad is concerned, all parties agree that the latter company consented to all of the provisions of the proposed contract except that with regard to the hours of labor. The president insisted that the provision should be the same as for the year 1894. In that case it would} have read as follows: "No conductor, motorman, gripman or brakeman shall be required to work more than 10 hours per day, the work to be performed within 12 consecutive hours. The said 10 hours shall be calculated as follows, namely, the time consumed in running from one end of the line to the other and return only, and shall not include any other time, such as stand time, meal time," etc. The Executive Committee of the Knights of Labor insisted upon the provision, namely, "10 hours within 12 consecutive hours as provided for by State law." The railroad company insisted that the provision of the law was uncertain and indefinite, and that the parties must, by agreement between themselves, remedy this uncertainty and indefiniteness, as had theretofore always been B. 4 26 done, ever since the passage of the law, it being competent and proper for the parties to agree definitely as to just what should constitute the day's work. The question was thus in reality whether the stand and meal time should be taken out of the time of the company or should be taken out of the time of the men, and each party had a right to a clear and definite agreement. It had always theretofore been understood that a 10-hours day's work meant 10 hours work while the cars were actually in motion. The claim or demand of the employes, through their executive board, was that the 10 hours should be calculated from 'the time that the employes reported until the time they were discharged, inclusive of the time when they were on stand, not actively employed at either terminus, as well as of the time used by them in taking their meals Upon such points the statute sheds no light, and it was quite proper, as it had always been quite proper, for the company and the men themselves to agree upon this point. The president of the company, there being no other matters of difference between him and the employes, declined tol accept the proposition. The Executive Council of the Knights of Labor stood upon their proposition. So far as the Brooklyh City Railroad Company was concerned, the question of the proportion of regular cars and tripper cars was not a radical difficulty. In the case of the Atlantic Avenue Railroad Company, where the negotiations were conducted by the president, Mr. Norton, and by the same committee or board of the Knights of Labor, the situation was somewhat different. While President Lewis, of the Brooklyn city road, haad declined, to accept the provision with regard to the hours of work, and had made no objection with regard to the proportion of regulars to trippers, President Norton, of the Atlantic Avenue Railroad Company, testified that, the question of wages having been waived by the committee of the employes, he did not take up or seriously consider other questions, because he at once and peremptorily declined to agree to the demands of the employes with regard to the proportion of regular cars to tripper cars; that he was opposed to the principle in toto as an abandonment, to-that extent, of the rights of the company 27 to maintain and control and operate its own properties in its own way. The agreement between the Atlantic Avenue Railroad Company and its employes which was in force on the 31st of December, 1894, is annexed and marked "Exhibit H," and the proposed agreement for the year 1895 with the same company is marked "Exhibit I." In the case of the Brooklyn, Queens County and Suburban Railroad Company, the representatives of the company objected, first, to the indefiniteness of the proposed article with, regard to the length of a day's work, and, also, to the proportion of regulars to trippers provided for by the proposed contraict. The contract with this company for the year 1894 is annexed, and marked "Exhibit J." According to the proposed contract for 1895, timetables were to be made on the basis of three-quarter regular or full-day cars and one-quarter tripper cars This the president of the company swore was h proportion which had never beorle prevailed, and he testified as follows: "By Mr. Ivins: "Q. Had such a proportion as that ever thertofore prevailed on your line? A. No, sir. " Q. Will you tell the committee what the effect of that would have been, either as to decreasing the number of trippers~ or, in case the number of trippers were increased, as toi correspondingly increasing full-day cars, and how it would have affected the management and control of the road? A. It would first have crowded the streets with an unnecessary number of cars during the day when there was little demand for such service, and it would have increased our expenses very materially, running cars that were not needed by the public. " Q. Do I understand that the proposed agreement means this, that if one tripper additional were found necessary it would necessitate and involve the putting on of three additional and possibly unnecessary full-day cars? A. Exactily, or else paying for those cars and not running themi "Q. Which would have been cheaper, to have run them or to have paid for them and not run- them'? A. It would have been cheaper to have paid and, not run them, because we would-not, in that event, have oonsumed power." President Wicker thus object~ed both. to the htderfinite 10 -hour c~la-use and to the one-fourth 'and three-fouitih basis, anid It was especially because of the difference upon this latto~r point that the negotiaflions betw~een himself and the emplo~yes of his conirany failled to result MIn a-contract for the current year. Sucha negotiations were still pending when the District Assembly paswed its resolution, of January 13th. Negottations were co~ntinued, however, between President Wicker and the councill through the Intervention of the State. Board of Mediation and Arbitration, and, all ixoints of difference as to. the terms of the contract for the year 1895 were gotten over. The demand for three-fourths regulars and one-fourth tripper cars was abandoned, and the proportion of twol-thiird and one-third. wais agreed upon. The men also agreed to the acceptance of the article as to the 10-hour day which had theretofore prevailed. This final agreement would- have resifilted, in; the cessation of the strike so far as the Brooklyn., Queens County and Suburban Oomnpany was concerned had it not been for -the demand ~on the part of the employee that, as a cmOnition precedenit, all who had gone out on strike should 1,e taken: black in a body. President Wicker relf used, to dio this. All negotiations were then discontinued, and this company, like the Brooklyn City and Atlantic Avenue Company, proceeded to employ an entirely new stacff. In the cwse of the Brooklyn Cty and Newtowu Company there had been annual contracts bet~ween the emiployee and the comnpainy for a period of about eight years. The contracts, had never been made by the Knights of Labor as such; but by committees directly representing these particular employee and the members of which were employes of this road. In this case the men wade a demand for an increase of wages to $2.25 per day for regular cars, and $1.75 per day for trippers. The proportion of regular cars, to tripper caro- had been two-thirds and one-third, and herie also the question as to what should constitute the 10 -hours, day's work was distinctly Laiaied. An effort was made on the part of the committee of -the Knights of Labor to have this coimpany enter into an agreement with its men -through thernm This was not consented to by Pr~esident Partridge, and differiug 29 with the representatives cf his men as to the construction of the 10-hour clause and declining to pay the advance of 25 cents per day wages, negotiations were pending when the strike upoa the Brooklyn Heights and Atlantic Avenue systems oocurred on the 13th of January. rhereupon all the motormaon amd condutotors and electrical workers upon the Brooklyn City and Newtown line went out sympatheically pending the negotiations for a contract for the year 1895, which, had not been concluded. Through the intervention of the State Board of Mediation and Arbitration, the strike, so far as this company was concerned, was declared off on the 17th of January, after its having continued but four days. The terms which tlhis company was willing to make with its employes was set out fully in a communication dated January 16, 1895, and addressed to the State Boardl of Mediatlor aund Arbitration, and these terms were accepted. In addition to the terms of the settlement effected between Colonel Partridge and the employes of this road by the State Board of Mediation and Arbrtration on January 16, 1895, tile former, as president of the company, on the 26th of Janua-ry, 1895, addressed the following letter tol his emlployes: BROOKLYN, January 24, 1895. To the Conductor8 and Motormen of the Brooklyn City and Newtown Railroad Co.: "This company proposes to inclease tihe pay of its oodtactora and motormnen for the remainder of the ylear 1895, as fMlows: "Paying for:, "Round trip between; Dekalb Avenue Depot and Fulton Ferry...................................... $0.30 "Round trip between Dekalb Avenue Depot and Bridge.. 27 " Round trip between Dekalb Avenue Depot and TFulton street..........................22 " ound trip between Prospect Park and Grand Street F erry.........................................27 "Hound trip between Prospect Park and DeKalb avenue..14 "With the understanding that all fuli-day cars shall make eight trips, and all trippers six trips, provided that the onductors and motormen agree that a day's work of 'ten hours in twelve' is understood to mean ten hours of actual runniinL time." " It is furtier understood that this proposition is not intended to conflict in any way with my letter of the 16th inst.. to the Board of Mediation and Arbitration, except as to the interpretation of the meaning of the words, 'ten hours in twelve,' and as to the increase in pay as above. "(Signed.) JOHN N. PARTRIDGE, " President." "Brooklyn, January 26th 1895. "We, the undersigned, conductors and motormen in the employ of the Brooklyn City and Newtown Railrolad Company, hereby agree to accept the above proposition as to pay and hours. (Signed by 245 conductors and motormen)" We may now refer to the agreements which are being made by the companies with their new employes for the current year. All men employed upon the Brooklyn City or Brooklyn Heights system since the abandonment of the contracts of the Knights of Labor are now being employed under the following agreement: "Agreement, Entered into this day of 189, between, party of the first part, and the 1lhookly-n 1-Heght s Railroad Company, hereinafter called the company, party of the second part. "Witnesseth, Whereas, the party of the first part is desirous of obtaining employment, or being retained in the employment pf the party of the second part as a Now, Therefore, in consideration of the employment of the party of the first part by the party of the second part, the partyof the first part hereby agrees to perform all the work to which he is assigned as a in a careful and workmanlike manner; and that he will not present himself for work in an intoxicated condition, nor use intoicating liquors during working hours. "The party of the first part further agrees that he will no-i waste nor destroy, nor ex-travagantly use, material supplied to him, nor will he permit the theft or destruction of any material or property of the company by others if it is possible for him to prevent it 31 "The party of the first part further agrees that he will obey all the rules of the company or its proper representatives, and that he will be regular in his attendance at work, and that he will perform ten hours' work within twelve; and in case he works overtime he agrees to accept as due compensation for such overtime the rate of wages as hereto attached. "The party of the first part further agrees that in case he becomes dissatisfied with his wages or with the services required of him, that he will resign from the employ of the company, giving suitable notice of his intention so to do. "'lThe pairty of the fiert xpart flmrther agrees that he will nicst engage in any strike, or interfere under any circumstances with any employe of the company while such employe is in the performance of his duty, either by himself or in conjunction with others do any act or thing which is an injury to the property or business of the company. "In consideration of the stipulations and agreements done and performed by the pairty of the first part, the party of the second part hereby agrees to pay the party of the first part at the rate of $ for each and every day's work of ten hours which the party of the first part shall perform, as specified in the rates hereto attached and forming part of this agreement and an additional compensation for overtime as is therein specified. " The party of the second part agrees to retain the party of the first part in its employ for the period of time hereinafter mentioned, provided the services of the said party of the first part are satisfactory to the said party of the second part, and the said party of the first part, in the opinion of the said party of the second part, complies with the rules and regulations of said company. "This agreement shall continue until............. unless sooner terminated by the party of the second part. " Witness our hands and seals this.............. 189........................ [. S.]........................ [L S.] "Witness: "[Endorsed:] "Full-day cars, 10 hours' work, $2, when calculated as follows: Time consumed in operating or running from one end of the line to the other and vice versa only shall be computed. Time used on the stand or for meals or in other manner not computed. Work short of full day will be paid for at trip rates." Persons accepting such employment are required to make the following affidavit: STATE OF NEW YORK,} COUNTY OF KINGS,? 88.; City of Brooklyn. "I................................ for the purpose of making application and obtaining employment from the Brooklyn Heights Railroad Company, do hereby make the following representations, namely: That I was born in...................... and am a citizen of the United States; that I am now residing at...................... and have so resided for............ years.................... months; that I am not subject to fits or insanity and that I am not short-sighted. "My experience as................... has been as follows:. * e e e e ~ ~ ~ ~ ~ ~ eI e e ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ e e e e e e e o e e I have not been discharged for improper conduct by any railroad except as stated hereon. I have not been convicted of any crime.....o. *, oo.e.** *o o.ooo "Sworn to before me this..... day of............ 89." The new employes of the Brooklyn, Queens County and Suburban Railroad Company are now being employed under contracts in all material respects like the foregoing. THE BROOKLYN CITY AND BROOKLYN HEIGHTS SYSTEM. Before reporting on the question of responsibility for the failure to agree for the year 1895 it is necessary, in the opinion of your committee, to consider the condition of the corporations themselves. We begin with the Brooklyn City and Brooklyn Heights system....... 33 -Lhe Brooklyn City Railroad Company was organized on the 16tl of December, 1853, under the general railroad laws of this State, with an authorized capital stock of $2,500,000. Its authorized capital stock was subsequently increased to $6,000,000. Beginning with the year 1888, it became the policy of this oompany to abssorb and merge other companies. It thereafter effected leases as follows: Of the properties of the Bushwick Railroad Company on the 26th of July, 1888; properties of the Calvary Cemetery. Greenpoint anf IBrooklyn Railroad Company on the 30th of July, 1889; of the Greenpoint and Lorimer Street Railroad Company on the 31st of July, 1889; of the New Williamsburgh and Flatbush Railroad Company on the 31st of July, 1889; of the Brooklyn Crosstown Railroad Company onn the 30th of July, 1889; and of the Grand Street and Newtown Rlailroad Company on the 29th of April, 1890; and of the South Brooklyn Street Railway Company on the 24th of April, 1891. Each of these last-named companies was ultimately absorbed and merged into, the Brooklyn City Railroad Company. Prior to the 14th day of February, 1893, tLe Brooklyn City Railroad Company owned and operated the following lines of railway: tilies. Fulton Street line.................................. 5.802 Flushing Avenue line.............................. 5,598 Court Street line................................... 2.327 Flatbush Avenue line to, depot........................ 4.669 Flatbush Avenue line to King's highway.............. 6.634 Myrtle avenue line.................................. 5.063 Meeker Avenue line................................. 3.125 Greenpoint line.................................... 5.759 Gates Avenue line, to Ridgewood.................... 5.673 Gates Avenue line, to Broadway...................... 4.645 Putnam Avenue line................................ 5.026 Third Avenue line, to Sixty-fifth street................ 5.621 Third Avenue line, to Fort Hamilton.................. 7.B74 Calvairy Cemetery line..............................' 1.381 Bushwick line...................................... 4.18 Lorimer Strret line................................. 2.880 Tompkins Avenue line.............................. 3.359 B. 5. 34 Furman, Street line.................................. Nostrand Avenue line..................... Union Avenue line, to Metropolitan avenue............ Union Avenue line, to Ridgewood.................... Grand Street line............................ Second Avenue line................................ Crosstown line, going south......................... Crosstown line, going north.......................... Annex line............................... 2,827 feet. 1.568 4.324 4.400 4.626 4.387 6.396 6.973 7.112 Hamilton Avenue line.............................. 3 878 Holy Cross line..................................... 2.041 Corona line........................................ 2.401 Richmond Hill line................................. 4.203 Lutheran Cemetery line............................ 1.497 Cypress Hills line.................................. 1.726 Bowery Bay line, to the beaich........................ 4.666 Bowery Bay line, to Jackson avenue................. 3.117 Total street mileage being........................ 142.581 The mileage of sTngle traick under operation is 200 miles, and of proposed extensions not yet under operation, 93 miles. Tte Long Island Traction Company, which controls these lines, also controls the Brooklyn, Queens County and Suburban Company, as hereinafter shown, and the latter company owns 44 miles in operation and 80 miles of proposed extension, thus giving the Long Island Traction Company the control, in all, of 417 miles of track. At the present time the total authorized capital stock of the Brooklyn City Railroad Company was $12,000,000. On the 1st of July, 1891, the Brooklyn City Railroad Company made' a first mortgage upon its consolidated properties to secure the payment of $6,000,000 of 5 per cent 50-year bonds. Of this proposed issue of bonds so secured $3,000,000 were issued, thus leaving unissued $3,000,000 in the treasury of the company. In addition to the lien of tihis first-mortgage bond there were certain underlying liens, created by several prior mortgages on the leased lines, amounting in all to $925,000. The authorized 35 capital stock was thus $12,000,000, the authorized bonded indebft edness $6,000,000, under the consolidated mortgage, and. tihe unfderlying mortgage lienis $925,000, making a total of $18,925,000, of which $3,000,000 of the bonds and $6,000,000 of the stock still remained undisposed of in the treasury. In addition to the first issue of $3,000,000 of bonds the company disposed of $3,000,000 of its capital stock, at par, for the purpose of extending its lines and converting its properties into electrical railroads. In the month of January, 1893, the board of directors of the Brooklyn City Railroad Company received a proposition from a certiain syndicate to lease all of its proporties for a term of 999 years, aind in consideration therefor, among other things, to pay the Brooklyn City Railroad Company a guaranteed rental equivalent to ten per cent. per annum upon the total capital stock of the company then issued, or thereafter to be issued, to pay all of the fixed charges of the company, such as interest on the bonded debt, taxes, assessments, license fees, etc., to complete the conversion of the properties, to operate and maintain them, and as a guarantee of the performance of the terms of such proposed lease to deposit $4,000,000 with a trust company satisfactory to all of the parties in interest. The terms of this proposition will be found in the following communication, signed by Thomas F. Swin, assistant secretary, dated January 6th, 1893, advising the stockholders of the Brooklyn City Railroad Coopaany ethe terms of the proposition referred to. " OFFICE OiF "TaE BRO, IKLYN CITY RAILROAD (OMPANY. " BROOKLYN, January 6, 1 93. ) " To the Stock/holde/Is o th e Brooklyn City Railroad Company: -"The board of directors of the Brooklyn City Railroad Company respectfully submit to the stockholders the following statement: "It is generally known that the board of directors during the past year has received repeated propositions from 'parties. desiring to obtain control of this company, but none of these propositions have been of such a character to wirrant th!eir f.munioation to the stockholders. 36 "The proposition which has now been submitted, however, is one which gives the stockholders very great advantages. It is briefly as follows: "A responsible syndicate, represented by the New York Guiranty and Indemnity Company, undertakes to, procure the leasing of the Brooklyn City Railroad Company by a street surface railroad company, and to procure the guarantee by the lessee of 10 per cent dividends on the stock of the Brooklyn City Railroad Company, and the depolsit in a trust company on the delivery of the lease of four millions of dollars ($4,000,000) as a guarantee fund for the performance of the lease. "The lessee is to pay and discharge all fixed charges of the Brooklyn City Railroad Company, including interest on bonded debt and all taxes and assessments and license fees, 'and also pay the expenses of keeping up the organization of the Brooklyn City Railroad Company, furnishing it with suitable offices, et. "The syndicate is to give to the stockholders of the Brooklyn City Railroad Company the right to purchase three shares of a traction company's stock, of the par value of $100 each, for every tenishares of the par value of $10 each held by the stockholders in the Brooklyn City Railroad Company at the date of the delivery of the lease, at $15 per share. When the holdings of any stockholder in the Brooklyn City Railroad Company shall be less than ten shares he is entitled to his proportionate share ot traction company stock in scrip. "The capital stock of the Traction Company will be fixed at $30,000,000, and the management will place in the stockholders of the Brooklyn City Railroad Company nine-tenths of the capital of the Traction Company; the remaining one-tenth will be allotted to the members of the syndicate, but shall be paid for at the same rate as that purchased by the stockholders of the Brooklyn City Railroad Company. This arrangement will ptlae the control of the Traction Company by a large majority in the hands of the 'stockholders of the Brooklyn City Railroad Conpany. "The tright to wnbseribe for three millions of dollars orf tt'e 37 capital stock of the Brooklyn City Railroad Company, the ifaslt of which is authorized, is to remain with the stockholders of th Brooklyn City Railroad Company, and will no doubt be issued, t them at par during the year 1893. "The surplus in the treasury of the Brooklyn City Railro4 Company at the date of the delivery of the.lease will be divide4 in due time among the stockholders of the Brooklyn City Railroad Company. "Rights to purchase the stock of the Traction Company, and to subscribe to the unissued stock of the Brooklyn City Railroad Company, will be arranged so they may be disposed of by stockholders not wishing to make the purchase or subscription. "The right to purchase the stock of the Traction Company will remain open for 60 days after the lease is ratified by the stockholders of the Brooklyn Gity Railroad Company. The lease will bie laid before the stockholders for ratification at a meeting, notice of which accompanies this circular. "The syndicate has deposited with the New Yorl Guaranty and Indemnity Company the sum of $500,000 as an earnest of its good faith to carry out the proposition as made. "The board of directors are unanimously of the opinion that the proposition is a most favorable one, and unhesitatingly recommend it to the stockholders of the company. "As the law requires that a lease shall be approved by a vote of the stockholders owning at least two-thirds of the stock of the company, present and voting, in person or by proxy, at a meeting of the stockholders, it is desirable, that in case it will not be convenient for you to attend the meeting, you should promptly forward your proxy. "Inclosed find proxy, which you will please sign and have your signature witnessed, and return same to the undersigned. "By order of the board of directors. "THOMAS P. SWIN, "Assistant Secretary." The result of the negotiations was the subsequent exeeution, on the 14th of February, 1893, of a lease from the Brooklyn City Bail road Company to the Brooklyn Heights Railroad Company of all the properties of the former, copy of which lease is appended hereto and marked " Exhibit L." This was followed by an agreement between the Long Island Traction Company and the Brooklyn Heights Railroad Company on the 7th of April, 1893, a copy of which is annexed and marked "M." TEE BROOKLYN HEIGHTS RAILROAD COMPANY AND TIE LONG ISLAND TRACTION COMPANY. The Brooklyn Heights Railroad Company was organized under the laws of the State of New York on the 21st day of March, 1887, to continue in existence for the term of one hundred years, with a proposed capital stock of $150,000, and for the sole purpose of operating a line of street surface railway overa.nd about half a mile of street in the city of Brooklyn, between the corner of Montague street and Court in said city and the Wall Street Ferry, at the foot of Montague street. At the present time the capital stock of the company is $200,000, which was purchased by its present owner and holder at 75 per cent. of its face value. This entire capital stock is owned, except as to 13 shares thereof, and controlled as to those 13 shares, through the option of purchase, by a corporation known as the Long Island Traction Company, organized under the laws of the State of Virginia, the charter of which is annexed and marked "Exhibit N." The Long Island Traction Company corporation is not a railway company, is not amenable as a transportation company to the laws of the State of New York, has an authorized capital of $30,000,000, and now absolutely owns and controls the Brooklyn Heights Railroad Company, which in its turn, through the terms of the lease with the Brooklyn City Railroad Company, is in possession and control, and is now operating the entire Brooklyn City Railroad systemn The Traction Company alsoa controls the entire Suburban system; thus giving it control of one of the greatest systems of surface railroad in the world. It appears from the teettimony of President Lewis, that for a number of years prior to 1887, the Brooklyn City Railroad Oompany had earned and declared annua -dividends of 14 pe. cent., 89 but that thereafter these dividends were decreased to, 8 per cent. per annum, and so contfinuied down to the time of the execution of the lease to the Brooklyn Heights Railroad Oompany. This reduction in Idividend was due in part to increased operating expenses, but in m;uch larger part was incidental to the increased capitalization of the company 'and the inc.reasei in its fixed charges generally. The Long Island Traction was at the outset actuially owned and controlled by the original stockholders of the Brooklyn Cityj Railroad Company. Its entire $30,000,000 of stocks were issued at 15 cents on the dollar, ia thing which would not have been permissible wnder the laws of this State, and $27,000,000 of this stock wrais offered to the hlol;diers of the outstanding $9,000,000 of the Brooklyn City Railroad Company's stock, eachl holder of $100 of the stock of the Brooklyn City Company to have the right or option. to subscribe to and take $300 af the 'capital stock of the Long Island Traction, Company at 15 cents on the dollar. The remaining $3,000,000 of stock of the Long. Island Traction Company was disposed of in the market at ithe same price, 15 cents on the dollar. The proceeds of the sale of $30,000,000 of stock, realizing $4,500,000, were dispos;ed of by taking $4,000,000! thereof to cotl stitute,the guarantee fund provided for in the lease between the Brooklyn Heights Rlailroad Compiany and the Brooklyn City Railroad Comfpany, 'and $500,000 was used to puirhatse the Brooklyn Heights Railrioad Companyys stock and for the pmrp'oise of general expenses, commissions, brokerages, fees of organiza:tioln etc., etc. The $4,000,000 guarantee fund was duly deposited, and was under no ciircumstanlces to be impaired, except that in calse of, a failure on the part of the Brooklyn Heights Railroad Company to earn the 10 per cent. annual rental, it might, upon' the maturity of any quarterly payment, draw upon the guarantee fund, bmt not in isuch a way ias at any time to redimce it below $3,750,000. At the time of the execution of the leiaise, as already statedo tihere remained unissued in the treastry of the Brooklyn CMity railroad $3,000,000 of the capital stock and $3,000,000 of boknd. The proceeds of such stock and bonad were to be expended in 40 $ie comipdetion, conversion, construction and extension, of the,existing and projected linies of road, 'of the Brooklyn City RMImoad Company. Bonds and stocks have s-ince actually been issued to the ~extent of $3,000,O000 bonds and $3,000,000 stock, thus making the Present indebtedness of the Brooklyn City Railroad Companfy, as represented by outstanding stock and bonds, the full sum of $18,925-O00. The Long Islanid Traction Comnp'any, being a Iforeign corporat~n., not organi~ed for the purpose of construictling, owning and operating a railroad under the laws of this State, was thus owned by the holders of the Brooklyn City Railroad Company's stock. Thiey, in their turn, through the Long Island Traction, Company, owned arid controlled the Brooklyn Heighits Railroad Company,, which, in its turn, haid secured a lease of all the properties of theise very stoickholders in: the Brcoiklyn City Riailroad Complany, on condition, however, that the less-ee company should pay 10 per cent. to, these shareholders in the, Brookilyn City Railroad Company. The effect of this financial opieration was clearly to evade the laws of this State, so far -as it concerned the issue of capital stock and the payment of tiaxes. It is obvious -that the enatire transaction was. conducted for the purpose: Firstb, of secuiring a~ guaranteed. income, under terms of the lease, upon the istock of the Brooklyn City Itailrofad Company; second, to enable the stockiholders of the Brooklyn City Rairad Com~pany to -continue tbt own. and -control these proprties~ through -the Intermediation of a new company, which should -have the power of issuing its capital stock at less than par, and, thirdly, the avoidance of certain genewal provisions of the corporation and tax laws of this. State. The entire transaction promised very lairge, returns, in view of the profits expected to be derived, through, the conver-sion of all of the properties into electric railways, and -the economies incident -upon the greater service which could be rendered by the new rolling istock, the reduction of cost of power, etc. it would have been impossible to have carried out the plan under the laws of the State of New York, without the obligation on 41 the pat of tne parties in interesit, to have taken the capttal stock of any new corporation at par for dash values; without having come witithin e corporution laws of this State, and without having subjected the proposed new capital to taxation, both at the time of the organization of the company and thereafter. In addition to the properties of the Brooklyn City Railroad Company, the Long Island Traction Company also owns the entire capital stock of the Brooklyn, Queens County and Suburban Railroad Company, as will hereinafter be pointed out. The position of the Long Island Traction on January 2, 1894, and many facts of interest as to its antecedents, appear in a letter addressed "To the Public," by President Lewis, on the 18th of that month, and published in the daily newspapers. It is annexed, and marked "Exhibit O." Notwithstanding the fact that the Brooklyn City Railroad Company received into its treasury the proceeds of $3,000,000 of stolcks and $3,000,000 of bonds, and went ahead with the elecrriral conversion of the properties, the Brooklyn Heights Company, as lessee, nevertleless soon found itself, in conjunction witi the Long Island Traction Company, in financial embarrassment President Lewis testified that the guaranty fund of $4,000,000 deposited by the Long Island Traction Company and the r13ooklyn City Railroad Company has already been drawn up to the extent of $250,000 toward the payment of the agreed dividend of 10 per cent. on the Brooklyn City Railroad Company's stock; that the companies consnnmed the entire $6,000,000 and more, the proceeds of the finial issue of stock and blonds of the Brooklyn City Railroad Company, and that they are nevertheless heavily in debt, and need, at lea;st, $2,850,000 to, pay their floating indebtedness and to complete electrical equipment of the Brooklyn City system. * The Brooklyn Heights Company, as early as the summer of 1894, had expended out of its own moneys, in addition to the proceeds of the Brooklyn City Company's stocks and bonds, a sum. exceeding $1,000,000, which it had borrowed upon its ahorttime' otes in the market. B. 6 -42 For the purpose of relieving this unhappy situation, the Long Island Traction Company proposed an issue of $3,000,000 of so-called collateral trust notes. At the time this proposition was made the condition of the company wais set forth in the following communication addressed by the board of directors of the Long Island Traction Company to the stockholders of that company, under the date of 15th of September, 1894, which your committee regards as of the utmost importance: It discloses very fully the entire situation, and the company can not now controvert its statements. Attention is particularly called to the estimated profit to the Long Island Traction Company, as owner of the lessee company, of an average for the next three years of $302,500 per annum. And here it is to be remembered that of the $4,500,000 paid into the Traction Com. pany, it had $4,000,000 well invested as a guarantee fund, but on which it was drawing interest for its own account, so that the annual earnings of $302,500 would really have been on a total cash cost investment of not over $500,000. The communicaition was ais follows: "To the stockholders of the Long Island Traction Company: " In June, 1893, the Brooklyn Heights Railroad Company took possession of the property and franchises of the Brooklyn City Railroad Company, under the lease between the two companies, and has since continued the operation of the railroads embraced in the Brooklyn City Railroad Company system, consisting of 200 miles in operation under electrical equipment, and 93 miles of extensions not yet built upon. "The Long Island Traction Company owns or controls all the capital stock of the Brooklyn Heights Company, and the directors and officers of the two companies are idAht'cal. "The Brooklyn Heights Company, as lessee, agreed to proceed with due diligence to complete the electrical conversion of all the leased property. The proceeds of the sale of certain increased capital stock and of certain consolidated bonds of the Brooklyn City Company and of certain of its real estate and personal property not necessary for the use of its railroad were to be expended in the prosecution of the electrical conversion of the properties. "The balance of the moneys necessary to comnplete the electrical conversion of the property was under. the lease to be provided by the Brooklyn Heights company out of its own funds. By the terms of the lease the Brooklyn City Company is to pay to the Brooklyn Heights Company, in the event of the expiration of the lease or its,sooner termination, the actual cost of all property, extensions, branches, improvements and equipments, made, acquired and paid for by said Brooklyn Heights Company out 'of its own funds for use in connection with the operations of the railroads of the Brooklyn City Company less the cost of such part as may be required to preserve said railroads, extensions, additions, improvements and equipments in good repair and serviceable condition, and less the cost of such part as may be necessary to preserve and secure efficiency in the operation of the railroads. "Besides disbursing the moneys realized from the sale of the increased capital stock and of the consolidated bonds of the Brcoklyn City Company, the Heights Ciompany Ihlas expended, out of its own funds a sum exceeding $1,000,000, and will be required to spend before the electrical conversion is completed a large additional amount. "After applying toward the July rental $250,000 of the guaranty fund deposited as security for the performance of the lease, and the interest in the guaranty fund, the Brooklyn Heights Company now needs the sum of $2,850,000 in order to pay existing indebtedness and to complete the electrical eq'ipmens This bui will be reduced by the proceeds when realized of the real estate and personal property of the Brooklyn City Company to be sold as above stated. "The value of the real estate of the Brooklyn City Railroad Company, which was to be sold as appraised by D. & A. Chauncey Company and John F. James & Son, the well-known real estate experts of the city of Brooklyn, amountS to $875,000, and the estimated value of the personal property exceeds $200,000. 44 "The following causes may be said to have contributed to create the indebtedness of the Brooklyn Heights Company: "'I. The above-mentioned real estate and personal property, the value of which amounts, as stated, to $1,075,000, have not yet been disposed of. "1I. Large sums of money have been expended in the completion of certain necessary extensions of the Brooklyn City system which had been begun by the Brooklyn City Company before the lease took effect "III. The earnings of the system, though satisfactory, have been less than they would have been under oldinary business clonditions. " tad the ti'me been such that the personal property and real estate could have been sold to advantage, and had it not been essential to complete extensions, the Tractioni Company and the Heights Company would not have needed the templorary relief provided by the plan proposed. "The first 13 months' operation of the road under the lease --- a peculiarly bad period for railreoad earnings-while the electrical conversioni of the road dwa;s proceeding withi all the loss of income incident to such work, shows net profits to the lessee from all sources of $115,520.78. The gross receipts of the road for the first fiscal year under the lease were $4,284,000. It is believed, as an unnecessarily conservative estimate, that the gross receipts will average $4,750,000 per annum for the next three years and, assuming trat the road can be operated for not exceeding 60 per cent. of its gross receipts, including payment of all taxes, there will remain as annual net proceeds of operation...................................... $1,900,000 "Adding annual interest on the guaranty fund held as security for payment of the rental charge by the Brooklyn Heights Company to the Brooklyn City Company.............................. 187,500 "The net income from these sources will be... $2,087,500 r 45 "Deducting rental charges, including interest on bonded indebtedness and' insurance premiums............. "Deducting interest on $1,875,000 of the collateral trust notes already underwritten and on the balance: of the amount required, which will be reduced as the real estate andl personal property of the Brooklyn) City Company applicable for cone version purposes under the terms of the lease are disposed of, say....... $1,590,000 195,000 $1,785,000 "The annual net return to the Brooklyn Heights Company will be........................ $302,500 "The foregoing figures have been referred to and found to be correct by Charles D. Phelps, an acountant selected at the request of your directors by the trustees of the holders of collateral trust notes below mentioned - the New York Guaranty and Indemnity Company. "Miem. —In addittio to thiese souoes of iaoome, the Long Island Traction, Company owns all the capital stock of the Brooklyn, Queens County and Suburban Railroad Company (which owns 44 miles of railroad now being electrically equipped and representing a consolidation of the oldi Broadway and Metropolitan Avenue and Jamaica and Brooklyn Companies), the result of whose operations for the next three years, it is believed, will show an average annual profit of not less than $25,000 over fixed charges. "-There is, however, no obligation on the part of the Brooklyn Heights Company, the 'Brooklyn City Company or of the Long Island Traction Company, to meet any fixed charges om tbis property, the Long Island Traetion Company simply owning the capital stock of the Brooklyn, Queens County!iai Su urbaa Railroad Company. 46 "In addition to a mileage of 44 miles, now under operation, and being electrically equipped, the Brooklyn, Queens County and Suburban Company has the right to construct about SO miles of extension "Recapitulated, the mileage is as follows: Miles. "(a) Brooklyn City, mileage under operation............ 200 "(b) Brooklyn City extensions......................... 93 "(c Brooklyn, Queens County and Suburban, mileage under operation................................ 44 "(d) Brooklyn, Queens county extensions................ 80 "Grand total.................................... 417 "To provide the moneys now needed as above stated, the Long Island Traction and Brooklyn Companies have created their 6 per cent one-third year joint and several collateral trust notes to the par value of $3,000,000, secured. "(a) By a specific pledge and traifsfer to the New York Guaranty and Indemnity Company, as trustee for the holders of the collateral trust notes (with full voting powers thereon until Ipayment of the collateral trust notes to Joseph C. Hendrix, Martin Joost and Thomas S. Molore, their substitutes andi successors), of all the capital stock of the Brooklyn Heights Company. "By a transfer of 'all the interest of the Long Island Traction Oompany and of the Brooklyn Heights Company in the principal and income of the guaranty fund. "(c) By a specific pledge of the cost value of all property, extensions, branc'hes additions improvements aid equipments constructed, made or furnished by the lessee out of its funds, the cost of which under the terms of the lease is to be paid for by the Brooklyn City Company on the termination of the lease, for any reason, which cost value, upon the proceeds of the collateral trust notes shall have been expended under the terms of the lease, and exclusive of any offset by the Brooklyn City Company, will, as estimated by the Brooklyn Heights Company, exceed $1,100,000. 47 ' (d) By a pledge of all! the injet earnings on, the capital stock of the Brooklyn, Queens County and Suburban Company, to which earnings the Long Island Traction Company is entitled during the continiance of the lease between ttO Brooklyn Heights and Brooldyn, City Companies. "(e) Finaly, by a transfer of all the assignable interest of the Brooklyn Heights Company in the proceeds of the Brooklyn City railroad lease. "Suibscriptions to $1,875,000 of saojd notes have already been guaranteed at eighty per cent., suubject to the offer to the stockholders below mentioned, thus realizing $1,500,000 in cash. "Under the authority of the board of directoors of the Traction and Heights Companies and of the disbursing committee, $2,500,000 of such collateral trust notes are now offered to the stockholders of record of the Long Island Traction Company on the 15th day of September, 1894, at 85 per cent. of their par, and accrued interest. 'The sale of these notes will iprotide $2,031,250, and if the real estate and personal property can be sold for a price sufficient to discharge the entire existing indebtedness of the Heights and Traction Companies, and that which will be incurred in the completion of the electrical equipment of the roads, including all the expenses in and about the creation of the collateral trust notes { [ "Of the $2,500,000 par value of notes now, offered to the stockholders, as above stated, the $625,000 not undeiwritten have in part been pledged tempolarily to secure existing indebtedness. For other advances the real estate and personal property, intended to be sold as above mentioned, constitute collateral security. These arrangements, with the $1,500,000 in cash guaranteed as above, will suffice to enajble the Heights Company to meet its financial engagements. "The proceeds of the collateral trust notes as padi in are to be disbursed under the direction and athority of a disblursing committee consisting of David, G. Leggett, president of the Nassau Gas Oompany, of Brooklyn; George G. Haven, Jr., treas 48 urer of the St. Paul and Duluth RIalhroad Company, and' George W. Young, president of the U~nited States Mortgage Company. "T-he boards off directors of the BRooklyn Heights Company arid Loing Island Traction Comapany have -in, part been reorganized as will appear by the signatures, hereto. " The directors iof the compaies re~co'gnize the tem~porary charaicter of these notes andi ikealize that a miach. moire compirehensive plan which is new under consideratjion~ ald Which wUll include the providing of suiffilcient mone~yis to bu~l~d the authorized extensionis of the Brooklyn City Complany muist be prepared for tho reorganiZation of the affairs, of the Loing Island Traction Company. They, nevertheless, were of the viewi that sufficient moneys must be realized at once to pay the obligations of the Heights and Traction, Compainies, represented by -the present indebtedness and such as will be incurred in, the completing of the electrical conversion of all properties, under the lease, and they have accordingly determined to meet the temporary needs of the company by the present plan. "The stockholders are urged 'by the directors: "I. Not to dispose of their holdings at the present market prices, which do not, in the opinion of the directors, represent their real -value. "II. To subscribe to these notes, becau-se -thereby the stockholders will preserve their pro rata. interest in the property; and, "III. Because by failing to do so, they will lose the high rate of interest which these notes will pay, and the difference'between 85 per cent., the subscription price, and their par, at which they must be redeemed at maturity. "You are entitled, on or before October 1, 1894, to subscribe for p8.33 1-3 in said notes for each sihare iof stock of the Long Island Traction Company now standing to your name on, the books of the said 'company. The accompanying subscription blank sbjould be executed and forwarded to the New York Guaranty and Indemnity Company, 65 0edar street, New Yoirk city, or to its representatives, for the purpose of receiving subscriptions, In the city of Brooklyn; tlv Firat National Bank, of 49 Broklyn; the Peoople's Trust Company, the Brooklyn Bank or the Long Island Bank. "The subscription price is 85 per cent. of piar, with accrued interest on the face of said notes from August 1, 1894, paryalble to the New York Guamauty and Indemnity Company in cash and in installments not exceeding 25 per cent. each, as calledat: intervals of not less than 60 days.by the disbursing committee above mentioned. The first installment of 25 per cent is payable October 15, 1894. 1 "Certain of the directors, as an evidence of their belief in the value of these nortes offered, have guaranteed,subscriptions to $250,000 on the same terms at which they are offered to the shareholders, namely, 85 per cent. of their par. ThisL amoumt, in case the stockholders subscrirble their pro rat. amiorunt, will, of course, be reduced so that the direcitors will reirve, as orther stockholders, only the pro rata amount to which -they are entitied by reasoin of their holdings of the capitall stock., "Inaismu~ch as the rights of subscription are 'believed to be of value, any stockholder who may dispose of his rights ehould execute to his assignee the inclosed assignment, w7hich musnt be deposited with, the subscription with the New York Guaranty and Indemnity Company or one of its representatives, above named. "Dated, Brooklyn, September 15, 1894. "E. W. BLISS, "CORNELIUS N. HOAGILAND, KELIX COAMPBELL, "SILAS B. DIJTOBER, "JOHN ENGIAS, " CROWELL HADDEN, " THEODORE F. JACKSON, " 'JOHN G. JENKINS, "itSETH L. KEENY, " (DANIEL F. LEWIS, "W hLIAM M ARSHALL, "D. H. VALEfNTI-NE, "EAR~LES T. YOUNG, "Director8 of the long Island Traction Company." B. 7 50 Of the amount of collateral trust notes so proposed to, be issued (namely, $3,000,000), $1,850,000 wais actually underwritten or subscribed at 80 cents on the dollar. The guarantees given to these underwriters consisted vi.rtually of everything which the Brooklyn Heights Company and the Long Island Traction Company actually owned. The entire voting power on the capital stock of the Brooklyn Heights Railroad Company clontrolling all of the properties: of the Brooklyn City Railroad Company was vested in trustees, who saouldt represent the leaders on these collateral trust notes. Thus, for the' time being, the control of these properties, so far as the voting power was concerned, not only out olf the hands of the Brooklyn Heights Railroad Company, but onut of the hands of the Loing Island Traction Company, which owned the Brooklyn Heights Railroad Company, was vested in trustees, under the terms of a contract which your committee believes to be openly in defiance and violation of the laws of this State so far as this provision for a voting trust is concerned. A copy of the trust Indenture Is annexed hereto and marke d," Exhibit P." A copy of the subscription to the joint collateral trust notes is annexed and marked "." The shares of the Long Island Traction Company had, from the time of its organization until the commencement of this investigation, been speculated upon in the New York stock market. Although the same had been sold originally at $15 per share, it at one time, and before the $15 per share was paid. obtained a market value of $47 per share. It is now selling at G$ to.$7 per share. The Long Island Traction Company, because of the failure to secure the money sought to be raised by the proposed issue of colrateral trust notes to the full extent of $3,000,000, because of the burden of floating debt of the Brooklyn Heights Railroad Company, because of the failure to earn and pay the fixed rental of 2 1-2 per cent quarterly upon the stock of the Brooklyn City Railroad Company, and because of the liability on the part of the Broklyn Heights Railroad Company, which is only another name for the Log Island Traction Company, has placed itself 51 In danger of forfeiting the entire $4,000,000 guarantee fund. Certain holders of collateral trust notes have made an application to the United States Circuit Court in the State of Virginia for the appointment of a receiver (the company not opposing), and on the 26th day of March, 1895, an order was entered, a. copy of which is annexed, marked " R." The same court has since issued a further order of instructions to the receiver, a copy of which is annexed, marked "S." The result of the financial manipulation of these properties, whiLh gave birth to such large stock transactions, has thus resulted in the lease of all the properties of the Brooklyn City Railroad Company to the Brooklyn Heights Railroad Company; that is to say, the lease of properties of the value of at least $18,925,000, land probably of an actual value of from $35,000,000 to $40,000,000, to a corporation with a capital stock of but $200,000, which in its turn is owned and controlled by a foreign corporation with a capital stook of $30,000,000, on which that company itself realized but $4,500,000, all of which resulted in the control by the latter by certain "voting trustees," and finally in the intervention of the courts, and the appointment of a receiver, of a foreign business corporation, who now comes into control of all the beneficiary interests of the Long Island Traction Company in all of these vast properties for the protection of the holders of the creditors of that company. Financially and legally the situation is moist difficult and complex. As things have turned out, the effnrts on the part of the shareholderd of the I:rooklyn City.Railroad Company and of the syndicate which organized the Lcng Island Taction Company have iexcept to the extent to which holders of the latter stock were able to sell the shares of the Long Island Traction Company in the market at an advance over $1i per share), wholly failed. THE BROOKLYN, QUEENS COUNTY AND SUBURBAN RLALROAD COMPANY. This company consists of the consolidation of what was formerly known as the Broadway Railroad Company, of Brooklyn, the Broadway Ferry and Metropolitan Avenue Railroad Company, 52 the Jamaica and Brooklyn Railroad Company, the Brooklyn, Queens County and Suburban Railroad Company first taking leases of these roads, but subsequently these three companies were merged into the Brooklyn, Queens Coulnty and Suburban County and Surburban Railroad Company, all the stock of each of the three constituent companies having been canceled. The shareholders in these companies received in consideration for their stock so canceled, first-mortgage bonds, consolidated bonds and capital stock of the new company. The first-mortgage bonds amounted to $2,240,000, the consolidated bonds to $2,500,000, and the capital stock, $2,000,000. The capital stock was issued in this manner for the purpose of making it full-paid and obviating the necessity for subscription and payment in cash. In addition to the three railroad properties, thus acquired, the securities so issued provided the means for cancelitg $175,000 of the Jamaica and Brooklyn Railroad Cornpany'. bonds, and for the discharge of the purchase-money lien on the Broadway Ferry and Metropolitan Avenue Railroad'Company of $155,000. The authorized capital of the Brooklyn, Queens County and Suburban, Railroad Company is $15,000,000, of which $2,000,000 only have been issued in the manner just described, so that the present indebtedness of this; system as represented by bonds and stocks is $6,240,000. This company owns a total mileage of 42,942 miles of track, made up as follows: The Broadway line proper occupies 4,625 miles of street; that is, from Broadway Ferry to East New York. The Cypress Hills line is exactly 2 miles, occupies exactly 2 miles of street. The Sumner Avenue line occupies 1.96 miles of street. the Read Avenue line occupies 1.50 miles of street. The Ralph Avenue line exactly 1 mile of street, making in all for the Broadway Company-the old Broadway Company11.085 miles of street. There is.872 miles of side track, making the total mileage of track 23.041 miles. The Metropolitan Avenue line, or the Broadway and Metropolitan Avenue Railroad Company, running from Kent avenue to the Lutheran cemetery, the cars, however, starting from the foot of Broadway, occupies 4.2 miles of street. The Lutheran Cemetery branch,.7 of a mile of street. Also 4.2 of second track, making a total mileage of 9.1 miles. The Jamaica road is 6.4 miles of street, making 12.8 miles of track, making a total street occupation of 22.385 miles, with a side track referred to,.872, making 42.942 miles, the major part of which has been converted into electric railways All of these properties are at present actually owned and controlled by the Long Island Traction Company. The stockholders of the three original constituent companies who had received $2,000,000 of the Suburban company's stock, as has been pointed out, were utilized by the corporations as a means for transferring the entire capital stock to the Long Island Traction Company. The following question was put to the vice-president of the company: "Q. The result was simply for the time being to utilize the tockholders of the three old companies as intermediaries through whom to pass the $2,000,000 capital stock of your company over to the Traction Company; is that the size of it? A That is it; a wheel within a wheel." ILeference has already been made to the guarantee fund of $4,000,000 deposited by the Brooklyn Heights Company to secure the performance of the terms of the lease with the Brooklyn City Railroad Company. It appears that the Brooklyn, Queens County and Suburban Railroad Company, being unable at the time to find takers for its securities, the consent of the Brooklyn Coiy Railroad Company having first been obtained, finally secured the investment in its first mortgage bonds of $2,000,000 of ruch guarantee fund, the condition of the investment on the part of the guarantee fund, however, being that the entire issue.of capital stock, namely, $2,000,000, should accompany the bonds as a further consideration, bonus or gratuity. The entire capital stock of the Suburban Company was to be acquired and con trolled by the Traction Company, which in its turn was to deposit it with the People's Trust Company, of Brooklyn, as a trustee, and upon the expiration or termination of the lease between the .54 Brooklyn. Heights Railroad 'Company and the Brooklyn, City Railroad Company such certificates of stock of the Suburban Company were to be the exclusive property of the Brooklyn City Railroad Campany. Pending the lease all of the benefit of increase or 'income on the stock is for -the benefit of the Long ]Island Traction Company. The resjult of this, was that the Long Island Traction Company became the only stockholder in the so-called Suburban system,, as it was als~o the only stockholder in the So-called Brooklyn Heights system. The agreement between the Brooklyn, Queens. Oounty aind Suburban Rtailroad Company, the Long Island Trlaction Company and the Brooklyn City Railroad Complan~y, by which the Brooklyn City Railroad Company, consented to, the investet of $2,000,000 of the guarantee fund, and by whidli the entire stock issue of the Suburban Com-pany fell into the hands of the Long Island Truction Company, appears ini the annexed " Exhibit T." 'Under the circumuatances just described it Is unnecessary further to treat of the Suburban system distinct or apart, from the Brooklyn City system. They are both ulthnately held and conrlled in identically the same interest,!although these two isystfms of roads are being operated by two different local eompqnkes and different corporate officers. IEHE ATLANTIC AVEMUE RIOAD COMNPANY. The Atlantic Avenue Railroad Company. was organized under the law# of this State in 1 872, with an authorized capital stock of 4700,000. There were merged into this, company all the properties of the Atlantic Avenue Railroad Company and, the Jamiaica, Railway Clompany, so that the compamy now owns and oiperates 10 different lines, two Fbifth Avenue lines, one to the Bridge and Fulton' Ferry, and the other to South, Wail Street Ferry, -the Butler Street line, the Bergen Street line, the Fifteenth Street line, the Hicks Street line, the Sacket, Street line, -the Park Avenue line, and also the Brooklyn, Bath and West End Railroad 'line, which runs from Thirty-sixth street to Coney Isand. -The authorized issue of capital stock of this company was subsequently increased, and down to 1891, $1,000,000 of istock had been issued. At that time provision was made for issuing an additional $700,000 of stock, bringing the total capjitalization up to $L2,000,00O for the purpose, -among other things, of enabling the ccmpany to change its properties from horse to electric roads. The bonded indebtedness of the company is, $4,500,000. Down, to 1893, it was hut $1,500,000. Since, that time there have been' two issues of bonds, one for 1,500,000 and ainother for $1,000,000. These latter issues were maide subsequently to the acquisition by the Brooklyn; Trraction Company of the entire capital stock of the Atlantic Avenue Railroad Company. The Brooklyn Traction Company was organized under the laws of this St-ate in January, 1893; copy of its charter is annexed, -and mairked " Exhibit U." As origin-ally organized, its capita,6 stock was to, consist of $10,000:of preferred: stock capitalized and $.Zi,000 of common stock. Its authorized -capital has'sinoe been increased to $3,000,000 preferred. stock and $6,000,000 common stock. The preferred stock, was all issued for cash, which cash was used by the Brooklyn Traction Company, among other things, to purcthase $2,000,000 of capital stock 'of the Atlantic Avenue Railroad Company. Your committee has been unable, within the time allotted it, to prosecute fully. the 'inquiry into the organization of the Brooklyn, Traction Company, and. to dJ. coxer what the actual consideration for the $6,000,000 of common stock was. It is fair to assume, however, it was issued for properties, in such manner as, prima facie, to make it full-paid. Th-e president of the Brooklyn Traiclion Company is a resident of PLiladelphia; the secretary and treasurer is a resident oft Philadelphia, (and the books of this company, which owns and. coittrob~ the' Atlanrtic Avenue Railroad- Company, as well,#as the main office of this company, are also in Philadelphia&. It is impossible -to say what the value of the capita stock of th~e Atlantic Avenue Railroad Company is, inasmuch'as it is not in the market, but, as has been tesiofied by the president of the company, it is closely held by the Brooklyn Traction Company, as virtually a single stockholder, for the purpose of maintai-ning 56 coomplete and abso1ute control' of the rroafd iT total mileage under operation by this compan, is - The last dividenid of the Atlantic Avenue Railroad Company was declared in, July, 1894, and was $100,000). TUEI BROOKLYN CITY AND NEWTOWN IAILROAD COMPANY. Thi's company operates about 19 miles of road, running upon DeKalb avenue, Franklin avenue, Fulton street, Washington street, Front street, Water street, Melbourne street, South Eighth. street, South Ninth street, First street, River street, Grand street and Kent avenue. The authorized capital stock of this companiy is $2,000,000, of which $1,000,000 has been issued. Its bonded indebtedness $2,000,000, secured by mortgage, of which $1,960,000 has been issued. During the year 1894 this company declared and paid dividends- of 10 per centt Its last dividend was declared and paid February 1, 1895. The stock of this company is held by individuals, and not by corporations RESPONSIBILITY FOR THE STRIKE. ThMe foregoing statement of facts recites the history of the particular negotiations out of which the strike itself grew, and states the cause, or the alleged cause, for the strike in the case of each of the four railroads in question as well as the financial opeations of the com__panies It is undoubted that the enmployes considered themselves called upon, under the new system, to do a class of work requiring greater skill and expertness than that which plrevailed when horses were motive power, and before the introduction of the tirolley system. Nevertheless, the employes did not stand upon any demIand for an increase of wages except ini the case of the Brooklyn City and Newtown Railroad Coampany. Their demand was ratwfev to shorten the day's work, and through the rearrangement of the proportion of regular cars to trippers to necessitate the employment at full day's wages of a larger number of men It is undoubted that there was a general feeling on the part of the employes that the railroad company, 57 under the new system4 was making, olr was about to make, larger profits, as incideltt to the introduction of that system, and that they, as employes of the road, were to contribute to this by the performance of service which exacted closer attention, and made a larger strain upon their nervous system and capacity for endurance. This feeling undoubtedly helped to pre cipitate the.strike. It was an inidirect cause of it, because it undoubtedly contributed very largely to the uniwillingness of the committee to recede in any respect from the propositions contained in their proposed articles of agreement It is indubitable that the vast financial transactions to which much publicity was given, all predicated upon the exercise and operation of public franchises, had the effect of creating the belief that the stockholders of the Brooklyn City Railroad Comnpany, the Brooklyn; Heights Railroad Company, and the Long Island Traction Company, had 'found a means of reaping and taking to themselves large and very exceptional profits, and at the same time avoiding and evading certain responsibilities to the laws of this State. It is also certain that this belief resulted in the creation of a public opinion in the city of Brooklyn adverse to the companies, and was one of the reasons which led the employes of the road, either directly or indirectly, to believe that under such conditions and circumrstances, particular ly in view of the fact that the change in motive power involved largely increased responsibilities on, the part of the men, particularly because of the increased liability to accident It is but proper to state that, in the judigent otf your coommittee, the financial affairs of the street suraice railroads controlled by the Long Island Traction Comopany, which, under a foreign charter, controls almost the entire railroad system of Brooklyn, are in a very critical state. The methods by which the Brooklyn Heights Railroad Company, the Brooklyn City Railroad Company, and the Brooklyn, Sblurban and Queens Counrty Railroad Oompany came under the control of a foreign corporation, known as the. Long Island' Traction Company, a corporation capitalized under the laws of Virginia, at $30,000,000, are open to grave criticeism, if not public condemination, and sihow B. s8 that a gigantic deal, which was intended to enrich its promoters, but failed, led up to the present crisis, and has finally ended in general collapse, the companies' affairs having p&l ed into the hands of a receiver. Railroads of all kinds perform a public function which is within the province of the State to control, and the State should exercise this controlling power not only for the protection of its citizens, but for the better protection of life and limb. The real cause of the strike, in the opinion of your committee, is not the mere failure to agree, which was a symptom only, but the fact that the relation between capital and labor had been peculiarly strained in this case-labor demanding more, notwithstanding the very large advantages it had secured to itself through the contracts of the preceding eight years, and capital creating an adverse public opinion, and acting upon the theory and belief that it had the opportunity of gaining large and unusual profits by methods, the legality of some of which is questionable; all in such manner as to bring about a feeling on the part of the men that they were being unfairly dealt with, while the corporations themselves were handling their properties for the purpose of stock speculation, and for the amassing of fortunes. The corporations, either through their failure properly to have estimated the cost of construction of their roads, or through their inability because of the panic which occurred in the spring of 1893, and the effects of which have still continued, to secure the money necessary to carry out their plans, have utterly failed in their project that a complete reorganization is now absolutely necessary. This case is one which presents with peculiar force the situation which is likely to arise in conflicts between capital and labor, where capital seeks to reap exceptional profits through the creation of speculative opportunities, and in practical, if not in actual, defiance of the spirit of our law; and where, on the other hand, labor, believing that it is not accorded its share in the profits of the business, is willing to go so far as to bring about the paralysis of the complete system of transportation and to 59 sacrifice not only advantages gained after long struggle, but to throw large bodies of men out of employment under conditions which make their re-employment in the same service impossible, because of the impossibility of compelling their employers to re-engage them. The total number of men, so far as is ascerfainable, who went out on strike was about 5,000, and of this number not more than 10 per cent. have since been re-employed in the service of the companies. During the strike, because of the difficulties found in operating the roads, because of disorderly gatherings at different places in the city, because of the general sympathy felt and expressed for the strikers, and because of the fact that it became necessary to guard the persons of the employes of the companies and the property of the companies from either threatened or expected asasult and injury, it became necessary, in the belief of the mayor and commissioner of police, to call in the militia. Consequently, on the 18th day of January, the Second Brigade, N. G., S. N. Y., consisting of the following regiments: Thirteenth, Fourteenth, Twenty-third and Forty-seventh; the Third Battery, the Fourteenth Separate Company, and the Signal Corps, and in all of about 3,000 men, was ordered out and detailed to duty in different parts of the city, in aid of the police. Later, on the 20th day of January, it being feared that the municipal police force, with the aid of the Second Brigade, was not sufficient to maintain public order, it was decided to call for further military assistance, and as a result the First Brigade, excepting only the Ninth Regiment,,and in all about 4,500 men, was ordered to report for duty in Brooklyn on the 21st day of January. The First Brigade remained in service from the 21st to the 28th, inclusive, and the Second Brigade remained in service —that is to say, from the 18th of January to the 1st of February. The entire cost to the city, for the pay and miaintenanoe of theae troops for the total time of their employment, ias bansed upon the pay-rolls and the bills which had been rendered for supplies fumrished up to the time of this invetigatjin, is estimated at $200,000. 60 It appears that, previous to the strike, the maYOr Of the city had already expressed his dissatisfaction with the management of the police force, so far as conceried the catacity, of the superintendlet of the force. He knew that he was incompetent to:comand the force because of his age, lack of memory anl want of physical capancity, and this opinion was concurred in by the conmissiomner of poli.ce, but nevertheless noi steps had been taken to secure his removal, and he was at the head of the force when the strike was declared and when the troubles and disorders in the city broke out. Such being the case, it appears that the direct commamnd of the force was assumed by the police comnissioner himself. It does not appear from the testimony given by the mayor that the oomnmissioner of police had, prior to his uasmn tion of that office, ever been in any similar business or had any particular qualificatio or txatxing for the performance of the duties of the chief of police, and it is the 'belief of your committee that the attempt on hrs part to assume the direct executive management of the police florce was necesrily at the time a disturbing element in itself, andl a very decided error. i: It appears that there was some consultatona between the mayor and the commaissiomer of po1lice as to the appointment of a sutaicient number of extra or special pohicemen under the law, but the,suggestion was dismissed at the time, as being impracticable, although in this respect your committee is satisfied that both the mayor and the commissioner of poice were also in error. It appears from the evidence that the police force sympathized very largely with the strikers, and it is certain:that during the early days of the strike the force made onaly a most 'inignificant wumber of arrests, which does not indicate any such state of affairs as to have necessitated tlhe calling in of the. militia. Either there was no occasion for more arrests, or the police force was wholly demoralized, for only 19 arrests in three days indicates either that there was no necessity for the milfitia, or if there was such necessity, that the -city government wholly fa4led to do its duty. But four arrests were made on the 14th of January, 15 arrest on the 15th and none whatever on the 16th, 61 aithough the municipal authorities say that disorders were bbcoming so frequent, and the danger to the priblIc peace of the entire comimurnity becoming so firntinienlt that it had become necessary to ciall in a large armed force of militia. All oif the e~vidence goes clearly to demonstrate -the fact that during the first two days of the strike the municipality was, strangely lackking in capacity and e-nergy, and -permitted the disorderly ele-. ment to realize thie facet that it had~ the police fotrcd of the city at a disadvantage, and wais thereby encouraged to. greater dIsorderlinesis, and utore frequent and:serious brachies of the public peace. Your cominittee is of the belipf, after hearing the evidence, that at this juincturelthe maylor of the city, ias well as -his police coDmmiioner, showed a mlost marked lack of judgmet we may;say, in plassing, that in oither resgpects, -the mayor, whilJe under examination, ishowed a strange unfamiliaritiy with, 'and in some cases ignoirance of, the machinery of the municipal governmient of which he is the executive chief. The weakness, and want of energy orn the pairt of the administration which prevailed during the early days of the strike, was replaice'd by a corresponding sterne~s and rigor after the municip al aihihorjifjes- had permitted the disorders to gain such (headway as to le~ad them to fear that the situation was; becomning peculiarly serious- and fraught with -danger. We ibelieve thaitthey as far exce(ed~ed the -requirements of the case in calling in, the m~iflta, aThy -disregarded them in not having fully utilize the poliee force of the municipal govemnment itself before the n~flitia was called in. Between the 14th of January and the 24th of February the following arrests were made for disorders growing out of the strike, being either for Violation of sections -635, 653, 449, 426 and other sections of the Penal Code, or for assault, malicious mischief, interference with. the militia., etc., that is; to say: January 14, 4; January 15, 1.5; January 16, 8; January 18, 7; January 19, 9; January 20, 11; January 21, 8; January 222, 11; January 2,12; January 24, 17; January 25, 31; January 26, 18; January 27, 25; January ~28, 64; Januiary 29, 20; January 30, 15; January 31, 23; February 1, 17; February 2, 21; February 3, 6; February 4, 1.5; February 6, 10; February 7, 17; February 8, 15; February 9, 19; February 10, 14; February 11, 18; February 12, 15; February 13, 16; February 14, 9; February 15, 13!; February 16, 12; February 17, 10; February 18, 6; February 19, 4; February 20, 2; February 21, 1; February 22, 7; February 23, 6; and Februtary 24, 4 - making a total of 445. Of this number a very large proportion was discharged by the magistrates before whom the prisoners were taken, because, In the opinion of the mIagistrates, the evidence was, not sufficient to justify commitment; and in some cases undoubtedly because of the sympathy on the part of the committing magistrates with the men who had gone out on strike. The evidence discloses clearly, however, that, just as the police during the early days of the st-rike, had failed -to make arrests, and to take active steps to suppress disordeirs, so, during the latter days of the strike, and after the militia had been called in, they became suddenly active in making arrests, and in many cases made their arrests hastily and without sufficient justification. The police force of Brooklyn is composed of competent, capable and faithful men, and there is no doubt, so far as your committee is cor.cerned, that the real trouble was at the top not with the rank and file. The weakness and wanti of enlergy on the pa!rt of the executive, which prevailed during the early days of the strike,was replaced by a corresponding sternness and rigor after the municipal authorities had permitted the disorders to gain such headway as to lead them to fear that the situation was becoming peculiarly serious and fraught with danger. We believe that they as far exceeded the requirements of the case in calling in the militia, as they disregarded them in not having fully utilized the police force of the municipal government itself before the militia was called in. The mayor of the city sought to place the responsibility for the failure to maintain the public order in some part upon the police magistrates, and preferred complaints to the General Term of the Supreme Court of the Second Department against Police 63 Justice James F. Quigley and Police Justice William Watson, which complaints were disposed of in the case of Quigley by finding on the part of the General Term that the evidence sustained the complaint and *consequently by the removal of Mr. Quigley from office, and in the case of William Watson by the dismissal of the complaint Your committee is of the opinion that with an able, firm and thoroughly energetic municipal government it would never at any time have been necessary to have called in militia, but even assuming the necessity for the placing under arms of the Second brigade, your committee has failed wholly to find any sufficient or justifying reason for the calling in of the First brigade. In plain English, it is the belief of your committee that the municipal authorities loist their heads, and sought relief from an armed force when there should not have been, and, as we believe, never really was, any occasion to have resorted to such extreme and expensive means. After the militia had been withdrawn, a large force of special police was placed on duty, but was not found to be efficient. After the department had so signally failed in managing and securing results from the regular force, this is not surprising. We believe the entire situation would have been different if the mayor, when he first became satisfied that the superintendnt of police was superannuated, had insisted upon demanding his retirement, and upon the appointment of a younger and more competent man. The mere leaving of the force in the charge of a man who was at the time known to be incompetent was a grave error, but it was not cured by the commissioner of police himself undertaking to perform the functions of the superintendent at such a time, particularly when his own antecedent training and business experience and relations to the force did not qualify him to perform these functions satisfactorily. We are of the opinion that had the mayor and commissioner of police called upon volunteers to serve as special policemen, before calling the militia in, that an ample force could have been secured to have prevented all of the disorders which subsequently occurred. The disorders of the first few days were nob 64 serious, and could have been easily coped with. It was when the disorderly elements realized the nervelessness and want of energy of the municipal government that the situation, first became dangerous. The calling in of the militia only had the tendency the more thoroughly to embitter the feeling on the part of the men: who had gone out on strike and their sympathizers throughout the community. It can not be doubted that at! all times during the strike the fear of disorder was very much greater than the disorders which actually occurred. As a matter of fact, while there was considerable injury to the companies' cars, the number of assaults upon persons were peculiarly few, in view of the excitement which ruled throughout the city, and of the opportunities and number of occasions when assaults and violations of an aggravated character were likely to have occurred. There were but two deathis, and they were accidental, having been caused by the shots of militiamen, and no employe of the road being in' any way responsible for either. The two men killed by the military were: Henry Ahen, ahbt January 22, died Jannary 23. Thomas Kearney, shjot January 23'd, died January 24th. The former was shot at Halsey street and Broadway by the Seventh Regiment; Kearney, on Hicks street, by the Thirteenth Regiment. It is impossible for the committee to say to what extent such; vtolations as were committed and such damage as was done were actually done by strikers themselves. The evidence is clear that in some cases the persons arrested were ex-employes of the road, although in many of these cases the persons were discharged for want of evidence. It is also clear that a large number of arrests were made of irresponsible parties, who had not been employes of the road, and very many of the arrests were of disorderly youths for throwing stones, and for disorderly conduct generally. While the city government had no responsibility whatever as to or in connection with the incidents which led' up to the causes of the strike, your committee regards the mayor in a very large measure responsible for the social conditions which followed it. The weakness betrayed by the government was in itself a prac tical invitation to the disorderly elements to disregard the law, and had it not been for this weakness your committee believes that most all of the most serious consequences, the paralysis of the railway service, the disorderliness which prevailed throughout the city, the cost to the city of the militia, the extra cost of the police force to maintain order, with the usual civil means at the command of the government, might all have been obviated. It should be reported that after the difficulties, had occurred and when the danger was over, the mayor secured the resignation of the chief of police, notwithstanding the fact that he was retained pending the strike, but relegated to practical inactivity, and the police force had been left virtually without an active head. In addition to the foregoing, we deem it our duty, as members of this committee, to brtng to the attention of this Assembly 'a exaanine into the clauses leading up to the strike and to fix the very important feature of the recent labor troubles in Brooklyn. The committee being appointed, among other things, "to basis of responsibility tlierefor," it became the prima.y duty of the committee to place such responsibility where it belongs. It seems to your committee, upon a very careful consideration of all the circumstances surrounding this, by no means an! easily. solved problem, that one very salient feature of this controversy was developed by the testimony given before your committee, which proves that the act of the companies in dispersing sum. marily with the services of their electrical workers before any strike had been declared by their employes, was a declaration on the part of the railroad companies that all negotiations looking to a settlement of the differences then, existing between them and their employes were at an end. In our opinion, this act is susceptible of the construction that the railroad comn panies did not consider that they had anything to arbitrate and even admitting that the several assemblies of the Knights of Labor had practically arrived at the conclusion that their demands would not be acceded to, it is very important to bear in mind that the railroad companies themselves took the initiative, and imperiously declined to treat with their employees, threw down the gauntlet which precipitated the city of Brooklyn into B. 9.....'" "" ~ '....~.' ~-:. "~,;^,i..... -j I 66 1.a state of disorder never before equaled, perhaps, in, the history of that municipality. We submit, in support of the foregoing statements, that it appears by.the testimony of Mr. Daniel F, Lewis, the president of the Brooklyn Heights Railroad Company, that "it was his belief that there was going to be a tie-up on Monday morning," (although no strike ~had been declared), and he says: "These electrical workers, being at work in the pits of khe companies at the various depots, had access to the machinery of all the cars. We ticught it was an act of prudence on our part to say to then! when they reported for work on Sunday night, that we would not require them until they were sent for or saw cars in operation." He says further, "We felt it was desirable to lay them off that night until' we knew further what action the men were going to take." We submit that at the time Mr. Lewis ilqstru!cted his supertendents to lay off the electrical workers, he knew perfectly well that when the motormen and conductors reported for duty in the morning they could not have handled the cars, or put them ui operation, as his action provided their so doing. The statement is made that arbitration had not been resorted to, nor even suggested, but even admitting this to be true, the fact that the men waived their demand for an increase of 25 cents in their daily wages, certainly showed a disposition. on their part to make concessions to their superiors, in the vain hope that such concession would pave the way for an amicable adjustment of the differences which then existed. It may not be amiss to make in passing a commentary upon the attitude assumed by the railroad companies towards one of the claims advanced by their employes. For a period of eight years the status of the employes had been defined by a series of written contracts between them and the companies, and which our report justly characterizes as "Constituting a most vanable property, and something not lightly to be disregarded." In all of these contracts, covering a period from 1886 to December 31, 1894, a stipulation had been entered into which fixed the proportion of what are known as tripper cars to regular full day cars. Although President Norton, of theAtlantic Avenue Railroad Company, testified that he 67 was opposed to the principle in toto as an abandonment, to that pxtent, of the right of the company to maintain and control and operate its own property in its own way, yet it is evident that the companies had waived the right to insist upon the enforcement of that principle, by acceding to the insertion of the abovementioned stipulation in their former contracts with their employes, and, therefore, could not, without doing violence to what their employes had naturally come to regard as their established rights, overturn in a moment and without any effort to compromise a principle to which the companies themselves had given their assent. In conclusion, we beg to state that the solution of any labor problem is attendant with many grave and serious difficulties. Your committee have labored earnestly and faithfully to prepare a report which would do impartial justice to all concerned. THE COST OF T'HE STRIKE. The cost of the strike is estimated as follows: To the employes of the road who went out on strike, down to the present time.................... $T50,000 To the railroad companies themselves, because of the paralysia of traffic and the loss of fares (not ascertained)................................................. Injury to property of the railroad compnanies (not ascertained, the companies not having been suip plied the data in either of the two foregoing cases), Cost to the city for the pay and maintenance of an armed force of 7,500 men....................... 200,000 Extra -cost to the city for police service during the strike.....................................7... 75,000 It is impossible to estimnate the loss to the citizens through the paralysis of trade, amd the general inoonvenienae and disorder incident to the complete or partial deprivation of their means of transportation in and about the city. It is also impossible to estimate to what extent the courbts may poesibly hold the city responsible for damages caused by the failure to maintain oder.. 68 RBEME DIES. In addition -to the investigation made by your committee int0 the causes and the consequences of the strike, and the responsibility for those causes and conisequences it has seiriously considered the question as to that remedies, if -any, could be foumd to prevent the recxurrence of these evils. It has very carefully investigated, among other subjects, the question of compulsory arbitriation, the licenjsing of railway employes, of the amen&d ment of the Ten-Hour Law, the enlargement of the duties of the State Board 9f Mediation and Arbitration, and other cognate questions. It is evident to your) committee that, if possible, some means should be found to compel the employes of railronad companles to give proper noitice of intention to leave, -as well as to compel the companies themselves to give proper notice of the intention to discharge. If, for instance, it had been possible for the compamlies or municipal government to' have kno-wn in advance that a strike was proposed, opportunity would have been afforded in which to take the proper measufres, ona the part of borth the government!and the compaaies, to protect the,publlic interest, on the one hand, against possible breach of the peace, and, on the other hand, against the paralysis of the railload service. Your committee fully recognize the difficulties attenditng any sulggested solution of the problemis pwresented by this and similar cases, and, after maiture deliberation, is of the opinion that no satisfactory bill can be draiwn at the present time looking to compullsory arbitration, particularly in view of the faclt that the principle itself involves an infringmuent of 'personal liberty. We find that while a very large proportion of the wording men in tUhi country stand for absolute liberty in the making and breaking of contracts to hire, an equally large proportion are strongly in favor of the passaige of a compulsory airbitration act, and we find that the employers, that is to say, the railway corporations themselves, particularly so, fair as conceins the surface railways in the two great centers of New York and( Brooklyn, rather favor than oppose compulsory arbitration. They do this notwithstanding the fact that they clearly recognize that while the decrees of the board might be made compulsory, so fair as they themselves are coacered, through the -contrtol which tfe State has over the catrters, franic4is and property of t e ralroad corporations, such decrees would nevertheless, xipo be equally compulsory as against what is knwn as organized lbo0r, even though the employes were compelled regularly to irnoo rate their labor orglanizatous. Your committee believe that any attempt at compulsory arbitration must necessarily result ins disappointment and failure, because it can conceive of no really effective way in which the employee can be subjected to the decrees of the Board of Arbitration in the same manner in which the company can, without a wholly unjustifiable assault upon the principle of individual liberty to contract. We believe, furthermore, that the attempt to enforce any such law would, in addition to all the evil consequences of failure, result in tlhe intensification of the differences which already exist in the community as growing out of the relations of capital and labor. THE TEN-HOUR LAW. Pendin(g the sessions of this committee, the so-called TenrHorw Law has been amended in such manner as possibly to obviate some of the difficulties and questions which have been raised im the past. The law, as amended, nevertheless, is still very indefinite and uncertain as to its meaning, and it is doubtful in the minds of your committee whether the law is constitutional' or whether 'any law can be passed which will cover all classes of cases, or which will obviate the necessity for agreement between employers and employed, as to exactly what shall, ip each case, constitute the hours which are to be included in the 10 hours of labor fixed by law as a day's work. LICENSING OF RAILROAD EMPLOYES. Your committee is of the 'opinion that the employes of corporations exercising public franchises should all, so far as practical, be made qunsi-public servants, and as succh be guaranteed the right of notice and of hearing before discharge, and that, on the other hand, in consequence of their having accepted such service in companies exercising public franchises, they should I'Ii 70. bee required to give proper notice before abandoning such' service, and that in all cases where the men in a body seek to abandon such service without notice and in such manner as to threaten, or {as actually work loss and danger to the community, that the laws should be so amended as to make them strictly answerable for their conduct in the premises. Your committee has, so far ag the time at its command has permitted, consulted experts in these matters, and thoroughly examined the legislation which has been adopted or proposed in other States, as well as that which has been proposed in the National Congress, and it is of the opinion that the most conservative and the most desirable legislation at the present time is that looking to the compulsory licensing of all employes of corporations exercising public franchises. Since the introduction of the electric and cable systems on the surface roads in cities and villages the community has suffered peculiarly, because of the increased number of accidents as incident to the use of these new forms of power. It is the belief of your committee that this is very largely due to the fact that the persons entrusted with the handling of the cars have, in too many cases, not been properly equipped for the performance of their duties The effect of a law requiring. conductors and motormen to be licensed will, among other things, guard, as far as practicable, against this mischief in the future, and will have the effect of elevating this employment to a steady, regular and special craft or calling. It will give the class of responsible employes on railwways a legal status as quasi-public servants; it will accord them distinct rights as against the companies, and will give the companies a better control of their employes generally. No employe could leave the service of the company except upon 15 days' notice, under the penalty of forfeiting his license, and thereafter debarring himself from re-employment; no employer could discharge a man, except for cause, until after a 30 days' notice, subject to proper penalties, thus making lockouts impracticable. It is needless for us here to go into the details of this law, which has been prepared with, great care and is now presented. It is drawn on the lines of a bill introduced in the Senate of the 71 United States on the 18th of February, 1895, by Mr. Butler, and; which is now before the committee on railroads of the United States Senate.. ' AN ACT to provide for licensing employes on railways within the State of New York. TYs 1eople of the State of New York, represented in S&ute and IAembly, do enaot a follow: Section 1. On and after the 1st 'day of Janmary, 1896, no railroad company within the State engaged in the transporta tion of passengers or property, nor any officer, agent, or employe thereof, nor any receiver, trustee, or lessee of any railway engaged in such transportation, shall employ or permit any peson to Serve as conductor, brakeman, engineer, fireman, telegraph operator, switchman, motorman, gripman or driver upon any railway train, or car, or loicomotive engine, or electrical car, or car operated by meclhanical or animal power, while such train, engine or car is engaged or employed in such transportation of passengers or property, unless such person is licensed as hereinafter provided. No person shall serve or act as or perform any of the duties of conductor, driver, motorman, brakeman, engineer, fireman, train dispatcher, telegraphi operator, switchman, gripman or driver, on or in connection; with any of the cars or property of any such corporation enga;ged in the transportation of passengers or property, within the United States, unless such persons is licensed as hereinafter provided; except that upon lines of railway operated by steam a person holding a license as conductor or engiueer may serve as a brakeman, firemain or switchman, and person holding a lWcense as a brakeman, fireman, or a switchmnan may serve in either one of the three positions, and that a person holding a license as motorman or conductor upon any street surfa!ce railway may act in either of the said capaclities. ~ 2. There shall be a chief examiner, who shall be appointed from time to time by the governor, by and with the advice and consent of the Senate. He shall be selected for his fitness and 72 ability to systematize and carry into effect lall of the provisions of law with reference to licensing railway employes, and shall receive a salary of five thousand dollars per 'annum and his reamonable traveling expenses incurred in the performance of his duties. ~ 3. The chief examiner shall, under the direction of tihe board of railway commissioners of the State of New York, superintend the licensing of railway employes, receive all reports of supervising examiners, report fully at stated periods to the State Board of Railway Commissioners uipon all matters pertaiing to his official duties, and produce a corect and unifoiri ad;ministration of the laws, rules and regulations pertaining to the licensing of said railway employese ~ 4. There shall be three supervising examiners, who shall be appointed by the chief examiner, by and with the consent of the State Board of Railway Commissioners. Each of them shall be selected for his knowledge, skill and practical experience in railway service and the operation,of railway trains and locomotive engines, and electrical and cable cars and icars operated on street surface railways by horse power, and the duties, requirements and qualifications of railway employes required by the provisions of this act to be licensed. Eaich supervising examiner shall receive a salary of three thousanid dollars per annum and his reasonable and necessary traveling expenses incurred in the performance of his duty, which shall be certified and sworn to under such instructions as may be governed by the State Board of Railway Commissioners. ~ 5. The chief examiner and the supervising examiners shall assemble as a State Board of Examiners at the city of Albany at the earliest practicable date after appointment. and upon the call of the chief examiner, who shall be ex oflicico chairman of the said board, and shall organize and enter upon their duties, and shall meet thereafter at such times and places as it may elect, or as the State Board of Railway Conmissioners may require for joint consultation with it. The said Board of Examiners' shall, with the approval of the State Board of.Railway Comnissioners, assign to each of the supervising examiners 73 a certain territory witkhin such supervising examiners shall, respectively, ilerform their diuities, and for that purpose shall, with the like approval of the Board of Bail way Coenmissioners, divide the State into three districts, each district having such boundaries or limits as they shall prescribe, and the said districts to be numbered, respectively, first, second and third. The said State Board of Examiners shall establish all necessary regulations required to carry out in the most effective manner the provisions of this act, and such regulations, when approved by the Board of Railway COmmissioners, shall have the force of law, and may be changed or modified from time to time by the said State Board of Examiners with the like approval of the B:oatrd of Railway Commissioners. ~ 6. There shall be in each of said districts such number of d:strjit examiners, not to exceed three, as the said State Board of Examiners 'shall determine, and who shall be, respectively, persons of good characters and suitable qualifications, and attainments necessary to fit them for the performance of the duties required to be performed by them under the provision of this act. Each of the said district examiners shall receive a salay of $2,000 per annum. The said State Board of Examiners may appoint a clerk to assist in the transaction of the business of said board, and,, also, may appoint one clerk to assist in the transaction of the business of each of said districts at a salary, for each of said clerks, not to exceed $1,200 per annum. Every examiner shall be paid for his actual and reasonable traveling expenses actually incurred in the performance of his duties, which shall be certified and sworn to under such instructions as shall be given by the Board of Railway Commissioners. The chief examiner may from time to time appoint assistant local examiners at a salary of not more than $4 per diem. ~ 7. District and assistant examiners shall be appointed by the chief examiner only on the recommendation of the supervisinag examiner of the district for which they are appointed. No person who has not the qualifications required by this act, or who is intemperate in his habits, shall be eligible to hold any B. 10 74 office provided for by this act, or to discharge the duties thereof, and if any such person shall attempt to exercise the functions of any office provided for herein he shall be deemed guilty of a: misdemeanor punishable by a fine of five hundred dollars, alid shall be dismissed from office. * ~ 8. The district board of examiners shall have the power to exaaine, or cause to be examined and licensed, railway conductors, brakemen, locomotive engineers, firemen, train dispatchers, telegraph operators, switchmen, gripmen, motormen and drivers; and whenever any person shall make application to be licensed as a conductor, brakeman, engineer, fireman, train dispatcher, telegraph operator, switchman, notonrman, gripman or driver, the examiner shall make diligent inquiry as to his character and habits of life, and shall carefully examine the applicant as to his qualification, both mental and physical, and his experience, as well as the proof which he presents in support of his claim, and any other proof which may be presented touching the same; and if they are satisfied that his capacity, experience, skill, habits of life and character are such as to warrant the belief that he can be safely entrusted with the duties and responsibilities of the situation for which he makes application, they shall grant him a license, authorizing him to discharge such duties for the term of one year; but such license shall be suspended or revoked by the district board, with the approval of the State Board, upon satisfactory proof of bad conduct, unskilfullness, intemperate habits, incapacity, inattention to duty, or wilfull violation of any provision of this act. ~ 9. In all investigation by the State Board of Examiners or district boards of examiners under this act, such board shall have full power to summon and compel the attendance of witnesses by a similar process as in the Supreme Cburt of this State, and ('ither member thereof may administer oaths and affirmations 0o any party or witness, and examine them under oath; anl any investigations,fojr the suspensi)on or revocation of a license, such resasonlable notice in writing as shall be prescribed by the regulations of the State Board of Examiners shall be given to the alleged delinquent alt the time and place of such investigation. 7& ~ 10. Every person who receives a license hereunder shall, before enteiring upon the discharge of his, dhties, make and. subscribe an oath before one of the district examiners to the effect that he will honestly and faithully, according to his'best skill;; judgment and ability to perform all of the duties required of hm by law and that he is qualified for the perfnnrance of such duties. i ~ 11. That the qualification of conductors, engineers, brakemen, firemen, train dispiatchers, telegrapth operators, switchmen, motormen, gripmen and drivers shall be sucih as aire prescribed by the State Board of Commissioners by the regulations of such board; provided, that no! license shall be issued to any person to. act as a cOn.duictor on a rnailway train whto has not had at least two years' experience as brakeman on a freight train; or to act as engineer, who has not had at least two years' experience as a fireman op a locomotive engine; or to alct as a train dispatcher, who has not 'h!ad at least two years' experienice ais a telegraph operator in a railway telegraph office; or toi act as a motorman oir gripman upon lan electric or cable ciar who has not had such experience as shall be prescribed by the State Board of Examiners. ~ 12. That the fee for eaich licenlse granted hereunder shall not be in exceis of five dollars on steam surface railroads, and two dollars on all other railroads, to be fixed by regulation of the State Board of Examiners, and no license shall be issued by any district board of examiners until they, shall have first received the amount of such fee. All moneys received from suoch fees shall be paid by the State treasury in such manner and at sic:h time ais shall be prescribed by the State Comptroller. ~ 13. Whenever any district board of examiners refuses. to grant a license to any person applying for the.same, or suspends or revokes any license, any person deemnling 'himself wronged by such refusal, suspension or revocation, may, within thirty days thereafter, on application to the supervisang examiner of the distrct, have his case examined anew by such 'supervising examiner, and the district board shall furnish to thle sugpervising examiner in writing the reason for its decision in the premises, and sluch I suiper ig exainer shll examinei into such case, and lie shall hsave the same power to snumot wiitnesses and compel their attendance, and to administer oaths, as is comuferred on the district boards hereunder; and tle supervisitng examiner may rtvooke, dhange or modify the decisioni of the distriot board. ~ 14. Any person to whom a license has beeni refused, or l hose license has been revoked, may appeal from the decision of any sulpevi sing examiner to the chief examiner within thirty days from the date of such decisions and the chief examiner shall have the same power and authority in cases of appeal as is con, ferred on supervising examiners by section thirteen hereof. And wthe the chief examiner receives noatice of an appeal, lhe shall as soon as possible apoint a time and place for heiaring t-ch appeal, and of which t1he appellant shall have the same notice as provided in the regulations for other heardings, and th^ supervising commissioner whose decision is appealed from shall furnish to the chief examiner a transcript of all the papers and evidence in the case, and the decisioni of the chief examiner shlall be final. ~ 15. The district board of examiners from one district shall not license a person coming from another district, if such person has been rejected for unfitness or want of qualification withinl a period of one year from the dalte of the last preceding examination. ~ 16. Each supervising examiner shall watch over the boards of the district assigned to him; shall visit, confer with and examine into the board of district examiners in his district, and shall instruct them in the proper performance of their duties, and he shall see that the provisions of this act are complied with by railway companies, and by persons employed as conductors, brakemen, engineers, firemen, train dispatchers, telegraph operators, switchmen, mo.tormen, gripmen and drivers, aind shaill, whtenever he deems it necessary, visit any railway train or car in his district and examine the persons employed thereon! or in connection therewith for the purpose of ascertaining whether the provisions of this-act have been observed and complied with. And the persons employed upon, railroads to which this act is applicable shall answer all reasonable inquiries made by any such examiner. And it shall be the duty of such supervising 77 examiner to cause any person violating the provisioae of this act to be prosecutedl. T supervising examiner shall see thiat the several district boards of exaiiiners in their respective distrctS execute their 'duties faithfully, promptly, and, as far asipossible, uniformly in all plaices, by following out the provisions of this act, according to the true intent and meaning thereof; and they shall, as far as it is practicable, harmonize differences of opinion existing between the different district boards. ~ 17. Eachi supervising examiner shall, as required by the regulations of the State Board of Examiners, report in writing to the State Board of Examiners and to the Board of Railway Commissioners the general business transacted in, his district during the year embracing the licenses granted and refused, and all violations of the provisions of this act and the action taken; in relation to the same; all investigations and decisions by district boards and all cases of appeal and the result thereof, and such other matter as may be required by the regulations of the State Board; and the State Board shall examine into all the accounts of each supervising examiner amid district examiner and assistant examiners, and all complaints made against the same in relation to the performance of their duties under the laiw; and the judgment of the State Board in each case shall be entered upon the minutes of its meetings; and the;State Board shall, so far as possible, correct mistakes where they exist. Elach district boa,rd of examinlers shall keep a record of all licenses granted by it, or all refusals of the same, or all suspensions and revocations of licenses, and of all the refusals, suspensions or revocattions of which it shall receive notice from other districts, and shall report in writing to the supervising examiner of the district its decision in each case of refusal to license or of the suspension or revocation, thereof. Each district board shall also report promptly to the supervising examiner of the district all violations of the provisions of this act that come to its notice. It shall keep an accurate account of all its official acts and doings which, in the form of a report, it siall communicate to the supervising examiner of the district at suich time as the State Board of Examiners, by its rules and tegulaitios, shall direct, and it shall in every respect perform suoh duties as may be prescribed by such rules and regulations. 78 ~ 18. The State Board of Examiners shall establish such rules and regulations, subject to the approval of the Bloard of jIailway Commissioners, as may be necessary to make known in the proper manner to district boards the names of all persons licensed under this act, the niames of all persons from whom licenses have been withheld, and the names of all persons whiose licenses have been suspended or revoked. ~ 19. If any licensed employe shall, to the hindrance of commerce, or to the hindrance of the transportation of passengers or persons, wrongfully or unreasonably refuse to serve in the capacity for which he is licensed, on any railway on which he is regularly employed, as authorized by the terms of his certificate of license, or shall fail to give to his employer at the time of such refusal, if the same shall be demanded in writing, a statement giving good and sufficient reasons therefor, his license may be revoked upon the same proceedings as are provided in other cases of revocation of license, provided that any such licensed employe shall have the right to leave the service of the employer at any time by giving fifteen days' notice in writing of said intention. ~ 20. No railway company, to which the provisions of this act aye applicable, shall dismiss any licensed emnploye employed by it, without first having given such employe thirty days' notice of such dismissal in writing; provided that this section shall not be construed to prevent any such railway company from suspending from duty, for cause, aay such employe, but notice of any suspension shall be given in writing, and such notice shall state the cause for the suspension. ~ 21. Whenever any licensed employe is suspended from duty, he may, within five days from the date of such suspension, appeal to the district board of examiners for the district in which his suspension occurred, and such district board of examiners shall thereupon investigate the matter, and if such board shall decide that the suspension was without good cause, it shall so notify the railway company suspending such employe, and unless the decision of said board Ni appealed from within five days the suspended employe shall be replaced in the position from which he was suspended and shall be paid for the actual time lost by 79 him through such suspension, and for the actual and necessary expenses incurred by him on account of the invest.igation, and if the railway company making the suspension shall fail to pay for such lost time and suspension within thirty days, unless an appeal shall be taken, it shall be subject to the penalty. prescribed in section twenty-six hereof. But any railway company may pay to any licensed employe thirty days' pay in lieu of the..notice required by section twenty hereof, and shall thereupon -have the right to discharge such employe. ~ 22. That the chief examiner and every supervising, district and assistant examiner shall execute a bond for such sum, with surety, in such form and upon such conditions as may be required ~by the State Boaird of Railway Commissioners for the faithful performance of the duties of their office, and the payment in manner provided by law, of all moneys that may be received by him. ~ 23. All salaries provided for in this act shall be payable monthly, and such salaries, together with traveling and other expenses while on official duty, the fees of marshals, the fees of witnesses, of books, blanks, stationery, furniture, rent and other things necessary to carry into effect the provisions of this act, shall be paid by the State Comptroller out of revenues received into the treasury from the fees received for licenses, and from penalties received for violations of the provisions of this act, or, if the same.shall not be sufficient, from the taxes collected from corporations within this State. ~ 25. Any person who procures or attempts to procure a license under a false or assumed name, or who shall wilfully make false statements for the purpose of procuring a license, or who shall forge or alter any license, or who shall use or attempt to use, or aid or assist another in attempting to use a license that had been issued to another person or a license that has expired, or that is suspended or revoked, shall be subject to the penalty prescribed in section twenty-six hereof. ~ 26. That any railroad company, or officer, receiver, lessee, agent or employe of any railway corporation, or any other person violating, any of provisions of this act, shall be liable to a penalty of not less than five hundred dollars nor more than 80 one thousand dollars, to be sued for and collected in the name of the people of the State of New York by the district attorney of the county in which iuch action may be brought. And it shall be tlhe duty of every supervising examiner and every district examiner to cause the prosecution of any person viola/ting any of the purovisions of this act. ~ 27. That the sum of twenty thousand dollars is hereby appropriated for the uses and purposes of this act for the fisnal year ending December thirty-first, eighteen hund'red and ninetysix, and the intervening time anterior thereto. ~ 28. Except as hereinafter provided, and in cases of appointmneuts to fill unexpired terms, the terms oof office under this act shall be, for the chief examiner, five years, and, for the suppervising examiners and district examiners, two years each. The term of the chief examiner and suipervising and district examiners first appointed shall commence on thei first day of February next succeeding the appointment. Of the district examiners first appointed one-half shall be appointed for a term of one year and the remainder for 'a term of two years,,and thereafter at least one district examiner shall be appointed in district annmally. In case of any failure to appoint at the proper time, the incumbent shall serve until his sluccesisor is appointed. ~ 29. This act shall take effect immediately. We are of the opinion that chapter 67 of the Laws of 1887 should be amended in such manner that the State Board of Mediation and Arbitration should be required with or without the invitation or consultation of either cf the parties to, the controversy, to investigate all strikes, and fully to report, not only as to their causes and consequences, so far as: the same are ascertainable, but in each instance, even though it have no power to make an enforceable decree, nevertheless to, plaice the responsibility upon one or the other pa!rty to the controversy, and to make a. finding which shall be unequivocal, in every case, as to which is the party at fault, and of what the wrong or injustice oomplained of consists in eacih case. As embodying these ideas, thus generally expressed, and in the belief that the performance 81 of such duties by the State Board of Mediation and Arbitration will in all cases have the effect of enlightening public opinion, and of making it known to the parties in interest that final judgment is going to be passed upon the justice or injustice of their demands, claims or refusals, and that this will have the effect, if not of preventing strikes and lock-outs, ait least in every instance of making the party in the wrong responsible to the enlightened public opinlion, we recommend the passage of the following bill: AN ACT to amend chapter sixty-three of the laws of eighteen 'hundred and eighty-seven. The People of the State of New York, represented in Senate and 'Assembly, do enact as follows: Section 1. Section nine of chapter sixty-three of the Laws of eighteen hundred and eilghty-seven, is hereby amended so as to read as follows: Whenever a strike or lockout shall occur or is seriously threatened in any piart of the State, and shall come to the knowledge of the board, it shall be its duty and it is hereby directed to proceed as soon as practicable to the locality of such strike or lockout, and to; put itself in communication with the parties to the controversy and endeavor by mediation to effect an amicable settlement of such controversy. In, all such cases it shall be the duty of the State Board thoroughly to inquire into the cause oir causes of the controversy, and to thit end the board is authorized to subpoena witnesses and compel their attendance, and to send for persons and piapers in like maniner and with the same powers as it is authorized to do by section seven of this act. And it shall be the duty of the board in each such case to make findings of fact, and, to report the same to the Governor and to the State Board of Railway Commissioners. And, among other facts, the board shall, in every case where it finds that there has been any act of wrong or injusitice or breach of contract on the part of either employer or employed, report which of such parties has, in the judgmnent of the board been guilty of such wrong or injustice or breach of contract, and the specific facts concerning the same. ~ 2. This act shall take effect immnediately. B. 11 THE WRIT OF MANDAMUS. So far as the intervention of the cour'ts is concerned, it is urdoubted that therie have be-en and will be occasions when the court should and may be propl)rly applied to. for the extraordinary writ of mandamus. As it is, owevce, this writ is not pract.ically available unrder the present provisions of law', whlich require the allowance of 20 days within which to mnake a return to the alternative writ. It is only rarely that tle difficulties and disorders growing out of these social disturbances continue in an acute stage for' o lon1g a time, and, a.s a rule, before the court can interfere through the issue of this writ, alnd a.t a time when such interference has passed. We wiould, therefore, reconmmend amendment to the Code of Civil Procedure in such niannier as to permit the return of the alternative writ, of mandamus to be required in these extraordinary cases within 48 hours, and we, therefore, recommend the passtage of the following amendment to the Code. AN ACT to amlend section twenty hundred and seventy-two of the code of civil procedure. J 7te People of tJe State of j 'ew I'ork, rc2tresented in /Sencat and.Assembly, do enact as follows: Section 1. Section twenty lhundred and seventy-two of tle (Code of Civil Procedure, is hereby amended so as to read as follows: ~ 2072. An alternative writ must be made returnable twenty days after the service thereof at the office of the clerk of the court, or in the supreme court, the clerk of thle county designated therein, in which an issue of fac-t joined tlhereupon, is triable; except that -where the alpplicant's right to the mandamus depends upon tlLe question of fact as to whethete a cozrporation, duly authorized and required to exercise public franchises in the carrying and transplortation of persons and property, has in faict wrongfully failed and refused to exercise such franchises to, the detriment and injury of the people of this State, then, in that event, the said alternative writ alla be made returnable at any time within 83 twenty days, but not less than two days, in the discretion of the judge or judges issuing the same. A peremptory writ must be made returnable at a general or a special term, designated therein, to which application for the alternative writ might have been made. ~ 2. Tis act shall take effect immediately. * * * * * * * * * iMU:NICIPAL OWNERSHIP. As to the question of municipal ownership of street railways in cities, which has been suggested by many as containing the solution of these problems and as obviating the possibility of these difficulties in the future, your committee prefers to say the question is one too great and of too serious importance to be passed upon incidentally in an inquiry of this character. It means a revolution in the prevalent American theory as to tihe functions of government, and, while it may contain within itself the possibilities of the greatest benefits, nevertheless, it must be, because of its very nature, an experiment calling for the most careful treatment. The question of gorvenmental ownership of railroad properties is one of the most serious of all political and ecorvomic questions, and not to be lightly passed upon. Advocates of this doctrine have strenuo!lily presern*ed their views to the committee, yet we feel that we should be entirely unjustified in making any recommendations whatever in the premises at this time. F OREIGN CORPORATIONS AS STOCKHOLDERS IN DOMESTIC TRANSPORTATION COMPANIES. We can not too severely condemn the policy of our law, which, through recent amendments, permits the ownership and control of domestic railway corporations by other corporations, either domestic or foreign, themselves not directly organized for or responsible as corporations exercising the franchises granted to common carriers and organized under laws which do not require their capital stock to be full paid in money at par. qWhile it may 84 be impossible, constitutionally, to deprive corporations of their rights, as stockholders, in other railway corporations, where those rights have been acquired under the expressed terms of the existing law, we nevertheless believe that the State should revert to the old and historical policy, so far as railroad companies, steamship companies, ferry companies and other corporations designated in the general transportation law are concerned, and make it impossible for foreign corporations to be stockholders in such companies, that it should be impossible for foreign corporations to become stockholders in such companies in such a manner as to be practically the sole stockholder and thus enable them to enter upon stock watering transactions and to escape taxation here. Prior to eighteen hundred and ninety-two it had been the steady policy of this State to prevent one corporation holding and owning the stock of another corporation. The courts had steadily held that unless particular provisions to that end were made by the statute, the holding by one corporation of the stock of another corporation was ultra vires. At the time of the revision of the statutes in eighteen hundred and ninety this policy still prevailed, as will be seen by the following reference to section forty of the stock corporation law of that year. "~ 40. Stock, personal estate, corporation not to purchase.The stock of every corporation shall be deemed personal property, and shall be represented by a certificate prepared by the directors and signed by the president and treasurer and sealed with the seal of the corporation, and shall be transferable in the manner prescribed in this chapter and in the by-laws, but no share shall be transferable until all previous calls thereon shall have been fully paid in, and no corporation shall use any of its funds in the purchase of any stock of its own or any other corporation, unless the same shall have been bona fide pledged, hypothecated or transferred to it, by way of security for, or in satisfaction, or part satisfaction, of a debt previously contracted in the course of its business, or shall be purchased by it at sales upon judgments, orders or decrees which shall be obtained for such debts, or in the prosecution thereof. But any domestic 85 corporation transacting business in this State and also in other States, or foreign countries, may invest its funds in,the stocks, bonds or securities of any other corporations owning lands in this State or such States, if dividends have been paidi on such stocks continuously for three years immediately before such loans are made, or if the interest on such bonds or securities is not in default; and such stock, bonds or securities shall be continuously of a market value twenty per cent. greater than the amount loaned-or continued thereon." At the time of the revision of eighteen hundred and ninety-two this policy was completely reversed, and as far as your committee is able to judge without any sufficient public discussion or consideration, and without taking into view the evils which might arise through so radical a change. The amendment of eighteen hundred and ninety-two so changed the law as to make it read as follows (the paragraphing is here made for convenience): " ~ 40. Issue and transfers of stock.- The stock of every stock cororartion shall be represented by certificate prepared by the directors and signed by the president or vice-president, and secretary or treasurer, and sealed with the seal of the corporation, and shall be transferable in the manner prescribed in this chapter and in the by-laws. No share shall be transferable until all previous calls thereon shall have been fully paid in. "Any stock corporation, domestic or foreign, now existing or hereafter organized, except monied corporations, may purchase, acquire, hold and dispose of the stocks, bonds and other evidences iof indebtedness of any corporation, domestic or foreign, and issue in exchange therefor its stock, bonds or other obliga- tions. "(1) If authorized so to do by a provision in the certificate of incorporation of such stock corporation; or, "(2) In any certificate amendatory thereof or supplemeniT thereto, filed in pursuance of law; or, "(3) If the corporation, whose stock is so purchased, acquired, held or disposed of, is engaged in a business similar to that of such stock corporation; 86 "(4) Or engaged in the manufacture, use or sale of the property; "(5) Or in the construction or' operation of works necessary or useful in the business of such stock corporation; or " (6) In which or in connection with which the manufactured articles, product or property of such stock corporation are or may be used; or " (7) Is a corporation with which such stock corporation is, or may be, authorized to consolidate." * * * It will be observed that this is a radical departure along entirely new lines, so far as concerns all classes of corporations, except mining, manufacturing and chemical coll iatnies, and coa1ipanies organized under the amendments to the Manufacturling Law of 1848. although it had been the law that foreig'n corporations authorized to hold stock in other corporations might be stockholders in our domestic corporations where other domestic corporations vwere precluded frollt doing so. Thie effect of the present statute is to permit any corporation whatever, except moneyed corporations, to become a holder and "owner of the capital stol of a.ny other corporation whatever. 1This (qult.stion has been passed upon by our courts in several cases, doubt having arisen as to whether it was possible that so radical a departure had been intended by the statute, and the courts have held (although the matter has not yet been passed upon by the Court of Appeals), that under the existing statute such ownership by one corporation of the stock of another corporation is now generally permissible. It seems to your committee that nothing could be more adverse to genuine public policy than to permit the continuance of state of affairs such as that which hlas been illustrated by what loas occurred in the case of the Brooklyn City Railroad Compa)ny, Brooklyn, Queens County and Suburban Railroad Company and the Brooklyn Heights Railroad Comnpany, which have passed into the sole control of a foreign corporation, not even enjoying the rights of a transportation comlpany. That these mischiefs will increase in the future, and that advantage will be taken of this defect in our legal system, it does not seem possible to doubt. 87 We fully recognize that if the law be as we understand the courts have interpreted it, although this is riot yet beyond all doubt, that it will be impossible to interfere with tlose rights which have become yested since the passage of tlie law of 1892, but this should not prevent the rectification of the legislative error, and the passage of an amendment which will make these occurrences impossible for the future, so far as concerns the ownership of the stock in transportation colmpanies exercising public franchises, and which should at times be subject to the most complete control of the laws of this State. Without, at the present time, making any recommedation whatever as to corpoL rations of any other class, we urge the paage by the p e te Legislature of an act which will make it impossible for the stock of transportation companies to be held by foreign corporations, and particularly by foreign corporations of an entirely different class and existing for an entirely different purposes than those for which the transportation companies whose stock they own exist, or by corporations whose capital stock is not fully paid in cash at par. We, therefore, recommend the passage of the following bill: AN ACT to airelnd the stock corporation law. Thie.]co.ple of' thA Stait,: of Aew York, represenied in Senate and Assemnbly, do enact as follows: Section 1. Section forty of the stolck corporation law is hereby amended to read cas follows: ~ 40. Issues and traln!'sfers of stock. —The stock of every stock corporalion slhall be presented by certificates prepared by the directors and signed by the president o!r vice-president and secretary or treasurer and sealed with tlie seal of the corp)oration, and shall be transferable in the manner prescribed in this chapter and in li1e by-laws. No share sh1all be transferable until all previous calls thereon shall have been fully paid inl. Any stock corporation, domestic or foreign, nowr existing or hereafter organized, except moneyed corpora!tions, may purchlase, acquire, hold and dispose of the stocks, bonds and other evidences of indebtedness of any corporation, domestic or foreign, and issue in exchange therefor its stock, bonds or other obligations if authorized so to 88 do by a provision in the certificate of incorporation of such stock corporation, or in any certificate amendatory thereof or supplementary thereto, filed in pursuance of law, or if the corporation whlose stock is so purchased, acquired, held or disposed of, is engaged in a business similar to that of such stoick corporation, or engaged in the mnanufacture, use or sale of the property, or in the construction or operation of works necessary or useful in the business of suich stock corporation, or in which or in connection with which the manufactured articles, product or property of such stock corporation are or may be used, or is a corporation with which such stock corporation is or miay be authorized to consolidate. When any isuich co.roration shall be a stockholder in any other corporation, as herein provided, its president or other officers shall be eligible to the office of director of such corporation, the sanle as if they were individually stockholders therein, and the corpolration holding such stock shall possess and exercise in respect thereof all the rights, powers and privileges of individual owners or holders of such stock. Any stock corporation may, in puisuiance of a unanimous vote of its stockholders voting ait a special meeting called for that purpose by a notice in writing signed by a majority of the directors of such corporation, staling the time an'd place and object of the meeting, and served upo!n ealch stocklholder appearing as such upon the books of the corporation, personally or by mail at his last known post-office address at least sixty days prior to such meeting, guarantee the bonds of any other domestic corporation engaged in the same general line of business. Provided that no foreign corporation whatever, and no corporation, domestic or foreign, having authority to issue its capital stock at less than its par value for cash, shall acquire shares of capital stock of a transportation company organized under the laws of that State. ~ 2. This alct shall take effect immediately. In conclusion, the committee would say thait many other remedies have been suggested to the committee, but have been dismissed, not as unworthy of consideration, but as involving other problems than those for the consideration of which your oommittee was appointed. Our object has been to discover the 89 cause of the strike, to study its consequences, to loeate the responsibility for both the causes and the consequences, and to suggest such remedial legislation as appears to us to be at once conservative, safe and practical. We do not believe there is any radical legislative remedy for such conditions and disorders as have been described. They grow out of social facts and economic conditions which are too deep for radical cure by legislation. The only ultimate cure must come natuiroly from better relations and a greater feeling of sympathy between employers and employed, and the feeling of antagonism or difference of interest which too frequently prevails, cannot be removed so long as corporations are peiimrtted practically through their own conduct and through the failure on the part of public officials virtually to make themselves superior to the law. All of which is respectfully submitted. (Signed) VM. H. FRIDAY, THOMAS B. TUTTLE, JAMES A. DONNELLY, JOHN B. STANCHFIE'LD. In the foregoing report I concur except in the following pairticulars: The comments, criticism and conclusions drawn from the fact, that the railroad company in anticipation of trouble, laid off the electricians in the pits, are not justified by the evidence. The company took the ordinary, peaceful, lawful and justifiable way and means of proterting its property. A right which is as old as human consciousness, and sacred. As a cause, it had nothing whatever to do with causing the strike and trouble, neither did it in any way or particular prevent the parties from arbitrating. '. lThat the criticism and strictures applied to the mayor of Brooklyn, applies with equal, if not greater force to the commissioner of police. ' Dated Aplil 9, 1895. B. 12 E. LA GRANGE SMITH. PROCEEDIN GS OD' THEI SPECI")AL COMM1"ITPE OF THE. LEGISLATURE, TO I-NQUIREA INTO TUE CAUSES OF THE RECENT BROOKLYN STRIKE, HELD AT THE CITY HALL, BROOKLYN, -N-. Y., FRIDAY, FEBRUARY 14, 1895". Present - Chairman Friday; Mfessrs. Smithi, TIulttle, Stanchfield and Donnelly, conuititee. Mr. William- M. Iviiis, counsel for coinmilttee,. Chairman Friday.- We are here in accord(Ance with the res.-olution adopted by the Legisla'-ture of the State of New Yoik to inquire into the causes leadingr up to the recent B~rooklyn strike. Are you ready -to pro~ceed,.TMr. li-ins?.Mr. Ivins.- I aim ready. Chairman Friday.- We wviii ]proceed thien, land I will request Mr. Ivins to read the resolution. M.-r. Bins.- It is propeor that this r~ ~uinShould be spread Upon the miin-utes that the conumittee miay have its terms fully and clearly in miind ais the case goes on,. "Whereas, The city of Bro'oklyn is naow in a, state, of siege!, and un-der iuarvial. law', arising fromn the distur-bancecs incident to the great trolley strike; and "Whereas, The First' an~d Second Brigrades of the -National Guard or the State have bee-,n suimmoned to performeu active( duity to protect the lives and property of the residents of thaft (city; and " Whereas, As fhe~ rtailro adl c111(o"Iit~~nes~ refuse lo, alccede to the demnnds of their emplaloycs, afnd the m~en areo firm ini their determination to hold out for wh-at thiev chlam a-re but juist anld reason-able demands, and fair coinpl)'ns-atio-n for servNice rendered; and "Wherea~s, The lives, of thwecit iz(ns of 'Biool-:lyn have been,..]and -are being im~periled, in, csequ,.4encem~, pre(perty fias been destroyed an~d the city pult to uintold expense- for the, main' teinance, of military fo~rces to enforce the laws of our commoni people; now, therefore, be it "R~esolved, For a better protection of the lives and property of our citizens, this L.egislature 9~ppOint a, specital comm-ittee of 91 five of its members to examine into the ca-uses leading iup to the strike, fix the basis of responsibility therefor, and report Lo this Legislature at the earliest possible miiomxent their conclusions, with such reconunendations as will prevent a recurrence of the same; and, that said commnittee shall have full power and authority to investigate, all anid singular the aforesaid mnatters and charges, and that such conimittee have full power to prosecute its inquiries in any and every direction in its judgment ilecessary and proIrl)-e to enable it to: obtain and report -the inforination required by this resolution." Chairman Friday.- In accordance with the resolution as read by the counsel we are now-ii ready to biegin the examincal-ion, provided for. -Mr. Ivins.- Mr. Coninellv will take the stand. Martin James, Cionnelly hiavinga been called as a witness and duly sworn by the chairman, testified as follows: Examination by MNr. Ivins: Q. What is your business? A. Moftorian. oQ. wo long have yolu been a motorinan? A. Since the change ofr power from horse power to electricity. Q. When was that? A. I don't recollect the day. Q A-bout when? A. Well, I should sav about two. years, sometiring like that. (~. Abolut two years; before. that, what was, your business? A. A- card.river. Q. Are you connected with the Knights of Labor? A. Yes, sir. Q. Wh'liat is your official connection with them? A. I am Master Workman, presiding officerof District Assembly 75. Q -. Have you represented D)istrict AsX~sembly 75, Knights of Labor, in negotiations with the officers of the railway company for the rienewals or making of' contracts for the employment of ruotormen and oth-ers? A. I have; yes, sir. Q. Did yoii at any time; represent the District Assenibly in such negotiations lprior to Janua'ry of this year? A. Yes, sir. Q. ANre vou familiar with the history of the relations. between the raiwayN1tt corntpanic's arid their emploves, as explained in the contracts iiade between the presidents of the companies and the employCs? A. I am. Q Will you tell us what volu can of themn; lhave you1 a copy of the,ontrtaclt? A. No. sir; those capies heave been served on the presidents of all the (-oimpanies, or the managers, at least. Mr. TInyns.- Mr. Norton, haive you copies of the contracts niade between your company and the men? 92 Mr. Norton.- I have one original and one copy. Mr. Ivins.- Will you let me have them? Mr. Norton. — Certainly. (Mr. Norton presents copies of contracts to counsel.) Mr. Ivins.- Is there anyone here representing Mr. Lewis, or is Mr. Lewis here? (No response.) Mr. Ivins.-I would say that I have sent a subpoena duces tecum for all these papers. Q. Mr. Connelly, which one of the railroads are you employed on? A. ()On the Brooklyn Heights, the Long Islanid Traction, or the '3rooklyn City; I dcn't know which you cull it; it has got three names. Q. Has your District Assembly an executive conmittee? A. They hiave an executive committee. Q. Who constitutes that clommittee? A. Mr. Connelly, Mr. Giblin, Mr. Best, Mr. Collins and Mr. Hlolcomlbe at the present time. Q. Were the negottiation!s for the renewal of agreements conducted by the executive committee? A. Pairtly; yes, sir. Q. Did you take part in those negotiations? A. I did; yes, sir. Q. lid you take part in the negefiatiatiS! with the Atlantic Avenue Railroad Company? A. I did. Q. Was the failure of the men as represented by yorur committee, anld the officers of the company, tol come to an agreement with regard to the terms of the contract for the present year one of the causes of the strike? A. I believe so. Mr. Ivins.- Now, gentlemen of the committee, I have gone very carefully over the report of the State Board of Mediation and Arbitration, and I have taken every means to familiarize myself with the questions that are likely to be involved here, and in view of the answer given last by the witness, th'at the failure of the company and the men to come to terms as to the agreement for the present year was one of the causes of the strike, it will be necessary for me to put in evidence and bring out somewhat at length the history of the agreements between the employes and the officers of the roads duiring past years, and particularly for the purpose of showing the points of difference which arise now and which points of difference had not arisen heretofore, and for the purpose of bringing out distinctly the differenice between the contracts as. then in existencre and the contracts as proposed for the future. That being the case, I have here a coy o e f one o the oouiracts and I will have all of them. Tihis is one of the contracts between the Atlanticl Avenue Railroad Company and tthe employes employed on the street lines only. Chairman Friday.- Are you connected with the Atlantic Railroad Company? A. No, air. 93 Q. What company were you employed by? A. Brooklyn City, Brooklyn Heights, or The Long Island Traction Company; it has got three names. Chairman Friday. — Would this contract apply, Mr. Ivins? Mr. Ivins.-Yes, sir; because Connelly attempted to negotiate with this company. Mr Tuttle.-Did I understand him to say that the present cause of the strike was the failure toi agree? Mr. Ivins.-That is one of the causes, he says; the failure to agree upon the terms of the contract; this is a contract which was to go into effect June 1, 1893, and it was to continue in effect until June 1, 1894. Chairman Friday. —It was the failure of the renewal of this contriact that was one of the causes of the strike? The Witness.- I would like to state, Mr. Chwirman, that I don't know anything about,this contract; I wais not a member of the executive commnitee when this contract was signed, and if you are going to take this contract up I know very little about it; but the contract that was presented for this year, I can tell you about. By Mr. Ivins: Q. Have you a copy of a proposed contract upon which your committee and the president of the Brooklyn~ City Railroad Company, for instance, were unable to, come to an agreement? A. I have not; but, as I stated before, the companies have got the contracts themselves. Q. Will you state, generally, and in your own way what in youm judgment were the causes of the present strike? A. There are three companies which I understiand are iinvolved in this thing, and if you, wAll state just which one of them you want me to make a statement of, I will do) so. ' Q. Will you state the causes of the strike on the Brooklyn City, Brooklyn Heights or Long Island Traction Comainies' road, as you have described it? A. I would state as far as I know that it is a failure on the partl of the company, it is the failure of the company to put in practice the Ten-Hour Law. Q. Explain to the committee what you, mean by that and in what respect they failed to put it into practice? A. What I mean is that they are worlding them over 10 hours a day, whicdh is a day's work, according tio1 law as far as I know. Q. Will you describe in what way they were working them over 10 hofrs a day? A. Well, they mintepret the law th'at 10 hours means the actual running time on the rail, and the employes dlaim that from the time they go to work urtmil they finishiil actual working tine. 94 By Mlr. Stanchfield: Q.Whether on thle rilu or not?.A. Yes, sit'; they are in the employ of the companuy and they a-re responsi~ble fo~r anything that happenas to that oar while they have it in chmaage. Chairman Friday: Q.Ten hours constitutes a day's wNork? A. Somne of them work 11 hours anid 20 minutes, all the way froiu 11-30 to 11-35 anld 11-40 ittinutes; tlhe'py Nary some. Q. 1)0 you remember what the terms of the agreement between the men and the companies. were asto a, day's work? A. Prior - Q. Prior to January of this yealr? A. Well, I don't recollect just whait it was. Q. What do yolu understand it to be? A. I understand it to be just thisi; they have na~de a contract with them year after year that 10 houirs shall constlitute a, day's work, the work to be perfor~med within 12 consecutive hours andso on. Q.Was there any otho cause of disalgreement? A. Yes, sir;,on Jan~uariy 13th, there were a. lot of men employed known 'as electricians, they. fix them wsires, -and they ecpimenued to loick tlimn out on the, 1.3th of January; in. other wordls they iasked them if they woulld take the motoimen's placers,. and they refused, and when they wvouldn't do it, they wvould, Ioc1 them out, and that 4weated a. kj-,nd of a fire amom gst the men. By Mr. 'ftanchfield: Q. 'What: do voin nian by 10 hours, on the rail? A. They claim that the w orking time is only tile time the car is actually rolling on the road. Q. While the. whe~els are tur-ning? A. Yes, sir; while the wheels are turning. Q. That is, the wh~eels munst be tiu-ning for 10 straight hours.? A. 'Yes,;sir. Q.Every delay by reason of an accident; that do-es not count -as piart of the 10 hours? A.. No, sir. Q. What date was this strike declared? A. I don't know as there was any strik~e; I don't thinkc there was; the, men left, the employ of the comp~any; they did nolt want to- violate what they termed was a. State law; thi-y did not want to violate it. Q. WNhat you said a moment ago, I didn't quite catch on to it; you said something about the electricians being asked to take ~the places of the men on the 13th -of January; waa that it; T didn't ceateh it? A. The electricians reported on that Sunday evemning, the 13th of Janu"ary, that they were asked by the differ. ent foremen if they would take the place of the motormen the next morning. Q. If there was a strike? A. I don't know whether they put the word " strike " in or not; I don't know anything about it. Q. If there was a disagreement, or if they were asked to take the places of the men? A. That is what they reported. Q. They refused? A. They refused; they were told to go home, or locked out, which ever way you want to look at it. Mr. Ivins: Q. How many of those electricians were there, do you know? A. I couldn't say; there must be over two or three hundred. Q. Who were locked out? A. Yes, sir. Q. And that lockout of two or three hundred electricians was on tle Brooklyn City or Heights systems was it? A. Yes, sir. Q. Do you know what the work of those men was who were so locked out? A. They were the men who had the fixing of the cars. Q. Are they distributed around among all the different stables? A. Yes, sir. Q. Were they locked out from all of the stables? A. So far as I know, they were. Q. 'Now,!, you h.ave spolken of alleged breaich of the Ten-Hour Law, Iand the lockout of the electricians as two of the causes; now, do you know of any other cause of the strike on the Brooklyn City system? A. Well, there was a disastisfaction amongst te en; the men; te anagement of the company wanted to put on trippers, at trip rates. Q. Describe what you mean by trjppers? A. The trippers' trip rates means if you are working on. the road, that they pay 20 cents a trip; they will run you one or two trips in the morning for that amount of money, and then you will swing until. late in the evening, to,, say, 5 or 43 o'clock, and then you make one or two trip)s more-then you have got to come back and nmake the other one or two trips; it means they would have a man working for what they felt like giving him-for 50 cents to $1 a day, or a little over; and the men felt dissatisfied at that, too; it is not for tile company alone, but it is the same for the three companies involved at the present time. Q. During the past year what were the regular wages of the men, doing full day's work? A. Two dollars. Q. What were the wages of trippers? A. One dollar and fifty cents. Q. Was there any agreed proportion between the number of regular cars and trippers? A. Yes, sir. * 96 Q. What was it? A. I think it was two-thirds and one-third. Q. Two-thirds regular cars and one-third trippers? A. Yes, sir. Q. Did that mean that whatever cars were put on as trippers were to pay $1.50 a day for the men who were on them independent of the number of trips made? A. That was the agreenent between the companies and the employes. Q. How long had a similar 'agreement been in force? A. Quite a number of years. Q. You don't recollect exactly how long? A. No, sir. Mr. Stanchfield.- Will you explain the difference between tripers and regulars again'? Mr. Ivins. —As I understand it, and if I am not correct, Mr. Connelly will correct me —as I understand it, the regular pay for a man doing a full day's work is $2, and the pay for men who are running the the tripper cars was $1.50; now if he only made four trips but was still running the tripper he would still get $1.50. A. That was the agreement; they wanted to run these trippers at trip rates, at 20 cents a' trip, whatever it might be; it might be 25 cents a trip, and the men were protected by the $1.50 clause in the aigreement. Chairman Friday: Q. The trippers who got $1.50 a day, how many hours did that rereesent? A. Fourteen. Q. The trippers who got $1.50 a day? A. Yes, sir. Q. They wanted to fix it so that they could pay 20 cents a trip. A. They wanted to pay them trip rates; the rate being 20 they would pay 20; if they paid 25 they would get 25; but they would only run the trips just as they wanted, but the men's time was occupied just the same. Q. Was that one of the causes of the disagreements; did the representatives of the Knights of Labor refuse to still longer continue the agreement for $1.50 a day, or did the company? A. Mr. Norton, as well as Mr. Lewis, refused to give any proposal; they said plainly that they were going to run the road to suit themlselves in the interest of the company and so forth. Q. And they wouldnt pay $1.50 any further to trippers? A. They were going to run trippers as they liked at trip rates. Q. That was one of the causes? A. Yes, sir. By Mr. Ivins: Q. In these negotiatioans was there any propositionl made for an increase of pay? A. Yes, sir. Q. What was it? A. There was a, proposition made that the full-day cars paid $2.25 and the trippers $1.75. ~ 97 Q. What reasons did your committee urge for the increase? A. Since the change of the system;, the company has increased the number of trips run on eaich road; they have increased the speed, and by so doing they have put on more trips on the different roads, and that increases our work, our responsibility, and so forth. Q. You say they have increased your responsibility; is the character of your work different from that of last year? A. Not of last year, but it is different from the work on the horse cars. Q. Will you describe to the committee in what respects it is different, as increasing your responsibility and requiring a higher order of ability, if it does require it? A. The rate of speed at which they run the cars at requires more activity in a way and more strength; it requires everything, as a matter of fact. Q. At what rate of speed do they run their cars now? A. I don't know exactly what the rate is. Q. At what rate did they run them when they were running horses? A. I don't know exactly what ratle of speed they did run. Q. Take the Fulton Avenue line of the Brooklyn City line, one terminus is at the ferry, is it not? A. Yes, sir. Q. Where is the other terminu;s? A. At East New York. Q. Do you know how many trips were made over that line, between Fulton Ferry and Eiast New York during horse-car time? A. No, sir; I haven't al record of that. Q. Do you know how many are made at the present time? A. No, sir. Q. What line are you working on? A. Flushing Avenue. Q. One terminus there is the ferry? A. Yes, sir. Q. What is the other? A. Greenpoint Ferry; Twenty-third street and Greenpoint avenue and East river. Q. How many trips were made over that road when horses were in use? A. Five. Q. How many now? A. Five. Q. The sam'e number with electricity as'with horse? A. Yes, sir. Q. What is the length of that line? A. I have never measured it; I don't know what the length is; I can't swear to it. Q. Can you judge readily whether it is seven miles? A. I think it is something over seven miles. Q. Do you think it is eight miles'? A. I wouldn't say what the length is; I know it is over seven miles. Q. How long did it take you tofmTake the trip when the horses were running? A. Fifty-six minutes. B. 13 98 Q. How long 'now? A. Forty-eight is the running time; but you can't make it in safety. Q. Could you have made it in 56 minutes in safety? A. Yes, sir Q. So that there is a difference of eight minutes? A. Yes,.sir; each way, making 16 minutes. Q. And that for the five trips in the day is a difference of 80 minutes, or 1 hour and 20 minutes in the running time; is that right? A. Yes, sir. Q. What is the reason that that can not be done in; safety on a 48-minute trip? A. Because the rate of speed that the car goes at, the man; is unable to, stop it. Q. How lar'ge a proportion of the time, in an average trip, is taken up by stopping, with the electrical cars? A. That would depend entirely on the riding. Q. I say, an average trip? A. You may lose one-half of the time. Q. Have you known of trips in which one-hall the time has been lost? A. Yes, sir; I can safely say I have; but what time is lost has got to be made up. Q. What would you sa.y is the average proportionate loss of time in stopping for passengers - is it one-tenth, or one-twentieth, or one-third or one-half the time? A. Well, that will depend on how often you have goit to stop entirely. Q. Suppose you stop and lose one-half of your time in stopping, you say you have got tol make it up; that involves an increased rate of speed? A. That is what it does. Q. You are a motorman on the Greenpoint train; can you tell us at what rate of speed you are running your own cars, when, for instance, you, lost one-fourth of your time in stopping? A. I couldn't tell you for myself. Q. I mean for you1rself? A. Whatever time I lost I never made it up, nor I never tried to, becauise I didn't think I could do it in safety to myself, or safety to the traveling public, the trucks and so, forth; I never made one minute up, nor I never would. Q. Did the offcers; complain of you or did it involve you in trouble? A. No, sir; not personally; but I have heard of cases. Q. Tell us about the cases? A. Well, they were urged on and found fault with because they didn't run on the schedule time. Q. Can you tell us, the names of some of thiie men? A.,I couldn't tell you just now. Q Will you give me the names? A. I will try to; yes, sir. Q. Thank you; now, when we branched off on this question of th.e loss of time we were talking of the poposal to increase the' regular pay to $2.25 and trippers' pay to $1.75? A. Yes, sir. Q. Let me ask if there was any proposal suggesting a change in the number of regular cars and the number of tppers? A. Yes, sir. Q. What was 'it? A. I don't recollecrt what it was exactly; as I told you before the presidents of the different roads have been served with a copy of the agreement; I suppose they are in tbeir possession at the present time. Q. What was the result of the discussion for an increase of pay? A. They claim they can 'not afford to pay it. Q. Just tell us what reasons they urged in opposition to your request for an increase? A. They didn't offer any reason that I know of, only that they could not afford, to pay it. Q. Is that the rea,son offered by Mr. Lewis? A. Yes, sir. Q. Andl also by Mr. Norton? A. I believe so; yes, sir. Q. Is that the reason offered by Colonel Partridge? A. Yes, sir. Q. And also by Mr. Wicker? A. I hadn't seen Mr. Wicker beforc this trouble occurred. Q. Did you take any part in; negotiations with Mr. Wicker? A. Only after the men left his employ. Q. Did they acquiesce in the proposition to change the relative number. of regulars and trippers? A. They were determined to run as many trippers as they liked at trip, rate. Q. And they declined your proposals with regard to a change? A. Yes, sir.! Q. Was that one of the causes of the men stopping work? AL Yes, sir; that hlad a good deal to do with it. Q. What other causes do you remember wihiich lead uip to a stoppage of work by the men on the street cars? A. I dont know of any other cause; I don't think there can be any greater cause when a m;a!n is 'asked to work for 50 or 80 cents a day; I think it was about time to sttop, because I don't think he can live on 80 cents or 50. Q. By 80 cents or 50 cents a day you mean what he would be capable of earning per day if he was, running as a tripper on' trip rates? A. Yes, sir; that' is it, exactly. Q. Can you tell uis what the number of trips on the different lines of the cAity are, or can you assist us any in hart way? A. I would suggest' to yoqu, if I may be permittedQ. Your suggestions are in order? A. That you tell the different presidents to produce The different taibles her, and I think you can see for yourselves much easier than for me to explain it. Chairman Friday: Q. Do you know of any one who earned only 80 or fifty cents, 100 a day, as tripper - do you know of such cases? A. Do I know of them now? * Q, Yes, sir? A. Not at present; but that is what it meant; that is what they used to earn before we had an organization, before we organized and did away with this trip business; that is why that schedule was put in that agreemnent, that no car should pay less than $1.50 a day. Q. The agreement of '94? A. Yes, sir. Mr. Ivins. —This is, as I understand it; that the first agreement as entered into some time in the past when Mr. Hazard was still president of the company, and that the matter was taken charge of, so far ats the employes were concerned, by the' committee of the Knights of Labor and individual contracts cease to be made, and a regular systematic plan was agreed upon; prior to that time, men had been paid who were running on extra cars according to the services which they rendered, and one of the matters in dispute at the time was the low rate of wages of these men, and so, for the purpose of covering that the first agreement was made that there should be a proportion arranged between the tripper cars and the regular cars, and the regulars were to receive $2 a day and the trippers $1.50, and any man who went o;n a tripper for only one trip, for instance, was to get $1.50. Chairman Friday.- That was the Hazard agreement? IMr. Ivins.-That is what I will prove later on, because I have subpoened the preisident and asked for the productiion of all the agreements. fMr. Ivins: Q. As I understand, Mr. Connelly, and if I am not right, correct me; the proposition of the railroad companies was to return to the old Tsystem of playing men according to the number of trips 4that they run and not a specific, definite day's wages to all arip pers under a proportion of regular cars and trippers to be fixed in the contract; is that right? A. That is right Q. Now, under these contracts there were no men who earned 50 and 80 cents a day because they were all getting $1.50? A. They were; but at the same time there were roads, such as the roads that I ran on, we were ranning to the bridge; they were allowed the privilege of running trips at double-tri'o rate; that i' if the car —whatever it did by trip-rate?, they were allowed to make one trip, liut to pay double-trip rate. Q. What was the trip-rate on your line? A. Forty cents. Q. Is it not a fact that some had 20 cents? A. Yes, sir; down as low as 17. 101 Q. If a man ran a double trip-rate he would get 80 cents? A. Yes, sir. Q. And if he ran two trips at double trip-rate, he would get $1.60? A. Yes, sir. Q. 'Do you know of any man in the service of the line on which you are employed who got but 80 cents a day under the doublerate system? A. I know of lots of them; but I could not call them by name. Q. Will you get a list of those men? A. I will have quite a job, and again if I am not intruding oin you or the committee, I would ask you to ask the company to produce their books; you can see it there. Q. That is all properly in hand but it might take a great length of time to do it; if ydua happen to know the names of any, will you kindly furnish them? A. I received 40 cents myself, if you want to know. Q. As the result of a whole day's work? A. Well, I had the -rest of the day to myself, but I made 40 cents. Q. Men who make a single trip, are they classified as trippers falling under the $1.50 plan, or are they classified as extras? A. As extras. Q. Are they so recognized as extras by both the men and the company, and not as trippers? A. That is it. Q. Let me see if I understand this; the tripper bas to be within call all day long? A. The tripper? Q. Yes. A. Whatever trips he makes in the morning he makes them, and when he gets through he goes where he likes until he is called on again in the afternoons, sometimes. Q. How many hours of the day is the tripper under actual orders, or subject to the orders of the company? A. Fourteen hours, as far as I know. Q. Seven in the morning and seven in the afternoon? A. They swing, you know, but at the same time they are in the employ of the company; that is, they can not do anything else; there is nothing else for them to do. Q. Take the case of an extra; is he in the same relative position as the tripper? A. He is worse. Q. Tell us how? A. He has to report for duty before the first car leaves in the morning, and he has got to stay thete in attendance until the last car goes out at night. Q. How many hours would that be on the Flushing Avenue line? A. Fourteen or 15 hours. Q. You have spoken of your own case, and the specific instance in which you received but 40 cents; how frequently did that happen in your case? A. Only about once. 102 Q. And on that occasion you say you were allowed to go after you had performed the trip? A. Oh, yes, sir. Q. Did you ask for more work that day; did you want more? A. No, sir. Q. Did you want to go that day; did you ask to go that day? A. In this case I had a regular car; I wanted to be excused for that day, and in order that I might get excused I had to run this trip, but if I didn't get excused the extra would have to run it, and his time would be occupied during the whole day; he would have to remain there the whole day. By Mr. Stanchfield: Q. On that day did you get $2? A. No, sir. Q. How much? A. Forty cents. By Mr. Ivins: Q. Now, not discussing the question as to whether or not the causes were sufficient or ample, I asked you a while ago whether you knew additional causes other than the ones that we have spoken of - that is, the violation of the Ten-Hour Law, the differences with regard to the proposed increase of salary or wages, and the difference with regard to the suggested proportion between the number of regular and the number of tripper cars? A. I might state right here, that the question of wages was waived; that is, that the 25 cents increase that was asked for was waived; as I said before, it was the Ten-Hour Law, and the trippers at trip rate, together with the locking out of the electricians. Q. Tell us when the matter of rise in wages' was waived, at what stage in the negotiations? A. It was on the 12th of January, I think, as near as I can recollect. Q. It was before the strike? A. Yes, 'sir. Q. When did the men strike; on the 14th of January? A. Didn't strike at all. Q. When did they stop work? A. On the 14th. Q. That was on a Monday, was it not? A. Yes, sir. Q. This matter of the proposed increase of wages was abandoned by your committee on Saturday, was it? A. On Saturday; yes, sir. Q. WVas that abandoned in the negotiation with all of the companies on that Saturday? A. So; far as I know. Q. So that that was no! lo!nger ini the controversy at the time the men stopped work? A. Yes,, sir. Q. And, in your opinion, then, the matter is confined for its real 103 causes to the infraction of the Ten-Hour Law, and to the queston of the trippers and the payment by trip rate? A. Anld the locking out of the electriciars. Q. And the locking out of the electricians? A. Yes, sir. By Mr. Stanchfield: Q. In describing these extras ylout say thatr a man on the extra list has to be on duity when the first ciar has to goi out in the morniing and, lhe Reiains on duty until the last car goes in! at night? A. Yes, sir. Q. That extra, assuming he has no trip during the day, does he get any compensation? A. No, sir. Q. He is only paid for whatever trips he makes? A. Only paid when he gets the pay of men who lay off; I have know men to stay there for a month and never eailn a penny and never got a penny. Q. In the regular employ of the company? A. Yes, sir; in the regular employ of the company. Q. Can you give! the names of these men? A. I couldn't give the names. Q. Can you furnish them to, us? A. I can not; the company has got them,; they have got then marked up on their list; I might possibly be able to, go; around and get some of them, but the compaiies have) gct the names. Q. Now, Mr. Connelly, you have been familtar with this strike during its pendency, 'have you not, since it hasi been on? A. Yes, sir. By Mr. Tuttle: Q. I wanted to find out by what rule these extras' expected to be employed; what inducements did the complany hold out to them that they would be employed? A. When Ithey discharged somebody, or wheni they leave. Q. They are put upon the list and have to wait their turn? A. Yes, sir. By Mr. Ivins: Q The extras, really constitute the waiting list, and when a man is piut on an extra car 'he is taken fromi the waiting list, and then gradually as vacancies occur the men who have 'been on the waiting list get the cars when their turn comes around; is that it? A. Yes, sir. Q. How long may an extra, have to wait before he gets a regular car? A. Might wait all his lifetime and never get one. 104 Q. You know of cases where they have been waiting a long time? A. Yes, sir; I do. Q. 'glow long is tlhe longest that you have known of? A. I have lkn'oiin men to be on the extra list thiree years, and never get a car.,Q. [When a man is on the list,and gets a car what kind of a ear does he get - tripiper or regular? A. Tripper. Q. And when a man gets a tripper car, he next gets a regular? A. Yes, sir. Q. II his order? A. Yes, sir. Q. So that there is a list of regular men, which is filled from the list: of trippers, and a list of trippers filled up from the extras, and the extra men take the extra cars which are not running on any schedule at all? A. Yes, sir. Mt. Ivins.-Does that clear that up, Mr. Tuttle? M1r. Tuttle. —Yes, sir. Q. I was about asking you concerning the matter of alleged violence; I notice that a number of arrests were made for alleged violence, and I notice there has been a great deal of talk in the papers about the cutting of wires and interruptions of the work of the company; have you any knowledge whatever, directly or indirectly, as to by whom those acts of violence were committed? A. The only knowledge I have of those acts of violence, they were committed by the militia and the police department. Q. Will you describe the acts. of violence committed by the luilitia, so far as you have any knowledge? A. The shooting of a man a few blocks away from here, while he was attending to his work, was an act of violence, I call it. Q. Who was the lman? A. A man named Kearney.. Q. What was his work? A. A painter or roofer. Q. Was he in the employ of the railroad company? A. No, sir; in the employ of somebody else. Q. What acts of violence do you know of having been committed by the police? A. I know that they entered one of the meetirg places on Parmenter street, near Myrtle avenue, and while the men were sitting there peaceably reading their papers that the police went in and clubbed them, and some of them are laying in their beds yet after it. Q. Do you know the names of the men who were so clubbed? A. I know one of them. Q. What was his name? A. Th!omas Murray. Q. Is he still abed? A. No, sir; he got out yesterday. Q. Do you know his address; where can I serve him? A. He lives on Myrtle avenue, near Tompkins; I don't just think of the number; I can find him if you want him. 105 Q. Were these acts of which you speak -that is, the shooting of the man by a member of the Thirteenth regiment, and these particular acts of violence by the police, causes of the continuance of the strike; did they contribute to intensify the feeling and prolong the strike? A. I don't know; I can't say whether they did or not, but 1 would say this much, that I think they were not called for; there was no violence of any kind that I know of, prior to the militia coming into the city. Q. Were you present at the time the man was shot? A. No, sir. Q. Were you present when the police entered the meetingroom, of which you spoke? A. No, sir; I was going there that evening to speak to those men, to prevent any violence, if I possibly could, and the place was raided by the police before I reached there; at the same time I was going to be accompanied by a gentleman connected with one of the leading newspapers in this town, and the place was raided; I believe they knew we were going there and they wanted to make it appear that there was rioting.. Q. Complaint has also been made of acts of violence so far as concerns the persons of the employes not members of the Knights of Labor, and so far as concerns the property of the company; do you know of any such cases; do you know of any case in which a motorman who was not a Knight of Labor, and who was performing his duty as motorman was assaulted or attacked or interfered with in his work? A. No, sir; I do not. Q. )o you know of any case in which the wires of the company were cut? A. No, sir; I do not. Q. Do you know whether or not, as a matter of fact, the wires of the company were cut? A. No, sir; I do not. Q. I)o you know whether any of the cars of the company were interfered with or molested or injulred? A. No, sir; I do not. Q. Have you heard of any such cases? A. Only through reading the papers; that is all. Q. Have you ever had your attention called to the fact that any individual whatever, among the old employes of the company or an individual not an emp]oye of the company, had taken part in the cutting of wires or in the attacks upon the cars or the property of the company? A. No, sir; I have not. Q. What committees of the Knights of Labor are there other than the one of which you are a member? A. How do you meai? Q. Well, generally, for the government and control of the business of the organization? A. That is, as far as the railroad business goes? B. 14 106 Q. Yes, sir; as far as the railroad business goes here in Brooklyn? A. There are local committees since we have had agreements with the different companies; there are local committees attached to each road. Q. When you say locall committee attached to each road, do you mean liocal committee for each company or for each line? A. For each line. Q. Can you give us a list of those loical committees? A. Not now, I can't. Q. I do not mean at present? A. Yes, sir. Q. When can you let us have it? A. By Monday, I suppose. Q. Can't you do it this afternoon? A. I am pretty busy just now. Q. By to-morrow morning? A. I will try to. Q. Thank you, very much; 3o you know how many lines there are in all? A. Well, I have never commtled them up. Q. Do you know how many miles of road there are in the city-street railway? A. No. sir. Q. Now, is there anything else that you wou1ld like to say with regard to the causes of tle strike of your own suggestion and of your own motion? A. No, sir; there is nothing else. Q. Do you know of any causes of complaint at all - that is, causes other than the ones thiat you have spoken of here? A. Oh, there are several: the cutting down of 'the wages of the mechanical workers had a good deal to do with it. Q. Explain what that was? A. Well, in October, I believe it was, they cut down the mechanical workers; those who were getting $2.25 were cut to $2 or $1.75, and those who were getting $2 were cut to $1.50 a, day, and they were looking for to have those wages returned to the men. Q. Mechanical workers did not fall within the terms of the agreement at that time, did they? A. No, sir. Q. Was it sought to have those mechanical worolers brought within the terms of the last agreement proposed? A. Yes, sir. Q. By a special provision? A. Yes, sir; I believe I have got a copy of it here. (Witness presents copy of paper referred to to counsel.) Q. Is that it? A. Yes, sir. Q. Did your body represent the mechanical and electrical departments as well as the motormen and conductors? A. Yes sir. Q. In all three railway companies? A. Yes, sir. Mr. Ivins.- This will be placed upon the minutes in the proper place, but I will read it now. (Mr. Ivins reads paper referred to as follows: "First: A day's work shall consist of nine (9) hours, to be done within ten (10) consecutive hours, with one (1) hour allowed for dinner " 107 Q. That means to be done within 10 consecutive hours, does it not? A. Yes, sir. Q. What do you, as one of the committee, understand by the term "nine hours witln 10," or 10 hours within 12 consecutive hours -the motorman's time was to be 10 within 12? A. Yes, sir. Q. What do you understand by that? A. I understand that 10 hours is a day's work, that the remainder of the time belongs to the men. Chairman Friday.- That is a question I haven't got clearly in my mind., Mr. Ivins.-We will get at that. Q. When you say 10 hours out of 12 hours do you mean that under no circumstances are you to be in or about oir employed on business for the company more than 10 hours? A. Yes, sir; that constitutes a day's work. Q. When you say 10 hours out of 12 consecutive hours, where do you take your dinner hour out of? A. Take it out of the 12. Q. So that would leave 11 hours? A. Yes, sir. Q. Now, what is the other hour, where is the other hour lost, or what becomes of it? A. It is lost on the rail; supposed to be standing time at either end of the road. Q. Will you tell us what is done with that so-called standing time ait the end of the road, and tell us also how the change of the system from the horse road to an electric road has changed the manner of standing time? A. It has changed it in this -way, in order'to get these extra trips as I have explained before, or the additional trips, added to the running time on the change of power, that this time is all eaten up in trying to mnake that up; in other words, they put the schedule for 40 minutes and it takes 46 to make it, and the supposed standing time is actually used up. Q. Then the loss of standing time and the hoursn meal time makes up the full 12 hours; then is it understood by you that 10 hours out of the 12 means that you are to he 12 hours subject to the directions of the company, 12 hours from the time you go on? A. Except for meal times. Q. Except meal times, and that 10 hours of that time is to be devoted to work when the wheels are actually turning; is that the way you understand it? A. Yes, sir. Q. Was there any suggestion or proposal for change of time made when the contract with the motormen was under discussion? A. Yes, sir. Q. Was there any suggestion for a reduction -of time?. A. There was a suggestion that the so-called Ten-Hour Law should be lived up to. 108 Q. What did you understand by the suggestion when you made it; how would that change the situation? A. I understand that it would take off some of the trips. Q. Take off some,of the extra trips; the additional trips? A. Yes, sir. Q. Lengthening the number of regular trips? A. Yes, sir; that is right Q. Do you know of any line upon which the number of trips constituting a day's work was increased after the electrical system was completed? A. Yes, sir. Q. WVhich? A. Almost all tire lin'es. Q. Yours happens to be one of the exceptions? A. Yes, sir; mine hapipens to be one of the exceptions. Q. Do you know what the amount of mecha;nical and electrical employes of the company wais prior to the 31st of December, 1894? A. I don't; I will make a suggestion that you call some of the men here., Q. Now, the second proposed clause was: "Second. For all over time, employes to be allowed time and one-half, and for any fraction of an hour over 15 minutes, the time should be one and one-half hours." Now, do you knoiw anything about this question of over time in the meotha-nical and electrical departments? A. No, sir; nothing more than tha;t Q. Was there any representative of the mechanical department on the committee which waited on the president? A. No, sir; they never had a chance to see the president; they refused to have anaything at all to do with them. Q Was there any representative of those departments on your committee of the Knights of Labor? A. No; but they had interviews with them, they have a committee of th:er own, and I asked Mr. Lewis if he would receive a committee representing those people. Q. What was his reply? A. No. Q. Did he give any reasons for that answer; did he say he would deal through yon? A. No, sir; he did not. Q. Well, have you of your own knowledge any knowledge of the manner in which these electrical employes are employed, and how they are now paid for over time? A. No; I have not. Q. The third paragraph of this agreement was: "Any employe, except those hereinafter provided for, who works on Sundays or legal holidays, shall receive double time for his servies." Now, did you present this paper to Mr. Lewis, your committee? A. Yes, sir. Q. Did you discauss its terms with him? A. No, sir; he would not disouss it with us. Q. Would not listen? A. No, sir. 109 Q. You left it with him? A. Yes, sfA; he had a copy. Q. Do you know what the practice is to-day with regard to the payment for Sunday and holiday work? A. I don't know; I only can say that those whoi are in the employment of the company now and who have been leaving them quite frequently, have a good deal of fault to find with the way they are treated. Q. "Fourth. Men who work at depots shall not be compelled to work more than ten (10) hours on week days, nor more thea eight (8) hours on Sundays or legal holidays. Fifth. No man who shall have -proved his efficiency and' good conduct in the service shall be discharged without good and sufficient reasons. Sixth. No employe shall be discharged or discriminated against in consequence of his belonging to or affiliating with any labor organization." Now, with regard to the fifth clause-had there been any similar clause to that in any of the contracts that were heretofore entered into in the past with the companies? A. Yes, -sir. Q. Can motormen be discharged without good and sufficient reasons? A. Well, with that clause in there they get some kind of a hearing; I suppose there is some reason for their discharge) when they are discharged. Q. Well, is there any provision, that you know of that prevents a man being discharged summarily? A. I don't know as there is. Q. Now, do you know of any case in which, up to this date, any employe of any of the companies was discharged or was dis. criminated against, because he belonged to or affiliated with any labor organization? A. No, sir; I do not. Q. In your judgment, how did these companies keep their contract up to the time of this last dispute; what sort of a spirit did they show in their action, under the contract; did they keep them or break them? A. In some cases they kept then and in some cases they did not. Q. Can you indicate to us those cases in which they broke their' contracts? A. In the first place the contract of 1894 had a clause that no man employed in, around or about the shop should be paid less than $1.75; when they cut the wages of the mechanics to $1.50 a day, I claim they violated that clause. Q. Do you think that clause covered the mechanics and electricians? A. It said all employes; it did not say what. they were; it did not say whether they were presidents or superintendelits or what; it covered all employes, and whenw they Ce their wages I claim they violated the contract.; Q. Were the wages of the mechanics and electricians cut' doin on all of the roads? A. As far as the Brooklyn Height S'iw coneerned, they were.,!i f ~ ~ ~:, f. ';SI'' 110 Q. Do you know what the facts were in regard to the Atlantic Avenue? A. I would say there was another clause in it that said truck-drivers should receive nothing less than $2 a day for 1.) hours, and they cut them down. Q. What do you mean by tripfdrivers? A. Truck-drivers, I said. Q. Were those matters brought up in the discussion with the president? A. The attention of the superintendents was called to it. Q. Did you do that? A. Yes, sir. Q. When? A. Some time ago; possibly two or three months Q. Who was the superintendent? A. Mr. Cameron and Mr. Morrison. Q. Cameron is superintendent of what line? A. The Brooklyn Iteights..Q. And Morrison, what line? A. The same. Q. Both on the same line? A. Yes, sir. Q. The seventh clause is: "Should it be necessary to transfer an employe from one depot to another, it shall be with the understanding that his time shall be within the limit of nine hours (including traveling time), and that he shall be allowed expense of transportation, daily, until his recall to the shop or depot at which he previously worked;" now, do you know of your own knowledge whether the question of loss of time on the part of the mechanics in going from one shop to another has been a cause of complaint? A. It must have been when it is in there. Q. Have you any knowledge other than the fact that it is covered in this contract? A. No. Q. Or any knowledge of the extent to which it was a cause of complaint? A. No, sir; I have not Q. "Eighth: When: the force of employes is to be reduced, the senior employe in the Lservice of the company shall always have the preference of holding his position:;" was any similar proposition to that discussed with regard to the motormen and conductiors? A. No, sir. Q. "Ninth: Firemen shall work on shifts of eight (8) hours and shall not be obliged to care for more than two (2) boilers or one (1) battery. Tenth: Scale of wages - woodworkers, $2.50" do you know what the woodworkers were getting? A. They told me they had reduced tiem to $2.25. Q. "Workers on bricks and, trucks, $2.50 "-do you knowwhat they were getting? A. That used to be their schedule,.but they reduced themn to $2 and $1.75. Q. "Pitmen, including greasers, motor cleaners and laborers, lit. $2; blacksmiths, $2.75; blacm initl helprs~ $2; drillers and bolt cutters, $2; firepien, $2; controller. men, $2.50;.-rheaisad. ad wiremen; $2.50. Eleventh: No -man emplkyed in the mechanical or -electrical department (other than -those already providd for) shall receive less than $2 per day. TJwelft~h:- The number, of, apprentices to be employed by the company shall not exceed 5 per cent. of the whole number of men employed in any shop;") now, you know by what commi ttee -this proposed agrement was prepared? A. Prepared by the men themselves. Q.A 'committee of the men themselves? A. Of theme all. Q.Have they organized themselves into, a. regular body?, A. Yes, sir. Q. What is it known as? A. Local Assembly attached to District Assembly 75 of the Knights of Labor. Q. What is the name of the Local Assembly? A. Nine hundred and thirty-two. Q.loes it have a. president? A. Yes, sir. Q. Who is it? A. I couldn't tell you just now. Q. A secretary? A. Yes, sir. Q. Do you know his 'name? A. Not just now; I don't. Q.Does that Local Assembly have an executive. committee? A. Yes, siar. Q. Can you get us the names of the executive committee and its officers? A. If you want them, Q.If you can' goet them, I would like to have thiem to-imwrow, now, who constituted the Executive Committee: of your District' Assembly 75? A. Connelly, Giblin, -Best, Collins; Halcombe and Davidson. Q. What. company was Giblin employed by? A. Atlantlo Avenue. Q. Mr. ilolcombe? A. Brooklyn Heights. Q. Mr. Davidson? A. -Elevated Railroad Compiany. Q.Mr. Best? A. Kings Counmty and SuburibaII Q. Are the employes. of the elevated railfroadi~ rerpresemted iii your District Assembly 75? A. Yes, sir. Q. Did'the meployes of the elevated rooid take ay patin the strike? A. No, sir. Q. Do you know whether or not there were compi~jd n'ts or ~difficulties as between' the employee of the ele~vaited railroa& and their employeris? A. Yes; air. Q.Were there? A. Yes, sir. Q. Were they contributory In any, way. towards the *? Al. No, sir; they were not; they s~edle" their: dlffioulty'. Q. They were settled when? A. ~Well; I s~hould jtig days before the trouble commenced. .112 Q. That is), somewhere about the 8th, 9th, or '10th? A. Ye;S air; something like that. Q. is it not a fact that the arrangements were tome to between your committee and the Brooklyn and Sublurban Oompaifiy's line after the strike, but before the strike had proceeded 'viery far? A. How isp that? Q. Colonel Partilidge's system -was there any arrangement made with -them? A. After his men had left the employ, and they were out for three days he agreed to the arrangement presented to hhn. Q. That is, he ciame to thie terms that you suggested? A. That his men suggested. By Ch'airmian Friday: Q. Do you, know wha those terms were? A. To. put into practice the Ten-Hour Law, and. accepting the remainder of the schedule that they had last year; he has! since then increased their wages, I understand. By Mr. Wmns Q. To what extent has he increased the wages? A. Twso dollars and twenaty-eight cents a day; that is, the full-day card; the majority are receiving $2.28, and the trippers are receiving $1.71 or $1.75, S'ometh~ing like that. IQ. While you have been talking here you may have thouight of something thhat youi would like to say now as bearing on the causes of the strike, that you hadn't thought of biefore? A. There is nothing further. *Mr. IvinkL- We may have to recall you, Mr. Connelly. M.Connelly.- AllI right, sir. *Mr. Ivins.- The things we! want -now are the Iists of the Local Assemblies and the officers of the different Lrocal Assemblies. Ohairmian Friday.- And the gentlemen wh.o helped make those c ontracts. Mr. Clonnelly.- I will try and get the lists. Daniel F. Lewis, having been called as a witness, and duly sworn -by the chairnvan~ testified as, follows: Examinatibli by Mr. Ivins: Q. Mr. Lewis:, wheat is your business? A. President of the Briooklyn Heights Railroad Company. Q How lo~ig have youi been' president? A. Since February or Ma-rch, 1894. 113 Q. Whom, di~d you succeed as presedecit? A. Mr. In~gi) Q. And how long washle presiden~t? A. Thgt I dont'trnmn hber; I thitnk'about a year. Q. When did Mr. Hazard's time as piesident coeas? A. DeomcJber, 1886; it was ofr another company, however. Q. The Brooklyn CRTy Compan-y, I see? A.. Yes, sir. Q.And wlio succeeded Mr. Huzard. in the presideaccy of. the Brooklyn City Company? A.. I aid. Q. And you have be-en president ever igince? A. Yes, sr up to the time I took the presidency of thie Brooklyn HEeights, which was last Febru~ary, or Maich, 1894. Q Tell us, generally, what the relation of the Brooklyn City Comnpany is, to the Brooklyn H~ights Com~pany? A. The Brooklyn City is the landlord of the Brookly Heighs ofr th-e 1war. Q. How long has the Brooklyn Heights, Company been In txistpncee? A. I don't remember the date of its organizationseveral years. Q. H-ow long before the lease was executed between the Brooklyn City Company -and the Iteights Company were yon n~rc-sldent of the Heights Comp-any? A. I was president of the fHeigwhts Company prior to the election of Mr. Inglis,; It was a company that was reorganized, and I came in at the time of the reorganization; it was a small company, gotten. up by gentlemen, wiho were interested in financial matters in New York and Bro'jklyn, and who were desirous of seeing a proper railroad built between. the City Hall and Fulton. Ferry. Q. That is running up and -down Montague street? A. Ytes, Q~ About half a mile of it? A. Yes, sir. Q. Wlio were the board of directors of the Brooklyn City road at the time of the execution of the lease? A.. I haven't a list of th em here. Q. That you will get for me? A. I could do so; yes, sir. Q.Who were the board of directors of the Brooklyn Heights Company at the time of. the making of the lease? A. Thatl[ eari furnish you a list of. Q Now, how are you in control of the system, as president of the City Clompany, oIr president of the Heights Comp~any? A.. I am president of the Heights Company, wbhich Is the lessee. Q.You were preidnt of -the. Brooklyn City Company? 'A. X), sir. Q.Who is? A. The Brooklyn OlitylIs the lessor,,the. landlod the. Brooklyn Heights is the lessee. Mr. Stanchifleld.- You. have been uising those terms Intpr. 114 A. I did not think that I referred to the Brooklyn City, except as tiht lessrer. Q Who is president of the Brooklyn City at the present time? A. Mr. Merritt- Edward Merritt. Q What functions of a railroad company does the Brooklyn City now perform? A. All the functions under the laws of the Stallte of New York. Q. DIoeo it perforbn the funoiotns of d ctually operating the road? A. No, sir. Q. That is done by the Heights Company? A. Yes, sir. QV. Through the effects of the lease? A. Yes, sir. Q. And in that way the Heights Company administers the entire Brooklyn city railroad system? A. So far as its operation is concerned. Q. And that administration, operation and maintenance falls inder your hand as president of the Heights Company? A. In connection with the respective committees and boards of directors. Q. What committees have you? A. We have a committee on track. track extension, and repairs; on motors, cars and buildings, oth( r than power-houses; on machinery, power-houses, and work of tlhat kind; a finance committee; a committee on laws and legislation, and I think that is all. Q. Have you any special committee on purchases and supplies ' A. Yes, sir. Q. In addition to the committees which you have made? A. Yes, sir. Q. You know Mr. Connelly, do you not, who was the last witness in the chair? A. Yes, sir. Q. And you know the other gentlemen whom he named as members of a committee or board of the Knights of Labor, District Assembly 75? A. I think I have met them all. Q. You have had negotiations with them with regard to the renewal or making of a new contract between the employes and the company? A. Yes, sir. Q. Now, before going into that in detail let me ask you what lines of road were being run and operated by the Brooklyn Heights Company as lessee of the Brooklyn (ity Railroad Coimpany at the time of these difficulties - let's say during the first two weeks of January? A. All the lines of the Brooklyn City ftailroad Company, including the Montague Street line, which is the old line of the Brooklyn Heights. Q. Can you specify them? A. I would prefer to furnish a list; I haven't it with me, however. 115 *By Mr. Stanc~hfield: Q.Oam you give us the mileage.? A. Yes, Sir;. we can give yo~u the mileage if you wish It Mr. Stanchfield.- I wish you would. By Mr. Ivins: Q. INow, the Brooklyn CMy Railroad Clomipary for a- n, vxbor of years prior to the executdion of this lease to, the Brooklyn. Heights Company had been gyadually mergiug 'into it-self other systems, had it not, as -well as extending it&- own original lines? A. Yes, sir. Q.Wait systems were brought in by. merger; was the Flus&ing system one of them? A. I have got the papers here. Q. What systems were brought in by merger? A. The FViiiuk tug Railroad Company, Brooklyn Cross-Town Railroald (Compapiy., Calvery Cemetery, Greenpoint e"wd Brooklyn; N~ow Williamsburg and Flatbush; Greenpoint. and Lorimer $Areet; Grand Street and Newtown Railroad Ciompany, and the South Br~ooklyn Railway Oompany; Q. NOW, can you tell us~ I do -not, want the dates specially, but about when each one of those companies w-as merged into the Brooklyn City? A. No% sir; I cannot~ tell you -specifically. Q. Not specifically; about when? A. I 1Iin 1887, 1888, or 1889; from 18-87 txD1890, say. Q. Then between 1887 and 1890 it was the policy of the FErooklyn Clity to purchase and merge in itself and it did so purchase, and merge in 'itself, these other 'com~panies? A.. Yes, sair. Q.Did it during that time, also extend its own origginal lines? A. Yes, sir. Q. Now, what were the original linoes af the Brooklyn City Company, say, at the time you became president? A. I can give you a list of that, also; I could not, perhaps, recite them Per. feetly. Q. I think you can? A. I will make an attempt; the Gteenpoint, Fluahing Avenue~ Myrtle Avenue, Gates Avenue, Piituamti Avenue, Thilton Avenue, Flatbushi Avenue, (Court Street, Third1 Avenue, Hamilton Avenue, Fort H1amilton, Furmani Street~; I think those were al-l when I first became president. Q. Yes, sir? A. I think -that covers; it. Q.Had there been any policyWo extension with gouerM nwerging? A. There had not been a continued p)olicy of E~KteD~on since 1854 until I became president Q. hIiat, was your policy or plan? A. Yes, sir. Q.iSpportbed by thie boards at thoe tdinies? A. Yes, str; ftt was the officers of the oorrmpiny.. 116 Q. Now, do you know when the first agreement was entered into between the Brooklyn City Railroad Company and its employes, fixing in written terms the understanding between them? A. It was early in 1886. Q. Who was the president of the company at that time? A. Mr. BHjawrd. Q. And who were the parties to the agreement? A. I think this Excutive Board of District Assembly 75 and the company, the Brooklyn City Railroad Company. Q. What was your relation to the railroad atthat time? A. I was secretary and treasurer of the company. Q. Are you familiar with the agreement? A. Yes, sir; fairly so, although I took no part in the negofiation or settlement of it. Q. Were you also familiar with the general business of the company, and the relation of the company and the employes? A. Yes, sir. Q. Priom to that time, how had men been employed? A. They had been simply employed, put to work without any contract. Q. Just an individual understandling with the men orally? A. Yes, sir. Q. And the enterin:g into, this contract was a complete change of plan with regard to the employment of men? A. Yes, sir; that is, covering their mamner of doing work; it had nothing to do with the employment of men whatever. Q. Nothing to do with employment? A. No, sir. Q. But only as to the relations after employment? A. Yes, sir. Q. Did it have to do with discharge? A. There may have been features pertaining to discharge, such as;a reason being given, for instance, which was embodied in the contract, but a hearing was never refused prior to the contract Q. Did it otherwise change the power of the company over its own men; that is, the right to discharge or shift or change them? A. Not specially. Q. Have you with you that first contract or a copy of it? A. I haven't, but I can get that. Q. I wish you would get that for us? A. I have the next year here. Q. Do you know whether or not there was any material change made between the contract of 1886 and that. of 1887? A. I should have to enxamine it. Q Do you reoollect whether it was materially changed? A. I don't think so. Q. I just ask you that for the purpose of using this, now; I will say t the committlee that there has been a series of contratli, and there have been modifications from tirnme to time; as I understand it, there has never been any difficulty under 117 the cxatraots until the difficulties which arose in Jamsroy? A. Yes, sir. Q. What? A. We aide a contract early in 1886; a Oonrtro which made and provided for concessions t tthe men In f tie number of hours they were to be employed and the pay whtiio they were to receive, and other orders of regulation which caused an increase in the expense of the company of about $225,000 a year. Q. That was ins 1886? A. That was in 1886, which woluld be equal, if it were done at this time, ai similar change, to shbmt $900,000 a year; that was in the early part of 1886. Q. Will you specify, if you can, what the items of that change were? A. It was either the decrease in hours, the inarese in pay, or both, that resulted in that amount of money to us; it had a result of reducing dividends from 14 per cent. to 8 per cenit. at that time; you ashed about the difficulties under Ufe contract — in June, 1886, without any,reason, without any notiioe, the men tied our roads up; I think purely through, sympahthL growing out of troubles existing between employes and other companies; we had no further difficulty in the way of strike or tie-ups, until the present difficulty. Q. How long did that strike last? A. I beg your pardon; there was one other tie-up, immediantely after my election: tol the presidency of the company, that lasted a day; the one in June, 1886, lasted one day. By Chairman Friday: Q. This one you just mentioned, did I understand you< to say, was in 1887? A. The one in June? Q. No; the one before that; you said something about another? A. That was early in 1886; the question then came up, but we had no trouble. By Mr. Ivins: Q. Now, have you the agreement for 1894? A. Yes, sir. Q. Will you let me see it? A. I would like to have you have the use of them here for the committee. Mr. Ivins. —The committee does not want the possession of them. By Chairman Friday: Q. Is the agreement for 1887 a copy of the agreement of 1886? A. It is generally so. 118 By Mr. Ivins: Q. Now, the contract for 1887 read, that no conductor, driver, brakeman or gripman shall be required to work more than 12 hours per day; do you know what the provisions in the several contracts of the company have been with, regard to the hours per day worked, and how it has been expssed? A. Yes, sir; it is expressed in the contracts which I have here. Q. Let me see those, will you; I notice the one for 1894 is in very different form from the others. A. You would have t0i go back to the contract of 1893 to get the details. Q. Who, so far as you know, drafted the proposed agree:elnt for 1894? A. That I don't remember; I think the general manager of the company had much to do with it; you will find that in making the agreement for 1894 he simply refers to the contract for 1893, carrying the provisions on for 1894, and those sections in which changes were made he recites in the agreemlent for 1894. Q. I notice that the phraseology in the early agreement of 1887 was "That no conductor, driver, brakeman or gripman shall be required to work more than 12 hours per, day;" now, in the agreement of 1894 I find this~ "That no driver, conductor, motorman, brakeman or gripman; shall be required to work more than 10 hours per day, the work to be performed within 12 consecutive hours, to be calculated in the same manner as provided for year 1889;" now, have you that contract for 1889, as to the calculation of time. (Witness produces contract referred to.) "No con'ductor, driver, brakeman or gripman shall be required to work more than 10 hours per day, the work to be performed within 12 consecutive hours. The said 10 hours to be calculated as follows, viz.: The time consumed in running from one end of the line to the other and return only, and shall not include any other time, such as stand-time, mjeal-tim~e," etc. Now, when wa:s the first change made from 10 hours to 12 hours? A. In 1889. Q. Was that consequent upon the passage of the Ten-FTHour Law? A. The Ten-Hour Law was adopted in 1887, I believe the men, in making their propositions up to 1889. had simply proposed them for 12 hours' work, and were agreed to: in 1889 evidently the law had been discovered,and it was felt th;at they should comply with it or work lnnder it, and they thlen propoied 10 hours in 12; the reason of this interpretation which has been read is that it is impossible to get 10 hours' work from conductors, drivers or motormen. Q. You mean exactly 10, in the way you gret 10 from a. clerk or hand in the factory? A. Yes. sir; I have noi doubt it was 119 expected to get 10 lbiors; it wa~s found through the reauw o the varied lengthhs of our rolads thAt it was habpsibl~e toi Ve exactly 10 hoarsP worik friom the meu unless thoey 1took- te zaesi from their oars in the middle of the Frods or plaome not ~At the ends of the lines and re~plave them by other nalen in that way, which is not practicable; so that in; view of the fact that we could not secure ten hours' work the men, said at, I think, my suggestiorm, that the istandl time should not be calcuated kr 14) hbeurs; in. miillis, of clourse, and facto-rlies;'they work 10 hours in 12; from 7 until, 12, rest-ing until 1 and then, starting and stoppingc at 6, gettinlg 10 houirs good work out of 11, which we could 'not dco; so that it was agreed during 1890, 1891, 1893 and 18,94 that that, was -the proper interpretation of the law in order to get the actual time: we were entitled to,.Q. Now, have you, the prorposed agreement for 1895? A. I' think I have; yes, sir. Q. Let me ask whether that is the proposed agreement submitted by the employes, or the pr~oposed agreement drafted by yo-urself? A. It is the form of agreement prorposed by the eniployes. By Chiairman Friday: Q. Is it praicticable in railroad life to get 10 hours out off 11, the samne as you do out of any other industry? A. I think it could be done; yes, sir; meal time, for instance, which, hase in the past bee~n pireiscribed, by the law sfiliply refers to the dinner hours moire particulairly; if I recollect it; we give 20) minutes for breakdfaist on, Broadway and 30 minutes for diinmer, so that we get 50 mi-nutes, in: that way, and it would come rwi~thin 11 hours provided we could retain 10 hiours' work in the 10 as, I have described. Q. Before -taking that up, I find in the cointrort foir 1894 this iwo-vision: "1Witnesseth, that the parties, h~eretoi covenant and, accept and do approve and accept, the agreemmt' of 1893, between the empiloye$ and thie compan,,y, with the followming mnodifications and interpretations "- so that thiere was no modificatikrn of the terms of the contract for 1.893, and the agireement of 1894, th~erefore, would stand in this: foorm, iso' far as this matter of hours is couceijued, and that "IS wha~t we want to) get at -" That no driver, conductor, motornan, brakeman. or gripmian shall be required to work more thian, 10 hourfs per day, the work to be' pcrffoi)me-d within 12 consecutive. houxe, to be calculated in tihe same mianner as provided for year 1.889," and that contract ptrOvides as follows: "The time consumed In run~ning from one end of the line, to the other and return only, and -shall not include 120 any other time, such as stand-time, meal-time," etc. That, then, was the condition of tthe contract between' the parties at the time that a 'renewal or reformation of the contract was proposed in December or Janluary of this year? A. A new proposition; the agreement of 1894 contaules the' aigreement of 1893 with exceptions, no exceptions, is made with regard to working time, therefore the provision of the contract of 1893 was, the one which was in force in January, 1895, and thiat provided that no comadctor, motorman, brakeman or gripman shall be required to work more than 10 hours per day, the work to be performed within 12 consecutive hours, to be calculated in the same manner as provided for the year 1889, and the provision in the contract for 1889, which is thus made a part of the contract which was last in force beta een the company and its men was, "Namely, the time consumed in running from one end of the line to the other and return only, and shall not include any other time, such as stand time, meal time, etc." Chairman Friday.-Do you understand that the 12 hours did not include the stand time or meal time? Mr,. Ivins.-The 10 hours did not. It was 10 within 12 the.:iil 10 hours should be calculated as follows, etc., the 10 hours therefore did not include the stand time or meal time; and as I understand it, and Mr. Lewis will correct me if I am in error — as I understand it, there was an obligation on the part of the comnpany not to exact more work than this, namely, 10 hours within 12, which 10 hours did not include the stand time or meal time, so that the stand time and meal time came out of the 12 at the expense of the men, and not out of the 10 at the expense of the company. By Mr. Stanchfield: Q. That was in force down to January 31, 1894? A. Yes, sir. By Mr. Ivins: Q. Now, what was the proposal of 1895? A. The proposal for 1895 was as follows; "That no conductor, motorman, gripman or brakl-man be required to work more than 10 hours per day, the work to be performed within 12 consecutive hours, as provided by Nlate law;" this is a form that was followed each year, if I recollect, since I have been president; it always came to us in this way in printed form, or rather typewritten, but we always stood on the interpretation which has been read, and to which I have rfeli red. Q. you insisted on including the interpretation of the law in 121 your contract, and not merely making a reference to the law? A. I said this; There had been no judicial passing on this Ten-Hour Law, to my knowledge; that if we agreed to this 'this time, we would agree to something there would be a dispute aboiit in the first week, unless we did interpret it and define it in son1m way; I gave the same reasons this year why that same interpretation should take place, so that the company could get as near as possibly 10 hours' work, but including stand-time on sole of our lines we could not, by reason of the length of them, get 310 hours' work; including your stand time, you can not get 10 hours' work, and it is impossible to put on another trip; if you did, then you would exceed 10 hours, and you would come within this law, and subject yourself to the result Q. Can you have, when you come back, copies of the time-tables a 1d schedules? A. No, sir; I don't think so - existing when? Q. Say on the 1st of January, or the 1st of September? A. I wiil see if I can get them. Tiecess until 2 o'clock. AFTERNOON PROCEEDINGS. lDaniels F. Lewis, recalled': Examination resumed by Mr. Ivins: Q. Now, Mr. Lewis, will you tell the committee exactly what occurred between yourself, as president of the company, and the Executive Committee of the Knights of Labor with regard to the matter of time in! your negotiations with them? A. In regard to the matter of time? Q. In regard to the matter of the 10 hours within the 12; tell us exactly what occurred in those negodtiations? A. Its resulting negotiations? Q. Yes, sir? A. I have answered that question, Mr. Ivins, in the last answer, that this was presented and I statt-d-I called the attention of this committee to the inrteiertaio which had been agreed to since 1889, and that theme was no, reason why it should be differently interpreted then or now. Q. Is there any reason why tihere should be a different initerprebation as inicident to the fact of the change of power from horse to electricity? A. Not at all; I might say, in connection with that matter, that it was well understood between the committees who represented the men and t he officers of the company, and has been for several years, that when: electricity was introdtced, that faistier time would be made thain horse-ar time, and. consequently more tripe woulid be included in the day's work; if that hadn't been well understoold, I question B. 16 122 whether rilroad men would have advised the chamge from horses to eleetricity; it is one of the economies that grows out of it tihat we calculated upon and had a right to calculate upon;, the hours presribed for labor in 1887 was 10 within 12; there had been no change in the law to warrant any changge in the operation of our cars, and consequently we expected: to continue to get as near 10 hours' work as possible out of the men, by running as many trips as we could; runl in that time; you will find in one of the contracts- if you will give me that for 1889 I will show you what the intention and agreement was covering the number of trips which were tbo be made in ai day's work. (Mr. Lewis reads from contiract referred to.) Q. What article is tthat? A. Article 6 of the year 1889: The nubier of trips which shall constitute a day's work on each of the limes of the company shall not exceed that which can be made in the hours provided for in sections 1, 2 and 3; sectiols 1 being the 10 hours within 12; section 2 being the mealtim,, and section 3 the proportion of trippers to, straight runs; so, you can see from this agreqement that not only was the interpretation of the Ten-Hour Law made to include stand-time, but, in addition to that, it was agreed that the number of trips which should iniclude a day's work should be ais many as you could get in 10 hours, taking all time consumed to go over the line into oonsiderationi; this, in 1889, was made when the horse cars were in order, but we increased the 'running time under the horse-car systema and that allowed us to get in an extra trip; as I say, we never would have adopted electricity if we couldn't have got 10 hours a day out of the men, making as many trips as we could in conformity with the law. Q. Right in that connection, you were looking in the adoption of electricity, were youl not, for the munning of more cars. within the same time? A. More trips. Q. As one of the economies? A. Yes, sir. Q. And you expected the men to work 10 hours? A. Yes, sir. Q. So that thti lenetlh of time woiuld not va.ry flrol, that '-hich existed under the old condition? A. Yes, sir. Q. That was economy to you? A. Yes, sir. Q. An eleu:ent, of additionr',l prol.t? A. Yes, sir. Q. Did the change involve, necesisarily, the employment of any higher class, or more especially skilled class of labor on the electric cars than on the horse cars? A. No, sir; except in this way; it required some instructions and some little skill, and when I say that 90 per cent, at least, of our old drivers have been made motormen. and they have been made motormen under our instruction and at our expense it shows you that it does not call for skilled labor; we take a man and within a,week we will 123 have him entirely competent if he has ordinary judgment and ability to be a first-class motoannan; we first examine him, so Tar as his health, hearing, sight and general make-up is concerned in weight, height and so forth, then we put him down on a school which we have organized where he gets an opportunity to learn about the eletric nmolteo, the controlling staad, trolley-wheel and so forth; after undergoing these instructions he is turned over to a man on the line to which he is to be assigned; he then runs over that road, learns the switches, curves, turn-outs and special work and the work as a whole; he is then passed upon as a motorman, accepted by the foreman and placed at work; that all can be done in a week, consequently it proves that it does not call for what is generally termed skilled labor; does that answer the question? Q. Generally, yes, sir; now, you spoke of the examination physically; does that differ any from the examination which prevailed during the time of horses? A. I think in the last two years not so much, because we have changed from horses to electricity, and as we go on we introduce new methods and plans by which we hope to get a better result; it hats been practice for some years to be more careful as to the men we get, their antecedents and their general qualifications. Q. I understand in Rochester a regular system has been instituted for the purpose of examining as to the sight of men; how have you established your system for the test of their sight? A. We have no plan so far as undergoing a profe:dional examiniation is concerned; we make inquiry of the man' himself; we make inquiry of the people whom he refers to. Q. Does it require a better and keener sight? A. I think not; a little more care, perhaps. Q. More judgmentt- A. In operating a little faster than he did with horse power. Q. More judgment? A. No, sir; I think not. Q. A better nerve? A. No. Q. Any higher order of intelligence, whatever? A. I should say not Q. In that connection, because I will have to go into that in detail later on; has the proportion of accidents increased materially under the electric system? A. When it was first introduced very materially, as has been the practice and result in every city where such a thing has taken place, but after a time it has been modified very greatly, indeed. Q. Have you any record of the accidents on your lines? A. No, sir; I haven't anything with me; we do keep a record of it; but my recollection from making a calculation some time ago showed that during the year 1893 there veree 33 deaths on our 124 system, and in 1894, 10; in 1891, prior to the introductionr of electricity, when horse cars prevailed entirely the Dumber of deaths was seven; and the increase in travel was about 25 per cent. between 1891 and 1894; now, if you will take the increase of travel into consideration you will see that the number of deaths is not out of proportion, or very slightly so, from 1891. Q. Have you similar statistics in regard to personal injuries not resulting in deaths? A. I think we have. Q. Can you supply me with those? A. I shall try to do so. Q. I asked for some time-tables; have you been able to find them? A. Just about January 1 it was the intention to change time tables as it alw.ys i's at that season of the year; those tables were sent to the depots and were figured on, and they are at the viarious depots now; I have left instructions to have them sent here, and expect to have them to-morrow. Q. As an illustration, can you tell us over the Fulton Street line, let's say, and also over the Greenpoint line, what the number of trips were per day under the old hoase system? A. Between Fulton Ferry aind East New York on the Fulton line there w;rc five; now there are six. Q. On the Greenpioint? A. On the Greenpoint I think they are the same number. Q. What was, and what is the number of trips on the Myrtle Avenue line? A. Seven. Q. Seven now? A. Yes, sir; and I think there were six with horse power; I could give you these correctly if you would make a memorandum of them. Q. I just want two or three for the present; do you remember what they were, and what there are in the Flatbush? A. I think six through to the old depot, and are now seven. Q. In case of which line was the number of trips most largely increased? A. On the short lines, always. Q. And which were they? A. Take Bedford, where we used to run short cars from Bedford to the ferry, or take the Court Street line, from Pine Street depot to) the East River Bridge; you see the shorter lines gives you the greater number of trips, although it does not increase the mileage out of proportion. Q. What is your total mileage in operation? A. Straight or single? Q. Straight mileage. A. About 100; that takes in Brooklyr and out of the city. Q. Taking that entire 100 miles, what would you say would be the average per cent in increase in trips? A. I should think it would be about 15 per cent 125 Q. Fifteen per cent; that is, generally speaking, where you had six trips you would have seven? A. Yes, sir; that is right. Q. And correspondingly, as you went down on your lower roads, where you had 12, you would have 14? A. Yes, sir. Q. Now, how much increased rapidity or speed did the addition of those trips involve? A. About the same increase as per centage. Q. About the same? A. Yes, sir. Q. About 15 per cent.? A. Yes, sir. Q. Take your Fulton Avenue line, what was your average speed per mile there with the horses -was it seven and a half? A. No, sir; I think we got about seven miles an hour out of the horses; we got seven and a half on Third avenue, and seven and a half on Gates, if I recollect. Q. You increased that 15 per cent.? A. No, sir; where we were running as fast as that with horses, we did not get that same relative increase; we got more where we did not run so fast. Q. You had six trips on the Fulton Street line, and put on seven? A. Yes, sir. Q. Did you increase the speed one-sixth? A. I don't remember; I should have to look at that; it does not necessarily mean that you should increase your speed, for instance, you are running a line six trips to a day's work, and you have a certain overtime; you can take a greater length of time than though you were running seven trips, often, because by increasing your running time slightly and, shortening your stand-time, the two will allow you to put another trip in. Q. Your ability to run an additional trip was due to your ability to save something in running time and something in the stand-time? A. Yes, sir. Q. How much did you save in the standtime in! the course of the 12 hours on the Fulton Street line? A. I can't say. Q. Do you think one-half? A. No, sir; I do not. Q. How much should you say? A. I shouldn't like to say without looking; you see, we have 32 lines of cars, ahd it is a difficult thing to carry in detail every thing regarding the operation of the cars. Q. Now. how much time do you calculate tihat a man had as stand-time during the 12 hours under the old system? A. I should think an hour and a half on the average. Q. And out of it an hour for his meals? A. No, sir; 50 minutes Q. So that would reduce his actual day's work then, while the cars were in motion to 9 hours and 40 minutes? A. How is that? Q. Well, he has an hour and a half and 50 minutes? A. An hour and a half is the stand-time: that is the case, approximately. f 126 Q. Take an' hiour and a half and 50 minutes out of 12 hours and you have 9 hours hours and 40 minutes, have you not? A. Yes, sir; that is right Q. So that, under the old system, then, althoulgh he was at work 10 hours a day, he might possibly overwork it and he might underwork it? A. Yes, sir. Q. This is one of the illustrations in which he uniderworked. Q. What did the men do with regard to the istand-time under the old system? A. That would depend on the end of the road; if it was at the ferry, where the stand-time was short, they would generally leave that trip at the office amid take a drink of water, brush their clothes and go back and staxt. Q. Was it a part of their duty to stand on the car and solicit passengers? A. No, sir. Q. Was that done by the starters? A. No, sir; not at alL Q. At rLe other end, at the stable end, whait did they do? A. That is where their overtime varied oonsiderably, and, in some instances, it was very long; I have known as long as threequarters of an hour for stand-time on certain trips on certain lines on certain time-tables, Q. Was that rest time for the men? A. Yes, sir; most of it. Q. How is it with the present system, do they stand longer at the ferries? A. No, sir; about the same; but not as long at the other end, as a rule. Q. Whjat do the men now do during stand-time? A. Pretty much as they please. Q. Have they any duties about the car? A. No, sir. Q. Take the Fulton Avenue line; what do you' call.the upper terminus? A. East New York. Q. What is the stand-time there now under the electric system? A: I don't know; I would have tot look. Q. In making your Schedules, what has been the standard time of actually running to which'you have endeavored to fix your time-tables? A. That is, the number of hours? Q. No; the number of miles per hour; is it the ordinance time? A. No, sir; we do not get that result; we can not get 10 miles an hour. Q. Ten miles is the ordinance time? A. Yes, sir; we are not allowed to exceed that, and the running time on the average, take the system as a whole, and we can get no better results than seven and a half miles per hour, which, as I told you, we used to get by horses when running them very fast; it was too fast for real economy. Q. Have you the material or data on which you can base a 127 calculation of the aount of time lost in stoppage? A. I don't know thalt I have ever made a careful calcu!ation of that; go, sir. Q. Then, exercising your best judgment, and taking it as nearly as you can get at it, what proportion of the time of a oar on a trip running under the electric systemn, a at present operated, would you judge was lost in. stopping? A. I a!hodul like to say --- Q. You know it was more than 1 per cent.? A. 1 never have calculated that Q. Is there any means of getting at it? A. Yes, sir; by actual test, by getting on the cars and timing it. Q. Will you have a test made? A. Yes, sir. Q. On the longer lines? A. Yes, sir. Q. Will you have the test made during the hours of the fewest stops, and during the hours of the most nulnerous stops? A. Yes, sir; it would be well, I think, not to take the longest road, but take two roads, which would give you an average. Q. Very well, take two; take one short road and one long road, take the Fulton Avenue in one case, and take the Flushing Avenue line in the other. Q. That is one of the longest lines we have got what is one of the shorter ones? A. The shortest line is the Bushwick; the longest would be the Crosstown or Flushing Avenue line. Q. What is the, upper terminus at present of the Flushing? A. Foot of Greenpoint Avenue, where the boa;ts from New York come to Twenty-third street; it is a sort of belt line now, beginning at the river front at te fboot of Greenpoint Avenue and tenrminating at the river front at the foot of Fulton street. Q. I understand you and the men were unable to come io terms in January upon this point as to the 10 hours in 12; is that in your judgment one of the causes of the stoppage of work on the part of the men? A. No, sir. Q. Is that in your judgment one of the material eleenlute of the present difficulty? A. No, sir. Q. In addition to this demand with regard to time, what demand was made, or request, with regard to wages? A. The scale of wages which was demanded for conductors and motormen, $2.25; they had been paid $2 in the past; truck drivers, $2; they had been paid $1.75; car cleaners, $2; they had been paid $1.75; watchmen, $2; that was the same rate which we had previously paid; brakemen - I presume that meant on trailers which we ran very few of -they asked $1.75; we had been paying $1.50; cartmen, $1.75; we had previously paid $1.50; trackmen, $1.75; we had been previously paying $1.50 auld $4.25. Switeh turners, they asked $1.50; we had been paying $1.25. 1.28 Q. There was a general advance of 25 cents asked for? A. Yes, sir; from 25 to 50. Q.ild you meet that request?' A. INo. si~r. Q. Why not? A. Because we were not able to do so. Q Had you been able to do so would you have met it? A. Yes, air; Ithink so. Q.When you say that you were not able to do so you mean you were not earning dividends, that you; thought would justify ft? A. We were not earning any money on our investment. Q. Were you mmeting1 the, obligation of your 'bonds? A. Yes, sir. Q. How recently was the last dividend. whIch you paid upon your stock? A. We never p~aid. a dividend- since the, Long Island Traction Company or the Brooklyn Heights Company got Control. Q. The Brooklyn Heights Company had, control of the system how long? A. Since June, 1893. Q And the Long LIsland Compauny as lessee of -the Brooklyn Heights Company, how long? A. A little longer than that. Q. Did the Iong Island Traction have control of thie Brooklyn Heights, Company at the time of the lease? A. At the time the property was delivered on June 6th it had control; the leiase was on the 14th of February; I think at tha~t time the Long4sland Praction Comipany had oon~trol. Q. What was -the last dividend- paid by the Brcoklyn City Cornpany before fit made this lease'? A. It made the. lease June 6, 1893, and paid a di-vidend on, the 1st of Api,1893. Q. Has any dividend been declared since that out of the assets to any of the stockholders? A. In- ad'dition to the rental? Q.No, sir; but in addition. to the dividend which you speak of before you made the lease?. A. I think the best a~nswer to that is that the Brooklyn City Company has paid the stockholders 2 per cent. a quarter, or 8 per cent. per annum; that had been continued since 1886 when thie dividend was, reduced from 14 per cent. to 8 per cent., afs I testified this mo~rning, so they had continuously paid 2 per cent. a quarter up to' the time the lease went 'into effect. Q. For the preseni. speaking gren~erally. what. are the ternis; of rentpl'in the lease betwee-n the Br~ooklyn City Company and the Hei-ghts Company: that is, what had they paid by way of. gua ran tee or!interest? A. fThey agreed to pay the interest on the bonds of the Brooklyn City proper and the bond s of the, le-ased lfines which they 'had pre-viously acquired and whiich were merg-ed into the lines and company of the Brooklyn City Rail. r~oad: they agreed to, pay 10 per cent. on its capital stock as Issued, It hclng $9,000,000 at the time the lease went into effect, 129 and subsequently $3,000,000 additional issued, wliMch were issued under the terms of the leases the proceeds of that to be devoted for the conversion from horse to electricity, and as those inureaaes were nlade from tine to time that 10 per cent. rental was to be applied. i Q. Now, has that 10 per cent. which the Brooklyn Heights Comipany obligated itself to pay to the Brooklyn City Compainy been paid? A. Yes, sir; but not entirely out of the earnings of the pi o)erty.. 'When paid, and for the present without coisideratin as to what it was paid out of - when plaid, was it paid as a dividend to the stockholders of the Brooklyn City? A. Yes,.sr. Q. The full 1C per cent.? A. Yes, sir. Q. So that during the past years the Brooklyn City stockholders, whether olut of the earnings or oither souroes, did get 10 per cent. dividend out of their stock, did they? A. Yes, Sir. Q. Now, what do you mean exactly by saying that the condition of the companies and your failure of earnings did not justify you in making this increase? A. We did not make in the last year of our operation our full charges under the lease. Q. VIWhen you say "we" and "our," won't you designate the company? A. Yes, sir. Q. The Brooklyn Heights Company did not make its full fixed charges up to January 1, 1894? A. I think on July 1, 1894, it was necessary to undergo a technical default of the lease for the purpose of drawing from the guarantee fund, which fund was a fund established as a guarantee for the faithful fulfillment of the lease, $250,000, which was presumably to be devoted for the purpose of rental, if it became necessary. Q. Can you tell us now what amount of money was necessary to get at 10 per cent? A. One million two hundred thousand dollars would be 10 per cent. on $12,000,000, which was the capital of the Brooklyn City Railroad Company. Q. How much did your earnings fall short of that sum? A. I don't remember; but enough to call for the withdrawal of $250,000. Q. I will ask you to get me the exact figures; so that the earnings of your Brooklyn, Heights road, then, were in round figures $950,000, and you drew $250,000 from the guarantee fund? A. No, sir; that was not right; the earnings were $950,000; the interest on the bonds and such other charges that we accepted in the lease from the Brooklyn City Railroad Oompany —for instance, we had to pay the tax on the Brooklyn. City, the interest on the bonds, 10 per cent. on the capital stock, the personal tax on the capital stock of the Brooklyn City, the State tax on B. 17 j 171~~~~~~~* ~.: 130 income, which is one-half of 1 per cent. on your passenger receipts, then there is another tax which the State imposes on the dividends paid by companies, so that dividends paid by the Brooklyn City, being taxed, became one of the charges under the lease, which the Brooklyn Heights paid, we paid the license fees of the Brooklyn City Company's cars, which were used by the Brooklyn Heights, which charge was $20 per year per car on the average number of cars operated; those are the principal charges under the lease, and our earnings, after deducting those charges, fell short something in the neighborhood of $200,000, as nearly as I can recollect, without refreshing my memory by figures. Q. I notice you speak of the personal tax; does your company pay the personal tax on account of the stockholders? A. For the Brooklyn City? Q. Yes, sir. A. Yes, sir; and also on the Brooklyn Heights IRailroad Company's capital stock; that is, its personal property. Q. Are you confident of that; that the personal tax which would be payable is paid by your company out of its earnings? A. Yes, sir; and always has been; they were paid prior to the lease, and have been paid by the Brooklyn Heights Company since the lease, and as a part of the lease. Q. You spoke of the guarantee fund; tell us how that was made up? A. The guarantee fund emanated from the Brooklyn Heights Railroad Company, and was furnished by the Long Island Traction Company as a fulfillment of the lease, that fund being $4,000,000, and under the provisions of the lease can be. reduced to $3,750,000 if it is desired by the Brooklyn Heights. Q. What was the capital stock of the Brooklyn City Company at the time the lease was executed? A. Nine million dollars. Q. When was this capital stock increased to $9,000,000? A. I don't remember exactly; it was increased, from $6,000,000 to $12,0000,00, I think, in 1893; possibly 1892. Q. The first increase to $9,000,000 was in 1892? A. No, sir; the first was not to $9,000,000; the increase was from $6,000,000 to $12,000,000; it was not all issued. Q. I mean, the issue; prior to 1892 there had been $6,000,000 issued of stock? A. Yes, sir. Q. And then at the time this lease was entered into there had:been $9,000,000 issued? A. Yes, sir. Q. And of that authorized capitalization the entire $12,000,000 bas now been issued? A. Yes, sir. Q. What was the bonded indebtedness of the company, let's say, in 1892? A. Three million dollars. Q. What is it now? A. Six million dollars; that is the bonded indebtedness on the Brooklyn City is $6,000,000, and there is an. 131 underlying lien consisting of several mortgages on the leased line of $925,000, which makes it $6,925,000. Q. Does that include the mortgage on the North Second street property? A. Yes, sir. Q. Does that include the mortgage on the Bushwick property? A. When we took possession there wars $400,000, but we found a floating indebtedness, and issued a mortgage of $460,000 to liquidate it, and since then have paid off both mortgages, which we did through an increase of a bonded indebtedness of the Brooklyn City Company. Q. So that it works out in this way; you have $12,000,000 capital stock of the Brooklyn City; you have $6,000,000 bonded indebtedness; there is this $925,000, which indebtedness is made up of the bonded obligations of the merged roads in the Brooklyn City road? A. Yes, sir. Q. That is approximately $19,000,000 represented by the securities of the Brooklyn City? A. Exactly $18,925,000. Q. What is the capitalization of the Brooklyn Heights road? A. Two hundred thousand dollars. Q. Now, when the Brooklyn Heights road made this lease with the Brooklyn City road, the Brooklyn Heights road being a road of but half a mile of track and $200,000 of stock, what guarantee did it give for the performance of the lease? A. It furnished a guarantee of $4,000,000. Q. How was it furnished? A. Furnished by the -Brooklyn Heights, through the Long Island Traction Company. Q. How was it furnished —in cash? A. At first; yes, sir. Q. How was it deposited? A. With several trust companies as trustees. Q. Subject to the terms of the trust agreement? A. Yes, sir. Q. Have you a copy of that agreement? A. Yes, sir. Q. Is that in the lease itself? A. Yes, sir. Q. I didn't know but what there might be some speceail agrele m;ent as to the way it was to be controlled? A. It was covered by the lease. Q. You have the lease? A. Yes, sir. Q. Have you an extra copy of that that I can take? A. Yes, sir. Q. I want to take a copy. A. I will let you have this; I happen to have an additionail oopy here. Q. You say that the guarantee fund of $4,000,000 - do I understand you to sav that that is the particular fund out of whichi y,,u drew the $.250 000 necessary to make good the sum which was necessary to, enable you to meet' all the fixed charges of last year? A. Yes, sir. Q. You also said that this guarantee fund was provided bly the 132 Brooklyn Heights Railroad Company and the Long Island Tra.tion Company; now, tell the committee what the relations between the Brooiklyn Heights Company and the Long Island Traction Company were? A. The Long Island Traction Company are the owners of all the capital stock of the Brooklyn Heights Railroad Company, or rathe, they afre owners with the exception of that portion which qualifies directors, which they control, so that they do either own or control it. Q. Do they own the stock which qualifies the directors? A. They control it somehow; I tiink there is an agreement about it. Q. They have control of that? A. Yes, sir. Q. Do you know how much those odd shares which qualifies the directors amount toi? A. I think there are thirteen. Q. Have yon the agreemient which vests the control of that thirteen shares in the Long Island Traction! Company? A. No, sir; I think I can get it. Q. So that, as a matter of fact the Long Island Traction Company is the only stockholder of the Brooklyn Heights Company? A. No, sir; I did not say so:; these gentlemen whbo own the shares of stock own it subject to the agreement, but it is controlled by the Brooklyn Heights Company through an option. Q. Is the Long Island Tra.ction Company a domestic corporation? A. No, sir. Q. A foreign corporation? A. Yes, sir. Q. Organized under the laws of what State? A. Virginia. Q. When was it organized? A. March, 1893. Q. Have you a copy of its charter? A. Yes, sir. Q. VWhat is the authorized capital stock of it? A. They are authorized to the extent of $30,000,000. Q. Is that stock fully paid? A. No, sir; it was authorized to be issued at less than par in the discretion of the directors, and was issued at 15 cents on' the dollar. Q. You understanld that the Virginia laws authorize the issue of stock at less than par? A. Yes, sir. Mr. Ivins.-I will say to the committee that the Virginia law does authorize stock so to be issued:. It is unlike our law in that respect. Q. You say it was issued at 15 cent4 on the dollar? A. Yes, sir. Q. Then, what was realized from the issue of the $30,000,000 of stock to the treasury of the Long Island Traction Company? A. Four millions of dollars and' a few dollars over; I don't know how much exactly.' Q. Did that $4,000,000 so, realized thtrugh the safle of the Traction Company's stock, $30,000,000 of it, represent the guarantee fund? A. 'Yes, sir. 133 Q. At that time can you tell me who were the directors of the Brooklyn Heights Company? A. At the time the lease was made? 1 i Q. Yes, sir. A. We have left instructions to get those things and will try to get them here this afternoon or to-morrow morning. Q. Can you tell me who constituted the board of directors of the Long Island Traction Company at the time the lease was made? A. No, sir; I can get that. Q. Can you tell me who the directors of the Bilooklyn City were at the'time the lease was made to the Brooklyn Heights Cerolpany? A. That was asked this morning, and will be answered when I get to it: Q. Who were the bankers in this transaction, who negotiated these securities? A. I don't know who did that. Q. With whom was the guarantee fund lodged?- A. That I don't recollect-whether it was lodged with one person or company, or whether it was several; it is in several parties hands now. t Q. You say that $3,000,000,additional, bringing the issue up to the limit of the capital stock of the Brooklyn City Company was issued; when waas that issue made? A. I think in 1893, and the last part of it, January 1, 1894; practically all during 1893, I think. Q. Can you tell us now what it realized? A. Yes. sir; it was issued to the stockholders iat par. Q. And paid at par? A. And paid at par. Q. All taken by the stockhdolders, or any partL of it taken, by those other than stockholders? A. I think very largely, or allcost entirely by the stoclcholders. ' Q. Was that issued for the purpose of extending the system? A. Yes, sir. Q. Who took, speaking generally, the stock of the Long Island Traction Company which realized $4,000,000? A. It was offered to the Brooklyn City shareholders and was taken by them to the extent of $27,000,000, $3,000,000 of it being set aside to be subscribed for by those other than stockholders, but at the same rate; namely, $15 a share. Q. Three million dollars of it was reserved in that way? A. Yes, sir; but paid for at the same rate which the stoclkolders of the Brooklyn City paid, showing no preference whatever between the stockholders and the parties other than stockholders. Q. So that outsiders took enough stock at $15 to realize $3,000,000, and the stockholders took the balance, $3,500,000, in cash? A. Yes, sir. 134; Q. Can that guarantee fund be used for the purpose of extending or equipping or altering the system? A. Not at present; no, sir. Q. What do you mean by that? A. There is no authority at present; it would require a vote of the stockholders of the two companies, the Brooklyn Heights and the Brooklyn City, to &hange it; it is toi be left there as a gairantee fund not to le reduced less than $3,750,000 under the present terms of the lease. Q. Not to be reduced more than - A. Below $3,750,000. Q. Then that is not at the present time in any way available for the maintenance or operation oi increase of the road, is it? A. No, Isir. Q. I have heard something of two collateral trust notes; has the Long Island Traction Company made a trust note? A.. The Long Island Traction Company and the Brooklyn Heights Company issued a collateral trust note. Q. It was a joint collateral trust note? A. Yes, sir. Q. Now, I understand that all of the stock of the Brooklyn Heights Company is owned or controlled by the Traction Com:npany? A. Yes, sir. Q. And I understand that all but thirty per cent. of the Traction Company's stock is controlled by the old stockholders of the old Brooklyn Oity 'Company? A. I should say not. Q. How is that? A. I don't know; I do not have access to the books of the Brooklyn City, consequently I can not tell what proportion of the Long Island Traction stock is controlled by them. Q. The holders of the Brooklyn City stock took all of that $4,000,000 representing the $30,000,000 issue, except.$40,000 of it? A. That was in June, 1893. Q. Then I will make my question refer to that time; in June, 1893, the stock of the Long Island Traction Company with the exception of $1,500,000 at par was taken by the stockholders of the Brooklyn City Coinp!ainy? A. Three miuiidon five hundred thousan!d dollars at par. Q. Three million five hundred thousand dollars at par? A. That is right. Q. So that at that time the stockholders of the Brooklyn City took $27,000,000 of the $30,000,000 which was issued at fifteen? A. Yes, sir. Q. And as such shareholders controlled the Long Island Traction Company? A. Yes, sir; for the time being. Q. And as such shaiehiolders controlled the very company which got control of the lease which they had made to the Heights Company? A. Yesi, sir; they did it as individuals, of course. 135 Q. Of course, they did it as individuals; so that we thien have a circle beginning with the Brooklyn City Railroad Company reaching up through the Heights Company, which took thisi lease, to the Long Island Traction Company which owned the Heights Company, and back again to the stockholders of the Brooklyn City Company through the taking of $27,000,000 of the Traction Company's stock? A. Yes, sir. Q. Now, at the time that the Bropklyn Heights Company took this lease was there anry communication between. the officera or directors of the Brooklyn City Company and the stockholders, of that company inviting their attentioin to the proposed lease and suggesting action, either affirmative or negative, in, regard to' it? A. I think there was a circular issued by the Brooklyn City Company to its stockholders covering the plan proposed. Q. That was done on the 6th of January, 1893, was. it not? A. No, sir. Q. What? A. I think not; I don't reemember the da;te exactly; you mean the issue iof the circular, Mr. Ivins? Q. The issue of the circula!r? A. I don't remenmber the date. Q. That circular was signed! by Mr. Swini, was it not? A. I believe it was. Mr. Ivins.- I will read that circular here in: this connection: OFFICE OF THE BROOKLYN CIrY RAILROAD COMPANY, BROOKLYN, January 6, 1893. To the stockholders of the Brooklyn City Railroad Compavny The Board of Directors of the Brooklyn City Railroad Coumpany respectfully submit to the stockldlders the following statement: It is generally knownn that the board of directors during the past year has received repeated propositions from parties desiring to obtain control of this company, but none of these propositioni, have been of such a; character to warra!nt their communication to the stockholders. The proposition which hiasi now been submitted, however, Is one which gives the stockholdersr vrery great advantages. It is briefly as follolws: A responsible syndicate, represented by the New York Guaranty and Indemnity Company undertakes to procure the leasing of the Brooklyn City Railroad Colmpany by a street surface railroad company, and to procure the guarantee by the lessee of 10 per cent dividends on the stock of the Brooklyun City Railroad Cormn pany, and the deposit in a trust compamny on' the delivery of thb lease of four millions of dollars ($4,000,000) as ai guarantee fund for the performance of the lease. 136. The lessee is to pay and discharge all fixed charges of the Brooklyn City Railroad Company, including interest on' bonded debt, and all taxes and assessments and license fees and also pay the expense of keeping up the olrganization of the Brooklyn City Railroad Company, furnishing it with suitable officles, etc. The syndicate is to; give to stockholders of the Brooklyn City Railroad Company the right to purchase three shares of a Traction Company's stock of the par value of $100 each, for every 10 shares of the par value of $10 ea;ch held by the stockholders in the Brooklyn City Railroad Company at the date of the delivery of the lease, -at $15 per share. When the holdings of any stockholders in the Brooklyn City Railroad Company shalll be less than 10 shares he is entitled to his proportionafte' share of Traction Company stock in scrip. The capital stock of the Traction Company will be fixed at $30,000,000 and this management will place in the stockholders of the Brooklyn City Railroad Compiany nine-tenths of the capital of the Traction Company, the remaining one-tenth will be alloted to the members of the syndicate, but shall be paid for at the same rate as that purchased by the shareholders of the Brooklyn City Railroad Company. This arrangement will place the control of the Traction Company, by ai large majority, in the hands of tie stockholders of the Brooklyn City Railroad Company. The right to subscribe for the $3,000,000 of the capital stock of the Brooklyn City Railroad Company, the issue of which is authorized, is to remain with the stockholders of the Brooklyn City Railroad Company, and will no douibt be issued to them -vt par during the year 1893. The surplus in the treasury of the Brooklyn City Railroad Company at the date of the idelivery of the lease will be divided in due time among the stoekcholdoer of the Brooklyn City Railroad Company. i Rights to purchase the stock of the Traction' Company and to subsclibe to the unissued stock of the Brooklyn City Railroad Company will be arranged so they may be disposed of by stockh~oders not wishing to make the pulrchase or subscription. 'The righ to purchase The stock of the Tra;ctlon Company will remain open' for 60 days after the lease is ratified by the stockholders of the Brooklyn City Railroad' Co:npany.. The lease will be laid before the stocklolders for ratification at a meeting, notice of whichl accompanies thils circular. The syndicate has deposited with the New York Guaranty and Indemnity Company thihe sum' of $500,000 as an earnest of Its good faith to carry out the proposlt'iion a's made. The board of direotors are unanimously of the opinion that 137 the proposition.is a most favorable one and unhesitdaltngly recommend it to the stockhollders of the company. As the law requires that a lease shall 'be approved by a vote of the stockholders owning 'at least two-thirds of the stock of the company, present and voting in person! or by proxy, it is desirable that in case it will not 'be convenient for you to atteod the meeting you should promptly forward your proxy. Enclosed find proxy, which you' will please sign and have your signature witnessed 'and return siame to the undersigned. By order of the board of directors.; '~ THOMAS P. SWIN, Assistant Secretary. Q. Is that generally what was carried out? A. Yes, sr. Q I notice here: "The surplus in the treasury of the Brooklyn City Railroad Company of the date of the delivery of the lease will be divided in due time among the stoclkholders of the Brooklyn City Rallroad Company;" what was that surplus at that time? A. In amount? Q. Yes, sir. A. Between six and seven hundred thousand dollars, if I recollect right. Q. Was it not upwarrds of seven —between seven and eight? A. Possibly, but I think between 'six and seven. Q. Can you give us the exact data? A. Yes, sir. Q. Has that surplus ever been distributed? A. Only part of it. Q. How much of it? A. Two hundred and forty thousand dollars-thaft I ought to, qualify-a part of the $240,000 which was divided to the Brooklyn City Company stockholders proceeded from the premium on certain bonds which, were Sold; just what part of that $240,000 I do not recollect; perhaps half of it; if it is desirable I could let you know exactly. Q I wis'h you would; what part of the $240,000 was the undivided surplus, let us know about that; now, was that divided among the stockholders as extra or additional dividend? A. Yes, sir., Q. When was that done? A. I don't recollect the date. Q. I do not care for the exact date-what year? A. 1894. Q. Last year? A. Yes, sir; 1893 or 1894, either the latter part of 1893 or the first part of 1894. Q. That dividend was at what rate on the capital stock? A. Two per cent. Q. So that the capital stockholders of the Brooklyn City Railroad Company got first a 10 per cent. dividend under the terms of the lease, and a two per cent. dividend made up out of a premium on a bond issue and part of it the surplus from the B. I f '9 138 treasury? A. Yes, sir; from a bond issue and from a surplus which had been earned, covering a number of years prior to the lease going into effect. Q. Was that a part of an accumulated surplus fund? A. Yes, sir. Q. Where is the balance of that surplus? A. Under the control of the Brooklyn City Railroad Company, I presume. Q. Has it been expended? A. No, sir. Q. It is still intact? A.,Yes, sir. Q. Are you any longer an officer of the Brooklyn City Railroad Company? A. No, sir. Q. How long since you ceased to be so? A. Since February or March, 1894. Q. Was that intact at the time you severed your connection with the company? A. Yes, sir. Q. Do you know, or have you heard, that any part of that surplus has been devoted to the extension or equipment or alteration of the lines) or has in any way been used by the Long Island Traction Company? A. That I don't know anything about; I can't say. Q. As an officer of the Traction Company, do you know whether any part of that surplus has been used by them? A. I think there was some portion of that used, but the Brooklyn City Railroad Company is secured for it. Q. If used, then it was under the form of a loan, which was secured? A. Yes, sir. Q. I asked you about certain collateral trust notes —if the Traction Company has made any such notes -I understood you to say that they have jointly with the Heights Company; will you tell us for what amount those notes have been made, what the term of the notes is, to whom the notes run, by whomi they are now. held and what the object of issuing those joint notes was? A. I think you had better give me those one by one. (Preceding question read by the stenographer as follows: "I asked yout about certain collateral trust notes —if the Traction Company has made any such notes —I understood you to say that they have jointly with the Heights Company; will you tell us for what amount those notes have been made, what the term of tlie notes is, to whom the notes run, by whom they are now held and what the object of issuing those joint notes was? ") A. The amount of the notes authorized was $3,000,000. Q. What was their term - the length of time which they would run.? A. Three years. Q. What was the rate of interest? A. Six per cent. Q. To whom did they run? A. Ran to the New York Guaranty and Indemnity Company, as trustee. ' 139 Q. What was the object of their issue? A. For the completion of the conversion of the Brooklyn City railroad from horse to electricity. Q. W;hat did these notes realize? A. Realized 80 per cent. of their par. Q. Did none of them realize better than 80 per cent? A. Not to the company. Q. Didn't some of them realize 85? A. Not to the company; no, sir. Q. Do you know what those notes were taken in the market for? A. No, sir; I do not. Q. Were they subscribed or taken by a syndicate or a single institution? A. A certain portion were underwritten - $1,875,000. Q. More than one-half? A. Yes, sir. Q. Were what? A. Underwritten. Q. Do you know who any of the underwriters were? A. I don't remember. Q. None? A. Yes, sir; I do. remember, too, five of the' directors-no; they did no't underwrite then; they were subunderwriters-in order to make the matter complete, six of the directors underwrote a certain amount. Q. Were you one of the subunderwriters? A. Yes, sir. Q. But you don't remember who you subunderwrote? A. No, sir; I do not. Q. Was there an underwriting agreement? A. I never saw one. i Q. Was there an agreement for the subunderwriting? A. I don't recollect any. Q. Who were the six underwriters who underwrote $250,000? A. That I don't recollect now. Q. Did the underwriters or subunderwriters replace those bonds in the market? A. That I don't know. Q. Was there any profit on the underwriting? A. There was a profit of five per cent. on the underwriting. Q. Was there any profit on the subunderwriting? A. No, sir; the six directors took their piroportion of the notes, or that $250,000, at the same price they were offered to the stockholders of the Brooklyn City Railroad Company, and I believe the whole issue were offered to the stockholders of the Long Island Traction Company at 85 per cent. of their par, prior to any underwriting or subunderwriting taking effect. Q. You say that $1,875,000 were underwritten? A. Yes, sir. Q. Was the balance taken by a single institution or a number of institutionr,?? A. The balance of the $3,000,000? 140 Q. Yes, sir. A. No, sir; they were not all issued; there are only $1,750,000 issued now; the last call has not been made on the first $1,875,000. Q. None have been issued except those that have been issued for the amount underwritten? A. That is right. Q. Was there a notice sent to the stockholders of the Long Island Traction Company prior to the meeting or issuing of the collateral trust notes? A. Yes, sir. Q. By whom was that issued? A. I think it was issued by the Long Island Traction Company's officers. Q. By the entire board.? A. Whoever it was- I could produce a copy of it. Mr. Ivins.-I will read to the committee from this notice which at that time was sent to the stockholders of the Long Island Traction Company. It is dated September 13, 1894, and is signed by the board of directors of the Long Island Traction Companythat is, E. W. Bliss, Corneliusi N. Holagland, Felix Cambell, Silas B. )utcher, John Englils, Crowell ladden, Theodore F. Jackson, John G. Jenkins, Seth L. Keeny, Daniel F. Lewis, William Marshall, D. H. Valentine, Charles T. Young. Q. Yours was one of the names there? A. Yes, sir. Q. Before passing from that matter of the underwiriting, Mr. Lewis, who spoke of snbunderwriting; by that you mean that certain persons were underwrirters to the underwriters, and guaranteed the umnderwriters in the same way that the underwriters guaranteed the treasurer? A. Yes, sir; that is right; in other words, to secure the underwriting, the necessity for funds was so great that the directors,in order to assist the company to obtain the necessary 'funds agreed to relieve the underwriters of $250,000 alt thie same price that the notes were offered to the stockholders of the Long Island Traction Company. By Mr. Stanchrfield:, Q. The underwriters had 5 per cent? A. Yes, sir. Q. And the subumnderwriters had nothing? A. No, sir. Q. Was the,5 per cent. divided? A. No, sir. EBy Mr. IvTi: n, i Q. You took their loan to the extent of $250,000? A. Yes, sir; that was the only way we could get the money; let me make one explanation in reference to this mnoney; how we ioame to require money was that under the terms of this lease that it was proposed to sell certain real estate and personal propierty, the proceeds to be devoted to the conversion of the road fromi horse power to electricity; the panic came on which made the sale of 141. the real estate absolutely ipossible without great sacrifice, and it did abselutely make the sale of the personal property, outside of the horses, iilppstible; we foiund ourselves short, we were working so faist that in not realizing from the real estate and personal property we found ourselves thirteen or fourteen thousand dollars short which we had quite a right to expect when the lease was made; in addition to, that the Brooklyn City Iailroad Company on the 6th of June had begun an extension to Bowery bay, and had begun a sitation. at Ridgewood' to connect the Bowery Bay road to other suburban lines, when you; get to Ridgwood; we also spent on that to complete it, although not required under the lease; aboiut $600,000, so that it made us lshort of the funds we might expect about $2,000,000; it was necessary to raise this and the Long Lsiand Traction Compafny not having fulfilled it was necessary to make the saicrifice we did to obta in the money we got; I simply offer that, olr mention that, as a justification of what was done. Q. You spoke of a failure to realize on the real estate and so forth; was it the fact that the iproposed change of motive power would virtually release from use 'certain real estate of the company and put it at its disposal for realization in cash? A. Yee, sir. Q. Have you now any,approximate idea or recollection as to the value of real estate which would be so realized and put at your disposal? A. Yes, sir; in thbe neighborhood of $900,000.. Q. Now, what was your understanding with regard to the pro-. ceeds of that —wags that also to go as a dividend to' the old stockholders of the Brooklyn City Railroad Company? A. No, sir; the surplus of the Brooklyn City Railroad Company consisted of part property and part cash; it was always in that condition except at such times where there were large increases of capital or increases of bonds, which placed in the treasury of the company cash temporarily, and the surplus naturally would become cash until it was expended again' in property. Q. Was this approximate $900,000, of which you have spoken, something additional to, the six or seven hundred thousand dollars of which you have spoken awhile ago? A. Not at all. Q. Did that $900,000 constitute part of the six or seven hundred thousand dollars? A. Yes sir; but that part of it is i mpossible to say; you cannot separate it; the part the $600,000 is of the $900,000 referred to, is whatever proportion the $900,000 bore to the entire property of the Brooklyn City Railroad Company; that would be the bookkeeping answer to it. Q. Was there any arrangement or agreement whereby this surplus, if it existed, a given amount through the sale and dipo 142 sition of real estate was to accrue to the benefit of the new companies instead of to the benefit of the old? A. Except in that way; whatever surplus the Brooklyn City Railroad Company had in real estate at the time of the lease, or which would become unnecessary. afterward, might be sold and: the proceeds devoted to the conversion of the road, or, after the conversion was completed, to extension. Q. Was that covered in the lease? A. Yes, sir. Q. Now I will take this notice so as to bring out the fact clearly as appears at that time: "In June, 1893, the Brooklyn Heights Railroad Company took possession of the property and franchises of. the Brooklyn; City Railroad Company, under the lease between the two companies, and has since continued the operation of the railroads embraced in the Brooklyn, City Railroad Company's system, consisting in 200 miles, in operation under electrical and steam equipment, and 93 miles of extensions not yet built upon." —In this notice, when you speak of 200 miles, you mean. 200 single-track miles? A. Yes, sir; that includes also carhouse-works, switches, crossoverSl and all kinds of work on thie single-track basis. Q. "The Long Island Traction Company owns and controls all the capital stock of the Brooklyn Heights, Company, and the directors and officers of the two companies are identical. The Bncoklyn HIeights Comnpany, as lessee, agreed to! proceed with due diligence to complete the electrical conversion of all the leased property. The ploceeds of the sale of' certain increased capital stock and of certain eo1n;solidated bonds of the Brooklyn CitWy Compiany and of certain of its rmeal estate and personal property nolt necessary for the use of its railroad were to be expended in; the prosecution of the electrical conversion of the properties. The balance of the moneys necessary to complete the electrical conversion 'of the property, was under the lease to be proivided by the Brooklyn Heights Company out of its own funds. By the terms of the lease the Brooklyn City Company is to pay to the Brooklyn Heights Company in the event df the expiatiion of the lease olr its sooner termination, the actual cot of all property, extensions, branches, improvemetis and equipments, made, acquired and paid for by said Brooklyn Heights Company out of its own funds for use in, connection with the operations of the railroaids of the Brooklyn City Company less the cost of such part as may be required to preserve said railroad, extensions, additions, improvements and equipments tn good repair and servicable condition and less the cost of such part as may be necessary to preserve and secure efficiency in the operation of the railroads. Besides disbursing the moneys real 143 ized from the sale of the increased capital stock and of the consolidated bonds of the Brooklyn City Company, the Heights Company has expended out of its own funds a sum exceeding $1,000,000, and will be required to spend before the electrical oonversion is completed; a large additional amoti." With reference to the statement: "Besides disbursing the moneys realized from the sale of the increased capital stock and of the consolidated bonds of the Brooklyn City Company, the Heights Company has expended out of its own funds a sum exceeding $1,000,000, and will be required to expend before,the electrical conversion is completed a large additional amount," will you tell us where the Heights Company got that $1,000,000? A. Borrowed it. Q. Upon what? A. Their notes. Q. Were they short nctes or long time notes? A. I think they were short notes. Q. Were they secured by collateral or mortgage? A. No!; except in tle ordinary way; I think they were an ordinary promisory note. Q. Secure by indorsement? A. No, sir. Q. Do you remember now what their terms was? A. They were drawn - I rather think they were demand notes. Q. Who took those notes? A. Well, that I dom't remember; banks, I think. Q. Were they issued to brokers? A. No, sir. Q. Were they issued to bankers for disposal? A. No, sir; they were discounted. Q. Who saw to the discounting of them? A. The treasurer. Q. Who is he? A. Mr. Bogairdus. Q. I wish you wiould bring us the names of the banks with. whom those notes were placed. "After applying toward the July rental $250,000 of the guaranTee fund deposited as seeurity for the performanice of the lease, and the interest in the gurantee fund, the Brooklyn Heights Company now needs the sum of $2,850,000 in order to pay existing indebtedness1 and to omplete the electrical equipment; this sum will be red'uced by the pr.oceeds, when, realized, lof the real estate and personal property:of the Brooklyn City Company to be sold as aibove stated." Q. Cian you tell what the existing indebtedness there stated ana referred to was? A. The HeighTs Oompanly? Q. Yes, sir; "the Brooklyn 1eights Company now needs the sum of $2,850,000 in order -to pay existing indebtedness and to cormplete the electrical equipment?" A. I don't remember wbia the existing indebtedness was at. tihe time. Q. Do you now remember whlat the indebtedness had been 144 incurred for? A. Yes, sir; for the conversion of the road from horse to electricity. Q. So that this $2,850,000 was to cover an indebtedness which had been created for the work of conversion, to complete it to the electrical system? A. Yes, sir. Q. I noticed this addition: "This sum will be redu;ced by the proceeds, when realized, of the real estate and perison'al property of the Brooklyn City Company to be sold las above stated." I want to ask you to explain to us that sentence in relation or in connection with the paragraph from the notice which was sent to the Brooklyn City stockholders earlier: "The surplus in the treasury of the Brooklyn City Railroad Company, at the date of the delivery of the lease will be divided in due time among the stockholders of the Broolklyn City Railroadl Company." In the one case, as I read the papers on their face, they seem to imply that the surplus is to be treated as a surplus and is to be divided among the stockholders of the Brooklyn City Railroad Company, and, in the other case, it seems' to! imply that it is to be disposed of and to be the property of the Traction Company for the purpose of meeting the collateral trust notes. A. That is a mistaken implication; for instance, the Brooklyn City Railroad Company at the time it made this lease, had over six thousand horses which it was proposed to sell; you might say that the surplus, which was between six and seven hundred thousand dollars was in those horses; now, in addition to that, it had $900,000 of useless real estate, which under the terms of the lease, the proceeds from the sale of that real estate was to be devoted to the conversion of the road and the extension of the same; so that' there was personal property and real estate more than sufficient to provide not only say $900,000, as I have before testified for the purpose of conversion, but providing also for the distribution of the whole of the surplus of the Brooklyn City Railroad Company to its stockholders if the directors found it desirable. Q. Now, I will continue reading the document: "The value of the real estate of the Brooklyn City Railroad Comptny which was to be sold as appraised by D. & M. Channcey Company and John F. James & Son, the well known real estate experts of the city of Brooklyn, amounts to $875,000, and the estimated value of the personal property exceeds $200,000." So, at that time your estimated value of the surplus was $1.075,000? A. Yes, sir. Q. And do you say that is not the surplus that was referred fo or meant in the earlier communication to the board of directors of the Brooklyn City Railroad Company, and which it was said was to be divided among the stockholders? A. Suppose 145 pou take 1900,000 from $11,07,5,001 - Suppose you take $8'75,OW1t and appropriate that to the'conversion of the road, that wooild lea-ve $200,000 to be applied to the surplus it you ple-ase, or distribution of the surplus; it may be 'ini cash, notes, securities, it may be in anything, but this you can relay on, that there was -sufficient money or property not only to pay for the surplus or the distribution of it to the stockholders of the Brooklyn City Railroad Company, but whatever was left and only whatever was left could the Brooklyn Heights get for the disposition of any property for the purpose- of conversion cand extension. Q. Will you turn to the provision of the lease with. regard to the disposition of the property of the Brooklyn City Railroad Company to be used in the conversion, from the old to the new systeu. (Witness indicates to counsel the provision in the lease referred to.).Mr. I-vns.- This is article 45 of the lease between the Brooklyn City Railroad Company and the Brooklyn Heights Company, which leasie is datted February 14, 1893. (Mr. Ivins readis article 45 frotni the lease.)' Q.Do you know whether any sfuch coinsets have been had, Mr. Lewis? A. Consen~ts? 1 Q. Yes. A.. Yes, sir; there has been a consent of the lebsee, and a foninal release by the lessee of the property free from the Ili-en of the lease. Q. Well, it seems. theni that the lessoir is to -sell its own Pi4bperty on the consent of the lessee -and that then, by- the le~osr on, the consent of the lessee the proceeds are to be expended - on the property by the lessor? A.. No, sir; by the lessee. Q. "Shall be expended by the lessor for the same ptirposee?" A. I guess that Is it; they furnisheid us. the money. Q. "ThMe follomring causes inay be said to have contributed to create the inldebtedneiss of the Brooklyn Heights omnpany: 1. The above, mentioned real estate and personal property the vailue of which amounts as stated to $1,075,000 ha-ve not yet ~been disposed of. 2. Large sums of money h~ave been, expended in. the,completion, of eortain necessary extensions of the Brooklyn Miy, 93,stem wthich had been begun by the Brooklyn City Oom~pwq~ before the lease took effect. 3. The earnings of thesytm though satisfactory, ha~ve 'been leass than, they would have been under ordinary business conditions; had the times been audi that the per'sonal pro~perty and -real estaite could' have been MM~I to advamntage, a-nd ~ha4 It not been essential to complete ei1tsiSions, the Traction Co~mpany and theAEHelgtht Ounrpmay -wo'df not have n~eeded the temporary relief provided, by the plan prm. B. 19 146 posed." That statement is correct, is it? A. I have practically made that statement. Chairman Friday. —You say, the Traction Company and the Heights Oompany? Q. I find the statemnent here: "Had the times been such that the personal property 'and real estate been sold to advantage "that is, I interpolate, the $1,075,000 -" and had it not been essential to complete ext.ensions "- that is, had the company stopped where it was and not gone on with the development of the system -" 'the Traction Company and the Heights Company would not,have needed the temporary relief provided by the plan proposed." That is correct, is it? A. Yes, sir. Q. " The first 13 months operation of the road, under the lease -a particularly bad period for railroad earnings-while the electrical conver'sion of the road was proiceeding with all the loss of income incident to such work, shows net profit to the lessee from all sources of $115,520.78. The gross receipts of the road for the first fiscal year under the lease were $4,284,000. It is believed, as an unnecessarily conservative estimate, that the gross receipts will average $4;750,000 per annum for the next three years, and, assuming that the road can be operated for not exceeding 60 per cent. of its gross receipts, including payment of all taxes, there will remain as annual net proceeds of operation $1,900,000. Adding annual interest on the guarantee fund held as security as the payment of the rental charge by the Booklyn Heights Company to the Brooklyn City Company, $187,500, the net income from these sources will be $2,087,500. Deducting rental charges, including interest on bonded indebtedness and insurance premiums, $1,590,000.' When you made that estimate. of $1,590,000 as the result of deducting rental charges, including interest on bonded indebtedness and insurance premiums, did you include in that the 10 per cent. on-the $12,000,000? A. Yes, sir, Q. So that 10 per cent. of that estimate charged was $1,200,000 for account of capital, and $390,000-? A. Ten per cent. of the capital would be $1,200,000. Q. "Deducting interest on $1,875,00 of the collateral trust notes already written and on the balance on the amount required,.which will be reduced as the re,- estate and personal property of the Brooklyn City Company: pplicable for conversion pur'poaes under the terms of the lease are disposed 'of, say $195,000 - $1;785,000." That sum in this estimate is deducted from $2,087,500; leaving as stated here the annual net return to the Brooklyn Heights Company $302,500? A. Yes, sir., 147 Q. So that you estimated, after paying all charges, and among those 10 per cent on the capital of the Brooklyn City Railroad Comnpany, there would be a balance remaining for the next three years on an average $302,500? A. Yes, sir. Q. Will you tell me, in view of those estimates, why it is that you now say to us that that company was not in a financial position to enable it to meet the request or demand for $2.25 a day, or the general advance or raise of 25 cents, which you say would have been granted had the conditions been propiitious? A. My answer is this; that the estimate was made for three years, and the estimate was made in September, 1894; the three years will not be up until 1897, and necessarily I am estimating on an improved condition of things or I could not make an estimate such as you have just read; if I had to include such times as we are now passing through I never could have made that estimate, but it is supposed that we will get back to good times some time in the future; I hope so, although it looks very dark at present; I think the condition under which we are living to-day haas been very seriously changed since September, even; in the first place, the legislation at Washington has disturbed things, and it affects the riding on street railroads beyond any estimate; as I made it in September last,'I hadn't any idea that it was going to continue; we are going through an experience now, a very expensive one, the result of the strike. Q. How much do you estimate it will cost you? A. I haven't made an estimate. Q. Will you make one? A. I could, I presume. Q. In that connection let me ask you this, you have the statistics of the number of passengers carried from month to month? A Yes, sir. Q. Can you give us the statistics for, let's say, September, October, November and December, 1894, and for the correspondinrP months in 1892 and 1893? A. Yes, sir; it would be bc-t ) to take a longer period than that -take a year. Q. Suppose you take the year 1893 and 1894? A. Yes, sir; f can do that. Q. So that we can see the extent of the falling off, and in order to make the figures correct, and in order to make a comparison, instead of taking it over yourtentire system I should take it over the Flatbush avenue as esti4iate for a short line and the Fulton street line and the Greenpoint line, where the length of line was the same under the horse system and now; that would be proper? A. Yes, sir. Q. Where the length of line was the same? A. Yes, sir; if you would permit a suggestion, as long as you are going to show this why don't you show the increase in fixed charges? A. That is 148 proeer; we would be very glad to have that and would be glad to take it up with you. Q. This much interrupted document goes on as follows: "The foregoing figures have been referred to and found to be correct by Charles D. Phelps, an accountant selected at the request of yoew directors by the trustee for the holders of collateral trust notes below mentioned, the New York Guaranty and Indemnity Company. "Mem. In addition to these sources of income the Long Island Traction Comipany owns all the capital stock of the Brooklyn, Queens County and Suburban Railroad Company (which owns 44 miles of railroad now being electrically equipped and representing a consolidation of the old Broadway and Metropolitan, Avenue and Jamaica and Brooklyn Compianies), the result of whose operaetion for the next three years, it is believed, will show an annual average profit of not less than $25,000 over fixed charges." I will go in a minute to the matter of the Brooklyn, Queens County and Suburban Railroad Company and its stock: "There is, however, no obligation oinl the part of the Brooklyn Heights Compalny, the Brooklyn City Company or the Long Island Traction Company, to meet any fixed charges on this property; the Long Island Traction Company simply owning the capital stock of the Brooklyn, Queens County and Suburban Railroad oampany." How did you acquire that stock, Mr. Lewis? A. By transfer through the Long Island Traction Company; to be held and the Long Island Traction Company benefited from it in any way that the benefit might accrue during the continuance of the lease between the Brooklyn City Railroad Company and the Brooklyn Heights. Q. Was that done by agreement? A. Yes, sir. Q. Have you a copy of the agreement between the Brooklyn, Queens County and Suburbain and the Long Island Traction Company? A. I harv-e not. Q. "In addition to a mileage of forty-four miles, now under operation, and being electrically equipped, the Brooklyn, Queens County and Suburban Company has the right to construct about eighty miles of extension. Recapitulated, the mileage is as follows: Mile,. (a) Brooklyn City, mileage under operation............. 200 (b) Brooklyn City, extensions......................... 93 (c) Brooklyn City, Q. C. & Suburban, mileage under operation.......................................... 44 (d) Brooklyn City, Q. & C. extension.................. 80 Grand t ftal..................................... 417 149 "To provide the moneys now needed, as above stated, the Le.g Islaad Traction and Brooklyn Companies have created tliir iek per ceot one-third year joint and several collateral trust notes to the par value otf $30,NOOO secured: " three weeks? A. Yes, sir; oh, no doubt they used clubs, from time to time, more than! that, but where there was any great assemblage of people, I have special reference to now. Q. Did you ever give any orders to any of your men to attend the meetings of the strikers in their rooms? A. No, sir. Q.. Do you know whether or not, on any occasion, any police officers did attend such meetings and take part in or interfere with such meetings? A. I have no knowledge of such a thing. Q. Has any such case ever been called to your attention? A. Never. Q. Any charge been made against any of your subordinates for so interfering with the peaceful proceedings of a meeting of the Knights of Labor? A. I can't call anything of that kind to mind. Q. One of the witnesses Mr. Connelly, I think it was, swore that the only cases of violence, of which he had heard or knew, were first the shooting of a peaceful citizen, not a railroad man, by the militia, and second, the interference of your officers with one of the meetings of a local assembly; do you know of any such 'case, as the latter? A. Excepting in the performance of duty. Q. Well, in the performance of their duty; I didn't ask you that; I just want to know if they ever did; duty or no duty? A. No, sir; I have no recollection of the officers going in to a place of meeting to break it up. Q. Do you know of the officers having been ordered to attend at these places of meeting? A. No, sir. Q. Do you know of Captain Martin, or any other officers having been ordered to, or acting as a starter for any of the railroads, or particularly for the Flatbush Avenue line? A. Never heard of such a thing until I heard you mention it to.day. Q. Have the troubles all subsided now? A. I think so, sir. Q. Did Captain Kitzer ever report toi you that he had broken up any meetings at Ridgewood? A. No, sir. Q. What do you know about anything touching those meetings at Ridgewood? A. There was some row took place there and the police in endeavoring to make an arrest of a party went in a house; that is 'about, all that I know of that. Q. Did they make the arrest? A. I think they did; I wont be sure. By Mr. Stanchfeld: Q. What was the nature of the offense? A. Well, there was some row up in Ridgewood there, and these people ran; it was o general row, and police ran in this house, and I heard after-.l. _:;. '........... ' 309 wards that the Knights of Labor, or some men had, a meeting there but the police went in their to get their man, if they could. Q. Was there a meeting of any of the labor organizations at the time in session in the house? A. The officers didn't know anything about that Q. Well, I ask you if there was? A. No, sir; not that I know of. Q. Did your inormation so state, your reports? A. No, sir; didn't state that there was any meeting there Q. Were the doors to this house closed? A. I don't know; I wasn't there, of course Q. What did your reports say.; wouldn't your reports show whether a police officer had opened the door of a private residence and entered it or not to make an arrest? A. The report stated that they went.into the house; I presumed from that, of course, that the doors were not locked, or closed. Q. What was the charge against the man that was arrested, a misdemeanor, or a felony? A. Oh, it must have been a misdemeanor, if there was one arrested; I had my report given to me at the time and I forget now the details of it Q. Did the police during times or emergencies of this description enter houses to arrest for misdemeanors? A. No, sir. Q. Did they in this instance? A. Not that I am aware of. By Chairman Friday: Q. You would be aware of i!t? A. Yes, sir I would be aware of it, if anything of the kind happened; never go into a person's house. By Mr. Ivins: Q. Do you know anything of the character of this building? A. I do not, Q. ihether it was a public building, or a building that was used for purpose of meeting, or whether it was a residence? A. I don't; no, sir. Heman Dowd, being duly sworn, called as a witness and duly sworn by Ohairman Friday, testified as follows: By Mr. Ivins: Q. Where do you live? A. Orange, N. J. Q. What is your business? A. Assistant cashier of the Bank of North America, New York. 310 Q. Are you connected in any way with the militia of the State of New York? A. Oolonel of the Twelfth Regiment, N. G. S. N. Y. Q. How long have you been isuch? A. Four or five years. Q. You, with your regiment did duty here during the strikes? A. Yes, sir. Q. How many men did you have in uniform under orrders'? A. Between 590 and 600. Q. For how many days? A. For nearly eight days. Q. When did 'you receive orders to come to Brooklyn? A. About 4 o'clock in the morning of the 21st of January. Q. When did you receive orders relieving your regiment from duly? A. Quarter of 3 on the afternoon of the 28th of Janiary. Q. Where did you, with your men, do duty in Brooklyn? A. My headquarters was at the old Thirteenth Regiment armory, ilteraection of Flatbush and Atlantic, and I covered the streets, Vandlerbilt avenue from the Plaza to Fulton; Bergen street, from Vandcibilti to Fourth; Atlantic avenue, from Vanderbilt to Flatbuish, and a short section on Fourth avenue in the neighbornocd of Atlantic avenue, and Myrtle avenue from Bedford to 'Vab hington. Q. mrWhat was the character of the duty done by your men? A. Patrolling the street and keeping the peace. Q. An ordinary police duty, was it? A. It had very much of lhat character. Q. Any particular duty in the preservation of particular propeqty? A. To prevent interference with any of the cars that were running. Q. Were any of your men at any time called upon actually to prevent interference with the operation' of the cars? A. [ should say we were called upon to prevent a possible interfer mnce, which might result from the gathering of crowds in the neighbornood of the trolley lines Q. I mean prevention, other than that which followed naturally from the presence of the companies? A. No, sir; nothing farther than to keep the crowds from collecting and approaching too close. Q. Did any mobs or crowds gather in the territory covered by you? A. I should say nothing in the shape of a mob; there were, of course, gatherings, crowds of people. Q. Disorderly gatherings? A. Only so far as their langlacge went. Q. No overt act of disorder? A. Not to amount to much; a few stones thrown at the cars, and things of that kind. 311 Q. At the time that took place, the station was fully represented by the men, amply represented by your men, was it? A. Well, I hardly know what you mean by ample. Q. I mean sufficiently to actually prevent- A. Didn't rre-. Yent it, so they couldn't have been amply represented. Q. How serious were those overt acts that you speak of; was injury done to property? A. Car windows were smashed; yes, sir. Q Injury done to person? A. Not in my territory, that I kiC )w of. Q. Did you see any car windows smashed? A. I did not; two of my sentries did. Q. They reported to you through the usual channels, and that ik lile source of your knowledge? A. Yes; they arrested three mnl and brought them down to, the armory. Q. Did you at any time see any crowd or gathering which you had fair reason to believe might have developed into a dangerous crowd, if it had not been for the presence of the troops? A Personally, I did not. Q. Did you have any such thing reported to you? A. After it was over; yes. Q. By whom? A. By Major Burns, in charge of the battalion on Myrtle avenue. Q. Did he say where the disturbance was, and describe its character to you? A. No; simply along the line. Q. What are Major Burns' initials? A. Charles S.; I don't know that he reported that the crowd was dangerous; T don't think he considered them dangerous. Q. Whlat is your belief as to whether or not, under the existing stale of affairs, there was necessity for the troops of the second brigade, in order to maintain the peace? A. I know nothing except what I read in the newspapers. Q. Well, from what you saw? A. Frotm what I saw I should judge there was nec essity. Q. Did you observe whether or not the police force, which was engag.ed in the territory in which you were also engaged, was apparently sufficient or insufficient? A. I should say very insufficient; saw very few of them. Q. Well, now, in addition to the question of sufficiency, have you any knowledge or information on which you can form a belief as to whether those who were there were efficient or inefficient? A. The condition of the cars, I should think, was sufficient testimony of their inefficiency, or insufficiency. Q. I want to dstinguish between insufficiency and inefficiency; were there any facts which came to your attention which go to 312 prove that the men who actually were there were prompt and efficient or inefficient, and laicking in prorptness in the performance of their duty? A. We saw very little of what the police were doing; they were riding on the cars, and that is about all we saw of them. Q. Did you see anything which went to indicate that the men who were riding on the cars were in sympathy with the crowds upon the streets or not? A. Not of my own knowledge; that was reported to me as the result of observation. Q. By whom was it reported to you? A. I can't recollect what particular officer it was. Q. What was the report? A. Oh, in general terms it was to the effect that the police seemed to make no effort to disperse the crowds., Q. In effect that the police were in sympathy with the men upon the streets? A. That they were very gentle in their actions towards the people who. seemed to be on the ground for the purpose of making a disturbance when they got a chance. Q. Have you made up your pay-rolls? A. Yes, sir. Q. Do you know what they aggregate? A. No, sir. Q. Will you send us a written statement of the aggregate of pay-rolls? A. I will obtain it; yes, sir. Q. Just a memoranda, that is all, so we can enter it in our minutes; that now becomes a charge against the city of Brooklyn, does itMr. Stanchfield.- Perhaps he can give it in round numbers. The Witness.-Well, probably between $7,000 and $8,000. By Mr. Ivins:! Q. Who supplied thee commissary department during this time? A. I believe it is the firm of Johnson Brothers, grocers. Q. By whom were they employed to supply that department -- the city of Brooklyn? A. All I know is that our requisitions on the brigade headquarters were approved, and we were directed to present them to Johnson Brothers to be paid. Q. General McLeer, of the second division, was in command of the brigade, and you were ordered to report to him, were you not? A. Yes, sir. Q. So that he, for the time being was your commanding officer? A. Yes, sir. James McLeer, having been called as a witness and duly sworn by Chairman Friday, testified as follows: By Mr. Ivins: Q. General, you are Brigadier-General, in command of the 313 Second Brigade, are you not, of the National Guard of the State of New York? A. Yes, sir. Q. How long have you been such? A. About 10 years, in command of the brigade. Q. During that time, has your brigade, or have any of the regiments of your brigade, been called into service to riot duty or to assist the police in the maintenance of the peace? A. In the city of Brooklyn? Q. Yes. A. Not until recently. Q. How long have you lived in Brooklyn? A. I was born in the city of Brooklyn; lived here all my life. Q. Have you ever in your experience known of a condition of affairs similar to that which prevailed here from the 13th of January to the 14th of February? A. No, sir. Q. Wherein was this last condition of affairs unlike any other that you have ever known? A. Well, because of the system, the method by which the cars are moved; because of the wires, and running all over the city over these lines; very different from the old horsecars. Q. I mean more particularly with regard to the public peace; have you ever seen such uprisings as there were in the city at that time? A. Not in the city; no, sir., Q. Have youl ever known of any such uprisings? A. No; I think not; you mean of this character, of course? Q. Of this character; that is, growing out of industrial controversies. A. I knew considerable was done some years ago of this character, also. Q. When were you requested by the mayor to call out your men? A. On Friday night, January 18th. Q. Did you and the mayor have a conference with regard to it before your orders were issued? A. The mayor and the police commissioner came to my house. Q. Tell us what occurred there? A. The mayor said that the disturbance had grown to such an extent that the police force was not sufficient, and that he found it necessary to call upon the aid of the military; I asked him in what manner that aid was to be giver, and he and the police commissioner conferred together, and then finally said, "We would have you detail your troops to guard nine places, which we-will indicate, powerhouses and startions; this will relieve our policemen from duty atl these stations, and that is all we will require of you." The formal request was then given to me; I have it with me. The witness then handed counsel the following document, which the latter read in evidence:.. B. 40 II 314 " Mayor's Office, Brooklyn, N. Y., January 18, 1895. "To the Commanding Officer of the National Guard, stationed in the City of Brooklyn, General James McLeer: "Sir. —It appearing to me that there is iminent danger of a breach of the peace, tumult or riot; now, pursuant to, section 162, chapter 559 of the Laws of 1893, entitled (as amended by chapter 457 of the Laws of 1894), "An act in relation to the militia, constituting chapter 16 of the general laws," (a copy of which section is appended), iand to any other law in such case made and provided;' "I, Charles A. Schieren, als mayor of the, city of Brooklyn, do hereby call for aid upon the comnmanding officer, of the Nationial Guard stationed in Brooklyn "(Signed.) CHARLES A. SCHIEREN, Mayor." "Section 162. In case any breach, tumult, riot or resistance to the process of thiEs State or iminent danger thereof, any sheriff of any county or the mayor of 'any city may call for aid upon the commanding offic;er of the National Guard stationed therein or adjacent thereto." " The commanding officer upon whom a call is made shall order out in aid of civil auhoritits the military forces lor any part thereof under his comnmand, and shall immnediately report, what he ha's done and all circumstances of the case to' the commanderin-chief." By Mr. Stanchfield: Q. What is the date when that was served? A. The 18th of January, the date of the order. By Mr. Ivins: Q. I)id he tell you wherein or because of what the police force was insufficient? A. Except as I said, he said the difficulty had grown to such an extent that the police force was not sufficient to handle it and it would be necessary to h'ave the aid of the military. Q. You thereupon issued your orders to the commanding officers of the regiment? A. Yes, sir. Q. Wrhen was that done? A. That was on the Friday night after I had received his order. Q. What regiments were ordered to duty? A. All the organizations of the Second Brigade; that is my brigade. Q. VWhat are they? A. The Thirteenth Regiment Col. David E. Austen'; Fourteenth Regiment, Col. Harry W. Michell; Twenty third Regiment, Col. Alexis C. Smith; Forty-sevenith Regiment, Col. John G. Eddy; Third Battery, Capt. Henry S. REsquin; Seventeenth, Separate Company, stationed at Flushing, Oapt. Frank N. Bell, and the Signal Corps, Capt. Frederick T. Lee. Q. Can you now recall what the assignment of each of these regiments was? A. Well, the orders were issued at nighet to these organizations directing them to assemble at their arnlories and to await further instructions; later in the night, or early in the morning, some time after midnight, the details were made from these several organizations to the posts indicated by the miayor and police commissioner; all these nine stations, I can not at ihis moment without reference to the records give the location, but it was power-houses and stations, Halsey street station and others; the troops reported at the stations indicated at the time indicated, early morning; they were movinig before daylight, although they did not get their orders, some of them, until after midnight; then in the morning the police commmsioner called upon me again and said that in addition to thie nine posts already designated, there were others, and gave him al list, mnaking an aggregate of about 40; I then made details of the troops; drawing upon the reserve at the armories and drawing from some of these stations where I had made a pretty large detail slo as to cover all of these 40 posts; that relieved the police frosm duty at these sitations. Q. Did it relieve them absolutely or only partially? A. As I understood it that was the purpose of making this! detail, so, as to guard this property; thfat was Saturday; on Sunday aftelnoon, the 20th, the mayor annd pollicie commissioner a,gain called upon me at my headquarters, and said that in addition to guarding. the stations or posts, as we so called them and doi call them officially, it was necessary to patrol the streets to some extent, because while our troops at the stations were quite sufficient to protect the property and to open the roads, after the cars had gone a few blocks from the station! and ani atta.ck was made upon them, that was presumed to be after the car left the station, it was presumably the duty of the police to' take care of them; and I then said, " The force of my brigade is not sfficient to guard all of these 40 stations and patrdo the streets a.s well; you must have moire troops," and so then it was determined to make application or requisitions on the Governor of the State for additional troops; that was on %Sunday afternoon, the 20th Q. So that your own B1rigade had been. on duty two days when it was decided. to call upon the Governor for additional aid? A. Well, they were ordered o;n Friday night and, of cour.e, that would count one day, and then Saturday and Sunday, which was two days and a little more. 316 Q Now, 'before going further, tell us how many men there were in your brigade who were under arms and subject to orders? A. Nearly 3,000. Q. With that number of men in addition to the police force of the city, you, on Sunday, the 20th, decided that it was necessary to call for further assistance; was the mayor a party to that decision? A. It was decided after a conference with the mayor and police commissioner that if in addition to the guarding of these several points, patrol duty wast required of the troops, that additional troops were necessary. Q. What was the response to your requisition on the Governor? A. It was a requisition made by the mayor. Q. The mayor is not here now; whatwas the response toi that? A. Ordered the First Brigade. Q. The entire First Brigade? A. The entire First Brigade; yes, sir; the organizations of it to report to Brooklyn to the mayor through General McLeer. Q. And did they so report? A. Yes, sir. Q. On what date? A. All of the organizations of the First Brigade came to Brooklyn with the exception of, 1 believe, the Ninth Regiment; they were held in reserve at their armory. Q. When did these organizations report to you; on what day; I don't care anything-about the order in which they reported? A. Monday morning, the 21st of January, very early. Q. And you assigned them to duty? A. Yes, sir. Q. Were they all assigned to this patrol duty on the streets or were they given post duty? A. No, sir; the troops of my brigade were withdrawn from some of the posts and the troops of the First Brigade covered the posts uncovered by my troops, and all these stations were in position so that if a disturbance occurred anywhere we had the rapid means of moving the troops to the field. I Q. Were you in the field or at headquarters? A. I was at headquarters. Q. Who is you Assistant Adjutant-General? A. Col. John B. Frothinghaim Q. He was in the field? A. He was with me at: headquarters. Q. At headquarters? A. Yes, sir. Q. How many men; reported from the First Brigade? A. I should say about 4,500; that is, about.; Q. Was any requisition made for further assistance, for the Third Brigade? A. Not from Brooklyn. Q. Why was that made? A. I don't know, sir; I simply read in the newspapers that the Third Brigade had been ordered to assemble at their armories and hold themselves in readiness to 317 move; that was simply in the newspapers; I have no official information on0 that point. Q. You didn't do anything looking towards such requisition did you? A. No, sir. Q. Do you know of any such things having been done by the mayor or coimissioner of police? A. I don't know, sir; but I would know if they had done it. Q. Do you know whether the Adjutant-General of the State came over here for the purpose of looking over the ground before making that requisition? A. No, sir; I think the Adjutant-General simply came on a visit to Brooklyn in, order that he might report to the Governor; that is all, sir; he didn't do anything while he was here except to visit one or two of the posts. Q. What provision was made for the housing of the men during this time? A. Well, we had to use the power-houses and the railroad shops and all sorts of places. Q. Did that involve any public expenditure? A. Yes, sir. Q. I mean for the housing? A. Oh, I don't think it did. Q. What provision was made for the commissariat? A. That was through my brigade, through the commanding commissary of the Second Brigade, Major Theodore Babcock; he is brigade inspector of rifle practice, but in addition to his duties as inspector of rifle practice, lie was ordered to perform the duties of a commissary. Q. As commissary, did he purchase supplies for all of the men under your command? A. In one sense he did; he approved the requisitions; gave them authority to purchase. Q. Did he designate the parties from whom the purchases were to be made? A. In some instances; yes, sir. Q. Did he do that alone or after consultation with the city authorities? A. No consultation with the city authorities; it was simply with the brigade commander. Q. He did just exactly as he would have done if he had been doing post duty, that is to say, in: the regular army? A. Yes sir. Q. Do you know from whom those supplies were purchased? A. No, sir; Johnson Br6thers, very largely; probably the largest supplies was from Johnson Brothers. Q. Have you been called upon to certify or vise any of the bills for supplies? A. Yes; I have certified some of them and they have been paid. Q. Have you any notion at this tine, any idea at thi' time, as to what they aggregate? A. I don't know, sir, becatme they are still coming in. Q. Have you any approximate idea which you can make acourate hereafter, as to what the aggregate pay-rolls of the men 318 under your command will be for this time; have you thought of that? A. Well, I would say - this is more of a guessQ. Give it to us as such and we will have the figures. A. Well, I should say $140,000 to $150,000. Q. Leaving out the matter of supplies? A. Leaving out the matter of supplies. By Chairman Friday: Q. Both brigades? A. Yes, sir; all the troops; that may be in excess of the amount; probably not. By Mr. Ivins:: Q. mWhat would you judge the supplies would cost, $30,000 or $40,000 more? A. Yes, sir. Q. Bring the amount up probably to the minimum of $200,000? A. Very nearly; I should say it would, $200,000. Q. That all becomes a charge on the city of Brooklyn? A. On the county of Kings. Q. That is on the city of Brooklyn, except Flatlands,? A. Except Flatlands; yes, sir. Q. Let me ask whether or not there is any legal provision for the ultimate annexation'of Flatlands? A. Yes, sir; Flatlands will become a part of the city of Brooklyn in 1896. Q. So that it virtually becomes a charge upon the city of Brooklyn, because the city and county are coterminous? A. Yes, sir; perhaps it would be well for me to say with reference to the commissary, that the privileges were given to commanding officers to make small purchases, from time to time, and send the vouchers to headquarters; the purpose, of course, was that there should be no suffering among the men, that they should not go without coffee or a bite, while we were more especially in the beginning; it is always desirable that the stomachs of the soldiers shall be looked after; they fight better and do better service. Q. Did you personally have oportunity of observing the character of these uprisings in the streets? A. Before the military was called out I saw a little of it. Q. What did you see? A. I saw an attack made on a car and missiles thrown. Q. Where was that? A. That was on Halsey street, east of Lewis avenue. Q.. Did you see any cutting of wires? A. No, sir; this occurred, as I say, the day before the,militryv were called out. Q. Now, yeni were reeeivinr reports from the regimental officers during this entire tilie?, A. Yes, sir. 819 Q. Do you think you can suiaie these eort* generally and give us the gist of those reports as to what was going on&n what the condition of the city was? A. I have not received the official reports, the written reports ffom the several comimanding officers; I have called. upon them and some of them. are inan some of them are -not in; the reports that I have received were verbal and sometimes over the wire~ of disturbaiwces; for Instance, at Hialsey Srtreet station, where the Sev-enth, Regiment wasl on duty and the character of the disturbance necessitated a -charge upon the mob; and so, at Ridgewood, and so at East New York, and iso on; these were reports that came in to me during the, progress of the trouble; then. I have official written report from Colounel, Austen, in whdich he describes the occurrence of tbe, Hicks StreetQ. That is the occasion, of the shooting? A. I have that with me; that is the official copy and the oniy one. Witness handed counsel the report in. question-, which he read in evidence as follow's: "January 23, 1895. "As-sistant Adju-tant-General, Second Brigade: "Sir.- Pursuant to instructions, my regliment was assembled at the corner of Henry and Atlantic streets aobouit 2 p, mn., the FirA' Battalion, under Major Cochran, being the. first to report. I ass-umed -personal command -and marched same with car in waiting as far as Sackett street. '1 had left Lieutenant-Colonel Watson' to take direct command of the Second Battalion and march'same to Sackett street, leaving battalions on each block, and to prevent in. any way necessary any interference with ca r travel and to compel1 any persons from standing on the sidewalks on the car-line of Hicks street, thiat is all pedestrians were required to move toward thefr poInts9 of destination.I " As, -soon as the Second Battalion re-ported, to me at Sackett street, I again ordered the First Battal'ou 'to pro~ceed, leaving patrols in each block from Sackett street to Hamilton, avenue. After reachidng Hamilton avenue., both cars returned over the same route and made a second trip. "On the first advance soine bottles, pans,- and in: some cases bedroom bed china were threateningly displayed! -at -the windows; many instances were stated of those being thrown, and in my own cIai~e a11 boftle and ai pon jiust gra-zing my hetad. Where, sats' of this kind were committed I ordered officers to: 'see that the men protected thlemselves by. compelling windows -to be shut, and In came, any throwing of missles, not to hesitate to order fire If necessary for protection. "In orne instaince, i-n soi-called Smoky follow, aimmn at windoiw wi th pistol was fired at oqn d a guard sent in the hbose and bron'h-t' 320 man down with,his pistol and turned man and pistol over to the police. " In a seoond case, where a man was throwing coal, LieutenantColonel Watson entered the house or tenement and brought the man out and turned t hih over with some of the coal in his possee sicn to the police. When the resistance was made, more shots were fired than I should have ordered, but I consider same in every way justifiable, and the only way to put an end to such demonstrations. In one large building a number of men were standing at open windows and were ordered toi close the same. The order of the advance was not observed, and two or three stray shots were fired at this point. "The men were ordered through me, to battalion commanders, to caution men to fire only on order of commissioned officers, with the general direction that selected men, as advance flankers, might, in emergency, fire to protect themselves. " Captain Meyer reported that a man on housetop approached the edge of roof three times, and with something in his hands, apparently to throw. The railroad superintendent advised me that he saw the same thing, and, while I have no positive knowledge, I think that is the man who is reported to have been ahot. This, however, only guess-work, and all circumstancial evidence. Captain Meyer advises me two or three shots were fired at this time. " The line of Hicks street is not in any particular one recommending itself to treatment other than accordant, and it is only by meeting first riotous demonstrations with prompt remedies that subsequent loss of life and increased riotous demonstrations are prevented. "An officer of the United States Army accompanied the battalion advance, and spoke in very high terms of the regiments work. Mr. Robert Graves also was present. I withhold the army officer's name at his own request. "Respectfully, "DAVID E. AUSTEN, "Colonel Thirteenth Regiment." Q. Were any general orders issued as to the duties to be per. formed by the men? A. Yes, sir. Q. Have you a copy of the orders? A. No, sir; not with me. Q. Tell us what their tenor was? A. For instance, Colonel Austen, one battalion of his regiment was on Ninth avenue near the Richfield mansion, and another battalion was on Fifth avenue and Twenty-fourth street; when news came to me that the railr ^:-^;.^..;...... ~ * X t > 321 road companies wanted to open the Hicks Street line, I ordered the two battalions of the Thirteenth Regiment to immediately proceed by quickest and best route to Atlantic street, and directed Colonel Austen to assume personal command and cover Hicks street from Atlantic avenue to Hamilton avenue; that was all; then you have his report as to the manner in whichQ. I was going back of that, and I wanted to know whether you, as Brigadier-General in command, issued any general orders to the regimental commanders? A. No; there were special orders given as emergencies arose simply, from time to time, being in close touch by wire and through my staff with all these posts; emergencies would arise which required orders to be given to meet that emergency; instructions were asked for, and so on. Q. Organization commanders, then, were simply ordered to duty at given points? A. Yes; and given such general instructions as to! their duty. Q. What were their general instructions as to duty? A. Well, they were to see where the lines were to be opened, and they were required to do patrol duty; they were directed to patrol certain streets, just as was given in the testimony of Colonel Dowd; certain streets were to be covered by them from point to point, and they! were to see that mobs were dispersed, if any gathered, and so on. Q. Special instructions given as to when they should permit their men to fire or as to what extent they would go to in quelling riot-was that left entirely to their discretion? A. The regulationis covered those points veryQ. Sufficiently? A. Yes, sir. Q. When did you order the commanding officer of the First Brigade to report back to the First Brigade commander? A. On the 28th of January I think it was; it was on Monda:y, if that be the 28th. Q. Having been there some nine days? A. Yes, sir. Q. Were any orders of the same kind given to your own partieular command? A. None except that many of the points that were uncovered by drawing off the First Brigade were covered by the troops of my brigade. Q. So that the troops of the Second Brigade conftinued on duty how long after the First Brigade had returned? A. Until the firt of February, I think. Q. The average length' of service thaen of your men was- A It wa about 14 days — well, not the whole of my 'brigade; I relieved about one battalion of each regiment some two or three days before the flist of Febrary; the purpses was to gradt-'aly work back to the condition of things tfat' obtained before the B. 41..........:- ~....... 322 troops were called upon, and to have the police take charge of these stations and so on. Q. At any time after the troops of the First Brigade had returned to New York, did anything occur which led you to believe that they had been withdrawn too! soon? A. No, sir. Q You think they served as long as the necessity of the service? A. Yes, isir. Q. You think they served any longer than the necessities for service? A. I do not, sir. Q. Any reports made to you by any of your subordinate officers as to the conduct of the police? A. I don't recall,any at this tim(e. Q. Any reports as to the way in which they performed their duty while on the cars, or failed to perform their duty, or exhibited sympathy for the rioters? A. I don't recall 'at this moment, sir, any report that reached my headquarters. Q. Have you any knowledge on the subject from any source whatever? A. I think Colonel Smith is here, oommanding the Twernty-third Regiment, and if you should ask him that question he would probably tell you of an;instance. Q. Do you know anything of the causes of the strike, individually, general? A. No, sir; except the newspapers; that is all; the cause of the strike or the difficulties between the companies and their employes was not a question for the National Guard to consider; they were simply out to aid. Q. I didn' lknow but that as a, prominent citizen.:ereo, you might have some knowledge of it? A. To aid the civil authlorities and maintain peace; what the difficulties were was not a matter that concerned us Daniel Appleton, being called als a witness and duly sworn by (hairman Friday, testified as follows: By Mr. Ivins,: Q. You are colonel, commanding the Seventh Regiment, are you not? A. Yes, sir. Q. How long have you been so? A. Five years and six months. Q. When did you receive orders to report to General McLeer? A. Six o'clock on Sunday, the 20th of January. Q. And when did you report? A. Seven o&clock on the morning of the 21st. Q. When did you receive orders from him to report back to the brigadier-general commanding the First Brigade? A. About midnight on the 27th or 28th; on Sunday, whatever date that was; Sunday, about midnight. Q. What was your numerical strength while on duty here during the interval? A. About 995. 323 Q. Where was your regimental headquarters? A. At Halsey street stables. Q. How many posts were your men assigned to? A., The regiment proper had three posts. Q. Did you do any patrol duty? A. Yes, sir. Q. What streets did you patrol? A. Gates avenue and Myrtle avenue. Q. The entire length? A. No, sir. Q. Which end, upper or lower end? A. Toward the Ridgewood power-house. QL, What were these three? posts!? A. They were stables where the men were quartered; there was the Ridgewood power. house, land Alabama and Fulton Avenue stables, and Halsey Street stables. Q. Did you, during this time, see any public gatherings or uprisings, you, individually? A. I saw some gatherings; yes, sir. Q. Did you see any gatherings oir crowds whiich called for action on the part of your men, in their dispersal? A. Yes, sir Q. Where? A. At Halsey street. Q. Just describe what occurred there? A. Well, toward 10 o'clock on Monday evening, quite a crowd assembled, how many I couldn't say, owing to the fog and darkness!; from those crowds were thrown stones and missiles, and I went out toward them and! told them that they should go home, that the mayor had requested them to disperse, and that they should do so; they replied to me in vile language, and repeated the stone-fhrowing. Q. Throwing the stones at you? A. Yes, sir; andQ. At the troops? A. At the troops, and I then directed the guard to clear the street, which was done. Q. How was it done, with the bayonet? A. No; bayonet wasn't used; nothing but the guns and bayonets; of comrse, the bayonets were fixed. Q. How many men were at the Halsey Street station at that time, under your command? A. On Monday night, I think, hal four companies; in the neighborhood' of 400 men. Q. Did it require these 400 men to disperse that crowd? A Oh, no, sir. Q. How large a part of your force at Halsey Street depot were required to disperse that crowd? A. Well, I suppose there were under arms at the time in the neighborhood of '50 men. Q. Were there anv police officers there at the time? A. Well I can't say, positively; I think that there were. Q. Can you estimate how large a crowd that was? A. No, sir; it was impossible; it was a very bad night; very foggy and very AM% 324 dark, but there were several hundred in that vicinity; maybe many more than that. Q. When you first took command at that post, how many police officers did you find there upon duty? A. That being the stables, there were several police officers there, getting ready to take the cars out, and when we arrived there, there were several policemen; how many, I couldn't say; several mounted policemen; as the day went over, and the cars went out, they became fewer. Q. So that the maintenance of the peace in that locality devolved entirely upon the militia, did it? A. Well, not during the daytime; the mounted police, if necessary, if there were any gatherings, they dispersed them. Q. Were there any gaftherinigs that you were called upon to disperse? A. Another one that same night; on the same Monday night. Q. Where? A. At the same place, Halsey Street stables. Q. That was a sort of repetition or continuation of the violence? A. I think it was another crowd. Q. And they were dispersed in the same manner? A. Yes, sir. Q. Was there any other instance? A. Not that night; no, sir. Q. Well, any night? A. The following night there was a similar crowd gathered in the neighborhood of 11 o'clock, and it was reported to us by the police officers, and so on, that they were armed, and it was understood between the commanding officer of the battalion and the captain of the police that there should be police officers there to keep the crowd moving, and the officer of the day reported to me that there were no police officers about 11 o'clock, and as I came out towards the sentry lines, there was a sudden advance, apparently, of these people, and I heard the sentinels order them to halt, and they failed to do, so, and two or three shots were fired. Q. Fired above the crowd? A. No, sir. Q. Into it? A. No, sir; at certain people who were approaching, failed to halt. Q. Any hurt? A. Two men were wounded at the time. Q. How many of your men were engaged at that time, in that particular service? A. I think, in that line of sentries, there may have been 10 men. Q. How long was that sentry line? A. Across Halsey street about the width of the street, the ordinary Brooklyn street Q. So that it was a compact line of sentries? A. Not very compact; no, sir; it was a deployed line. By Chairman Friday: Q. Was that the occasion, general, when the ball penetrated a window? A. Yes, sir. 325 By Mr. Ivins:, Q. On any other occasion did your troops disperse a crowd? A. At the Ridgewood power-house on Moonday and Tuesday, they were obliged to diperse crowds Q. What wa;s the character of the violence, if any, which was being committed- there by the crowds? A. It was only in the nature ---when the cars went out they were obliged to patrol the streets and disperse the crowds on these occasions. Q. IWhat is your opinion as to Ithe necessity for the presence of the troops; were those crowds such, in your opinion, that if troops' had not been there disorders must necessarily have resulted? A. I don't think I am competent to answer that question; it is a matter that I haven't given Q. Judging from the character and the size of the crowds, their temper, did you regard your presence as a necessary precautionary measure? A. I can't tell you what would have happened if we hadn't been there. Q. But you can tell whether or not, in view 'of what you saw, a fair man would say that it was a necessary precautionary measure to have taken? A. Well, there was certain citizens in this city abused; and they were n'ot always taken good care of. Q. Did you see such cases? A. No, sir. Q. Yon heard of them? A. I heard of them, and saw the men that were abused, yes. Q. You saw the men after there had been personal violence done? A. Yes, sir. Q. How many cases of personal violence to unoffending citizens do you know of in that way? A. I don't know of any, of mty own knowledge, except, as I say, that I heard, in reports of people. Q. Did you see any property destroyed or injured? A. T saw the property brought in destroyed, the cars and so on,; I was not present when any property was being destroyed. Q. What 'as the character of the injuries which you saw?. rThe cars made uninhabitable and impossible to ride in them. Q. Windows broken, roofs broken? A. Woodwork broken and smashed badly up. Q. Did you see any attempt to barricade the streets, or to block the rails? A. Not personally. Q. Were any such attempts reported to you? A. The placing of obstructions on the track, and so on. Q. On this occasion you have just spoken of, at Halsey street, was any one killed? A. One of the men that wias wounded died aiterwardis, yes. sir. Q. Who gave the order to fire? A. There was no direct order '^..: given to fire. The instructions that were given to him - where a man should advance upon them and he is told to halt and does not halt, hie then has the privilege to protect his own life. Q. And the order to halt was given by the pickets? A. Yes, sir; I heard it myself distinctly, three times. Q. And the man who was shot proceeded in.disregard of the order after it haid been given three times? A. Yes!, sir. Q. Another man was wounded, was there? A. Yes, sir. Q. AWhere was he 'shot, in the arm? A. Yes, sir; in. the arms. Q. Do you know who he was? A. Yes, sir; a man named Mitchell. Q. I)o you know the name of the man who died after he was wounded? A. No, sir; I do not; except " Aherns," I think it was. Q. Were the police officers performing patrol duty in any part of this territory simultaneously with the performance of sulch duty by your men? A. Well, the police were on the cars, in most instances; in one case, the police stood by a battalion of the regiment, but that was not in the nature of a patrol; they were simply crowding through. Q. Did you have any opportunity of observing the manner in which the police force on the cars performed their duties? A. No, sir; I did not. Q. Did any report come to you fromn your subordinates as to the manner in which the police officers on the cars performed their duties? A. There was in one case. Q. What was it? A. It was entirely of a complementary cha'racter; the officer in charge of the police did his full duty as a police officer. Q. In what respect? A. In resisting attack, and he was fired upon. Q. Fired upon from the crowd? A. Yes, sir. Q. And still did his duty and did protect the car? A. Yes, sir. Q. Did he have any assistance from) the troops in that? A. Yes, sir; there was assistance of the troops; the troops were leading the way at the time. Q. He did not fire himelf back upon the crowd in any way, did he? A. That I know nothing about. Q. Have you heard of any other instances in which criticism either favorable oir adverse was made to you uponl the police department? A. No, sir; nothing in a,n official way. Q. Were the supplies which came to you through your commissary department, ample and sufficient? A. Absolutely so. Q. Satisfactory in all respects? A. Entirely so. 327 Q. Where were your men housed? A. Housed in the stables at Halsey street, Ridgewood, Alabamal and Fulton, avenues Q. You spoke of the crowds having refused to' obey your order to disperse, and having thrown stones at yourself and the troops, and of having used vile language; what sort of language was it they used? A. Well, if you get all the words you can think of and put then in a pot and boil them up you will probably get the result; I can't think of half. Q. Profanity? A. Yes. Q. Obscenity? A. Obscenity and vulgarity of every kind. Q. Have you ever heard any profanity which was not used there? A. No, sir. Q. Was it good-natured and jesting profanity, or was it ugly and wicked? A. Ugly and wicked, particularly after some of my men had been hurt. Q. How were your men hurt? A. With stones. Q. Who were using the profanity, the crowd or your men? A. The crowd; my men said nothing. Q. Seemed to makle the;crowd more wicked and ugly after they had done some injury to the troops with the stones, did it? A. Yes~ sir. \! Q. I suppose all the ordinary colloquial familiar forms of obscene and profane address wiere resorted to, were they? A. Yes, sir. Proceedings adjourned until 2 p. m. AFPERNOON PROCEEDINGS. John N. Partridge, being called as a witness, and duly sworn by Chairman Friday, testified as follows: By Mr. Ivins:! Q. Colonel, what is your business? A. President of the Brooklyn City Railroatd Company. Q. What lines of road does that company operate? A. That which is known' as the DeKalb, Avenue line and Franklin Avenue line. Q. How many miles of track,have you in your system? A. About 19, single track. Q. Do your lines run on to any other streets than Dekalb and Franklin avenue? A. Yes, sir. Q. What streets? A. Run on Fulton street, Washington, Front, Walter, Mialbone, South Eighth, South Ninth, Kenir avenue, First street, River street, Grand street; I think that is all. 328 Q. Bow long have you been president of thie road? A. About nine years. Q. Have you had any contracts with the employes of the road with regard to the hours of labor, proportion of trippers, and regular cars, etc., and the rate of wages to be paid? A. In the past? Q. Yes? A. Yes, sir. Q. For how many years have you had such contracts? A. Well, I should say about eight years; I don't remember exactly. Q. With whom were those contracts made? A. With a committee of our own men representing the employes. Q. Not with the Knights of Labor? A. No; except as our own men were Knights of Labor. Q. Have you ever had any contracts with the representatives of the.Knights of Labor as such? A. No, sir. Q. Did the representatives of the Knights of Labor endeavor, prior to the recent strike, to have you enter intoi a; contract with your employes? A. Yes, sir. Q. Are your chief men members of the Knights of Labor? A. It is impossible for me to tell, sir, as I understand the Knights of Labor is a secret organization, but I think that many of them are. Q. Did you enter into.any contract with the representatives of the Knights of Labor? A. Never. Q. Not recently? A. That is, other than our own men. Q. Not recently? A. No, sir. Q. Well, to put it in this way, did you enter into any contract with the executive coinmitte of which Mr. Connelly, Mr.-Giblin, Mr. Holcombe, Mr. Best, and others were members? A. No, air. Q. Did those gentlemen ever ask you to enter into a contract? A. Yes, sir. Q. Have you the propcsed foirm of contract, which they asked you to make with them? A. Not with me. Q. Do you know whether that proposed form of contract is the same as the contract proposed with the other companies? A. In many respects, I believe it is.; in many respects I believe that it is now; the conditions of our companies are different. Q. Is it different in any respect other than that of the proportion between tripper cars and regular day cars? A. I think it is, although I can not answer that positively for I have not seen that contralct, their propfoed contract. Q. Such contract was not entered into by your line? A. no, sir. Q. Have you entered into a contract with your own men, individually, or as a body? A. Yes; I have. Q. Have you a copy of that contract? A. No, sir. 329 Q. Will you supply us with a copy of it? A. Can I make an explanation? Q. Certainly. A. There are several papers in existence that bear on this subject; one is a letter addressed to the president of this company by the Board of Mediation and Arbitration; another is my reply to them. Q. Those two papers I have; at least, I have your reply to them. A. If you call that a contract. Q. No; that is not what I call a contract. A. Well those papers are in existence. Q. Now, are there any other papers in the nature of a contract? A. Well, I don't know whether you mean to cover the time for the men returning to work after the strike; since then there has been other correspondence between myself and our men, but nothing pending the strike. Q. Well, pending the strike, did you enter into any formal contract with anybody with regard to the wages, the time of employment, and the number of cars to be run? A. Only as it appears in that correspondence. Q. That refers to something, but was there a written contract formally drawn and formally signed? A. No, sir. Q. Since then have any written contracts formally drawn been signed? A. Since then I have drawn up a paper embodying certain propositions and the same has been accepted individually by the motormen and conductors in our employ. Q. Have you a copy of that paper which has so been accepted by the men? A. I have nothing with me for the reason that I was in New York when I was telephoned, and told I was wanted here. Q. Will you send it to my address in New York,-32 Nassau street, a copy of that? A. Yes, sir. Q. Did the men on your road ask an increase of wages? A. They did, sir. Q. What was it? A. They asked for $2.25 a day, as far as the wages is concerned. Q. For regular day cars? A. Yes, sir. Q. And what for trippers? A. One dollar and seventy-five cents. Q. Did they stand on that demand? A. Yes, sir. Q. Did they stand on that demand at the time of the strike? A. Yes, sir. j Q. What requirements or proposals did your employes make with regard to the number of tripper cairs to the regular full'day cars? A. They dcJn.-nded 75 per cent full-day, 25 per cent trippers. B. 42 330 Q. What proportion were you running before that demand? A. Two-lird full day went out in these different detachments, that undoubtedly the police sympathized with the crowd, and were not doing their duty; it was reported to me in two or three instances, in fact,.that troopers rode over to the police and said, " Why don't you walk back here a little and make these people move along, and prevent their interfering with the men doing the work? " And they hadn't done it previously and were not disposed to do anything; there were exceptions; the mounted police detalchiments did most excellent service, and there were one or two individual policemen who did. Q. Speaking of the policemen, generally, who fell within your observation, would you think that they did or did not do good service? A I should say they did not do good services 345 Q. Do you believe that they could, had they done beftteir IS-Be vice, have aided more materially in quelling these disturbances? A. I do. Q. What is the rate of pay, per diem, for your men? A. A private getls.$1.25; non-cominissio-ned officer, corporal, $1.50, and so on. Q. And allowed for the horse? A. Allowed for the horse nOW.; according to the new law; any reasonable amount. Q. What is the reasonable amount that has been fixed? A. Our company gets $4 a day. Q. So that man and horse is $5.25 a day? A. About thhat; yes. Q.Have you made out your pay-rolls? A. Yes, sir. Q.In round figures, what do they aggregate? A. Including the horse? Q. Yes. A. Including the horses and pay of the men, and the rations that- we provided, so as to co-ver it all, I should think -about $5,500 would cover it all: Joh-n N. Partridge, recalled, testified as follows:. 1y, MNr. Stuci Awld: Q. Have you. eadl the compulsory arbitration bill introduced i~n the lower house of Congress? A. I have real it hal~tily iu the last few inoinents. Q. You observed the. statement that it had passed the lower h-ouse. by the,- newspaper heading, did you? A. Yes, Sir. Q. Did you read it closely enough to enable you to expreass an opfinion as to its nurit's or demnerits? A. I am ha,'rdly eompetent to do that, because that applies to interstathe commerce, and I am not. eng'!"t(ed!in that business. *Q. Well, ass~-ume- that the principle c~ontended for in the various sections of his.-bill w,~ere aptplied. to the surface railroad of Brooklyn, as they could very r(eadily be, by a change in pbhraseolhgy, would you theii have any opinion at the present speakiag, whieh you desire or care to express? A. I can not give an ophnion on such short net ice; it is a mniatter that would require -more thought and %tudy than I (toiid ivo, in such a short. time. _Bv Chairman Friday.- Iii your leisure moments will yoti send *in am opilnion it-ofl this suibject? ByRN Mr. Ivins.- T thikc w(, had better recall the colonmi) 0on that, and take up'that phias.,e of ihe case. Witness.- As I saild, it seems to apply to iin~taerte o omnmerce;.the conditions of city traffic are Materially diff erent 13- Mr. Stanch field. — By a very resiychneiphmelg it couild be mnade applica"ble even 'to s, lar ge a city as. Brooklyn? B. 44 874& 'Witness.- It might; I have riot exam~ined it with- sufficiont care to express an opinion. By Mr. 'Stranehiheid.- I wishi you would, and tell us what oi~il think about it some, othcr day. Witness.- I wili as soon a,, I can; I have a great -deaI to do; I have, not been to wy oltice today; I find. a, great deal of wvork awaliting me thtere; I h~ave 1)01 many hours in the day, but I will gi~ve it what ati ention 'I can. By M;Nr. Wvins. —* 1 btin you will ftnd, colonel, that 'it, is dcs-irable that yvou should, be~iethe conunittee proposes:I's the result of- this inve'stivaiion to itself to come to some co-ncltusion and make some recommendation with regard to legislation. It certainlyintderests both -sides of this controversy, the men vas well as the employers, t-o sreihal those recommendations are wvhat: they should be. Francis V. Greene, being called as. a. witnes's and duly swornby Chairman Friday, testified as follows: B3y Mr. Ivins.: Q. You are colonel of the Seventy-first Regiment, N. G., S. N. Y.? A.Ilam. Q. How long have you been so.? A. A little over three years. Q. When did you. repoirt for duty to General McLeer? A. On the morning of Ja-nuary 21st, about a quarter before 7. Q. Wlien did that ditty terminate? A. I left Brooklyn on Monday morning, the 28th, about half-past 8. Q. Wi th how many men under arms and subject to, orders? A. About 503, average. Q. Where were- you sta~tioned? A. We occupied five carstables, the principal one on Bergen street, Troy and Albany avenue, with detachments at Carroll street and Nostrand avenue, opposite Kings County Penitentiary; another one at Butler and Xostrand avenue; another at Ralph. avenue and- Pacific street, and another one at Marion and Fulton. Q. To what class of duty were you a-ssgned? A. My in-structions were to protect the property of the railroad companies at these points, to assi-st th-em or protect them. in the operation of their cars, and to presserve order in the. streets and their vicinity. Q. Were' there any acts of violence, done to the property of the, company or to pers-ons- employed by the couipany which fell Tmder your own observation or whi4~h were- reported to yotu by your subordinate~s? A. There was no. violen~ce done to any perwon conn ected with the coImIpa-ny, so far as reported to 'me,, and the only dsnamage doIfe, to their property was by obstructing their tracks by ash-barrel~s, and by cutting their wire ait nights. Q. Were you or your men called upon to diaperse any crowds or mobs?' A. We were. Q. TIll us where and when? A. The first one, I think, was on Monday afternoon, or it may have been Tuesday morning, eiher the 21st or the 22d; I think it was on Sumner street, north of Fulton; it was reported by telephone, and a company-was(sent there at the double-quick; when they got there they found rather a, small crowd, not exceeding 50 men, which dispersed as thie approached, and the track was found obstructed with ash barrels and similar obstructionsi; these were removed, andi the men remained there until the cars began runmnig, then returned' t9 their station; this happened, I should say, seven or eight difftrent times, and it is the same story each time. Q. Was it necessary, on either of these occasions, to charge the crowd? A. It was not. Q. They dispersed at the word of command, did they? A. No word of command given; they dispersed at the approach of' the men. Q. Were any shots fired by any of our troops? A. No, sir. Q. Did your troops effect any arrests? A. They did not. Q. Did you have any assistance from the police in maintaining peace and order? A. There was a large squad of police under a captain of police, I think his name is Captain Dyer, at Bergen Street stables, sending out two men on each car, at first the regular policemen, one in the front, and the other on the rear plat-. form; afterwards there was a body of special policemen; a special policeman in the front platform, and a regular on the rear platform; these men were at these stables from about 6 o'clock in the morning until the cars stopped running at night, eight or nine, and in some cases as late as 11 o'clock at night; tleir duties seemed to be confined entirely to riding on the cars, giving the cars protection while in motion. Q. Tn this territory, to which you were assigned, were there any policemen doing patrol duty, or was that left entirely to the troops? A. I don't remember seeing many policemen in the streets; most of them were on the cars. Q Did you have any opportunity to observe whether or not the police were doing their duty efficiently and well? A. I had very little opportunity to form an opinion on that subject. Qi Did you form any opinion as to whether or not thve police were sympathetic with peace and order, or sympathetic with the crowds in the streets? A. Well, I saw no actual neglect of duty by the police; I have no right to say that they sympathized w4ih the strikers; I have no personal knowledge that they did. 348 Q. Take the case of your own men; did you have any evidence that they were sympathetic with the crowds? A. The men of my own regiment? i Q. Yes. A. Not the least. Q They had no sympathy for the crowd in the streets? A. None, whatever. Q. Ilave you made up your pay-rolls? A. I have. Q. Can you tell us about what they aggregate? A. I can only give an approximate estimate, because I have not the figures in my head at all. Q Give them to us, for the time being, approximately? A. I can give them exactly, if you desire; the pay of the men is 1.25 a day, and there was about 500 men; eight days, that would be $5,000 of itself; then there were incidental expenses; then the pay of the officers in addition; and there was about $1,000 in incidental expenses; I should think about $7,000 exclusive of the subsistence, which bills did not go through my hands. Q. Who provided the subsistence? A. It was provided by the commanding officer of the Second Brigade; the regimental commissary was sent every morning to get the rations, and they were distributed to the men, according to the regulations of the State. Q. Do you know whether any one in your command arrested or caused the arrest of Superintendent Harris, of the Brooklyn, Queens County and Suburban road? A. Yes, sir. Q Tell us about it? A. I think it was Mr. Harris; at all events, it was the superintendent at the Bergen Street stables; he was brought to me one afternoon by an officer and file of men, who complained that this man was harassing them by moving cars; the men who had been on guard the night before would no sootier lie down to get a little sleep in a car before the car would suddenly start up, and be shunted around in the barn, and the men thought it was personal persecution; they complained to their officers about it and they arrested him; and it was a mere misunderstanding; he was trying to get out certain cars for use on his tracks, and he had to move certain other damaged cars in order to get at them; they thought it was personal persecution, but it was not. Q. The men had been housed in the cars? A. They were trying to get a little sleep in the cars; it was the only place to go; it was a mere misunderstanding and amounted to nothing. Q. Was no sleeping place supplied for your men there, proper sleeping place? A. There was none available anywhere at any of these barns 349 Q. So that all of your men virtually lived out of doors, unless they could get under the shelter of a car? A. Unless they could get inside of a car; they slept on the floor, or wherever they could find a place to lie down. Alexis C. Smith, being called as a witness and duly sworn by Chairman Friday, testified as follows: By Mr. Ivins: Q. You are the colonel commanding the Twenty-third Regiment, IN. G., S. N. Y.? A. I am, sir. Q. How long have you been so? A. One year and one day. Q. Were you and your command under orders for duty during the strike? A. Yes, sir. Q. When did your duty begin? A. The 19th of January, about 8 o'clock at night Q. When did it end? A. The majority of the regiment were dismissed on the 31st of January, in the afternoon, and two other companies were dismissed the next day, February 1st Q. What was your average efficient force during that time? A. I can't tell you in round numbers, but somewhere between 800 and 850. Q. Have you made out your pay-rolls? A. Yes, sir. Q. Tell us what they aggregate? A. I think they aggregate about $18,000. Q. Where were you assigned to duty? A. All over; we had no particular place; the first day, Saturdiy morning, we had three detachments sent out, one to Flatbush, one to Ninth avenue and Twentieth street and one to Fifth avenue and Twentythird street, two companies in each detachment; the next day there were five more posts added, and we were sent down to Fifty-eighth street and Second and Third avenues, Fifty-second street and Second avenue, Twenty-fifth street and Third avenue, and then some stationed in Twenty-third street; I think an elevated station near by, but there were seven posts in all, the second day. Q. Then, from day to day, your posts; were changed, were they? A. Well, we remained there for two or three days, and then we were changed again. Q. Did you cover pretty nearly all of the city before your service was ended? A. Well, not all the city, but one portion of it. Q. What portion of it? A. What they call South Brooklyn down toward Bay Ridge. 350 Q othat you~ covered pretty nearly,-all -of SoruttL Brooklyn? ~A. Yeis, sir. Q. Did you -see any acts of disorder on the par-t of gatiherings or crowds during that time? A. Well, umereJ]y ametimes rdf used to go back when told to do Eo, but nothing of any importance. Q. Were your men, called upon to diapea-se any crowds? A. 'Frequently. Q. Did you see or have you heard from your subordinates of aocts of violence to person or property during t~ht t~ime? A. Except the railroad cars, that is all. -Q. Injured by breaking? A. -Stoning. Q. Know of any injury to thes wires? A. -Yes, sir; there was one of my captain~s reported to, -me -one mc.rning that the night previous, on Third, avenue, there hiad. been an attempt made -to cut the wircs, and they had been called. upon, to give assistance, and -the men who had be-en engaged in this -were traced to a saloon on Third avenue, where the doors, were shut, and the police -claimed they were uina-ble to get in; my detail got In, the place, -and -compelled the man -to -light the gas, alt~hou gh he, said there was no one tliere, and with the police they made an, inspection. and I think they got eight or ten men with rubber gloves and ropes and -all those different things. Q. That is the apparatus for cutting wilre? A. Yes; the palice took charge o.f these -men and -arrested them; my men returned to -their posts. Q. Did the police refuse to mak.e an attempt to. arrest until -your men, insisted. ton, enteiring the building? A. Well, they claimedi they couldn'i g't in there. ~Q. Did you have any idifficulty in getting in,? A. I1 believe the -sergeant -had to -use force to op-en thd door. Q. Did he use it? A. Yes, sir; used it and went in. Q. Did you have any opportunity during this lime to observe. the manner in which the pollee performed their duty? A. Per. sonally; no, Sir. Q. Did any of your subordinates report to you anythinjg in regard to the manmer in which the duties of the police ewere p-erformed? A. No, sir. Q. Was there any feeling of -symipathy on the peart of your men for the crowds that gathered in the streets? A. My men? Q. Yes. A. Well, that I couldn't say. Q. Was there any evidence of -it? A. On the ~part of my n1 Q. Yes. A. Nosir. Q. Any evidence, so fair asyou know, of apiparent sympathy on the ipart, -Of the officersfor the -men ~gathered In ths st~reet'? A. That Is, my officers? 86-t Q.No,. the police.officers? A.,Ok~ we dllnit -see nmuchroi~ftbe police, because we were most4y.at -the_ oarnstablft,, aiad the,.ppce there merely went in and out on cars9; after they lkit.th-e..tabIo we knew nothing about them. Q.Were the pol'icejperforming patrol -duty througb, 4%ft* Brooklyn at that time, or iconfining their duties to; proteeti&g.Gaa upon the -rail? A. Principally on the cars. Q. In your opinion could order have been mO~ta-inednuo9th Brooklyn by the police witbeut the in'tervention of the troops? A. I think not. I y Mr oiiy Q.At those different places to which youi and your trok~ps Twere ordered to report for duty, did you -find them covered -by anr m1i'litary force? A.No, Sir.,Q. None of them at,all?. A. No, fir. Andrew D. Best, beiing rectalled, testified 'as follows: Bv Mr. Zivins: Q. Last iiight I ashed -you: "Is there anyrthing further You want to -say by wNay of suggrestion as to the causes of the striks?~ and you answered, "Well, I.would like to supplement what 'I have assigned as beinsg a primary cause of the strike, that I eon. sider the differences which have been -held up to the pubili afs merely incidental to the real causes," etc. * * * "-The differences might be classified as our effort to -contfine the dayzs wo*k to 10 hours per day;" that, I think, has been silftlien l1y cover~ed by what you heave,already said? A. I thinak so Q. Then youi added, "To regulate the rate of speed; now, tell us a little more fully what you mean lby that? A. Well, for exiuplth.im-able~s on the Brooklyn city, lieacodn to the schleduless, are, made out on, an average of from. seven and, a half to eight miles an hour, that means continuous running;, thle time consuimed in taking on and letting off passen-gers. and allowing, for blocking, etc., will consume nea~r ha-If of that time; consequently it brings Ihe running time up on th~e various rooidm to double that allo'vcd by -the schedule, while -the oars are in actual op>eration; now, take the Bowery Bay line, for example, of the Brooklyn Miy; their average run-ning time, as. per'their sched Ule, -is -within -one fra~tton, Within a 'single oIn t 6f the 410 Milvs an hour,1- wvhjich really makes the running time there boat 20'miies' an boutr, whble'the cars are in m Iotion, or quitbe.ne Oi~Y, so; i~he TAu,.hwi'Ck itne "is seven and a half, accordpiir to. th1e. &chedule. W hihh woiffld ting it UP' to ait least -15; the Flutghing 352 Avenue line, 15; Fulton Street line, 15; Gates Avenue line, 15; Grand StreeT line, 15; Meeker Avenue line, 15; Myrtle Avenue line, 15; Union Avvenue, 15; Court Street, about 13; Crosstown, about 15; Flatbush line, 15; Greenpoint, 14, or thereabouts; Hamilton Avenue, J5; Lorimer Street, about 16 1-2; Nostrind Avenue, 15: Pltnam Avenue, 15; Second Avenue, about 20; Th;rd Avenue, 16; Touipklins Avenue, 16. (Foregoing read from memorandum.) By Mr. Stanchfield: Q. Can you explain once more ho'w you figure that? A. I figured that their schedules are made out on the basis, average running time, seven and a half to eight miles an hour; then a few roads, Bowery Bay, for example, and Second avenueSecond avenue is 10 and a half miles an hour net. Q. According to the schedule? A. According to the schedule, not allowing. for any stopping; it means continuous running. Q. It means while the wheels are in actual revolution? A. Yes, sir; and Bowery Bay is within one single point of being 10 miles an hour; then Grand Street line is over eight miles; Meeker Avenue is over eight; and Lorimer Street is over eight; the rest average very nearly seven and a half miles per hour, and this brings up the running time, as I explained it, about what I have indicated, nearly doubles the actual time; that is the speed which they have got to attain in order to make the schedule on time; this, of course, has been a serious matter for the men; that entailed a great deal more work; a great deal more strain on their nerves. By Mr. Ivins: Q. Do you think that the increased number of accidents was incident in any way to this? A. I think it is very largely due to the excessive rate of speed. Q. Have you ever, had an accident on your car? A. Well, nothing very serious; no, sir; I never ran a motor car; as I explained yesterday: I might say in connection with that, we had in the year 1893. when the Brooklyn Heights Company began to operate their lines by electricity, we began to have contentions with that company on the speed question; they began by crowding in extra trips, on every road where it was possible for them to do so; and I was district master workman that year, and it fell my lot to look after these matters; and we had a dispute on Flatbush Avenue about the 1st of April, on Gates about the latter part of June, and on the Greenpoint 3,53 line about the beginning of September; and in. every instauce after the companies had employed what they called expert motormen who held positions as motor inspectors were put on the cars, and they ran them at an excessive rate of speed; every precaution was taken by the company to have the track clear for them and one of the division superintendents rode on each oar during the test, and the company had to admit that the time could not be made with safety. Q. How was that admission made? A. It was made by the president; President Lewis admitted it after the reports had been received from his various division superintendents on each of these occasions that I refer to. Q. Did he change the time-tables then to correspond? A. Yes, sir; he lengthened out the running time. Q. Did that lengthening of the running time result in decreasing the number of trips? A. Yes, sir. Q. So that at first they were running more trips even than they were running at the time of the strike? A. Yes, sir. Q. Well, speaking generally, should you say that there had been more accidents during the first six months of the introduction of the trolley system, than during the last six months? A. Well, I am not prepared to state. Q. Have you prepared any statistics from any public or private sources of the number of accidents which have occurred on the railroad here since the introduction of the trolley system? A. No, sir; I have no staitistics at hand; it is a matter of common talk around the city here that the one hundredth death has occurred to-day from the trolleys. Q. You mean to-day; the death of the boy on Meeker avenue? A. Yes, sir. Q. Is that the one you mean? A. Yes, sir. Q. That occurred this morning, didn't it? A. So I believe, and they claim that some two or three hundred collisions and accidents of various kinds, outside of those that have resulted in death, have occurred. Q. When we closed last night you were making a general statement; some of the details of them we have now, been going over; now, will you go on from where you were last night, if you can recall and state the other matters that you wanted to call to the attention of he committee? A. Well, the rate of speed, the 10-hour workday; the rate of speed, I tried to explain that, and proportionate trippers. Q. That we have been all over? A. I have been all over that; and 1 might say from reports that have come in from some df the road's of the Brooklyn Heights Oompany, Gates avetmre, fo example, and Flushing avenue: I think, on Gates avenue, the pro~ B. 45 354 portion of cars has been ieveirsed; they have now about twothirds trippers, and one-third straight runs since the trouble has been ended with that concern. Q. That is the Brooklyn Heights? A. Brooklyn Heights; on Flushing avenue they are running an excessive number of trippers over what they formerly ran and paying them a great deal less money for it; I believe that this is generally reported on all their lines, so far as the trippers are concerned. By Chairman Friday: Q. What was the proportion? A. The table was on a basis of one-third and two-thirds; one-third trippers and two-thirds full cars; the minimum price of trippers being fixed at ]1.50. Q. And since the adjustment of the strike it is now threefourths and one-fourth, do I understand you to say? A. No; I think they have about, according to my information they have about two-thirds trippers and one-third, $2.00 cars. Q. The same as it was? A. Oh, no; the order has been r.versed, and the trippers are run from $1.14 up; something of that kind. lBy MI, Ivins: Q. Do you remember when this contract was entered into, through the Knights of Labor, between the men and the companies? A. Yes, sir; I do. Q. What year was it? A. Eighteen hundred and eighty-six. Q. Since 1886 the companies could only change their timetables with the approval of some representative of the executive committee, could they not? A. The local committee or the executive committee; it was a matter of mutual arrangement with the companies. Q. So that all time-tables, when changed, had to be submitted to the representatives of the men for their approval? A. Yes, sir. Q. That now is no longer the case? A. We have no standing agreement with those companies now. Q. Lacking the agreement they have been able to make, these that you have just now described? A. Yes, sir. Q. Now, Mr. Best, what, in your judgment, is the result of this strike? Taking it as a whole, are the men better off or worse off as a result of the strike? A. The men, as individuals, I presume, some of them, are in a worse condition, but I believe that so far as workingmen generally are concerned, the results will be beneficial. 355 Q That is a thing that you are looking to for the future? A. Yes, sir. Q. But, individually, the men are in the meantime suffering for the loss of work? A. Some of them no doubt are. Q. Now, do you think that the lot of the men who hereafter act as motormen or conductors is going to be harder and worse, because of the present condition of affairs, than it was under the antecedent condition of affairs? A. Well, if the present condition of affairs, as they are established just now, continues it will be much worse. Q. Then, assuming the continuance of the present condition of affairs, and no adjustment between the companies and the Knights of Labor, along the lines that adjustment was sought to be had on, you think that the lot or fortune of the men working for the companies is in the future going to be worse, do you? A. I do, sir. Q. Now, what do you regard as likely to be the outcome of the situation, as to the continuance of the present state of affairs? A. I haven't formed any opinion on that. Q. What is now the status of the Knights of Labor in the matter of dealing with these companies? A. So far as I understand, they have no recognition! from the companies at the present time. Q And is it not true, as a matter of fact, that most of the men who constitute these Locals are now out of the employment of the companies? A. Yes, sir. Q. An entirely new body of men has come in; has that new body of men gone into the Knights of Labor? A.. They probably will be. Q. Yes, but have they yet, to any appreciable extent? A. Not very largely. Q. Do you think they will be compelled to do that, in order to protect their own interests in the future? A. I think so; that is the way, usually. Q. You have always found it so, have you? A. Yes, sir. Q. And you think, when, these new men merge themselves in a general body of the old men, that then the Knights of Labor will again be in a condition to treat with the companies? A. I believe so. Q. When they can either insist upon carrying out terms, such as those that were proposed before, or again repeat the policy which you have just gone through? A. Yes, sir. Q. Don't you think that when that time comes, the rallroad companies will be as able to find new men from outside as they were on this occasion; that the same experience will be repeated? 356 A. It is barely posible that the management of the railroads might be changed by that time. Q. But assuming that the management were not changed, or assuming that the new management wanted to get new men, don't you think they would be probably just as able then to get new men as they were this time? A. Well, thatt'would depend largely, I suppose, on the surrounding conditions, conditions of business, etc., throughout the country; I think that is true. Q. I think that is true; is it not a fact that just at present there are a great many seeking labor? A. I believe there is. Q. So that the supply of labor is larger than the demand? A. Yes, sir. Q. Now, what else was there that you wanted to suggest, Mr. Best, in addition to the matters that you stated in that final sentence there? A. In regard to the restoration of the wages of the electrical workers I might say we had had a clause in our agreement with the company that no employe working in or around the depot should receive less than $1.75 a day; this had been violated by the company during the year, and was a matter of difference between the company and ourselves, to have the wages they had cut in the different departments restored, and also to have the electiical workers recognized as a portion of the employes, and have the agreement cover them; this the companies refused to do;; that was a matter of contention between us. Q. Is there anything else? A. Not on that point; there was some testimony given here by several of the railroad officials, that they were giving the public the same service now, if I understood them correctly, as they were before the 14th day of January. Q. What are the facts regarding that? A. Some of them also testified there was no day that lines were not operated after the second or third day; now, in repo!rts that came in on Jonlary 25, thiat was 10 days after the strike began, on Mr. Norton's line, the Fifth Avenue road, he was running 23 cars out of a usual number of 53; on his Seventh Avenue line, six cars out of 23; on his Bergen Street line, nine of out of 26; on Sackett street, six out of 13- on Hicks street, four out of 10; on Butler, four out of ten; on the Brooklyn Heights, on Gates avenue, i here were running 30 out of 70 cars; 24 out of 54 on Mutname Avenue; on Flatbush, 15 out of 57; on Fifteenth street, that is another of Mr. Norton's lne, five out of 15; Third avenue, Brooklyn Heights road, 18 out of 62; on the Crosstown, 16 out of 58; on Bushwick, seven out of 39; on Tompkins, none out of 25; on Broadway, 20 out of 40; that is one of the suburban roads; on Read avenue, five out of 26; on Ralph, nine out of 17; on Summer, 12 out of 24; on the Jamaica road, a suburban road, two out of 3ti7 II; Nos~trand avenlue, sfix out of 40; Loirimner stieet, none oiuc of 18; Myrtle avenaue. 19. out of 48; Flitan avenue, nine out-of 81 oars; Union avenue, none out of 32; on Grand street, noune out of 26; Nleeker lavenue, none out of 16; Fulton avenue, 25 out of 79; (3revnpoint, 20 ouit of 41. (Foreg-oing read ftoin memnorandum.) Q. Does that co-ver all-1 the lines? A. It covers all with.thie exception of Fort 1:1 aniiton and Court street, and Bowery Ray,, I think. Bv C'h'tirman Friday: Q. Did you, as one of the members of the executive board, or did the executive board. as a body, countenance the violence we have listened To by the various witnesses? A. No, s4ir; positively not. (~. 14?vit yo1ake ainytes as an executive board, to stopay violen~ce, if anywhere attempted by any of your members? A. We have always,advised against violence. Q. You don't know of your own knowledge whether any -of your members, or any of the members of Loicals, committed any violence? A. No, sir; I ha-ve never seen -them engage in any Violence. Q. Did the Locals themselves advise against it? A.. I believe they did, sir. Q. iPo you know'" as a fact that they did? A. Well, I dou~'t know, because I wasn't present at very many of their meetings'; I know as a ge-neral principle in the order violence is not.countenanced. *.Do you know of your own knowledge of any case of one of the strikers belonging to the Knighbts of Labor committing, any violence? A. I do n~ot know of a (single instance; that is, of m own personal knowledge. By M-r. S~-_tauchfileld': Q. What is your Present official relation with the Knights of Labor? A. Simply a member of the Executive Board of Districti Assembly 75. Q. H[ow many does that board -consist of, numerically spea-kfing? A. Five. Q. And they represent all of the organizations of the Knights of Labor in the city of Brooklyn? A. That is, the railromad emp~loyes. Q. I mean of the railroad employees; do you att~end their' mret,. ings as they are held from time to time, where the body of the 358 Knights of Lalior gather in their assembly halls? A. Oh, occae sionally; that is, the Lceal Asemblies; the central body; we have some 21 or 22 local organizations, and they are scattered all over town. Q. But you attend them from time to time, some one or another? A. As opportunity offers; yes. 9. In those gatherings, are the questions as to the proprietorship of these railroads, compulsory arbitration and relevant issues of that kind discussed in these meetings? A. Yes Q. By any one who pleases, from the floor? A. Yes, sir. Q. Have the Knights of Labor, at any time within the past six months, discussed the provisions of this compulsory arbitration bill, that has been introduced in Congress; it seems to be favored by railway labor leaders all over the country? A. I believe they have, sir. Q. Have you read this present bill? A. Yes; glanced over it,; I have not had time to read it over carefully. Q. Have you read it with sufficient care to express any opinion as to its merits or its faults? A. Well, I have not had an opportunity to read it carefully enough; I think there are some objectionable features in it. Q. As well as some that meet with your approbation? A. Yes. Q. Did you notice that it had been approved by Mr. Wright? A. I believe he has approved it; yes, sir. Q. And by labor leaders on the large railway systems operated by steiam-power? A. Yes, sir. Q. There would be no reason in fearing, or in principle, why the provisions of that bill, if satisfactory, could not be made applicable to surface railroads, as well as steam? A. No reason that I know of; I might say in connection with that subject, that it is one of the planks in! the platform of the Knights of Labor to compel employers and employee to submit differences of this kind to arbitration. Q. Well, to a compulsory arbitration bill, the Knights of Labor, as a whole, would have no objection? A. They are committed to that principle. Q. Committed to that, as a matter of principle? A. Yes, sir. Q. Now, have you discussed here, within the last six months, -or since this strike, or the situation that is incident to it, the question as to city ownershp of these railroads? A. That is a question that has been discussed for a number of years. Q. Has it been brought up again, lately? A. Well, it is a sort of a standing subject for discussion. Q For debate? A. Yes, sir. Q. Are the Knights of Labor united upon the propriety of 359 that proposition, or of such.legislation? A. I think very nearly so. Q. In favor of it or against it? A. In favor of it. Q. Have they discussed the question as to whether or not it would not carry these roads into the domain of politics? A. That has been talked of; yes, sir. Q. With the results you say, that as a general proposition the laboring people favor city ownership of surface railroads? A. Yes, sir. By Mr. Ivins: Q Do you know of any cage in which any municipality owns the local railroads, Mr. Best? A. I have heard of but one case, in a foreign country, however; it is in Toronto. Q. Have you ever heard of the Glasgow experiment? A. No, Sir. - Q. You know nothing about the results of municipal ownership and operation of the Glasgow tramways? A. No, sir; I have been informed that the operation of the city's railroads in Toronto was a complete success, and not only paid better wages and gave better hours, but made a good profit to the city, while the city operated them, than had ever been done before. Q. So far as you are concerned, do you know of any reason why the city could not operate the local railroads as thoroughly as it maintains the present fire service, let us say? A. I know of no reason at all why, if they run one department of that kind they couldn't run the railroads. By Mr. Stanchfield: Q. Do you think, personally, that if the city were to control these railroads, that the employment of motormen and conductors wouldn't be carried into politics? A. Not to any greater extent than it is now in the post-office, for example, of some of the Government departments. Q. Well, perhaps that is not a fair illustration at the time; -the Brooklyn Bridge is in the control of trustees, is it not? A. Yes, sir. Q. Are there any men of my friend Friday's political faith in the employ of the Brooklyn Bridge? A. I believe there are a few. Q. What proportion? A. It is claimed that they control it now. ' Q. Well,.that has not been true until recently, has it? A. Well, they have a president down there yet that thinks about things the other way. i 3 6:.......... By Chairman Friday: Q. I was going to ask you, Mr. Best, have you applied for readmission to the company? A. No, sir; I have not. Q. Have any of the men of the executive board? A. I don't think they have yet, sir. Q. So far as you are concerned, as an executive board, has the strike been declared off? A. The men have voted it off. Q. Has the company said anything as to whether they are willing to re-employ your men or not? A. You mean me as an individual? Q. Members of the executive board, for instance? A. Well, I don't know that they have expressed themselves at all on the subject. Q. In alluding to the subject a minute ago, of the violence that is committed, we have listened to the testimony of the commanding officers of regiments and the brigadier-general of the Second Brigade; am I right when I say that there is a by-law in the rules of the Locals that provides against members taking part in violence, or committing acts of violence; is there not, in your constitution? A. Well, I don't know that there is any by-law or law on that subject; the men who compose the Knights of Laborare suipposed to be peaceable and law-abiding citizens, and men of gocd character, etc, and they would not naturally want to pass a larw of that kind, because it would assume that they would be law-abiding without passing a law of that character. Q. Do the leaders advise that in talks with their locals? A. Yes, sir, By Mr. Ivins: Q. From what you saw during the strike, would you say that the police as a rule did or did not sympathize with the men? A. Well, we have a great number of our men that have been attacked by police, or say they have; one place that hiais been referred to, and which has been denied here by the superintendent of police, or the commissioner, to;day, claimed that they had no reports in. connection with it. v Q. That is the case of Captain Kitzer and Sergea;nt Sutton - I have subpoenlaed them for to-morrow? A. I was up to Ridgewood that night, the night of this occurence, or one of the oecuirences, and as I got within probably a hundred yards of the hallI agreed to go there to,address the men that evening; I met men scurrying in all directions, and told me not to go near that hall, that the police were in. possession of it and had clubbed everybody out of it, and I saw quite a number, I don't recall 361 now any of them, except ome, comnplained that they hdbeen clubbed; one mam, 'had had his head cut and had to -ha.Ve it sewed up in three or four different places -by an officers. Q.Do you recall his -name? A. Mr. Mlurray. By Mr. Stanclifield: Q.Is -this hall leased by the Knights of Lajbor? A. It is, the regular meeting place of two or three of the assemblies-two of 'the assemblies use it as -a regular meeting place; has for a number of years. Q. Was it leased by them? A. Well, they pay the rent quarterly; I don't know whether they have ni regular lease;-that is there regular headquarters, and it is nort on a line of rail-road either. Q.Aplace for which they paid rent? A. Yes, str; now, there is one thing that I wvould, like to call the attention. of the committee to, that might be well, that sections 42, I believe it is, of the Rajlroad. Acet. Q.What is that, the General Railroad Law? Mr. Ivins.- Section 420 of the Railread L~aw of 11892, that is of the Ge-neral Lw Mr. Stanchfield.- Read it. Mr. Ivins.- Chiapter 56-5 of the Laws of 1890, as amended by chapter 306 to 702 or th~e Laws of 1892. The Witnegss. It iis section 42. "1Per'soVas employed as drivers and conductors. Any.railroad corporation may employ any inhabitant of the State, of the age of 21 years, not addicted to the use of intoxiciating liquors, as a car-diiver,' or condnctor, or in any other capacity, if fit and icompetent theref or." There is some possible doubt as to whether this isect~ion 'of that law. Is an dnibton on the employment of persons outside of the State or ';not. Mr. Stanclifield.- It says "Inhabitants,"' not citizens. Witnessl. — It says. "Any inhabitants of this State." Mr. Stanchifield.- It Would istrike me, as a lawyer that a-ny.. bodyv here four hours would he an inhabitant, but not a citizen. Of course..1 ain merel4y giving my personal. opinion a~s a lA wyer. W-itness.- I thfik. it. would be well for the committee to take this matter into considerationru The railroad compan'te,. certainly possassied the privilege of W-ri-ng anybd eoead, law as this was enacied. Mr. Stancbfield. — 1The ')orety is one thing; their cold legal1 ricaht to do it is aiic-tber pro-position. We are not diRsel~ssing that. B. 46 362 Mir. Ivins. —The committee wfill find some of those subjects passed upon in the case of the People v. Athletic Avenue Railroad Company, 125 N. Y. That section has been passed upon, which relates as to what constitutes competency and who is to judge of competency and fitness, but not upon the question as to whether it is "inhabitant," or " citizen." The following, submuited to the committee in writing by this witness, as further recommendations by himself, was here received in evidence in continuation of the foregoing testimony: " REMEDIES." "1 Municipal ownership. "2. Any concern or individual issuing stock of fictitious value should be adjudged guilty of felony, punishable by a fine of $10,000, and imprisonment of 10 years or more, for each offense. "3. Compulsory arbitration, if employes are allowed representation. "4. Officers, directors, and agents to be equally liable for all violations of law. "5. That the law should be so amended that it would apply equally to all persons, whether rich or poor. "6. That the right of habeas corpus should not be suspended, except in case of revolution. "7. That the Legislature or the Governor alone should possess the power to declare martial law. "8. That the ability of the civil power should be entirely exhausted before the military power should be invoked. "9. That in case of the military power being invoked, the rights of all citizens should be equally considered and none should be oppressed in the interest of another." Adjourned until to-morrow morning at 1030. Proceedings February 28, 1895. Oliver B. Bridgman, being called as a witness and duly sworn by Chairman Friday, testified as follows: By Mr. Ivins: Q. What is your business? A. Commission merchant. Q. Where? A. Seventy-six Franklin street, New York. Q. Were you a member of Tioop "A?" A. First ieutenant Q. As such, did you do service during the period of the strike here in Brooklyn? A. I did. Q. Were you present or in command of any part of the troop at any time when it became necessary to disperse a mob? A. Twice. Q. Or a gathering? A. Twice. 363 Q. Just describe both of those occasions to us; tell us the character of the crowd, and what it did? A. Once on the corner of Fulton street and Ralph avenue, had a platoon of 12 or 14 men; at the corner there was quite a gathering; it was in the evening about 8 o'clock; I stationed the men along the street; there was quite an assemblage there; I didn't do anything especially, except to keep them moving, until some one threw a stone; it went through a car window, and I ordered the men to charge down the sidewalk, which they did, and scattered the crowd,; we drew no sabre; we simply put our horses right into them and scattered the crowd. Q. How large a crowd' was it? A. I suppose there was, perhaps, a couple of hundred. Q. Did it attempt to do any violence to the men, to the men, to the troopers? A. Nothing more than lip service. Q. Throw stones? A. No; no stones were thrown at the troops; simply at the cars. Q. Did the crowd reassemble? A. In small portions; but aimply at word of command they moved on. Q. What was the second occasion? A. The second occasion was on Greenpoint avenue, at the corner of Kent avenue; I had a platoon of 12 men, taking a construction wagon; we turned off Manhattan avenue, I think it is, a police station on the corner, and Greenpoint, and as we halted there to have something in connection with the tracks attended to, a crowd assembled on the sidewalks, quite thick there, but there was no demonstration of any kind; so I ordered the men not to go on the sidewalks, but simply to request them to keep moving. Q. Were any stones thrown at the troops? A. Not at that moment; as the wagon went down street, I had four men by the wagon and eight men in the rear; I myself was in the rear of the eight. Q. At that time there was a crowd assembled and came from all over; seemed to me there were fully 2,000 people inthe crowd; there were some stones thrown then; one of them struck my horse, whereupon I halted the platoon and turned around and ordered them to disperse; told them that I should not charge then, burt if another stone was thrown, I would wheel the platoon and charge, and most certainly some one would get hurt; they kept on behind, but one or two more stones were thrown; 1 wheeled the eight men around in line and started up the street and cleared the street; that was the only demonstration, and after we went through and came back with the wagon, we drew sabres and drew a line across the street and' came back, and the 364 crowd fell back simply with jeers and curses; stones were thrown on our way down. Q. Major Roe testified yesterday to one of the troopers having been hit in the head with a stone, was that one of your men? A. No, sir. Q. Did you have any opportunity while on duty to observe the manner in which the police performed their duties? A. I did. Q. Would you say, from what you observed, that the police, so far as you saw them, were remiss in not more perfectly protecting the men and property, and showed sympathy with the crowds? A. I can't say especially that they showed particular sympathy with the crowds, any more than, for instance, this instance in Greenpoint avenue; it would have been a very easy matterthere was a police station on the corner of Manhattan avenue and Greenpoint -for the police in that station to clear the crowd without any assistance whatever from the troops, but they did not do it, simply stood along the streets. Q. Make any efforts? A. Not the slightest; I ordered a polioeman to( clear the street, when he turned around and did not; I think he was more afraid than anything else; as soon as he saw he was backed up he'did it. Q. Waited for orders? A. He took orders from me. Q. And then did it without difficulty? A. He turned on the crowd that was there and they moved. Q. Was there a captain of police there? A. I didn't see any. Q. A sergeant of police? A. I saw nothing but the patrolman. Q. Was there a roundsman? A. Didn't recognize any. Q. How many patrolmen over there? A. Well, I saw one or two on the corner of Kent avenue and Greenpoint, and I saw one on the corner of Manhattan avenue and Greenpoint, but I don'f suppose I saw, all told, on Greenpoint avenue, from there to the Ferry, over eight policemen. Q. How far is that, would you say? A. A quarter of a mile; it is simply a guess, though. Q. On the first occasion, when you dispersed the crowd, did the police aid you in any way in dispersing it? A. The police aided In no way whatever, until they saw first that two or three of the troopers were ordered into the crowd, when the policeman that was on the opposite corner, he came over and turned in. Q. Retired -prior to that time he made no effort whatever? A. No, sir; he did after that, though. John G. Eddy. being called as a witness and sworn by Chair. man Friday, testified as follows: By Mr. Ivlis: Q. What is your business? A. I am a manufacturer. 365 Q. You are colonel of the Forty-seventh Regiment, are you not? A. Yes, sir. Q. Your regiment was ordered to duty during the strikes? A. Yes, sir. Q. What day did you begin duty? A. We were ordered on duty January 18th, and the troops left the armory on January 19th. Q. And when was the duty finished? A. February 2d; that is, for the whole regiment. Q. Where were you stationed with your regiment? A. At first we were stationed at different points; I- was not stationed personally until the following Monday; that is, I was stationed at Ninth avenue and Twentieth street. Q. Where was your regiment stationed in the interim? A. At first, stationed at Halsey street and Broadway and'east New York. Q. How many men did you have out? A. Five hundred and thirty-six. Q. Have you made up your pay-rolls? A. Yes, sir. Q. Can you tell us whatt they aggregate? A. In the neighborhood of $12,000. Q. Were your men called upon to disperse any crowds? A. They were. Q. Tell us when and where, under what circumstances? A. I can only tell you through the report from the field officers.' Q. That is sufficient? A. That was at east New York. Q. When was that? A. I can't say positively about the date; I think it was Saturday night. Q. The Saturday after the strike began? A. That was the 19th. I think. Q. Were you present? A. No, sir. Q. What was your field officers report as being done by them at the time? A. They reported that the crowd assembled there and were annoying the troops by taunting them and jeering at them and kept crowding in on them, and finally had to charge bayonets on them to drive them back. Q. Do yvou know how large the crowd was? A. Reported in the neighborhood of two or three thousand. Q. Do you know whether they were guilty of any acts of violence? A. I can't say positively. Q. Did you, during the strike, see any property Injured or destroyed? A'. No, sir. Q. Did 5you, during the strike, see any persons assaulted or attacked? A. No, sir. 366 Q. Were your men called upon on any occasion to disperse any crowd? A. Not to my knowledge. Q. Did you have an opportunity of observing the manner in which the police performed their duty? A. Only at South PBrooklyn, at Ninth and Twentieth streets, where I was stationed. Q. What did you observe in regard to the manner in which they did their duty? A. There was very little to be done down there because there was hardly any crowd, very few spectators. Q. It was quiet there, so that the police were not called upon to do much? A. No, sir. Charles A. Schieren, being called as a witness, and duly sworn by Chairman Friday, testified as follows: By Mr. Ivins: Q. You ar.n mayor of Brooklyn, are you not, Mr. Schieren? A. Yes, sir. Q. And have been so, how long? A. Since the 1st of January, 1894. Q. Do you remember the occasion of the beginning of the strike here in January? A. I do. Q. When was it first called to your attention that the employes of the railroad had stluck? A. Officially, you mean? Q. Yes? A. By the communication received from the railway companies. Q. When was that? A. I believe one company notified me the Monday and the other one of the companies next day. Q. The strike began on Monday morning? A. I believe so. Q. Which company was it informed you then? A. I think the Atlantic Avenue system. Q. Will you later let us have a copy of that communication? A. If it can be found. Q. Oh, the papers have been - A. They have been very wet; in bad condition. Q. I see, because of the fire; that was the Atlantic Avenue on the first day? A. If my memory serves me correctly, I think it was. Q. The second day was the Brooklyn Heights Company? A. Yes, sir. Q. Mr. Lewis' company? A. Yes, sir. Q Did you receive any communication from Mr. Wicker? A. Not to my knowledge. Q. Upon the receipt of those communications, what did you do, Mr. Mayor? A. Referred them over to the police department. Q. That is, in the usual order? A. Notify them usually; yes, sir. 367 Q. And that was followed by what? A. Well, with 'an inter view with the commissioner. Q At your office, or his,? A. Yes; at my office. Q. On the same day? A. On the same day; yes. Q. 'hat was Monday or Tuesday? A. Monday. Q. At that time, were any cars running in the city? A. I couldn't say from memory. Q. At that time, do you remember whether or not any policemen had as yet been ordered to assist in controlling the cas? A. I couldn't say that from memory. Q. When you and Commissioner Wells got together, what policy did you determine upon with regard to the opening of the roads? A. To protect the cars. Q. In what matter? A. Protect the cars by putting policemen on them, two policemen on each car. Q. What were the facts and the circumstances at the time, w:hich led the police commissioner and yourself to believe that it was necessary to put two policemen on each car to operate the roads? A. Well, as a precautionary matter, in order to avoid! any possdble overt act of attacking the cal's. Q. At this time, so far ais you know, had tihere been any overt acts either as against property or person? A. I couldn't answer that; the police repots would show that. Q. At this time,.had your attention as chief magistrate been called to the fact that there was any violence? A On Monday? Q. Yes? A. It is so long ago, I couldn't say as to that positively. Q. Can you remember when' your attention was called officially to the fact, cir when you first learned unofficially, that acts of violence were either being committed or being threatened to be committed in the city? A. Well, the most violent acts occurredthey commenced, well, the second and third day things commenced to look very ugly. Q. In what respect? A. Well, reports we received frolm the attitude, the way the cars were molested, or obstructed, whatever cars they did-try toi move, they were obstructed in various ways from moving.' i Q. Did you give any instructions to the commissioner of police as to what should be done by himi with his force in dispelling crowds and protecting property? A. Well, my instructions were to have the cars run, to protect the cars. Q. Were there any specific instructions to him with regard to the dispersal of crowds? A. Certainly; he should protet the men on,the cam and disperse crowds in, order to keep the cars in motion. Q. When you first gave him those instructions, did he express 368 any doubt as to the sufficiency of his force for that purpose? A. He expressed a doubt the second day; the second or third day he expressed the doubt, because his men seemed to be exhausted physically, overworked. Q. Did he express any doubt because of the fear that his men did not care to act and were sympathetic with the-crowds? A. No, sir; he did not.' Q. The superintendent cf police, or chief of police, has testified here, that one of the difficulties of the situation was the sympathy of the policemen with the crowds; did the commissioner of police expresl any doubt as to the sufficiency of the force because of that? A No, sir; did not, to me.; Q. Was your attention at that time called to that fact, or learn of it? A. By citizens, it was Q. Was it called to your attention by citizens, in isolated cases or was it a matter that citizens reported quite generally? A. In isolated cases. Q. Oan you remember any of those complaints, as to who the citizens were and against what officers the complaints were directed? A. One prominent citizen; his name is Somers; lives somewhere uptown; he called my attention to an affair that had happened in front of his house. Q. How did he describe it?By Mr. Stanchfield: Q. What was that name? A. Somers, of Somers Brothers. By Mr. Ivins: Q. Well, Mr. Mayor, if you will continue this description of what occurred, the cause of his complaint? A. His complaint was, he saw an act of violence near his house, where he thought the policeman did not do his duty; that is, in protecting properly the motorman and conductor on the car; I referred the matter immediately to the commissioner, and the commissioner had quite a conversation with him, the nature of which, of course, I do not know. Q. You say that on the second day the commissioner called your attention to the fact that his force might probably be inadequate, because it was worn out? A. No; I think that was the third day; he expressed his doubt the second day, but the third day he said his men were getting exhausted from overwork. Q. Upon what did he predicate his doubt the second day? A. Well, if it would continue and if more cars had to be runbecause we had to place two policemen on each car. 369 Q. On the third day did he finally admit that his force was insufficient? A. Yes; he thought that the force had to be on the cars during the day and watch' the power-houseis and carhouses at night. Q. Did you understand from him then that the police force of Brooklyn was so inadequate that it could become exhausted in a three days' struggle? A. Well, the whole number of cars requisite to run the whole system, it was simply impossible to put two policemen on them, because he did not have force enough:; Q. But that reason was not then applicable, because at that time there were only a snmall number of carsr running; it is in evidence here already that it was many days after that before anything like a normal number of cars was in operation? A. By the large number of policemen necessary to watch the powerhouses and carhouses. Q. Well, he has testified and the superintendent has testified, that, asra matter of fact, the policemen were devoting less attention to watching power-houses than to the operation of the cars; what I want to get at more specifically is as to whether or not the morale of this force is such that they can be exhausted and become inefficient in a three days' struggle with such a situation? A. Well, that I couldn't say, anything in reference to that, because I do not know; I depend upon that to the commissioner. Q. At the time that he reported that his men were worn out, did you attempt, in any way, to hold him responsible for the fact that the force should be exhausted so readily, or to inquire into the bccasion for that fact? A. We consulted in reference to the matter, what best to be done under the circumstance. Q. In that conference, did you take fully into consideiation what the possible danger might be of exciting the crowds by the application of too much force, or too much zeal on the part of the police? A. In the conference we took into consideration what was necessary in order to uphold the peace, and to stop the rioting if possible. Q. What did you decide on at that time as being necessary? A. I cannot fromi memory say now what we decided on, but I think it was the fourth day that we decided on calling aid of the troops; I think it was the day afterQ. That was equivalent to a confession that the municipal authorities were not able, under the circumstances, to maintain peace and order, was it? A. That is, to cope with the situaition; yes, sir. Q. Now, can't you tell us a little more definitely and fully what B. 47 370 it was that led you to believe that the municipal authorities had so become powerless? A. From the information that I received generally about the matter, it was such that it was absolutely necessary to receive aid in order to maim aii the peace. Q. At that time had the peace been broken by the injury to property, or assault upon the person? A. Yes, sir; very many assaults were then committed, according t the reports. Q. Had arrests been made because of those assaults? A. I think arrests had been made, that the police reports would show. Q. You can not now recall, however? A. I caln not; no, sir. Q. Did you have any talks with the superintendent or chief -of police with regard to the matter?. A. I did not. Q. Did you think it undesirable to discuss the matter with the chief of police? A. I had full confidence in the commisi.oner; he was the man whom I held responsible. Q. But in searching for the facts, was it suggested to you that the chief of police was the man who was in direct and closest touch with the captains, sergeants, and the subordinate officers throughout, rather than the commissioner? A. Whenever I had any orders to give, I gave them to the commissioner. Q. Naturally, that is the usual, normal, necessary way? A. 'That is the usual way; yes. Q. So far as orders were concerned; but was there anything to preclude you from sending for any man in the police force, whomn. ou wanted to send for, and inquiring of any man whom you wanted, policeman, or not policeman, in regard to the condition of the department in the city? A. I presume not; I have never exercised that. Q. I)o you believe that the commissioner of police is any better advised with regard to the morale and personnel of the force, than the chief? A. He is head of the department, and lie should be. Q. Do you know whether he issued any special orders? A. Special orders to what? Q. To his chief of police and the men under him with regard to this matter? A. I don't know what special orders he did give. Q. Did you instruct him to issue any special orders? A. Not to my knowledge. Q. To;our kn!owledge, did he, as commissioner of police, at that time. display any extra or umnsual energy in the handling of his force? A. Yes; I think he did. Q. Tn what respect? A. He was very attentive to his dlutio,, being there most all the time; very anxious. 'Q. Did he, at any time, express to you any opinion of the 371 I possible danger of treating crowds too severely? A. No, lih; not to mre. Q. That is always naturally a matter to be considered, is it not, in q(lustions of this kind? A. Treating them too severely? Q. Yes; that is, provoke them to excesses by severity on the part of the police themselves; is that a consideration in such cases? A. No; I dcon't think that was considered in the matter at all. Q. What was the condition of the city in respect to the public peace at the time that you and the police commissioner called upon General McLeer? A. The conditions'were such that we feared an outbreak and general disorder, and that the police force were not large enough to cope with it. Q. And as a matter of fact, was there disorder generally through the city at that time? A. There was; that is, in those sections where those power-houses and carhouses were located. Q. That is, those particular sections of activity? A. Yes, sir. Q. Now, what sections of the city were they; that is, what were the three or four most dangerous points? A. Well, the Ridgewood and East New York; they seemed to be; and then, also, Bergen Street, Nostrand Aveirne terminus, and.the Fifth and Seventh Avenues termini at that time. Q. Now, so far as you can recall, up, to that time, had there been any large and violent or threatening gatherings? A. Oh, yes; they were so reported to me. Q. By the commissioner? A. Yes, sir. Q. And by citizens, I suppose, as well? A. Yes, sir; and by citizens. Q. Had you at any time ever discussed with the commissioner of police the adequacy of the force, or the organization of the force from a point of view of copiing with such disorders? A. Previous to this? Q. Yes. A. I had several conversations with him previous in reference to the police force; of course, I never expected such an emergency as did arise would arise. Q. Naturally? A. No. Q. Well, do you know whether the present force is organized under conditions which take into view and consideration posslbilities of this kind? A. No; I do not; not to such an extent as th1, Q. Do you think it is? A. I don't think that a police force, as the force was constituted on the day of the strike, as it waan con stituted in the city here, it was possible for it to cope with it. Q. Have you ever made inquiries of the police commissioner as to what his organization was from the point of view of thb .372 emergencies, rather than from the point of view of the daily normal service? A. The question is what emergencies there would be; natural disturbances, confined to one section of the city, or to a small part of the city, the force was at any time adequate to quell it, but the emergency in this case spread over the entire city, all some distances apart, somne of them 15 miles. Q. How is the force mobilized here; by the commissioner or the chief? A. I presume the commissioner; of course, he has charge; he is the head of that department. Q. Well, suppose it were found necessary to send a hundred men, or fifty men, from one precinct to another, who would issue that order? A. The superintendent would. Q. And he could do that without the authority of the commissioner, could he not? A. That I don't know; I don't know what really his functions are, whether he could do that without the commissioner; he could probably in a case of emergency. Q. Who has the power of assignment and transfer, the commissioner or the chief? A. I am not enough conversant with that to give an intelligent answer; I would have to look up and study up that department more particularly in order to give you Q. You know, in New York just now, we are discussing quite urgently the' question as to whether this power of assignment and transfer shall rest with the commissioners or with the chief of police? A. Yes; the controversy there is a little different from what it is here. Q. I understand that, but I would like to see what the effect, for instance, upon such a situation as this would be by one system or another; and you say you can not tell whether the power of transfer and assignment is in the commissioner or the superintendent? A. I don't know enough of that to make an intelligent answer; that is, it has never come toi my notice. Q. You mean to say that you have not inquired into the organization to that extent? A. I have not; no, sir. Q. Did you take into consideration at all, at the time of calling upon the troops for aid, the proba'ble cost? A. Yes. Q. Did you, individually, or by any agent other than the commissioner of police, endeavor to find out exactly what the condition of the police force was, before determining that the situation was such that they could not cope with it? A. I.ascertained from the commissioner, who reported to me daily, in fact, hourly, during the controversy. Q. Then, all that you knew of the condition of the police force was what the police commissioner himself reported? A. Yes; and the reports I received from the department. 373 Q. You made no effort, personally, to go back of that and make aty inquiry through other sources, before finally acceptig his view of it, did you? A.' I think not. Q. So that, in reality, the only function you performed was the consultatory one, as a superior listening to, a subordinate? A. Yes, sir. Q. You were personally familiar, however, through passing about the city, with the condition of the public peace, were yiro not? A. I was. Q. Did you, at any time, see any acts of violence? A. I did not; no, sir. Q. Did you see any large or ugly gatherings? A. I did not Q. Did you, at any time, as chief magistrate, attend at any point of disorder or trouble? A. I did not. Q. Was there- was it ever suggested to you by any one that you should? A. It was not. Q. Did it suggest itself to your own mind? A. I was too busy a man to spare any time to go, to any of these points. Q. At that time, in your judgment, was there any 'business in the city of Brooklyn as important as this business? A. It was. Q. What was it that was as important? A. I mean this was the most important; I paid personal attention to it. Q. What business was there at that time that was more imiortant than this business, which revolved around the adis.sion that the police department was unable to cope with the situation and thait military aid was necessary? A. I answered your question; I said this was the most important business. Q. I understood you to say it was not? A. No, sir; I said this was the most important. Q. Did you make a requisition for the calling in of the First Brigrade, as well 'as the second? A. I did; yes, sir. Q. Will yol tell us when and under what circumnstanacos that was done? A. That was after consultation with the inflitary, with General 31(cLeer and the commissioner, and also, I think, the superintendent was present, of police. Q. 1)o you rlemeblhe on what day that consult ation was held? A. It was on Sunday. Q. Thalt was six days after the strike head begun? A. Yes, sir. Q. And three days after the Second Brigade had been called into the field? A. Yes, sir; the third day, I believe it wa.s; ys, msir. Q. Wherein lhau the situation changed for the worse between the Friday and tih Sunday? A. More serious outbreaks. Q. In nore parts of the city? A. Yes....~~~~~~~~~~~~~~~~~~~~~~~~~ 374 Q. That is, both more frequent and more serious? A. Yes, sir. Q. Ard did General McLeer at that time report to you that in his judgment his own force would be inefficient as an aid? AL Yes, sir. Q. And it wals upon that that you acted? A. Yes, sir. Q. Do you remember the circumstance of the withdrawal of the First Brigade' A. I do. Q. By wholm was that recommended? A. After consultation with the. military a uthorities. Q. What authorities, General McLeer again? A. General McLeer, and General Fitzgerald and myself; we had a consultation, I think, with the police commissioner present, and we decided to withdraw the troops, the First Brigade. Q. Had you, in the interim, made any requisition for any further troops? A. I had not; you mean tie Third Brigade. Q. Yes? A.-No, sir. Q. I)o you kuow how it is that the possibility of a 'hird Brigade's coming here came to be talked of? A. I think General MeAlpin. as a precautionary measure, issued orders from Albany, before he came here, to hold that Third Brigade ready for action. Q. Have you estimated what the cost of the employment of the troops to the city will be? A. You mean the amounlt? Q. Yes; the amount? A. Yes; I estimated it. Q. At what? A. You nipan the amount? Q. Yes? A. Oh, my estimate was about $150,000. Q. That was before the fact, was it? A. No; after the First Brigade left, that it would cost about that. Q. Do you think that that estimate will now practically hold good? A. I have no means of changing my opinion on that at present. Q. One estimate was made here of about $200,000; that is, including the wag-es and subsistence? A. W'el, 1 have no means of saying anytllung further than my estimate wa;s on certain figures. snbmitted to me by the authorities. Q. Have any warrants come to you for signature yet for these a cconnts? A. They have not, sir: not to my knowledge; there may sm.all things have come in, but noit to mv knowledge. Q. No considerable bills? A. No considerable bills. Q. That is, for regimental pay-rolls? A. No, sir. Q. Has vet come to you with the warrant attached? A. No, sir. Q. And no large bills for supplies and su'bsistence? A. No; one bill of supplies was, I think, in the neighborhood of either four or five thousand dollars, was submitted to me, but I referred 375. ' it to the authorities at Albany; what has been done with that I do not know. Q. By "authorities," you mean Adjutant-General, do you? A. Yes, sir. Chairman Friday.-Does the mayor include the maintenance in the colst? The Witness.-Yes, sir; I believe that the military calculate a certain amount per diem for ealch soldier for his maintenance. By Chairman Friday: Q. One dollar and twenty-five cents? A. I don't know what ihat figure is now; I have it in my office somewhere. By Mr. Ivins: Q. Now, in view of what has occurred, and with this present experience, have you.and the police commissioner taken up the question in any way of making the police force more efficient? A. Yes; we have talked over that subject. Q. And how would you propose to make it more efficient? A. I told the commissioner he should now make a thorough investigation and to report to me at some future day what could be done in order to improve the discipline of the force. Q. That is, as to the matter of discipline; now, have you and he discussed the probable necessity of increase as well as the improvement of discipline? A. In ordinary times the police force seems to be large enough for us at present,; in ordinary times, the same as it is now. Q. Now, Mr. Mayor, what prevented the swearing in of extra or special policemen on the Monday or Tuesday? A. Nothing prevented it. Q. Well, that was resorted to after the strike had got well under way and was beginning to subside, wasn't it? A. It was; yes, sir. Q. Do you remember how many special policemen were so sworn in? A. So far as I know, I think it never exceeded five or six hundred. Q. Well, that is the testimony, between five and six hundred; I think 560 it was said? A. I don't know the exact number. Q. Now, did Commissioner Wells discuss with you the desirability or propriety of swearing in special policemen at the beginning? A. He did not. Q. Did you discuss it with him? A. I suggested it to him; yes, Q. What was his reply? A. He said that they were very unreliable. Q. Did he say whether or not he had ever taken any measures to put himself in a positio to get reliable men for a reserve in case of need? A. He did not; no, sir. 376 By Chairman Friday: Q. Speaking of the cost of the military, and estimating it in your judgment at $150,000, have you made any approximate estimate of what the cost of the police will be, as we haive had some testimony on that subject? A. The extra police? Q. Yes. A. I have not; no, sir; I don't know how many; they would swear in 100 men, and next day one-half would drop out. Q. Sc nothing of a positive nature could be ascertained? Well, there were other extra expenses besides the extra men, of course? A. Yes; there were; the maintenance of the men. Q. The commissioner of police has estimated that he thought approximately it would amount to about $75,000? A. Well, he must know that; I do not. Q. Have you had submitted to you any approximate cost as to the damage done? A. Not up to date. Q. To the cars? A. Not up to date; no demands. of any kind have been made. By Mr. Ivins: Q. Now, Mr. Mayor, what was the actual experience with regard to the special policemen who were sworn in; was it found that they had not been reliable? A. According to reports very many were very unreliable men; they would leave their posts sometimes; at any danger occurring, they would leave their posts. Q. Do you know how those men were selected? A. Yes; I do. Q. How was it? A. The civil service list was taken of all the men who had applied for a position as policeman; and I believe after that was exhausted they took also the list of firemen who made application. Q. Now, do you know whether or not the commissioner of police, after these special men had been added to the force, made any special or new provisions for officering them by subordinate ofticers sui;ch, say, as sler;,eants off the existing force? A. I do not; no, sir. Q. Do you know whether or not, having soworn in those men and put them on duty, any provision was nmde for seeing the supervision of proper officers that they did perform their duty? A. I asked the commissioner what arrangements were made and he informed ime that they were assigned to the variouls stationhouses, under the supervision of the captains under their control. Q. Have you ever considered the desirability of treating the municipal police force much as the army is treated in many countries, as a skeleton sufficiently large for ordinary purposes, but to be treated as a carare in case of need, and considering how 377 in ca-se of need when, it was enlarged, or increased by specials, it should: be officered? Q. Well, that question is rather long. (Qaestion read.) A., The same as, they do the LandWelir in Germany? Q.Same as the Landw~ehr? A. No, that has never been considered here. Q. Do you think that is worthy of coinsideration? A. Well, at present there is consid~rable agitation in reference to the police force; I was in, Baltimore yesterday and had. quite 'a cd-n. Versaition with the mayor of Baltimore; hie informed me t hat -he, had no control whatever of the police;, that they were State officers, and were under the control of the State. Q. Thlat is as it is. in Boston? A. In deed. Q.From. yo-ur experience, as, m~ayor, w~ould you say that the police force could be got to secure better service as, State officers, or aa local offlicers purely and simply? A,. The mayor of l~altlmore, his opinjom, it wias, that it hampered thel city authorit~ies veiTy niateiilally, if they bad no cointrol. over the. police. Q. Were y-ou 'in Brooklyn. at the time of iho strikes of 1863? A.I have lived in Brooklyn ~Since 1 856,. QDo you rem ember those strikels? A. What were they? Q. NewYork nd Broklynthe draiug)ht r'ots;- I -shouldn't have used the word "1strike " at afl? A. Yes, Sir; I do.' Q. Do you remember the (circum stances? A. I do,. Q.Do you rememiber the. way in whlich the police comported th-emselves during those riots? A. I de not. Q. Yon can, not recall now- whiether it w-as isatisfactorily or~ unsatfisractorily? A. I can not, -no., sir. Mr Tvins.- Well, I think refere-nce to, the 'record will show that the police at that time, 'in both' citieit4 probably render~ed better ser-vices than was. ever rende~red befcre, in a~ny American city under like circumnstances. Q. Do yolu recall tihe fact that ait that time Brooklyn- and New YorkC w!ore- parts: of thle Me(tropiolitan distri~ct? A. I knew that" there was a Mletilopolitan district at somne time in! the city here, but when and at what d:ajte I doi not know. Q.Th-at wa-s from 18157 lo 11870; did; you at that time observeor ~st-udy the police system of the city? A. At that time I studied hard to earm a. living -withi my two, bands, Q. Do You believe thiat a centralized authority under the control of the State, whiche~ -lso, has. the control of the militia, which might be diisassociated from rpolitlics, local Tpolitieal interests, wo-uld be un der, better comimand; and; do better se~rvicee in:" camee of emergency like. thibi thvan the present muicilipal organizatiohi? A.I can not express. an, opinion, on that; from information. '48 378 riceived, where the police is under the State, the local authorities do not seem to like it; I mean the administrative authorities do not seem to like it, because there seems to be a clash between them constantly.., Q. That is a natural result of a conflict of aurthoity, is it not? A. It eeems so. Q. And the desire for power? A: It seems so; yes, sir. Q. Which ought not to enter into consideration of a question like this? A. Perhaps, in a case of emergency, such as we pass through in this city, then no doubt it would be of great- benefit; but ordinarily, I doubt the wisdom of it; I do not believe in centralized power; I am enough of a Democrat to not believe in that principle. Q. Do you believe that arrangements could be made in the city of Brooklyn to' provide for a waiting list, let us say of special policemen, that might be called upon in case of need, and which, as incident to the increase in the number of the force, might be officered by assigning sergeants to captains' duties, making, if need be, even temporary provision in the precincts for their activity? A. Oh, if we knew the future we sould do many things. Q. Don't you have to foresee the future as chief magistrate of the city? A. I don't think any one could foresee the emergency that passed over this city. Q. Don't you think it is part of the function of government to foresee emergency; or do you believe that government consists in shutting the stable door after the horse is gone? A. Not at all; the government should be prepared for emergencies. Q. How can it be prepared for them unless it endeavors to foresee them? A. Well, it was prepared in this; the police were not adequate, therefore the militia were called upon. Q. What 1 want to get at is, whether or not, if there had been more effort at foresight, the police might not have been adequate? A. I doubt if the police would have been adequate to meet the call made upon them in this emergency. Q. Since Oommissioner Wells became commissioner of that department, has he made any essential or radical change or improvement in matters of discipline and the command and control of the force? A. Well, I presumed thait he had. Q. Donmt you know? A. I think that he did make very many changes. Q. Tell us what some of them were?.A. I couldn't specify any of the changes that he made. Q. Didn't he make any changes of suffcient importance, or' o essentially different from what had pre-existed as to make 379 an impresifon on your mind so that you can recall it? A. He made several changes in the new districts. Q. That was necessitted by annexation, wasn't it? A. Yes, air. Q. Doesn't — that is not a change in the system of organization, is it? A. I don't know as it was necessary to make a change in the organization. Q. Did you consider the organization of the police force, its morale and discipline, as being satisfactory during the time of Commissioner Wells predecessor? A. Well, I thought the police force was in a good condition when I entered upon the office, pretty fair condition. Q. Do you think it is in any better condition now? A. Well, at least we endeavor to improve; improve everything; we were elected for reform. Q. Are you getting it; it is hard to get; I know I have tried it myself; has your attention been called officially to the fact that some 25 membern of the police force have been reported to the comminssioner, and have there been tried, or are about to be tried, because of the open expression of their sympathy with the disorder elements and their unwillingness to do their duty? A. Yes; the commissioner informed me of it. Q Do you know what action the commissioner has taken in thOse cases? A. The action he has already taken? Q. Yes? A. I believe he had suspended some and discharged Q. Did that indicate to you a possible rotten spot in the department, such a specimen brick as that? A. The commis. sioner from time to time disciplined the police with reference to excessive use of liquor, and int that way I think he was determined toi crush out the curse of liquor in his department, and he has done so from the first day. Q. Quite successfully, has;he? A. I think so. Q. In view of the fact that this number of men had been reported as sympathetic with the disordely elements, have you and the;commiissoner discussed or taken into consideratio any means of find out to what extent that same feeling prevails, if at all more largely in the' department? A'. I think I have already answered that question in sRaying that I 1urged upon the police commissioner the necess'ty of making a thorough examination, and he will report; he has not done so at present Q. What reply, other than the fact that the men were unreliable, did the commissioner make you when you first suggested to him the increase of the force temporary by specials? A. The necessity of specials I suggested in order to do away witth! the militia; that is, I thought that we could get enough special polioe, 380 men, reliable, to, plia~ce in charge of the ears, a-nd use the regular fot'e for the other service, and also to w'atch the property, '-uMh as ca-rhouses and power-houses, of the ciomipanyv. Q' in t~h~at; conference, when the commissioner said th at such mei were apt to he unreliable, did you- make'any suggtvstion to him a; tot'lhe possibility of nmaking a public call on thie publicspirited citizens to act as special police officers for the time being? A. Yes; they would have done soi if the necessity had arrived, but I suggested these lists of the civil s ervice. for ktMhis reason, that every man who applies has to. have two men to vouch for: his chracter, two reputable citizens, and therefore we hiad some men there who had some recommendation as to their characteCr. Q. Not oaily that, but by their very 'application they had already testified their desire to, be in the service? N. Yes, sir. Q. Piow lr( gre a force, in the total, did those wiitVng lists wupply, do yoU rememher? A. Those that passed the examination were 117, hut there were over, 1,000 rejected P(,,lr some reason or other, either dehility, or someething elsc.. Q And, that wa r-tis thle only reason 'that yt)un -did not make a public proclama-ition calling on citizens to do- what was virtually "poisse conniitatis?" A. N-No necessity arose in order to do that, I thought~. Q. You thaought that the neceissity wvas such als -to require the calling in of the militia, but not to irncrease the police force by any such meicanvs? A.. N,-t by callingr upon c(itiens, no; I thought that the militia weic there, and to do that duty. Q. UJltimately there were some 7,500) troops under arms in this city, were there not? A. I don't know- how many precisely, hut I think in the neighborhood of 7,000. Q. Do you think it would have been impossible toi have got 1,500 or 2,000 good citizen's of Brooklyn, to, have volunteered a week's services as special policiemen; in that cause? A. That I could not aniswer; nothing is impossible, I think. Q. Did such a consideration suggest itself to' your mind while you were thinking of the 'advisability of the one course or the other? A. It, did not. sir. Q. You knew, during all this time, that the situation was growing hourly graver, didn't you? A. I did. Q. Have you any suggestion to make at this time, ag to legislation, or anything which could be reported by this committee looking to the improvement of thle condition of the police force in Brooklyn? A. I have not; no, sir; we hav'e a 'bill at Albany which, if passed, will be beneficial to' the police force.' 381 Q. Can you tell us how the chief of police is removed in this city? A. I believe, for incompetency. Q. By whom? A. He is suspended by the commissioner on charges brought against him. Q. And removed after trial on charges? A. Yes, sir. Q. The commissioner acting as the trying officer? A. Yes, sir. Q. Do you, as the chief magistrate of this city, regard or consider the present chief of police as a satisfactory member of that active force? A. I do not. Q. Have you so said to the commissioner of police? A. I have. Q. Before the strike or since? A. Before and since. Q. Saying that, and believing that, did you make any other effort whatever to secure the removal of this officer whom you say you believed to be incompetent, although at the head of the force? A. Did I make an; effort? Q. Yes? A. I expressed myself to the commissioner in reference to that, but that is all the effort I made; I expressed a fear that he was too old a man now; that at one time no doubt he had done very good service in this city, but that his memory was failing, which came under my own observation. Q. Do you now, in any way, attribute the failure of the force in discipline and energy during the late strike to the fact that the chief of police has come to be an old man, too old for energetic, active service? A. Well, that is a difficult question to answer. Q. It is a pertinent question, isn't it? A. It depends very largely upon circumstances, whether there was any real reason; I think that the commissioner was more active and did very much of his work. Q. Did much of the chief's work? A. Yes; I believe that Q. Now, do you believe it would be better for the police force if either the mayor or police commissioner had the piower of summary removal of the chief? A. I don't believe in autocratio power in any man, vested in any man; it should be properly guarded. Q. Well, suppose there were power of removal for cause stated, but not till after trial-that is provided for in many of our city charters in this State? A. I am not conversant with that procedure, and I could not answer that question. Q. Then, put it in this way; dot you think that the necessity for specific charges and trial in order to secure the removal of a man who is exercising functions that require virility and energy is conducive to an energetic and a successful government? A. I believe that in an emergency the superintendent of police can be suspended at any time. 382 Q. Was the question of his suspension at this time discussed or considered? A. Yes, sir; it was seriously considered at one time. Q. And why was it dismissed? A. Because the commissioner thought he was able to cope with it. Q. By the commissioner himself assuming many of the duties of the chief? A. Yes, sir. Q. Do you think that it would be desirable to materially increase the force of police in Brooklyn on a permanent basis? A. I do not. Q. Do you think that the addition of the annexed territory of the county towns is such as to really call for a material increase in the force? A. No, as I understand it, each year the force is increased to a certain amount; I believe 100 policemen for every two years; and I believe that the coming year that increase will be made 100 more, and adequate for the entire force, for the necessary purposes of the city. Q. In your Brooklyn system is any other officer intermediate between your chief of police and the captains? A. I believe he has his lieutenants; they call them inspectors, I believe. Q. And under your system, does one of those lieutenants become acting chief in the case of the absence or illness of the chief? A. Yes; I believe so. Q. And has his full powers? A. Yes; he has his powers. Q. Can you tell us who those lieutenants or inspectors are? A. I believe one man's name is McKeller and one man's name Loughlin; I don't know the names. Q. l)o you know anything about their ability? A. I don't know any further than from hearsay. Q. You don't know whether or not those men might have been more energetic, active as a chief, during this emergency? A. I couldn't say as to that. Q. You say that you have suggested to the commissioner, since these striles, the desirability of having a new superintendent? A. I don't believe I said that. Q. I thought you did? A. No, sir. Q. I thought you said both before and after? A. No; I did not say so. Q. Well, have you suggested since the strikes the desirability of a change in the superintendent? A. I suggested to the commissioner that a change would be necessary, as the present superintendent was getting to be quite old and was losing his memory. Q. That was since the strike? A. And previous, also. 383 By Mr. Stanchfield: Q. Were you in the habit of patronizing these oars prior bo the inception of this strike? A. No, sir; I always walk. Q. You have never used them, then, to any extent? A. Nod to any extent; no, sir. Q. Were you acquainted with the class of men that were employed by these companies, in a general way, as motormen or conductors? A. I was not. Q. Did you observe them in the performance of their duties as the cars passed and repassed you upon the street, or any place where you might be? A. Naturally, I would see them. Q. Apparently, they were a sober, orderly, industrious class of people, were they not? A. Yes; so far as appearance goes. Q. I mean, so far as your opportunity for observation went? A. Yes, sir. Q. When this strike commenced, or lockout, whatever you please to term it, did you take any pains to familiarize yourself with the subject-matter of the dispute between the men and the officials of the railroads? A. That was; brought to my notice; yes, sir. Q. Did you endeavor in any way to reconcile it, or to act as a mediator between the two;? A. I learned thqt there was a committee coming from Albany to do that Q. That was the Board of Mediation and Arbitration? A. Yes, sir. Q. Then, personally, you took no steps in that direction? A. I did not; no, sir; because I thought I did not want to interfere with their functions. Q. Did you have any conversation with the officials of the railroad, with a view to see whether you could induce them to compromise or arbitrate their differences with these men? A. I did. Q. With what men did you hold converse on that proposition? A. Colonel Partridge. Q. Well, he did settle with his men? A. He did; yes, sir, Q. Did you have any conversation with Mr. Lewis? A. Mr. Wicker, I did; never Mr. Lewis. Q. Or with Mr. Norton? A. No, sir. Q. Or Mr. Wicker? A WiWith Mr. Wicker, I did. Q. With reference to effecting a compromise between tih roads that he represented and his men? A. Yes, sir. Q. And in that you failed; at least, it did not result in( a settlement? A. Well, it came very near being effective; only the men would not accept. Q. The men would not accept the terms that he imposed? A 384 The terms they were willing to accept, but there were 50 or 60 men engaged, and they wanted all the men to go back and not 50 or 60 of the new men remain; that was the only - Q. They desired a restoration of the entire body of men that they had at the inception of the strike? A. Yes, sir. Q. And was it for that reason that there was a failure to compromise between the men and Mr. Wicker, upon the lines that he represented? A. Yes, sir. Q. Do you know what the numerical force of the police was at the time of the commencement of this strike? A. Fourteen hundred, I believe. ' Q. And about 1,000 ready for active service included? A. In that neighborhood, yes, sir. Q. In that immediate neighborhood, I think the testimony wais; if I am correctly informed the city of Brooklyn is now corterminous with the county of Kings, barring Flatlands? A. Yes, sir. Q. Do you know anything about the number of motormen and conductors and electricians and subordinate employes that are alleged to have gone out upon a strike? A. I understand 1,600 motormen; of course, there would be the same number of conductors. Q. That would be 3,200? A. Yes, sir; I don't know the numbler of electricians. Q. You never heard an estimate placed upon the numnber of men who went out upon the strike? A. No, sir. Q. You say that it was called to your attention officially that about 25 policemen had been reported for a neglect of duty? A. Oh, that was here -thiat was almost after the strike. Q. Well, for conduct during the strike? A. Yes, sir. Q. Either. inefficiency or willful neglect or incompetency? A. Yes, sir; and drunkenness, and use of intoxicating liquors. Q. Intoxication? A. Yes, sir. Q. Now, these policemen, or most of this police force, have been residents of the city of Brooklyn for many years? A. I presume they have. Q. And connected by social visitation or blood or marriage presumptively, with many of the employes of these various companies? A. Of course, I don't know - Q. Well, that would he a fair inference? A. Yes, sir. Q. Acquaintances of theirs? A. Yes. Q. The strike lasted how long? A. The strike lasted about five weeks. Q. And during the entire time but 215 policemen, so far as your official information goes, have been reported for any neglect of duty? A. Oh, there was a larger number than that. 385 Q. Can you tell how many; Mr. Wells, the commisioner, said 25? By Mr. Ivins.- That is for specific breaches, Mr. Stanhfield. Q. I am talking about specific breaches. A. There has been a great many reported, but 25 were punished, I believe. Q. Have 25 been disciplined? A. Yes; I believe so. Q. Are you sure of that? A. Well, I couldn't tell from memory; I would have to refer to the report. Q. I understood the commissioner to say, and I am quite positive about it, that 25 had been reported for specific breach of discipline or good order, and I wanted to know if you did not think that that spoke very well for the loyalty and the fidelity of the police force, that so small a number should be reported during a strike covering that length of time, and of the magnitude that you describe it, whether you wouldn't want to say as an official of the police force of the city of Brooklyn that it had done its duty faithfully and well? A. Oh, I personally have confidence in the police force. Q. Don't you think the facts warranted the confidence you reposed in them? A. I think that under any emergency there will be men found who are either cowards or men who are not what they should be among 1,400 men. Q. Well, wouldn't the facts warrant the confidence that you reposed in them, in your judgment? A. Yes; it would. Q. The regular force was increased. as I glean from this testimony from 1,000, in round numbers, effective men, up to 1,700 by the addition of specials; were any of the 25 of whom I speak memr bers of the special force? A I don't believe they were; I don't know. Q. You have no positive- A. I believe that the commissioner has no jurisdiction over specials, for trial. Q. For many days before you called out the military, this police force had been upon duty both night and day, had they not? A Night and day, yes; had! been physically exhausted. Q. And that was one of the factors that induced you to call out the military? A. Yes, sir. Q. Which I assume you will concede to be, in a. city of this description, and in this day and age, the dernier resort to which the municipal authorities would resort? AL Yes, sir Q. At the time of tihe commencement of this strike, had you any knowledge of the formation or of the power of this Long Island Traction Company, so-called? A'. I did not, no, sir; not any more than: any ordinary citizen did. Q. Did you know that ithad become possessed and was operating, a foreign corporation as it was, the entire lines that had' been B. 49 386 merged under the control of the Brooklyn Heights Company? A. Oh, yes. Q. Of that fact you were aware? A. Yes, sir. Q. Now, were you a stockholder in the Long Island Traction Company? A. No, sir Q. Were you in any of the ccmpanies that merged in it, that is into the arrangement between the Brooklyn Heights and the Brooklyn City? A. I have never held one dollar's worth of stock in any of the railroads in this city. Q. Of that fact, that this Long Island Traction Ocmpany was operating this line of loads, you say you generally were informed? A. Yes, sir. Q. Were these franchises granted to these various corporations that came under the dominion of the Long Island Traction Company by the city of Brooklyn? A. Yes, sir; under a former administriation. Q. Under the provision of the Constitution of the State, under the law of condemnation? A. Yes, sir. Q. Did these railroad corporations, or do tley, pay tribute in any way for the franchises that they enjoy, to the city of Brooklyn? A. No, sir; they do not, to my knowledge. Q. Except they pay a license fee for each car, the average cars which they run on their route. Q. Do you recall at present speaking what that license fee is? A. I believe in the month of May all the railroads are compelled to inform the city authorities the average number of cars that they use, and for each car they have to pay a $20 license for a year. Q. That is the only tax, and the sole one that they pay to the eity of Brooklyn? A. Yes, sir. Q. The commissioner of police, Mr. Wells, is an appointee of your administration, of your Reform Administration, as you call it? A. Yes, sir. Q. Do you know whether or not he is interested as a stockholder in any of these railroad corporations? A. I don't know whether he is or not. Q. Upon that subject you say you have no information? A. No, sir. Q. Had Mr. Wells any practical experience in the conduct or manipulation or organization of a police force prior to hii appointment by you? A. Not to my knowledge. Q. What is his avocation, his business? A. His business, when I appointed hfm, was a merchant in New York, oil merchant, selling oil. Q. With a voting residence in the city of Brooklyn, I presume? A. Yes, ir. 387 By Mr. Ivins: Q. I think he was a militia officer; I think he had some 'military experience? A. And then, besides, he had charge of tlhe prisoners, I believe, on Ward's island. By Mr. Stanchfield: Q. As keeper, you mean, in the prison? A. Yes, sir. By Chairman Friday: Q. Also a military officer, wasn't he? A. Yes, I believe so; Seventh Regiment, I believe. By Mr. Stanchfield: Q. You took his history into consideration, I take it, in appointing him to the place? A. Yes, sir; Mr. Wells I have known for a great number of years, since he entered what we call the Swamp, in New York, the Leather District; when he entered there he went into partnership with another gentleman named McKnight, an old firm in the oil business, oils for leather, dressing, and I learned to know him him there, and I have known him, I think, upwards of 10 years; perhaps more. Q. That is a similar line of business to that in which you are engaged? A. I am engaged in the leather business Q. You have no personal knowledge, I infer, from your discusa sion of the composition of the crowds engaged in these riotous demonstrationls, that necessitated the calling out of the military? A. I have not; no, sir. Q. Of whatever or whoever they may have been, composed, they collected at places long distances from one another? A. Yes, sir; all along the route. Q. And you could not say, as a general proposition, whethier they were made up of motormien, conductors, and striking employes of these various railroads, or of the idle and viciotus classes who had no legitimate means of support? A. No; we could not. Q. Upon, that subject you are not in a position to speak? A. No, sir; but there were some arrests made of former motormen or employes of the road; there were some arrests.made. Q. You don't know their names.? A. I do not; no, sir. Q. And I understood you to say that you never had an conyersation with either Mr. Norton or Mr. Lewis? A. I never had any conversation. Q. Upon the subject of the settlement-of this difficulty? /A. Oh, yes; I had a conversation, but not urging-I had conversa 388 tion with them; I met those gentlemen, but never inquired in regard to the difficulty at issue. Q. o that, anterior to the strike, or pending it, or sinceA. I made an effort, or at least a suggestion made at General McLeer's headquarters; I made an effort to see if the m!atter could not be settled. Q. Did you make that effort in person, there through Norton or Lewis? A. I made the effort in person; that is, with my counsel, Mr. McDonald, and Commissioner White, and myself; we met the officials, but when they were present there were also their directors present, except Mr. Norton; he came alone. Q. Were the subjects germain to the strike discussed at that interview? A. The men submitted a plan upon which they wanted-I requested them to call on me and to find out what could be done in order to settle. Q. You are now speaking of the men? A. The men; yes, sir; they told me their story, what they demanded, or what they wanted; they were willing to leave it to myself personally to settle it. Q. Did they tell you their grievances? A. They did. Q. What did they allege at that time to be the contention between themselves and the railroad people? A. Well, the question was in regulation, or the trippers, principally. Q. A contention upon their part that the railroads were endeavoring to put upon trippers what would militate against those who ran full-day cars? A. Yes, sir; that seemed to be the point at issue, the trippers; they made a proposition in which they said that they would leave it to me personally, or to a committee which I would select, and whatever their position would be they would acquiesce. Q. Willing either to leave it to you as a sole arbitrator? A. Yes, sir. Q. Or to any committee that you, as the mayor of this city and its official head, should see fit to designate and appoint? A. Yes. Q. That was the proposition made by the men? A. Yes, sir. Q. Did you carry that to Mr. Norton, or Lewis? A. I asked an interview of the whole of them, and they came to my house, anld I submitted that proposition to them. Q. Were either Norton or Lewis present at that interview? A. Mr. Norton was present, I believe, with his counsel, and Mr. Lewis with, I think, some gentleman of his board, and his counsel, and also Mr. Wicks and his counsel. Q. Do you mean Wicker, by the name you pronounce? A. Yes, sir; he is priesident of th'e SuibrTanl roid. 389 Q. Was he present at this interview? A. Yes, sir. Q. Who was there with you? A. Mr. McDonald and Mr. White. Q. Who is Mr. White? A. Commissioner of Public Works. Q. And Mr. McDonald is yiour counsel, as mayor? A. Yes, air. Q. Did you submit it to these railroad officials at that meeting the proposition that the men had referred to you? A. Yes, sir. Q. That they had authorized you to submit? A. Yes, sir. Q. With what response did you meet? A. They declined it Q. Did they allege any reason for declining it? A. Yes; they alleged the reasons, that no mater if a settlement were made now, it would be only temporary, that it would break out some other time; they preferred to stand as they did, to take a firm stand. Q. Can you give us that conversation any more in detail than you have; I assume that you are expressing its substance? A. That is, in substance, what it was. Q. Could you give it any more in detail? A. I submitted the paper which we drew up to them, and they declined to entertain it. Q. What was that paper? A. It was the offer that the men made. Q. And was a copy of that paper delivered to them ait this interview? A. Yes, sir. Q. How did the proposition of these employes impress you as to its fairness? A. Well, I thought it was fair. Q. Did you tell these railroad people that? A. I did. Q. That you thought it was fair? A. Yes. Q. And approved of it? A. Yes, sir. Q. Did you urge them to submit the matter to your arbitrament? A. I did. Q. And they refused? A. They did. Q. And this battle went on? A. Yes, sir. By Chairman Friday: Q. When you speak of the men, do you mean the execuitive board? A. Yes; the executive board. Q. Then you did try to arbitrate this matter? A. Oh, yes. Q. There was some criticism as to the mayor refusing an interview with these men; I just wanted to have you place yourself on record regarding that matter; then you did entertain that matter? A. Oh, yes. Q. In any of the conferences that were held, during Gthi dispute, did I understand you to say that Mr. White had been present at these conferences? A. Yes, sir. hi~~~~~~~~~~~~~~~~~~~~~~~~~~*: 390 Q. Did he attempt also to assist you in arbitrli!ng the matters? A. Yes, sir. Q. It has been stated that Mr. White was a large stockholder of the Brooklyn City railroad; do you know whether or not that is a fact? A I couldn't say whether it is a fact, but t[ understood that he sold out every stock that he owned in any of the railroads when he accepted the office as Commissioner of Public Works. } Q. 'hen as you understand it now, he is not a stockholder? A, Yes; he is not a stolchkolder now; but he waas a large sto.. I 517 populated parts of the city, on streets and avenues, such as Myrtle avenue and Fulton street, or in the more sparsely settled districts? A. I think it is pretty evenly divided; if you take the number of people then it is in the most sparsely settled districts; I find, in places of great danger, people are more careful, and the' accidents do not occur there. Q. There are very few, accidents between the corner of Court and Fulton and the Ferry? A. Yes, sir. Q. The cars move along slowly? A. At times, they do; at night they run quickly, but in! the busy time of the day, slowly. Q. Now, the statement has been made here, that the great miajiority of accidents have occurred in the suburbs, when the cars were being run at their highest rate of speed in order to keep up to the schedule; so faxr as you know, is that the fact? A. That is not the fact. Q. Do you think there are any facts in existence which this committee can get at which would tend to prove that that was the fact, or tend to disprove it? A. We have a record, of our accidents and we could locate them in classes, if any sort of an outline was given u's on which to' classify them. Q. Have you sufficient familiarity with the men or the names of the men in the employ of your company to be able to identify them in a miscellaneous li.st? A. No, sir. Q. Who is there, in your company, who could do that? A. I think you would have to take the foreman of each shop. Q. I have a list here of all the men arrested during the strike, vowing for what they were arrested, whether they were discharged or held, and, in case of indictment, whether they have been indicted; is there anyone or any several persons who can go over that list and, say who, if any, were employes of the road previous to the strike? A. Yes, sir; I think the clerk in our office, or the paymaster, or his assistant, might do that Q. If I send you a copy of that list, will you have that done, and return it as quicldy ias posiible? A. Yes, sir; if you will be good enough to send a letter of instruction with it. Q. Since you were last here, has anything further been done In the matter of raising funds for your company, on the so-called collateral loan certificate? A. No, sir. Q. Ha,s the financial situation of your company in any way changed since then? A. I don't recollect exactly when I was here last. Q. We will say, three weeks ago? A. Not seriously so, or not materially so. Q. Is there any proposition now pending, either officially... 518 before your directors, or, so' far as you know, unofficially among your stockhloders, for a dissolution of the Long Island Tractiou Company, and a cancellation of the leases and a resdzoration of the properties - A. I think anything that we are doing in that direction is a matterQI 1 want to, know whe-ther that is a, facet? A. I sliould pmtfcr not to answer; it is a. matter that is eno1irely privrate. Q. I disag(,ree with you about that; I shall nort ask. you what you propose to do, or in what fo'rua you, propose to do; it, but I think this. comm-ittiee. andi the Legislature certain-ly has a riglit to know~, whether or not it Is now contemplated that these properties whical are now held by a foreign corporation might possibly be returned so fear as immediate ciontrol1 is coill ceetned to the domestic(- 'corporations? A. I can not answer th'~ question -now; the matters are in the hands of the stock-holders' committee, and not in the hands of the directors. By Chairman Fridaty: -Q. Was there a-tny objection to, the manner of testimony that you gave before? A. -No-, sir. Q. -No -objection? A. Not at all; no, sir. Q. There " as. somie proposition -to reorganize or surren&Vdr the leases at a meetin~g held at the Olarendon Hotel? A. I was not at ihe meeting, sir; I was in Albany that day, and dOD't know01 what took splaice there, except in a general way.; there was a commifttee appointed from the stockholders wligattended the meeting to, look inito matters for the purpose of raising 'a fund, but ju~st what the plans were, I don't knorw; if -I didI hardly think it would be desirable to state; if I knew what they were, I doubt whether it would be policy or proper for you to ask or me to answer; the tbings are not finished. Q. It is a puablic, matter and the public enters very largoly into the Sohution of the question, land we thought it wouldbe a proper question to ask, whether there was any propositioil under wav? A. I can not swear. 13y Mr. Ivins: Q. Is there anything, so, far ais you k-now, in thhe" suggesthin( wnich I have seen referred to in some one of the newspapemrs, I. don't know which, to the effect that it was proposed too ab.I ndon ttio-Vi`Pginia, corporation? A. I don't kniiw whiether thvire iso or noti it Is too early tbo d~iscu'ss anything of the kfind; all sorts of isuggestions heave been made. but they amount to not1lhbg, yet. 519 ** 4That is what I1,vaut -to get at; so fa~r as you know, is thre at the present time, any official purpose or dieOiberaite puwpose on the part of the company to abandon the Virgini~a ooripotiston? A. I don't. ku~ow; I -am not on the Acomrnittee and. do not know, what they are doing at all. Q. Jr 1 were in your plaice I woRuid, know? A. I will know at the p~r(rpcv time. Q. [think I would have knowin by this time? A. No; I think not., Q). in your position I think I would; this menmrandam I,. handed me: That -the Brooklyn Heigh-ts application heretofore had read in this way, that the applicants must be isix months a resident of the city of Brooklyn; is that so? A. That I don't rem~emb~er. Q.You don't remember? A. No, sir. Q. Did you make any statement at any time to the effect that.. von wvould in the future employ new men- and strangers in preference to the old emplo~yes? A. No, sir. Q.Is this a copy of the contract Whi~ch 'is at present being entered into between your company and the men? (Coun~sel presents paper to witness.) A. Ye s, si r. By Chcairmnan Friday: Q.The statement was made that you had said about the 20th or 21st or 22d of January, in answer to a question, that the strike had cost the railroad company that you represented $.500,OOQ up to th-at t'ime; did you make such a statement? A. No: I could not have made such a statement asthat. Q. Do you know? A. No, sir. Q. And that you would bankrupt th~e company sooner than give in? A. No, sir. Q. You never made such -a statement? A. No, sir; never. Q. It is said that you. did. Bly Mr. IWins: Q. You, 'up to this time, had not made any estimate of the loss occasioned to the company'? A. I don't think we are prepared to db so. Q. Is this contract. accompanied by an oath or affidavit? A. Yes, sir; I think there JIs an affidavit. Q. Have you a copy? A. No, sir; I can send 'it to you:.. 520 Q. Why do you require an affidavit or oath to be made by the men? A. I think we require them to testify that that is their true name. Q. You mean to say it is 'simply an acknowledgment? A. Yes, sir; something of the kind. Q. Will you get me a copy of that? A Yeq, sir; I will send it to you. Q. There has been a circular sent out by the stockholders of this company referring to its present affairs? A. Yes, sir; a circular went to the stockholders from this committee I refer to. Q. Will you permit your counsel to let me have a copy of that after the lunch hour? A. Yes, sir. Q. Is this the only contract which your men have signed? A. No, sir; I think there was a contract, a form, prior to' that. Q. This gentleman states to me that the men, yesterday, had submitted to them still an additional contract? A. Further than this? Q. Yes, sir? A. Not to my knowledge. Q. This is the form of the final contract? A. So I understand. Q. The other contract was a provisional contract signed when the first came here? A. Yes, sir. Q. That I have a copy of? A. Yes, sir. Q. And this conforms almost identically with the other? A. I think there is some slight change, but what they aire, I don't know. Q. Do you know a person named Judge Tighe -do you know him? A. Yes, sir. Q. Did he act as an intermediary between you and the men? A. He came to see us with a view of settling the trouble. Q. Was he anything more than a volunteer peacemaker? A. No, sir. Q. Did he come with any authority from the men? A. I think not; I don't think they asked him in any way; I think he volunteered this, from what he told me, and was desirous to be i party to settle the trouble. Q. Wtas the town pretty full of such volunteers at that time? A. Yes, sir; quite a good many. Q. He was one of them? A. Yes, sir. Q. l)id you. at any time, make any promise or agreement wilth him to the effect that you would take back the old men in preference to the new ones? A. I don't recollect about that; r think he asked suchl questions as these: "What proportion of your old men would likely come back, if they were taken back now?" "How lonr would the new men remain in the service?" And, "Were they steady men in the service," and so forth; I don't remember if I made any promises; I think not. 521 Q. Did you ever tell him you would not discriminate against the old men,? A. I told him any man that applied would have to apply on his merits and fitness entirely, no matter whether he was an old man or a new man. Q. No question of antecedent service? A. No. James F. Quigley, having been called as a witness, duly affirmed and testified as follows: Examination by Mr. Ivins: Q. What is your business? A. Attorney and counselor-at-law. Q. How long have you been such? A. Ten years this coming May I will have been. Q. Have you recently been police magistrate? A. Yes, sir. Q. When were you appointed, sir? A. Some time in July last; I don't know the date. Q. That is an appointive office? A. Yes, sir; I was appointed by the mayor, comptroller and auditor. Q. And who made that particular appointment at the time you v:.ere appointed? A. Mr. Caldwell was the comptroller, Anton Webber was the auditor, and Oharles A. Sehieren was the mayor. Q. That was.a Republican board? A. No, sir; two Democrats and one Republican, the mayor being Republican. Q. What are your politics? A. Democrat. Q. You were appointed by a Democratic board? A. Yes, sir. Chairman Friday: Q. The mayor voted for your appointment? A. Yes, sir; he did finally; he said at the time he had a candidate; his name is Harriman, and he voted for him on the first ballot, and then he said he believed all appointments should be unanimous, and he voted to make it unanimous. Q. You have since been removed from that office? A. Yes, sir. Q.. Upon whose complaint? A. The mayor of the city. Q. And by whom were you removed? A.. By the General Term of the Supreme Oourt of this department. Q. After a trial? A. Yes, sir. Q. How was the trial conducted; was the evidence taken orally, or affidavits? A. The petition of the mayor was sworn to, and the answer filed to the petition substantially denying all the material allegations; then the trial proceeded by calling police officers who had made arrests in the strike troubles and telling about different cases which were alleged against them. Q. What was your defense? A. My defense was that I had B. 66 performed my duty as I understood it, and had followed the provisions of the Code of Criminal Procedure and the Penal Code. Q. Were you represented by counsel on this trial? A. Yes, sir. Q. How many arrests for matters growing out of or relqting to the strike were made, where the offenders or alleged offenders were brouglh before you? A. That I couldn't tell you; I haven't any idea, other than a general one. Q. Your subpoena was duces tecum? A. Yes, sir. Q. Why.haven't you brought the papers? A. I haven't access to them; no control of them. Q. Have you any copies of them? A. No, sir. Q. Were:copies of them used in the proceedings for your removal? A. That matter was not brought into the proceedinga at all; the number of people arrested; there were specific cas' s. Q. Witht failure to do your duty in how many specific cases were you charged? A. I think the allegations Icover about 15 specific cases las to failing to hold people for the grand jury, but there are some-well, I should judge about 30 cases where I was charged with improperly adjourning cases, Q. Describe that a little bit more fully; what do you mean by that? A. For instance, a man would be arraigned on the charge of committing a felony in connection with' the strike; his rights would be stated, and he would be told that he was entitled to an adjournment for the purpose of seeing counsel, and his case would be adjourned; he would then appear on the adjourned day and some reaon would be given, and it would be again adjourned; many of the cases were adjourned five or six times. Q. In most of these' cases the only witnesses were police officers, were they not? A. Yes, sir. Q. Was it the fact thart you did not regard the evidence of these officers as sufficient to justify you in holding them 'at the time of the discharges? A. No, sir; that is not the fact; there were other things thaot led to the conclusion that I reached. Q. Was the police department, so far as you know in these particular cases derelict in its duty in not securing sufficient o'r proper evidence to justify commitment? A. They did not apparently make amy effort at all, orther thain to arrest somebody, but there was not any effort made to prepare the case on the part of the police at all other than to appear there and testify to the certain state of facts. Q Did you, in eaich of these cases, examine the police officers themselves as to the circumistances and the caauses for which tlhe arrest was made? A. In some I acted as prosecutor as well as justice, there being no representative of the people there, and in cases of that kind I endeavored to bring out all the facts. 523 Q. In the majority of cases, you have to try them in that way? A. Yes, sir. Q. The great majority of cases are oases in which the people are not directly represented? A. Yes) sir; but after the strike had been under way for a week or two, the railroadl company employed several attorneys in the city for that special purpose, and they appeared as representing the people; o d o ne e man would appear, and the next day, a different man; they had about four men altogether. Q. You were about to give your reasons for your failure to hold these men - reasons other than the insufficiency of the evidence of the police court? A. In every case that I tried, and disposed of and discharged the defenidant there was proper andr sufficient cause for my, doing so,; in the majority of those cases the evidence was only that of a polilce officer on the part of the people; on the part of the defendant we were met with his statement, and sometimes the evidence of five or six witnesses which clearly proved an alibi, or proved that this man was not the party who comnmitted the offensel; in, two cases, I believe, that I remember, they were discharged because the evidence of the police officers would not warrant their being held regardless of their being no contradiction; I might specify those cases if you, wish. Q. 1 wish you would? A. In one case, there was a man arrestedQ. Give us the name? A. His liast name was Acre. Q. His case was referred to in your trial? A. Yes, sir; Acre was a cigar dealer il lower Fulton street; I don't know that he was proprietor of the place, but he was ooninected withl it; ho had never been a railroad man, or had no connection with,tie railroad, and had no interest in the strike; yet, he was charged with throwing a stmne at a calr; he was arrested and his case adjourned until another time; at the time of aidjournment he appeared with counsel and when the case came on for trial we proceeded with the examination; the police officer took the stand and swore that he would tell the tutihi in the case, and he said he was standing on the car and that he saw this man Acre on the sidewalk.Q. Were these facts brought out in the papers befo the General Term?' A. In evidence; they were testified toi by several witnesses? Q. Then we wont tUake it here, because I shall have to have that record; I just want to identify the particular cases; what other case tttan Acre's was 'one of the chief cases upon which you were removed? A. I am not positive about the othier cases, whether it was Cunninghamn or Connolly; there was a Cunningham case; there was a Martini case, and there was a Mullin case. 524 Q. Was any of those cases that you refer to here cases in which the men had been employes of the company? A. I have no knowledge on that, other than hearsay. Q. Did you have any judicial knowledge? A. It was testified in Mullin's case that he was an ex-employe and several of the others. Q. Now, take the same 30 cases that you have referred to; are you able to say in how many cases the persons who appeared before you had been employes of the company? A. I couldn't say, other than a knowledge that I gained by observation, and it wonldn't be very specific, but I might say the majority cf the cases were boys, and a few of them women, and some men who were not employed by the railroad. By Chairman Friday: Q. As a rule they were not connected with the railroad company? A. I would not say that; if I could-see the papers and hear the names and have it brought to my memory I might be able to tell; but it struck me that a great deal of the disorder was occasioned by outsiders; I believe that it was a remarkable thing that the railroad men had done so little of this disorderly action during the strike, because it was evident to everybody that boys, women and men who had no interest there were tiring stones at the cars. By Mr. Ivins: Q. JDid you, at the time, attribute these troubles in any way to the inefficiency of the police? A. Well, I don't know as I would care to say anything on that score; it would be merely an opinion of mine; I would not care to give it. Q. From what you have actually observed about the city? A. It would be my opinion; that is all; I don't think I would care to give it. Willian Watson, having been called as a witness, and duly affirmed, testified as follows: Examination by Mr. Ivins: Q. Judge Xatson, what is your business? A. Police justice of the city of Brooklyn. Q. Member of the bar? A. Yes, sir. Q. How long have you been police justice? A. A little over three years; about three years and a half. Q. Were charges preferred against you by Mayor Schieren? A. There was. 525 Q. By whom were you appointed? A. By the mayor, auditor and comptroller of the city. Q. Who were they at the time? A. Alfred C. Chapin, mlayor; Anton Webber, auditor, and Theodore F. Jackson, comptroller. Q. Were you appointed as a Democrat or RepuBlican? A. Republican. Q. How many cases were before you of arrests made during the strike from causes connected with the strike? A. Between 50 and 60. Q. What disposition did you make of those cases? A. Those that I believed were guilty of the charge I held to await the action of the grand jury; those that I believed innocent I dismissed; where there was any doubt I gave the benefit of it to the prisoner. Q. What I wanted to get at, particularly, was, how many did you hold, and how many did-you dismiss? A. I held out of the 60 about 25. Q. And it was for the failure to have held the others, or some of the others, that charges were made? A. It was. Q. What was the result of those charges? A. What charges? Q. Made by the nmaor? A. The General Term of the Supreme Court regarded them as unfounded and dismissed the case against me, on the motion of my counsel, on the showing of the prosecution; without any defense. Q. You, didn't go into the defense at all? A. No, sir. Q. Have you any Imowledge as to what proportion of the men or persons who came before you were former employes of the company? A. So far as I could learn from the examination, very few; probably one out of 10 were railroad men. Q. A large proportion of boys in these arrests? A. Out of the 50 T suppose three was 20 1oys. Q. Any women? A. Two or three. - Q. What is the most serious charge for which any o these persons were brought before you? A. Firing stones. Q. ThaT is the most serious one? A. It is very serious under the Penal Code; they have got a sort of grab-net section which makes it punishlaible by from three to ten years in prison; and instructions were iven toward the end of the strike —everybody seemed to be arrested-the earlier part of the strike, it seemed to me, there was nobody arrested. Q. Do you know when the strike began? A. I think about February 8th; I am not certain Q. Have you the papers with you that I asked you to bring? A. No, sir; the paepers are in the possession of the clerk of the General Sessions, or the district attorney's office. ~ -.'.. 526 Q. Will1 you supply me from your blotter or proper record, ou M~onday; you can miail thtem to me? A. I probably can give them to you. Q.I want a list of the names and 'dates -and dhspositions of -the oases? A. I have got them all here. (Witness presents paper to counsel.) Q. I find on January 25th there was once arrest -that is one case brought before you? A. Jacob Adler; yes, Sir. Q. There were no more arrests for causes connected with the strike, where the -parties offending were brought before you, until the 28th; now, then, there were six; three o~n the 29th; three on the 30th; three -on the 31st? A. Januafry 25th was the first. Q. Were any arrests made of persons who were brought before you. for -disorderly conduct or assault upon 'property cr persons between the 13th and the 25th of January? A. Not unless it appears there;,fthat is taken from the record. Q. This recortd begins, on the 215th of January? A. That is the first day; yes, sir. Q. So, the first ecase of an arrest. groiwqi'ng out of the strike In, which the offending party was broulght before you was on the 45th of January? A. I think so, to the best of my recollection; whether thi's iig the da-te on which they were held or a~rrrigned, I could not tell you', but I think January 25th was the first arrest and first arraignment of personis charged with Violation of section (1435. Q~ I can keep this? (MrvBins refers to paper presented by witness.) A. Yes, air. By Ohairmnan Friday i Q.You know the date the strike vommenced? A. It was in the early piart of January. Q. Thirteenth or 14th? A. Yes, sir. iBr Mr. Ivins: Q.-Were there a~ny disorders pending that week or 10 days?! A. Not from. my personal knowledge; I couldn't tell, except what I glenned, from the news7pa~pers. Q. Oould you hear from conversar~on oir the newspapers that dur'ing those 10 days there were disturbances in the territory,covered by your jurisdiction? A. I think some time in Januair-y I saw large crowds moving up and down through Broadway -and snowballs and other things fired at the cars. Q. Tere was one queite serios -gatheringf there? A. On a Sunday. 527 Q. With a tendency to noise and riotousines, waa there uot, after the militia had come in? A. I think this was before the militia cane to the city; I am not poaitive of it. Q. Yio remember the occasion on which the nilitia interfered and restrained large, disorderly crowds in East New York? A. No; only from what I read. Q. You can not fix the date? A. No, sir. Q. You,can not say whether or not these arrests were made after that date ort before? A. No, sir; I can not say. Q. Did you have any opportunity at all to observe the manner in whiich the police performed theitr duty? A. Yes, sir. Q. As one of the police magistrates of the city, have you any opinion as to whether or not the strike was, due in any measure to the iwefficiency of the police force? A. I believe the poliee department was hanidled, in the firstt instante, in the first days of the strike, for,piitical causes. Q. What do you mean? A. I mean T do not think the commissioners and adminilstmrat were as prompt and energetic as they might have been in suppressing it. Q. Do yo u know whether there is any general feeling tbioughout the community in that resipect? A. That is the feeling, so far as I can learn; they started oust sympiaizing with them, in the first instance. Q. Sympathizing with the strikers? A. Yes, sir; if the newspaper repolrtsl are true, the mayor of the city sympathized with them in the first instance, and when it got beyond their control, then they used drastic measures,; I believe that the police department, properly handled, co.uld have suppressed it in the irst instance inside of 48 hours. Q. In the cases brought before you, was the evidenee offered usually good and sufficient? A. No, sir; in the cases I held I thoutght they were sufficient; I was under the impression until the General Term decided otherwise, that the magistrates had some discretionary power, that the onus was on the prosecution to show that there was probable cause that a jury.would convict; the majority of people were laboring men, not criminals. Q. You mean, not leading a criminal life? A. I mean not leading a criminal life, and it wais the first time they had been ararigned on any charge; the majority of them poor, large families, and the holding of them meant employment of counasel, incarceration for probably days before they could get bail; I did what I thought was just and equitable in the premises, and wheie the eases showed that there was doubt of a conviction, I gave the prisoner the benefit of that doubt, and acquitted him, or at least allowed him to go, knowing if there was any crime committed, 528 that my opinion was not final, and the party could be arrested at any time upon a bench warrant. Q. Are you prepared to say as to all those cases whioh you dismissed that the arrests were made without sufficient evidence, and made hastily and hurriedly by the police? A. My action in those cases speaks for itself; I dismissed them; that showed, in my judgment, the arrests were not proper or I would have held them. Q. Bull an arrest might be made and held not to be proper, although the police officer may have taken great care and caution? A. I will cite youi an instance; there was a large assemblage of people on avenue, numbering 60 or 70; somebody stoned a car in that crowd; the police made a charge, arrested whoever they could lay their hands upon, and when the matter was brought to the court, they desired to make a charge of riot against those whom they had arrested; Deputy Commissioner Coisby, of the police department, and Inspector McKelvey, who is now superintendent, directed the officers to make a charge for violation of section 635, that they threw) a stone at the car; on! the examination there was nof evidence sufficient to hold them on the charge of violating that section, andl they were dismissed. Q. Would you say that that was fairly illustrative of the way in which most of the charges were made? A. No, sir; I think that would be usurping the prerogatives of the commiittee. Q. I want to know if that is a typical case? A. No; I wouldn't say it is; the committee will draw their own conclusions; it is the case that I am speaking of now; this was one of thle speeific cases in which I remember the present superintendent directed the complaining officer to change the complaint to violation of section 635 when he desired to make it riot. Q. rWhen the officers themselves desired to make it riot? A. That is what I understood. The committee here adjourned until 2 o'clock. AFTERNOON PROCEEDINGS. Thomas B. McGuire, having been called as a witness and duly sworn by Chairman Friday, testified as follows: Examination by Mr. Ivins: Q. Where do you live? A. Amsterdam, N. Y. Q. What is your business? A. Member of the General Execstive Board of the Knights of Labor. Q. Have you any other business? A. No. 529 Q. What do you mean by the General Executive Board? A. I mean the officers that have charge of the Knights of Labor between the sessions of the General Assembly. Q. Do you mean the National Board? A. Yes, sir. Q. Is there any officer in the Knights of Labor in the State of New York who is superior to you in that State? A. No, sir. Q. Are you the representative of the Knights of Labor, speaking generally, of the State of New York, in the National Assembly? A. Yes, sir; at our national body the delegates front all the bodies elect the officers Q. Is there any other delegate than yourself from! New Yorl State? A. Not on the General Executive Board. Q. So, that you are, speaking generally, representing the New York State members of the Knights of Labor in that National Assembly? A. Yes, sir. Q. How long have you occupied that position? A. I have been an official of the general order for about six years. Q. How long have you been one of the Knights of Labor? AL Between 17 and 18 years. Q. What was your business before you devoted your entire time to the work of the Knights of Labor? A By trade, marble polisher; at that time, driving a teanmL Q. Where? A. Davis, Turner & Company, 40 Broadway, New York. Q. Has your attention been called as one of the officers of the Knights of Labor to the question of compulsory arbitration? A. Yes, sir. Q. Will you please state to this committee whether or not, in your opinion, compulsory arbitration can be satisfactorily had by legislation, and if it can be so satisfactorily had by legislation it would result in the dimunition or possible cessation of these acute conditions of disagreement between employers and men? A. The General Order of the Knights of Labor believe in arbitration, compulsory in measure; we believe in it, because of our past experience; in 1886, a strike occurred upon what is known as the southwest system; we found that after the strike occurred that the employers had forced the strike for the purpose of getting other roads into their hands by stopping the feeders; we know from experience in other strikes that many times designing officials force strikes for the purpose of depreciating the value of stocks, thus forcing the smiall holders out, and reorganizing with the larger holders, who make millions by the transalction; we believe that if compulsory arbitration obtained in the miatter of railway, street, in fact all things which are needed by the public —tiat no wrong could occur; first, no B,. 67 l '530 ftrikle could occur,; no lockout could occur, until every honorable means was taken; and, in fact, if it was deceided by arbitration through la court, and the capitalists on the one side represented, and the labor interests on the other side, to my mind it would obviate all strikes; there would be no' need of any. Q. One of the objections which has been m;ade in the legislatures of the several States, land the House of Retpresenitatives at IWashington, to compulsory arbitration, is, that there is no! means at the present time of compelling al man to abide by the decree of the court of arbitration; do you know of,any meanis that could be taken to compel the employes to abide by the decree quite as fully and in the same measure as the employers would be compelled to? A. The courts have always found a way to coerce labor organizations; we find them arresting people because they are head's of organizations voluntary in character; I, myself, havre been served with a blanket injunction not to speak to the men on the Northern; Pacific; if I did I would go to jail for it. Q. Put it in this form: We assume that the arbitrator has maide his decree; the corporation itself is something tangible, having franchises; having property, and having corporate existence, so, that the officers of the corporation could be got at, the property could be got at; and in caise of need the franchises can be withdrawn; in the event of a failure to observe the decree. do you know of any means whereby an individual man working for a company who failed to observe suich la decree could be compelled to continue at work if the decree of the arbitrator was that he should do so; that is the point of the question, ias it has been presented? A. As you put it, I can see no maethod by which you can force the men to work, but I do know that your law recognizes voluntary organization, and as voluntary organizations we are responsible; take the Knights of Labor: We have considerable property, and if we committed any crime against the law, I suppose the property might be seized if penalties were prescribed; but, I want to say, Mr. Ivins, and gentlemen of the committee that the workingmen, as a rlle, are law-abiding citizens, and if a law is passed which would be fair, to my mind, there is no question as to the obedience of the Knighits of Labor; I can not speak for other organizations. Q. The one difficulty which is presented of a practical kind is this: You can by legislation compel a corporation to employ an individual man, do you know of any way in which the individual man, on the other hand, can be compelled to serve the corporation in case the decree of the arbitrator was such? A. I know of no method, unless you make the railroads the property of the people, and they would all be anxious to get posi 531 timos unider the people, and you will find where the people employ the men there never will be any difficulty. Q. Do.I understand you to favor the municipal ownership oi railroads? A. I do, sir; most certainly. Q. Beyond the reason which you have stated, what other reasons are there? A. First, the profits to the people, if you continue your present fares, would be 100 per cent. upon the investment; I take those figures from the municipal ownership of electric lighting; we find that in that one case the difference in the cost of running electric light by private corporations and the municipality is 100 per cent.; again, if you do not desire profit the cost of transportation could be reduced one-half, and the city then make a fair profit; that is reducing taxation; again, it would prevent strikes, for the reason that if the people do not like the methods of the magnates who are running the roads, they would go to the polls and change it when they felt disposed; it would remove all cause, all friction, between capital an'd labor, because there would be no capitalist except the people at large. Q. Have you accumulated specific facts or figures which will help the committee check off your calculation, that under municipal ownership fares, let's say of the surface roads, in either New York city or Brooklyn, or Buffalo, take any city you have studied them in- could be reduced one-half? A. Only the figures that are published in the Press; the railroad question in so far as Glasgow and other parts of the world are concerned give those figures better than I can; the electric-light statistics I have got officially; I can not speak of the railroads, as I would like to, but I deal with that subject from the standpoint of electric light Q. Have you been able to compare the rates charged for electric lighting in thoke cases where the properties belong to the municipality and where they were administered by private corporations? A. Yes, sir. Q. With what result? A. Let me take one city, Chicago; coutpare it with New York; Chicago produces its own light foa $100 per lamp. Q. Per year? AL Per year; New York city, $164.25. Q. Is that attributable to the difference in wages between New York and Chicago? A. No, sir; the wages in Chicago are just as high as in New York. Q. Is it attributable to the difference in the cost of fuel? '. No, sir; the distances from the mines are about equal. Q. Is it attributable to the difference in the value of real estate rental? A. They tell me rentals are as high in Chicago M *....~'...... 532 as in New York; the proof of that fact is their buildings are higher and consequently the land is of more value. Q. Have you any figures which go to show that at $100 per lamp in that case, the city of Chicago is making a profit, or is alowing a deficit? A. The last report which I had from there, which was last May when in Chicago, was that there was a profit to the city on those figures. Q. What, so far as the introduction of politics into this service is concerned, would, in your opinion, be the result if the property were owned by the municipality? A. To my mind, politics would cut no figure at all; we are told that it is competition alone which keeps the price of electric lights down; we find that the same competition that exists between electric-light companies exists between the two old parties, and we find that after you elect a reform party the same cry goes out of antireform; you will find that it is always the same, the world over; it would cut no figure. Q. In opposition to your view it has been urged that the tendency woulld be twofold: First, to increalse expenditure in tthe way of enlarged wages; and, second, to decrease revenues in the way of reduced fares, with a tendency to show a very marked deficit which would have to fall back on direct taxation?,A. The first proposition, I would say, is right, and we desire it so; the greater the wages of the people, the greater the purchasing power, and the entire community is better to that extent; to the second propositlion, I say, no; for the- reason that wages paid in dividends to. people who perform nothing beyond being directors and so in, wovuld go to the public at large; therefore, no deficit could occur; the profit would go to the people at large. Q. Now, it has been suggested that these conditions might be alleviated by some reform in our tax laws; have you stui.i('d that question at all-that phase of it? A. Well, somewhat; of course, that brings us back to t-he single tax question, and I suppose you don't desire to enter into that. Q. You would not suggest any such adopticn of the single tax principle, would you, as to enable corporrations enjoying public franchises to escape taxat:i'n? A. In conjunction with that, of course, all things of a public nature would become prublic functions, the city,,tate and government would own. Q. You think that the single tax upon land couild only work good in the event of all corporations enjoying public franchises being exercised by a public people? A. Yes, sir. Q. Following that, you could not apply your single tax theory In its entirety or logically, could you? A. Yes, sir; that can easily be demonstrated if you desire to go into that subject. 533 Q. Do you believe that any advantage will 'arise throuigh.tike licensing of employes of a railroad.? A. Yes, sir; that wWilid be an advantage, but only, temporary. Q. Wherein would it be advantageous? A. In so far as a man to receive a license would have to register; that is, a license could not be granted to people you did not know; you, could not tell what their character was unless they lived here; locally, it would be an advantage; it would do more than that; it would make it necessary to inquire into the character of a man, and If anything happened, the city coluld be held responsible for issuing the license. Q. Have you studied the license question as it prevails in Boston? A. No, sir. Q. Or any other city? A. No, 'sir; 'oaly so far as it applied to myself as a teamster in New York city; I was forced to take out a license there, and they questioned me closely as to habits and mode of living, and qu;e'stioned others as to my honesty. Q. And that you think haid the effect of excluding others who were unfit? A. It did exclude many, sir. Q. Do you believe, knowing the temper amjd character of both employers and employes, do' you, believe that there would be any decided advantage, practical advantage, through a legislative attemptt to make the employes of corporations enjoying and exercising public franchises, quasi public servanits or officers? 'A. That, to my mind, would be dangerous, unless you placed the proper safeguards ailound the employes; the report of the media, tion and arbitration board in the New York strike was a report, to my mind, dictated and prompted' by the railroads, and', had they been put into force, it would have permitted the corpomra tions to destroy every labor' organization. Q. What is the particular provision to which you refer? A tPhat the railroads would have the right tol discharge one-tentli of their employes every month; thus, they would discriminate and discharge the people whom they called l1bor men or labor organization men. Q. Speaking of that matter of discharging, doi you know of any rea.son, in the event of the Legislature adopting the oom. pulsory arbitration idea, why provision shioruld not be made to the effect that no man should leave their employment, without giving ample notiice, and no man shonld be disclharged without having received ample nritice? A. We will agree with that entirelyv that is one of the principles. Q. Wh!at do you think would be a falir notice applicable, reciprocally, for both sides? A. It would be agreed upon by, both sides,,say one month. 534 'Q. Do you think that is too long or too short? A. That could be agreed upon. Q. If you were in the Legislature and about to fix that, what would you fix as the best practical term? A. The usual time Is two weeks; we have a case noiw on the point rf settlement where the term of one year is made. Q. What sort of business is that? A. I rather you would not have me use that, bec,ause we have not signed 'the document. Q. Is it a manufacturing business? A. Yes, sir; they manufacture something for the boys to drink when they are thirsty. Q. That is not a case where the corporation is operatillh, a public franchise? A. No, sir. Q. Do you think there will be any practical benefit derived from a legislative declaration to the effect that all charges and all wages should be fair and just? A. That wouldn't cut lny figure; it is the matter of dividends; they pay no attention to it, unless there is a penalty attached. Q. Do you believe it would be practicable, and if practicable, desirable to carry into force a law fixing a minimum rate of wages for men employed as quasi public servants by corpo;-ations operating public franchises? A. It would be a very good movement, and in the right direction. Q. Do you believe that the Legislature can fix and hold a rate of wages? A. Yes, sir; in all cases bwhere a charter is granted by the Legislature, as it is a part of the duty of a Legisitilure to govern and control, it is possible, by law, as I understand ii. Q. In what proportion of the cases where strikes arise in your experience are they finally settled by voluntary arbitration, and in what proportion do they ciome to serious difficulties which are not finally adjusted? A. In, my experience I have never had a case where it has been referred to voluntary arbitration, where a settlement of some kind has not been arrived at; I mean, where two disinterested parties on either side who are brought together, they in turn to select a fifth-in those cases, usually a settlemesnt is arrived at; the number of cases brought to arbitration is not more than 10 per cent. Q. The other 90 per cent. are never settled? A. They are settled by force on either side; possibly compromises may be effected by the men and employers coming togrether. Q. In some cases there is no' settlement -that is, somebody saffers? A. Somebody suffers in the long run; yes,- sir; if we are sirong enough we beat them;.if their pocket-books are stronger than our stomachs then we have to give in. Q. In cases where arbitration is resorted to, iis it usual that the men are kept in employment pending the arbitration? A; That is one of the stipulations that we always aim at. 1 535 Q. And that is usually accomplished, is it? A. Very often, sir; in nine cases out of ten we succeed. Q. Have you any statistics of strikes in this State? A. No, sir; our office may have them; I haven't got them; of course, we can fall back on the committee of arbitration and mediation. Q. That is the only place to which you can direct me? A. Yes, sir; there arel many small strikes that never get any notice at all; District Assembly 49 might aid you; also, District Assemblyj 220, Broloklynl. Q. Forty-nine is what kind'of a district? A. It is a mixed district, having at present about 85 or 86 local assemblies, of different trades and callings. Q. So that would be very fairly illustrative? A. Yes, sir. Q. What is the Brooklyn assembly? A. Two, hundred and Twenty is mixed; we have also, New Yotrk 253, which might give you figures on strikes; 75 is a district in itself. Q. In addition to what you have stated to the committee, I ask you generally because your own time 's getting short, if you have any further suggestions to make as to legislative remedies for these difficulties? A. If the proposition is that you continue the present:system, I wiou:ld ask that the laws now placed upon the statute books covering the 10-hour question shall be so explicit that every person can understand it; that the laws which nlow give but the right to arrest officers of organizations - that is, the companies- be so amended that the company itself would be responsible; that the laws which tell us that non-residents of a city can not be employed shall be made so clear that they can not be misunderstood by any person; we have a lot of labor laws upon the statute-books and whenever we propose to) enforce the law, we find loop-holes in them —rather the courts find the loop-holes-I don't know whether it is by accident or design; many times it gives cause to believe that the judges and other public officers high up in position have things so fixed that we have credit for having labor laws when we have not got any; I would ask this committee to do all in their power to have this question of municipal ownership of railroads placed before the people at the earliest possible moment; if the people desire the ownership of the roads, it should be granted; to my mind cori porations, that is, cities, villages, towns and States, have not been built for the purpose of giving the few the right to tax the many; I believe that the profits from railroads should be placed in the State treasury, thus reducing the taxation upon the buildings, tenement-houses and so forth, and that, in turn, would reduce our rents and show that the State was anxious to see us living better than we now live. 536 Q. Don't you regard that as a tendency toward possibly dangeroui State socialism? A. To my mind, all officers oof this government believe in State socialislm, and my acquaintances, and they are quite niumerous -nine out of every ten wants to be employed by the government; it is the strangest thing in the world, and if you will follow a member of the Legislature about you will find that he has 20 or 30 people upon his, track all the time. Q. Is it not largely due to the faict that the mran who gets into public employ has a guarantee of a higher rate of wages than if he goes into the market,and seeks his employment in competitition with the rest of the world? A. That is largely true; there is only onie exception that I know of; the street inspectors in our city - they get $3.50 a day -I don't know what the perquisites arewhile the paver gets $4.50 a day; the skilled man who looks after the paving of the street and who has to report all defects gets but $3.50 while 'the man that lays the pavement gets $4.50, and yet we find a great number of people anxious for the position, Q. Is it not due to the fact that it is a larger rate of pay than; they would get elsewhere? A. The plavers are anxious to! be appointed to the position at $1 less; as I say, I don't know whether it is the perquisites or not. By Chairman Friday: Q. You think the proposition of municipal ownership is the true solution of the question? A. There is! no doubt about it to, me; that is the only way you can stop the quarrels on railroladslthat is, street railroads. Mr. Ivins.- I had subpoenaed for to-day, Mr. Depew and Judge Gaynor. Mr. Depew is in North Carolina, and Judge Gaynor has refused to cone, unless the commnittee enter into corresponidence with him, and, having no further witness, I have nothing further to present to-day. The committee then adjourned until Monday, March 18, 1895. Proceedings, Monday morning, March 18, 1895. Oarroll D. Wright, having been called as a witness, testified as follows: Examination by Mr. Ivins: Q. Mr. Wright, you aire Commiissionerf ar of bor othe United States - United States Labor Commaissionler? A. I am United States Commissioner of Labor. 537 Q. How long have you been such, Mr. Wright? A. Ten years last January. Q. And, before talt, you filled a similar position in Massar lhusetts, did you not? A. I did; since June, 1873. Q. You were one of the coalmissioners appointed by the President under the statute for the investigation of the late Chicago strike? A. The statute provides that the Conmmissioner of Labor shall be chairman, ex-officio, of any commission which the President may appoint under the statute, and, in, that way, I was chairman of the Chicago Strike Commission. Q. You have investigated a number of strikes both in Washington and while you were in Massachusetts, have you not? A. In a certain sense; yes, sir; the department at Washington makes a report occasionally covering the statistics andi main facts relating to strikes; I have never examined,or investigated a specific strike in the way the Chicago' strike was investigated last summer, but it has been my duty always to take cognizance of such matters and report the results of series of strikes; we are now investigating all the strikes which have olccurred in the United States during the past seven years. Q. Have you had your attention called to, or have you studied the laws of New York State with regard to the labor commissioner and his functions and duties? A. Oh, yes. Q. Wherein do they differ. materially, if there be any material difference, from the functions and duties described for your office by the United States statutes? A. The organic law of. the New York Bureau of Statistics of Labor and the United States Department of Labor are very similar in their principles involved, but the New York office is authorized by law to carry on investigatiolns; its questions to be answered under penalty for non-compliance; in this respect the New York law differs very materially in the vital principle from those of other States having similar offices) and of the United States. Q. In that it gives power to compel attendance of witnesses to testify under oath? A. Yes, sir; further than that it gives the Commissioner of Labor of New York the right to ask questions such as he chooses to ask relative to production, labor and all such matters, and if not answered, subjecting the parties declining to answer to a penalty; the bureau, of New York eas no functions other than those of investigation, as I remember. Q. Has your bureau any functions other than those of investigation? A. Not except under this special statute which makes the Commissioner of Labor chairman ex-officio of any board of investigation which the President may appoint. B. 68 f! 538 Q. You are familiar with Ithe organization of labor societies in the country, are you not? A. In a general way; yes, sir.. Q. Am I correct in my understanding that the Knights of Labor, so-called, and the Federation of Labor, so-called, are the two largest and moist important of these organizations? A. If you make one addition, the American Railway Union, then you have enumerated the three most important labor organizations of the United States. Q. And what place does the brotherhood of Locomotive Engineers occupy? A. The Brotherhood of Locoimotive Engineers and all the brotherhoods are organizations independent in their character, like the Amalgamated Iron and Steel Association, and yet they are affiliated with the American Federation of Labor, whiich is just what its name indicates, a federation, not having the autonomy of the whole body under its own control like the'Knights of Labor, General Assembly. Q. Is not that difference in the pr'inciple of their o!rganization a radical difference which divides the workingmen very generally throughout the country? A. Yes, sir, I think so; but there is another distinctive feature between the organizations of the Kniglits of Labor and the Federation or trades unions; a trades union is an organization having for its chief interest the work of its own trade, the trade represented by it; for instance, the brickmakers, the master masons, or any other specific trade organizes a trades union under what we call trades-union principles; that is, it looks out for their particullar interests; while the Knights of Labor is an organization on the basis of a society, taking into it all trades, whether skilled or unskilled, with the organic desire of building them all up in various ways; those two features, therefore, constitute a very sharp dividing line between the Federation and the Knights of Labor; now, the American Railway Union is organized more along the Knights of Labor lines because it seeks through its constitutional provisions the bringing of all railrolad labor, whether high or low in its character, into one organization; it, therefore, partakes more fully of the principles of the Knights of Labor than of the Federation of Labor. Q. I ask that general question, M3r. Wright, because I find that there seems to be a rad!cl difference between the representatives of the Knights of Labor and the representatives of the Federation of Labbor with regard to the matter of compulsory arbitration; Mr. Gompers hais testified that, in his judgment, compulsory arbitraition woruld not ba a benefit.; M,. McGnire, who, is the principial representative of the Knights of Labor in this State, states that it is one of the fundamenltal prinqlples 539 of the Knights of Labor to seek compulsory arbitration; I find this difference prevailing between the represenitaf1ves of the workingmen; I would like to ask you whethler, in youir experience, whether there i's such a difference of view among employes as to the desirablility off compulsory arbitration? A. Most assuredly; every thinking man, men who study, these questions are like all other men; they divide on great questions just the same as statesmen and other people do on financial questions; they think their interelsts are to be subserved by a certain line of action; the Knights of Labor, generally, while agreeing to Mr. McGuire's proposition in certain quarters, I do not remember of ever having voted in favor of compulsory arbitration; while the Federation has quite constantly opposed the idea, and I think the American Railway Union, so far as' I have the thought of its leaders, is against compulsory arbitraton. Q. Do yolu know what the feeling of the locomotive engineers is —Mr. Arthur's Brotherholold? A. They have no sympathy with compulsory arbitration at all; none of the brotherhoods. Q. What would you say was the doninant feeling throughout the country on the piart of the men' themselves-in favolr of olr opposed to compulsory arbitration? A. I should say they were very largely opposed to compulsry arbitration. Q. Do you know, Mr. Wright, of any State or country in whi!ch compulsory arbitration has ais yet been employed? A. I do not. Q. Can you tell us what is the nearest approach to it? A. The State of Pennsylvania, some years age, enacted what is called the Wallace Law, which provided, as I remember it, for compiulsolry arbitration as such; that is, it provided for the summoning of piarties in court and compelling them to abide by the decision, but I think that law has been moidified; at all events, the State of Pennsylvania has had no experience in the arbitration of labor troubles under any act; I know of no other case in this or any country where even the afpfproach to compuflsory arbitration has been maide the subject cf practical application or an attempt to apply it. Q. So, that any legislation upon that point, even with the best light that we have, would be more or less, in youir opinion, a leap in the dark? A. A leap in the dirk and purely experimental. Q. Do you believe that the possible onlutcome of saich legislation for good is sufficient to julstify the experiment? A. One can only judge by reasoning on such a question, because it is imnossible to say wbat woutld have happened if something else had not oiccurred; reaSoning from analogy and the effect of the application of stringent laws in other directions, I am very 540 firmly of the opinion that compulsory arbitration carried out would vastly increase the conflicting feeling now existing between employers and employes wherever it does exist; it would increase that suspicious element whiach, to my mind, is as largely respon;sible for trouble as anything else; it would increase the lack of confidence, or destroy whatever confidence now exists; confidence between the two elements of production or transportation - the management and the employes - is, to my mind, the surest element of peace and harmony; compulsory arbitration must, in the very nature of it, have the same effect upon the two parties involved that a lawsuit between two neighbors has —a life-long feud, as a rule —because, in the first place, there would be that summary process necessary for the initiation of any prcceeding, and the more isummary processes necessary to carrying out the effects of the judgment; the whole power of the State lies behind the judgment of every court; both the civil and the military power 4is there, if the officers of the court can not carry out the court's orders; so, that there would be that constant irritation increased and intensified by law which is sufficiently intensified now without law; on the other hand, compulsory arbitration would work another injury, and that would be the indirect establishment under it of the wages which either must be paid or must be received, and, logically, the establishment of prices 'of commodities; that is an absolute economic bar, it seems to me, to the working of any system of compulsory arbitration; to illustrate briefly: Should the court of arbitration, or board, or whatever it might be called, decide that the wages which were paid were unjust and unreasolnable, and that a much higher wage should be paid -that decision, of course, has all the force and power of a judgment at law, and the employer must either pay the wages fixed by the court or suspend his operations or adulterate his gooas or in some way offset the element of cost of production made necessary by the increased wages ordered by the court; the price of the commodity which he manufactured would, therefore, be fixed practically by law, and that means the destruction of the industry, or the forcing of all establishments engaged in the same industry into a trust whereby they can regulate the price, and the whole matter comes back on the consumer as all such matters do. Q. Is it your opinion that compulsory arbitration law, to' be effective at all, must naturally and necessarily interfere absolutely with freedom of contract as to rate of wages, and so forth? A. Why, certainly; if the contract-price existing is the cause of the strike, and one or the other parties is brought into court on summary process, that contract has either got to be set 541 aside or adhered to; if the court has the right to set it aside, of course it would have to come under the general law principles of the abrogation of a contract on account of fault of one of the parties. Q. Wouldn't it be just as well if the Legislature were to take any step, to take the step of fixing the maximum wage? A. There might just as well be a specific act, settling the price at which all parties should labor, in all walks of life, and fixing the price which the consumer should pay, and then the only way to carry it out would be to, fix a penalty on, the consumer if he did not pay that price. Q. As Labor Commissioner, with your experience, do you know of any case whatever, where any Legislature in this country has fixed the rate of wages except for persons employed in the public service? A. It was a constant experiment in the colonies. Q. But I mean under our modern regime? A, No specific instance comes to my mind, except in public service, asi you suggest - unless in the way of railways, where Legislatures have fixed the maximum for the traffic of passengers - that the price for transportation per mile should, not exceed such and such a price; but it has never attempted, so far as I know, to fix the exact rate at which any particular thing should be done, unless it was a matter over which the Legislature had control. Q. I mean, more particularly, not the legislative regulation of the charges to be made by a railway company, either for transportation or property, but the rate of wages to be paid? A. No; I have not seen any such legislation. Q. Since the abandonment of the old theory of the efficacy of sumptuary laws, do you know of any cases! in which the State has fixed the rate of wages of any person other than a public employe? A. No such instance conkps to my mind now; I would like to say, in addition toi what I said about compulsory arbitratiol - that there may be modifications in the conduct of railroads, especially of interstate railroads -where the government should have some voice in fixing, or rather in consenting, to the rates of wages, and the terms and rules and conditions of employment, in order to secure stability, as, for instance, if the government of the United States fixes, freight rates) as the courts, I think, have held it has the right to do, it would be obliged, logically and legitimately, to have something to say about the rates of wages on which the freight rates themselves must, to a certain extent, depend. Q. The principle which underlies the one underlies, equally, the other? A. Yes; if the State is to take any control whatever 'it must take control of the labor of those railroads, to a certain extent, else it will fail. 542 Q. Before taking up that point again, I should like to go back to the matter of compulsory arbitration; you have said that it was likely to breed the litigious spirit and to result in quarrels which would be of long duration or create feeling which would not easily be soothed; has the action of the ncncompulsory arbitration laws resulted in anything of the kind? A. I am nott aware that it has'; on the other hand, it has brought parties together, so that they have more fully and completely understood each other; with voluntary arbitration under the three or four States that have made any attempts at it -it has not been very extensive, but it has been extensive enough to show that when resorted to it brings la better understanding; naturally, it would, if the two sides to the controversy, if the parties on each side to the controversy, are men of high) moral character, or of sufficiently high moral character to be willing that their case,should be passed upon by others; they would be quite willing that all the facts relative to their separate positions should be known and understood; and the chief value of voluntary arbitration, to my mind, lies in just that -in the field of investigtiion- of giving to the parties and the public the real truth of the controversy. Q. Mr. Wright, do you remember when the latest amendments were made to the Massachusetts Arbitration Law? A. No; but within three or four years; they gaive the commission power to make some investigation of their own motion, if I remember correctly, which is a very excellent thing to doi; they did not go far enough. Q. Will you describe to the committee the present Massachusetts' system in order that we' may comrpare it with our own? A. The Massachusetts isystem of arbitration) provides a board to be appointed by the Governor, and its power may be, or its services may be, called into activity on the petition of either of the parties to the controversy; it can then repair to the plaice of the controversy and call before it the witnesses on either side, and decide as to the reasomalbleness or justness of the wages or the hours of labor, or any other conditions which form the basis of a controversy, and advise as to what shall be done different if anything is necessary, from what is being done; the law provides that during the pendency of this inquiry a,nid for a period of 'six months, the parties' status shall continue; there is no sting in the law anywhere; the law now provides, is I remember correctly, that the commission may set itself in motion and offer its services in the matter; the proposition is now being made that in addition to that of offering its services, it shall be obligatory upon the board! to investigate every strike of any proportion with the view of giving to the public the results, and helping public opinion to a 543 proper understanding of the conditions; if I remember borreotly the New York law does provide that the board may go to a place and inrvestigate the causes and conditions surrounding the strike, the cause of, and the iconditions surrounding the strikeand report that to thie Legislature. Q. Our State Board did that in this identical case? A. Yea, sir; I had that impression; I think I have seen the report-the partial report which they made; that is about as far, Mr. Chairman, as the board can go, unless you give it power to execute its own judgments the same as a court of law has that power. Q. Now, this is the nipping point of this difficulty, is it not; that while a court of arbitration to which the parties were conmpelled to submit may have the power to enforce its decrees as against the corporation (it would find serious difficultt in enforcing its decree against the men? A. That is the practical part of it. Q. Have you heard any practical answers, or the suggestion of any means, to avoid that difficulty? A. Oh, yes; to make cornm pulsory arbitration completely effective in any particular con. troversy, the law should provide that each party shall give ample bonds to enable it to respond to any judgment. Q. And that no peron, or party, or State, or association, or league, or union not giving such bounds shall have the right to compel arbitration? A. That would be the only way to make it effective, because as somebody has said, "You can't put everybody in jail;" you would have to resort to 'all the methods of the law relative to judgments against individuals; if a man has not property on which the execution can be levied he is obliged in most of the States to give bonds to satisfy any judgment that may be obtained. By Chairman Friday: Q. There is no material difference in the Massachusetts B.ord of Arbitration and the New York Board of Arbitration? A. I think they are very nearly the same, Mr. Chairman, as I remember them; it is some time since I have.examined the question; they are practically along the same lines; in fact there are only three States that have done anything under arbitration, although 15 States have arbitration acts; New York, Massachusetts and New Jersey have accomplished something; that is, they have set their machinery into operation and have attempted to enlighten the public, and not only 5by the diffusion of knowledge relative to arbitration, but by the active, practical application of. thelaw itself, but so far 'as we can know, odnly a few easei comn under it, but if a few cases only come' it is an enlightenment which the public ought to have; in England, the principles of!.L s -- I 1 i544 arbitration are entirely under voluntary control, although an attempt has been made to pass an imperial act; France has a law, passed December 27, 1892, which travels along the lines of our own acts in this country, and it has had during the past two years rather of a satisfactory experience under it; the highest form of arbitration, at least that formn which suc. ceeds in a greater number of cases. and to the better satisfaction of all parties, is the result of a contract; in the shoe trade in Massachusetts, and in the building trade in Chicago, and New. York city to a certain extent, and in some other parts of the Union, contracts are made between the employers and employes covering a certain period of time —six months, or nine, or 12, according to the conditions of the industry, for working time and wages and other conditions, and this contract contains in it a clause, that if during that period for which the contract is to live there comes up points of difference, difficulties, those matters shall be submitted to a board of arbitration provided in the contract itself; now, we do not know to what extent that principle is applied, but it is very great; the number of strikes in this country that are averted by such means is very great indeed; nothing has yet been done to develop how extensive that is, but as you can see at once there is the practical application of a high moral law and economic law at once by the agreement of the two parties; that particular feature of arbitration has done alway very largely with strikes in the shoe trade in Massachusetts. Q. Those are matters that would not likely come to your official knowledge? A. No,,sir; not unless specially inquired about; nor are they matters which can be fixed by law; the law can not reach such cases. Q. But you believe there are many of those contracts carried out, and carried out successfully? A. There are thousands of difficulties settled every year in this country in all trades that the public never hears of. lBy Mr. Ivins: Q. XWhat they do by agreement to arbitrate, however, requires the consent of labor? A. Yes, sir; there must be a perfect understanding on both sides. Q. I ask that because prior to the last strike all of the labor employed was organized labor; to-day it is not; that is, the contracts are now made individually with each man; is there any 545 way, when the contracts are made individually, of making provision with reference to lockouts and strikes? A. I should say it would be very difficult, because each man only would be held to the performance of his own contract. Q. If the railway company here to-day wanted to make some such provision and were to say to the employes we will agree with you that there shall be no strike or lockout except on certain terms of notice and arbitration, while employing the men each by himself, it would find it impossible to carry out such a plan? A: I think it would be impracticable. Q. Have you found out that the employer of labor gets along better or not so satisfactorily with organized labor, than with disorganized labor? A. In many trades the employers are not only very friendly to the organization of their people, but help them, and so far as I know the broad-minded men of this co'untry have no objections whatever to organized labor as such; they object to organized labor saying that non-union men shall not work unless they agree to it; that is the chief objection to organization; but so far as my own acquaintance and personal and official inquiry goes I have never been able to discover any serious antagonism to organized labor; in many great trades like the clothes business, manufacture of clothes, the organizations and employers have worked together very harmoniously for many years to their mutual advantage; they had some trouble in the last few years, but on the whole they have worked harmoniously and to the advantage of both parties. Q. Do you believe it would be practicable and result in. any benefit to provide by legislation for the giving of notice by both sides before either a strike or lockout, in case of persons exercising publlic franchises, or persons employed by corporar tions exercising public franchises? A. I should think that would have a very excellent steadying effeet; does not that rule exist very largely now? Q. No; not in this State; do you know of any practical objection to the enforcement of such a law; let us say, for instance, that the courts should have power to restrain a body pf men from striking unless they gave 30 days' notice, and in like manner should restrain any orporationi from discharging its men without iving the men notice? A. The difficulty that comes to my mind would be this: It might be absolutely essential, in the operation of a railroad, to reduce the force without waiting for 30 days, and it might be aLsolutely essential, under many coiditions, for the men to leave; the law might provide in some cases that a notice should be given, and the only result would be, if nctice' is not given, that damages would aorue; B. 69, t '546 for instance, if you provide that the railroads should give 30 days' notice before discharge, the only effect it would have would be that, if the railroad did discharge without 30 days' notice, they would be held responsible for the wages for that 30 days. Q. Apart from the question of damages which might accrue to either party, I had in mind the paralysis of traffic and the inconvenience of the whole community of a million people, let's say-as took plaice here-and its prevention, if possible, through process of the court? A. That is, by injunction? Q. By injunction, by riestraining order; could the law be made to work effectively by providing that nt n mcre than one-fifth or one-tenth of the men should be discharged at any given time and within a certain period without notice, providing that no more than a certain number of men should leave without notice? A. I see no legal obstacles in the way of carrying that out; that would simply result in carrying the principle of injunction to both sides of the controversy instead of keeping it on one. Q. That is only fair; the thing we are searching for —and whether we can find it is another question - is some means of preventing such conditions of disorder as we hiad here for three weeks, when the public had insufficient means of transit and our streets were patrolled by armed militiamen? A. The man, Mr. Ohalirman, who can find that will not only deserve, but he will secure, monuments in ever city in the Union. Q. That rather indicates its hopelessness, does it not? A. It seems to me there is only one thing to resort to after all, and that is, decent treatment all around, whether it can be forced by law or not remains to be seen; every law that looks to a forcible settlement of any question of civilization hals so far proven not only a failure but a source of increased troubles; I don't know but what, under the practice of injunicrilons, such a difficulty as that which occurred in Brooklyn might be, perharps, not averted, but more quickly stopped after the t-ouble begins; but when you fix a law providing that injunction mkav be issued under certain circumstances the great difficulty is as most lawyers nmoiw, in being able to prove just the circumstances which the law contemplates; you can not say that a road shall not discharge its people for just cause; it Is like many of the criminal laws where there is no intention of ever enforcing any one of them, the words "knowingly" and "malieitouly" and all that sort of nomenclature is puat in; it is pretty dificult to tell what is in a man's mind when he performs a cerfain act, whether it is maliciously done or otherwise; so, in the injunction of corporations and workingmen in labor troublea, I should anticipate he same h difculty. 517 Q. I should like to ask you if, in your exrperience youm ad found that the larger aggregations of capital in the.foi. o railroad consolidations on a large sioae, has had a tendeecy to create a condition which is more apt to result in ill feeling between employers and employes? A. Not of itself; there -l nothing in the aggregated features of industry to create that feeling of antagonism; it is only the result of a new forri of industrial order, because the president and the directors and the management of a corporation can not, under the ciruraastances, have that same personal feeling for the employes of the corporation that they would have under the old methods of personal work. Q. Isn't it a faict that! this tendency toward larger industrial consolidations i: entirely a natural tendency and no legislation has yet been found capable of coping with it? A. That is perfectly true; of course, the men employed by great corporations feel that they have not that human sympathy on the part of the managers that they do when they alre working folr men responsible to them, selves and to each other; I never have believed that itiis a necessity that corporations need to be soulless,as they are alleged to be, and I think there is a decided improvement in that respect during the past few years, notwithstianding all the strikes and labor troubles which we have hald; a;s I meet with mlanagers tiey feel more and molre the necessity of bringing their people into confidential relations with them, and wherever this is attempted there is little or no trouble; you cean niame a good miany concerns in this country which are never heardl of in the way of labor troubles. Q. Has your attention been brought to the question of the application of the co-operative system in the conduct of the business of corporation!s exercising public franchises? A. Yes, sir; there aire very many phases of the co-operative principle; there are none of them, however, effective in solving the problenis which confront us; they are aids to some extent; take, for instance, profit sharing; while it is a.speies of co-operation it is a solution in no sense whatever; but, wherever the partie engaged in operating are willing toi join in a profit-sharing scheme, it only brings a closer alliance; it is a morral question rather than an economic one. Q. Have you heard any suggestion made as to the desirability of legislation which would compel profit-sharing between oWneft of franchises and the employes, after proper care had been taken for the payment of a fair return, on the capital? A. I never heerd that suggested. Q, Now, have you studied the licensing sytem a it prevail in 548 Boston, licensing the employes of roads? A. Is that adopted there? Q. I understand that all of the employes have to have a license from the public anthorities? A. I am, not familiar with that practice there. Q. Are you familiar with the practice of public licensing of employes on railroads? A. That question has been discussed in the last three or four years and is advocated very seriously and strongly not only by labor men but by employers as a practical solution of the difficulties of railway labor. Q. Will you tell us what the arguments in favor of it are and what the arguments opposed to it are? A. The arguments in favor of it are drawn almost entirely from lthe experience in our marine service where engineers and others must be licensed by the government after proper examination; and so very many railroad men- I mean among the colrporations, railroad operators — are quite in favor of applying that same system to railroad work, so that every conductor, engineer, fireman, brakeman and even the switchmen should be licensed by the Federal government to carr on this particular part of the work, subject, of course, like the marine license, to forfeiture or suspension inl case of any miScondulct or lack of ability displayed 'by any one act; further, they would make it a provision, so far as I know their theory, that if the holders of these licenses engaiged in any strike or boycott or any other such operations they would either forfeit their license or be subject to suspension for a period suich as the law might provide; thait is the view broadly of the men in favor of the license system being applied to railroad work; and some of the leaders in the brotherhood and others also favor the system of licensing, but they would couple with it very naturally what they would call a reiprocal provision, that any blacklisting of the men who held licentses should be punishable by law. Q. May that not afford a practical solution in this way, that in the first instance all employes to have a public license after having been examined by some party properly selected and thoroughly competent, that thereafter, if they take part in a strike distinctly as a strike, or thereafter if they leave the employment without proper notice their license shall be vacated and terminated; wouldn't that afford relief so far as one side of the controversy or question iis concerned? A. It would help steady the ship without any doubt, but whether it would enable it to weather a storm or a hurricane would be another matter. Q. Is it not about as near to a practical solution as you can come? A. There is a good deal in it, and it is worth the most serious consideration of Legislature or Congress; of course, there 549 is another objection which' the officers of labor organizations bring against the system, and that is that the employes on the railroads would be completely at the mercy of the roads; that is to say, they would be obliged to accept such wages and rules as the corporation saw fit to arrange, because if they were discharged the others could not take their places; the capiitlist on the other hand argues that there would be a sufficient number of licensees ready to take the places of those who went out and thereby balance the difficulty in that direction. Q. I notice, Mr. Wright, in your report, I think it was on the Chicago strike, that these consolidations by coming together have tended to decrease the competition, or at least decrease the freedom of access on the part of the men to the field for labor? A. That is so. Q. While on the other hand the workingmien, because of their inability to combine in such a way, are always put at a disadvantage; take this illustration: Four railroads in Brooklyn consolidated with the Brooklyn City, and the Brooklyn City wai taken over by the Brooklyn Heights, and that was taken over by the Long Island Traction Company, and you have a system of three other roads coming into the Long Island Traction Oompany, so that the control of 240 miles of road, virtually, and 5,000 employes of one kind or another fall-into the hands of a single employer without competition; do you think that condition itself has a tendency to intensify the evil? A. It must be so: one of the great objections here in Brooklyn was, that the corporations declined to treat with the committees of labor organizations; they would only treat with individuals. Q. After a certain point? A. After a certain point; yet not- withstainding that, the corporations were very apt to turn around and make various combinations, and the men have to treat with the whole combination; if one is bad the other is bad; how it can be reached by law is a very serious question; it certainly increases the suspicious elements in this whole question which, as T have said, is a very serious matter. Q. Amongr the remedies which have been suggested is that of mnlnicipal ownership of railroads; have yoa any experience of any rinnincipal ownership of railroads within the United States? A. I am not famniliar with that qu'estion; I have always felt that the municipal ownership of certain things, like gas-works, street railways. water and electric-light plants and so forth was a matter of business growth; that as one city tried the experiment and found it worked well another city would be apt to do the same thing until without agitation or law particularly applicable, except a permissive law, the municipalities would find themselves very largely in control of such works. 550 Q. A city is the largest of all modern consolidations? A. Ye, air. Q. Continually taking in new functions? A. Yes, sir; facts show that in Europe where street-car roads are operated by the government the expense of freighting is very much lighter than in this country where they are run under the competition system. Q. That is equally true with regard to the charges for carriage of passengers, ils it not? A. Yes, sir; but the difference is not so great. Q. Before we get away from that matter of license, let me ask you, if to your knowledge, any Mf our cities has tried to apply, put into practice, the theoriles with regard to license which you have spoken of as having called to the attention of the national commission? A. I know of no approach to it, except in certain cities where they have undertaken to regulate the question of color blindness. Q That was done as a police measure? A. Purely so: it has no relations with the labor question; I should be very glad as a citizen of this country to see this license system tried by some State. Q. If this committee were to decide to report and draft a law for license, would youl give your assistance, if I went to Washington? A. I think there has been a bill introduced into Congress thart is a very systematic and admirable bill. Q. Will you send me a copy? A. I will take great pleasuere; it is favored by a very great many railroad organizations. Q. And will you, also, send me a copy of the bill passed by the last Congress for compulsory arbitration? A. I can not do that, because no such bill was passed. Q. I understood it was passed by the last Congress? A. I think every newspaper in New York city has labeled it compullsory arbitration bill, but it was not. Q. Will you tell us what the general features of that bill were, as it passed the last House? A. That bill was the outgrowth, to a certain extent, of the experience in the Chicago strike — the committee of labor last summerQ. Who was the chairman of that committee? A. Mr. McCOune, of Chicago; that committee reported what was known as the Springer bill, drawn by Congressman Springer, of Illinois, a very broad bill, and not a compulsory bill; it had soae featurcs in it which would have brought the Federal government into conflict with the State government; so, last fall, when Cnlgress met, the committee asked the, strike commission to draft a hill wlich should embody the principles of its recommendatio;a; that bill was drawn on an ideal basis, without reference to extnrsels; 551 it established a commission, with proper power to do what I have outlined here, as my own idea of what a commission shrod4 do; that feature, the commission feature, however, was obj,tionable to many in Congress, who had no objections to the principles of the bill, and the objection to the commission beinu oe account of the expenses, the Attorney-General made a red aft of the bill, substituting other machinery for carrying ouit the principle of the bill than that suggested by the commission; that was the principle change made by the Attorney-General; the bill wv* then subjected to the consideration of the various i ailroad brotherhoods and unanimously indorsed; that bill provides simply this: that the chairman of the Interstate Commerce Commission and the Commissioner of Labor should, whenever an interstate strike was threatened, endeavor to conciliate the parties, that is, bring them together, and talk out their troubles in such a way that there could be an understanding without any stlike; but if that did not succeed, then each party to the controversy was to choose a referee -that is, the railroad corporation involved and the labor organization involved should each select a referee; and those two choose a third man, which three would constitute the board under this bill, and if the two parties involved did not within 48 hours choose the third party, that the chairman of the Interstate Commerce Commission and the Commissioner of Labor should select one; then that board coustituted a board of arbitration, to which the subjects in controversy could be submitted; then the bill provided - you see purely a voluntary matter -then the bill provided that if the parties consented to it, they might submit in writing all the points in controversy, with an agreement on their part that the findings of this board should be final, but that if, when those findings were issued, there were reasons to believe that errors had been committed, either party might have the matter reviewed by a court having proper jurisdiction in the district where the difficulty arose; if they agreed to it, the parties, as I say, the decisiou was to be final, and entered as a judgment of the court, atnd carried out like a judgment of the court, but that could not be done by compulsory means, but only by the consent, written consent, of the parties agreeing to it; those were the main.features of the law, se far as arbitration was concerned; it went on, however, and provided for a further incorporation of labor organizations, although the Federal law now provides that national labor organizations can take out charters, provided that their headquarters are in the District of Columbia, but this bill, the Olney bill, went still further, and said that in order to secure privileges of tha. act of 1888, labor organizations should incorporate in, their coe 552 stitutions and by-laws a provision for the discipline of memabers who engaged in strikes; it also further provided that labor organizations might be represented by their officers in cases where the subject of wages wias before a court when the road wa, in the hands of a receiver; you remember the case-the I)allas case, in Philadelphia —the law was made to overcome the reaaeoable objections of the judge in that case, so that they should not occur again; those iare the main features of that bill which passed the House of Representatives without division, yet that bill has been labeled everywhere as a compulsory airbitratio!l bill. Q. Will you kindly send me a copy of that? A. Yes, sir, I will; you want it as it first passed the House? Q. Yes, sir; unless youi think in its earlier shape it had some advantages over the other? A. Only advantage of machinery; to my mind the commission was better. Q Then, if we can have a copy of the bill as reported before the changes were muade and a copy as finally passed, I think it would be better? A. Shall I send them to you? Q. Yes, sir? A. I shall do so; yes, sir. Q. Do you know, Mr. Wright, or has your attention been called to any way in which, by enlarg;;,ng the powers of the court, the settlement of these questions can be reached before they come to an acute stage? A. Oh, certainly; I have no doubt that the law can provide that injunctions shall issue on the petition of any party who anticipates or dreams that there is going to be a strike; there seems to be no limit to the power of injunction en dreams; so thait if anybody anticipating that there was to be a strike in Brooklyn, for instance, on any one of your roads, the court could be emapowered, if he is not already, under the common law, to grant an injunetion, and thus prevent an outbreak; but that is all it would doprevent it or delay it; it would not in any wisg settle the troubles or cause an adjustment of labor troulblhs, broadly speaking, or secure a. better feeling between the two elements of industry, or remove thait suspicious element which exists in so large a degree now as to be, to my mind, the chief cause of trouble. Q. Do you believe it would be desirable, if it be practical, to make railway employes quasi public servants? A. If that could be done in s-nne just way, I think a very large proportion of the labor difficulty, so far as railroads were concerned, would be removed. Q. Have you thought of any way whien seems to you to be posstbly a, just and satisfactory one? A. Only through; some species of control by the State of the roads themselves; there 1i53 would have to be a change in the terms and conditions ot charters in such a way as to bring them more anmenable as pulblic corporations. Q. Suclh change as that you think would be obnoxious to the constitutionality of the law? A. And the freedom of the conduct of business; I fear so; how the employes could be brougiht under is a more serious question, because the rcad can be taken over by the government absolutely; the spirit of arbitration, or rather the nachinery of arbitration, would, to a certain extent, give the State a vcice in the regulation of railroad labor. Q. Couldn't the licensing law be drawn in suich a way as to help give a quasi public character to railroad employes? A. That is the great element of advantage in the proposed system. of licensing railroad employes, because it would bring them almost directly under the control of the Staite. Q. But, being broulght under such control as quasi publirc servants, wouldn't they in their turn have the right, although it pays no attention to the regulation of wages in other employments, wouldn't they say it must pay attention to their wages? A. Yes, sir; the monment you knolck down one brick in a row you,start the others. Q. Do you believe such a tting is desirable? A. It is desirable when you couple it with reciiprocal obligations on the other side. Q. Do you think it would be sufficient.to make a simple legislative declaration to the effect that all charges and wages should be just? A. That requires a few more words on a direct answer; if the State, through the Legislatuire, declares that wages and rules on a railrolad, or all railroads, shall be reasonable aild just the board of arbitration can only declare, or the board of investigation, whichever you choose to call it, can only declare whether the wages and rules are reasonable and just, except they go further and say what wages and rules would be reasonable and just and leave it to public opinion to throw its weight on the side of 'the party that was doing the unreasonable and unjust thing. Q. Now, Mr. Wright, have you any suggestions or recom. mendations to make which will help this committee in the way of ibringing in its report in the most effective manner? A. Have you the Arbitration Law? Q. No; but I will send for it? A. The question which you just asked leads me to state that the Interstate Oommerce Act makes just such a declaration as you have referred to, relative to freight rates. B. 70. 554 Q. Has that been found to result in amy good? A. Not yet; it ias been a failure. Q. Why? A. Simply because you can not legislate goodness into people, or honesty; a shipper can! ship his goods at rates which the interstate commerce commission approve; the law prevents rebate, but so far there has been ingenuity sufficiently acute to get rebates under suchl cases; that is the trouble; the courts have decided that the Federal Government has the right to fix the rate of freights oln interstate rotads in accoridance withl the declarations of the Interstate Commerce Act, which says that all rates shall be reasonable and just, and all unreasonable and all unjust rates are declared unlawful; the only funotion of the board wonvlld be in a declaratihn to the public as to whether under such and sutch conditions the wages and rules were reasonable and just, and if not, wNlhat would be, and leave it to the parties to think it up; Ipblic sentiments has a great deal to do with such matters; I think mc(st men would rather come under the ban of the law tlan under the, ban of purblic opinion. (Examination suspended for the purpose of calling another witness) Mr. Norton, recalled. Exaimination by Mr. Ivins: Q. Mr. Nortoln, will you tell us whlat took place at the meeting at Mayor Schieren's house, on Sunday, January 20th, when arbitration was proposed? A. I got a. telephone from the mayor, about half-past 8 o'clock th!at morning, asking me if I would come to his house in the afternoon at 2 o'clock; I went in response to th:t, and met there Mr. Lewis of the Brooklyn City road, his executive committee, and one of his counsel; the mayor was there; the corporation counsel, and the commissioner of city works; Mr. WVicker, of the Suburban line and one or two others; the mayor said that he had been in conference with Ohe executive board of the Knights of Labor during the morning, and they had practically laid down a scheme by which all the differenes betwe(en the companies and the men could be adjusted, provided the railroad presidents would accede to it; he.ubmitted a Ipap-r vwhicli I did not read, but he gave the substance of it, saying that the idea was to turn the matter over to the mayor, and he in t'urn was to appoint a board of three comamisstoners who would pass upon the differences and act as arbitrators. Q, The question of wages was not then a question of difference betweeun ou? A. The question of wages had never been a question of difference because in my conference with the executive committee along in December, prior to the 1st of January, the question of wages had been waived, and the only difference in dispute, so far as the Atlantic Avenue was concerned at that time, was whether we would run a fixed number of regulars and trippers, or to suit what we considered the best judgment of the public. A Q. And the question with respect to phraseology, in Regard to a day's work? A. That we had agreed upon. Q. If you had agreed upon the proposition to arbitrate, the only question to arbitrate would have been the question of the proportion of regular cars and trippers? A. That is all; that was all there was in dispute. Q. Did you not regard that as a proper subject for arbitration? A. I did not. Q. Why? A. Because, I thought that we, as a company, were better able to say how many cars and when we should run them than any arbitrators, or anybody else. Q. Were the other railway presidents willing to have submitted to arbitration? A. I don't think Mr. Wicker expressed an opinion; I think Mr. Lewis said, after I had replied to the mayors proposition, that if he would allow his executive committee to step into the next room he thought they might agree upon terms; I think to arbitrate differences of that kind, and particularly the question involved in our matter, it was rather late in the day; it strikes mie that arbitration should precede war; war had begun; they were stoning cars and injuring the men; the plan the mayor had was to put the old men on' the cars and let the new men go pending the arbitration, and if it had been decided in our favor, so far als the new men were concerned I don't know where we should have found themn; they would have been all over the country. Q. Was one of the conditions of the proposed arbitration that all of the old men should be taken back, indifferently, leaving no discretion in you, whatever? A. The plan, as the manyor submitted it, was, pending the discussion, the old men were to go back on the carS; I remember his saying if we would consent to the plan the cars would be running; the disturbances would be over, and everything would be pleasant within! half an hour. Q. Did the mayor show a desire to have this arbitration brought about? A. I considered he did, because he asked me to come there. Q. Did his talk impress you as being sympathetic with the 556 men or springing from a desire to serve their interests? A. I concluded, as he had been in conference with the executive committee of the Knights of Labor, that he was rather expressing their idea about it; I suppose, as mayor of the city, he was anxious to have the disturbances over. Q. Was that after his own police system had broken down or proven itself insufficient? A. It was after the military were called out; I think after the Second Brigade was called over, I:.never thought it was necessary to have the military; I didn't think so at the outsetQ. Tell us why you thought at the outset it was not necessary to have the military? A. I think if the police department and the mayor had shown as much energy: at the outset of the trouble as they did toward the end of it, it would not have been necessary to call out the military; I had suggested early; in the strike that the Riot Act be read, and if it had been, I think there would have been no necessity to call out the military. Q. S(, far as you know, was anything done toward giving any warning to the public that the Riot Law was about to be violated? A. I think there was some mild manifesto. Q. Who made it? A. I think it came from the mayor. Q.:Was there not a great deal of mildness about the entire exercise of municipal power here during the first days of the strike? A. It may be poor taste for me to say anything about that; I have already said what my judgment suggested at the time. Q. Was there any agreement or arrangement between yourself, Mr. Wicker and Mr. Lewis, to the effect that you would stand or fall together, and that none of you would make arrangement with the men unless you all did? A. None whatever; I think the course of the strike showed that; I think there were three or four ideas to it; we never talked it over at all, or agreed on any plan of action; I didn't, with any of them. Q. Do you believe that if, at the outset, the mayor had called for volunteers or special policemen, or had appointed special policemen, such as he did subsequently, that would have avoided the necessity of calling for the militia? A. I think so. Q. Do you know of any reason why special policemen should not have been resorted to at the beginning of the strike as well as, or rather than, iat the end of it, after the militia had gone away? A. It seemed to me quite necessary to have special policemen after they were called away, because there was considerable disturbance after they were recalled; but, perhaps,;a I said before, if there had been more energy at the outset, and 557 these special policemen had been appointed at first, there would have been no necessity to call out the military. Q. The you are of the opinion, Mr..Norton, that the municipal government did not, itself, show that energy which might have resulted ini the prevention of many of the: disorders that arose iafter the strike was fairly on? A. I thipk this: that probably sobne of the city officials did; not realize the importan'ce of determination,; that they had rather hoped t< adjust the' differences by arbitration, and in that way do away with any disturbances at all, or do away with them as soon as they could, which, of course, an effort was made to do on that Sunday; I think there had been talk prior to that; but Sunday seemed tod bring the matter to a focus;, of course, I was rather surprised that the mayor, as a business man, should have suggested it at that stage in the proceedings. Q. Mr. Norton, I wish you would get for me a set of your timetables as they were enforced, let's say, during the last week of December and the first week of January —or rather than the last week in December, because that was holiday week-let's take the first week in December and the first week in January, and a.s they are now; and I wish, for the purpose of assisting me in reading them, that you would make some memorandum showing the proportion of trippers to regulars on each of those timetables; will you do so? A. I will. Q. Now, as a matter of fact, are you running more or fewer trippers now, in! proportion to the regular cars, than you were previous to the strike? A. Running more trippers now. Q. More? A. Yes, sir. Q. Speaking generally, how many more trippers? A. Well, I couldn't say. Q. You were running one-half trippers and one-half regulars? A. We have not gone beyond that Q. On some lines you were running one-third and two;thirds? A. Yes, sir; we were running three-quarters and one-quarter. Q. Now, take any one line where the proportion of trippers has been changed and say what change has been made in that proportion? A. I would not want to answer that without looking once more at the tables; I suggest our superintendent come here with the tables, and he will give you the exact figures. Q. We are not going to be in se.ssion after to-day'? A. There is one thing I would.like to say which has not been brought out; that early in this investigation, this question of trippers earning 25 or 50 cents a day was brought up; there is no such arrangement; there is no tr1pper on ourr road, thl gets less than a dollar and a half, and it is not ou tntention that they shall 568 get less than a dollar and a nan, except in special instances where men are called out to run a particular trip under some unusual arrangement. Q. He is not a trnipper —he is an extra man? A. He is an extra man, and that does not happen very often. Q. But the men who are running the trippers on your timetables are receivihng a dollar and a half? A. Yes, sir; many of them do not figure up to as much as that, but they have been; put up to that, the same as we place them where we had the agreement Q. Have you increased or decreased the number of trips run by trippers? A. Not necesarily. Q. There has not been a matertal change? A. There has been a material change in the time-tables, because 98 per cent. of the men are new men, and we are running slower; there has been so much said about speed that we have modified our tables; we have endeavored to be careful. Q. I have forgotten what you told me was the approximate number of the employes of your system? A. At the time of the strike 535 mnotormen and conductors went out; that did not include shop men, of course; we had seven or eight hundred men; there were 535 went out. Q. You answered some questions, Mr. Norton, concerning the matter of legislative remedy, if such were possible, and said that you would give some thought to the matter; have you thought of any other matters that you want to add? A. On the question of compulsory arbitration? Q. Or licensing? A. I stated at that time I quite approved of anything which would call for a license; I still think so; I think it would be a very excellent provision; I wrote a letter to Mr. Blodgett the day after I was here the lalst time and made one suggestion on the question of compulsory arbitration, which I might repeat. Q. If you will, so it may go into the record in that form? 'A. My suggestion on the subject of compulsory arbitration wals this: That where a body of employes are indispensable to any cor poration or company it did not seem to me out of place that some sort of arbitration should be insisted upon; but, where men were not indispensable, it seemed to me rather absurd to compel a business firm to arbitrate between themselves and the men because, as we showed in the strike, we were able to fill every place made vacant within five days. Q. Now, Mr. Norton, you say you accepted the first section of the proposed agreement with regard to the 10 hours within 12; 559 this question was handed to me by one of the members of the committee; did you understand, when you accepted the frst section of the agreement, that it would necessitate the taking off of one or two trips on each of your lines? A. Nob necessarily, because I don't think that law was ever determined; I understand there is a bill in the Legislature to make it more explicit. Q. If you had so understood, would you have accepted it? A. 1 would have done just as I agreed. Q. If you had understood that would you have accepted it? A. We certainly should; we should have accepted anything that we were called upon to do; I said at the time, and still say it, it was not necessary to have any such section in the agreement at all. Q. You favor the amendment of the Ten-Hour Law in such a way as to make it perfectly definite in the future, and not leave its construction as a matter of controversy between the railroads and the men? A. Well, I should think that any law ought to be explicit, so that people would know where they stand; the condition of things in vogue on the Atlantic Avenue prior to the strike were in vogue when I came there; I found those things, and that interpretation of the law, and have always assumed that it was proper to enter into such an agreement as they did, and the first agreement submitted to me was on that point very expressive as to the manner in which that Ten-Hour Law was to be interpreted; no suggestion on my part; I was not familiar enough with the street railroad business at that time to know what the interpretatoin had been; but our counsel advised that it was the proper way to interpret it and therefore we signed it. Q. Can you say that at no time, either directly or indfrectly were you a party to an agreement with Mr. Wicker's company and Mr. Lewis' company to the effect tha t this entire question should be treated by the three companies in unity and standing together? A. I wonuld state positively that there was no arrangement of that kind, abbsolutely no; arrangement; SeVer talked it over; never met them in conference; I conducted our end of the entire matter; I suppose they did the saxe. Oarroll D. Wright, recalled. Examination by Mr. Ivins: Q. Mr. Wright, with our law before you - chapter 63 of the Laws of 1887- have you any suggestions to m'ake as to Amendmefts whiieh would reflt in adtattage M the sXete thehent of 560 controversies such as we have just had here? A. Section 9 ot the tact aims to accomplishi just what I have suggested, but it seems to me it ought to be more explicit and broader in its provision. Q. How would you broaden it' A. The last paragraph of this section readS: "If in their judgment "- that is the Board of Arbitration —"it is deemed best to inquire into the cause or causes of the controversy, and to that end the board is hereby authorized to subpoena witnesses, compel their attendance, and send for persons and papers, in like manner and with the, same power as it is authorized to do by section 7 of this act." Now, that it has the right doctrine in it, it seems to me, but it ought to be authcrized, or rather directed, to inquire into the cause or causes of every controversy of any magnitude and to decide what wages and conditions are reasonable and just, and to fix the responsibility of the controversy on one or the other parties if it can be, and immediately make.the result of their investigation public..Q. So as to bring that piarty into a position which is obnoxious at once to pnublic opinion? A. If thllat party ha;s been guilty of anything obnoxious, I think the public ought tol know it as soon as possible; I -would amend that section in that way; it has all the essence in it now, but any board cotuld get rid of the investigation of any gieat strike like the Brooklyn strike if it saw fit; I would not allow it to get rid of it. Q. You would make the investigation: compulsory, and then you would also make it compulsory upon the investigating commission or board to say exactly who, in their judgment, were wrong, and why? A. Yes, sir; exactly, and show the condition —not otly show the coniditions which caused, which brought the strike into existence, but what would be right under the same coniditons, and fix the responsibility; that is as far as I would go; that is investigation which is the keynote of arbitration in my mind. Q. That is, the effective publicity? A. The effective publicity of the conditions; the ether suggestion relative to licensing I am not prepared to say would work well or ill, but it has enough in, it to warrant a trial by any State or Federal Government; any legislative body would be thoroughly warranted in attempting to carry out the principles of a license system, relative to the employes of railroads. By Chairman Friday: Q. Applied to railroad systems only? A'. Applied to railroad systems only; of course, the objections which many labor leaders 5061 bring to it is that it creates a class auithorized by law to dot certain things; that is an objection in our country, but whether it is an objection of sufficient imiportance to do away with the advantages which might be derived from it is a matter of experimentation and can only be determined by it; it has worked well in the marine service. Q. Have you found, in noting the operation of these State Boards of Arbitration and Mediation in the different States,. that there has been any tendency to, hedge as between the. parties in order not to commit themselves one way or another, for political or other reasons? A. That is a pretty difficult question to answer; the results, so far as I have studied them, indicate a pretty candid and fearless disposition on the part of the boaids; they have not hesitated, wherever I have watched their work, to decide, and I do not think they have gone on the theory of the old country jury to decide every case for the plaintiff, thereby hitting it,as a rule; I do not think boards of arbitration have done that; but I should like to have them have it their duty to make the investigation and not the result of their choice; I believe if it was their duty to do it, they would then have the moral support and absolute protect-on of the State, and would lose that feeling of personal responsibility which any board naturally feels when any question is left to their judgment; it is the same as in court; I would have the board of investigation the choice of the State and not the judgment of the body. By Mr. Ivins: Q T think that is all, unlesis you have something fezrtber to, suggest? A. It is very difficult to suggest things that often you want to indcrse yourself; in such matters I have found it so; I h:ive learned this much; there is probably no one thing that c'an be done which, if done, will remove all our troubles By Chairman Friday: Q Frdm the gist of your testimony, I take it that you: would rather prefer voluntary arbitrationi? A. I have nevr indorsed or approved or adv.ocated compulsory arbitration in any form, and I can not now; if it can not be brought to the basis of voluntary arbitration, I believe it will cause more irritation than now exists; the whole matter of arbitration depends on the people coming together and reasoning together, and whenever that has been tried to any large extent - and it was resorted to in Washington by the management of the Southern Railway-the hap B. 71 562 piest results have been reached; that was a great contest; there were thousands of employes; buit instead of the management saying to the employes, if you don't like our terms, you can go somewhere else, they joined in numerous conferences and interviews, suibmitted, to the employes all the facts of the case as to the economic conditions of traffic and transportation, and the result was a complete, hlarmonious and friendly settlement of the whole trouble; and I believe that is the keynote to tile settlement of most labor troubles; if one party will only consider that the other amounts to something, and is to be consulted, and they can come together and compare rotes, each feeli;g that the other is telling the truth, there is very little necessity for strikes. Q. In other wo'rds, if the railroads would display a litile more liberality toward their employes? A. If they would display more willingness to, consult with them first, and they are important factors in the management of the road, they would avert many of the difficulties we have referred to. Chairmanl Friday.- On behalf of the committee and its counsel, I desire to thank you for your kindness in testifying before us. Mr. Wright. — You are very kind, sir. I would be glad to solve the problem for you, but I can't. William J. Gaynor, having been' called as a witness and duily sworn by Chairman Friday, testified as follows: Examination by Mr. Ivins: Q. You aire a Judge of the Supreme Court for this department, are you not, Judge Gaynor? A. I am. Q. At the time of the investigation made by the State Board of Mediation and Arbitratioh, is it not a fact that you made certain statements or communications to them as to the causes of the strike? A. Yes; the Board of Mediation and, Arbitration were about to subpoena me, and the board called upon me and said that if I preferred I could put in writing what thL-y wanted of me, and not attend before the board, as I was at that time holding court, for which courtesy I thanked them, and wrote the letter afterward, which I deemed under compulsion,; that I was required to write it; a good many have thought it was a voluntary letter. Q. You wrote that just exactly as if you testified on the stand? A. Yes, sir; they excused me on account of engagements at the time. Q. Now, is it not a fact, that in that letter you attributed a very large part. of the mischief to the feeling which had ariseni in the community in opposition to the corporations, because of their 563 consolidation and their enlarged capital, and having gone abroad to incorporate, etc.? A. Yes. Q. Will you describe to this committee a little bit more fully just what those conditions were, as you understood them which resulted in this feeling of uneasiness and discontent? A. I can't add anything to that letter; nor have I had time to think of anything to add, because I have had no knowledge of what you wished to examine me about here. Q. None of the witnesses that have been called knew what they were to be asked; they were simply taken from the plow or the bench as we found them? A. That letter treats of iindustrial and economic matters, which a man can scarcely treat of offhand. Q. There is nothing which you would like to add to that letter, then, but think it better that we should just take that as it is? A. I don't know of anything now to add to it; I am willing to add to it, or subtract from it, or do anything to aid this committee in any way; if you will point my mind to an.ything it would'give me great pleasure to answer. Q. Were you about the. city at the time the strikes were going on? A. Oh, yes. Q. Did you see any of the disorders which were subsequently described in the newspapers? A. No, sir; there were some described in the newspapers which never took place a ll; nobody saw them. Q. That often occurs; dount it? A. Yes, sir; I saw things in the newspapers Saturday which were said to have occurred here, but I can't credit that they did. Q. Judge Gaynor, did you observe during thaitt ime the manner in which the police were performing their duties in the city here? A. No; I can't say thart I did. Q. Judge Gaynor, did you observe during that time the manner in which the police performed their duties; anything special of any kind? A. No; I walked some of the streets just to see if there was any mob that I heard about, in the night and in -the evening, and I did not see what I have seen described, although there were individual acts of violence Cqominrtted in the city; but that the city was iln a sitate of seige, or in the hands of —either the right hand or left hand of the mob-it is wholly untrue; there never was a time whenl the city was not free fronm difficulties, with one or two exceptions, which were speedily suppressed Q. As a long-time resident of the city and a man inerested in its public affairs, and as one who observed the situati'on at the time, do you believe that it would have been practicable by a more thorough and energetic use of the police to have obvuted 564 the necessity of calling in tlhie militia? A. Well, Mr. Ivins, I can not say; the violence in the city was very little; tihere were individual in'stances of violence, but that there was ever any overpovwering mob is uitterly false; I say that as a citizen of Brooklyn, and one who looked around at the time; whether it was wise to call the troops in I can not say; I was in communication with military headquarters during the whole strike, and I know at headquarters they were not under apprehension; they felt they had very little to deal with. By Chairman Friday: Q. In your judgment, Judge Gaynor, was it necessary to call out the military? A. I wouldn't like to pass judgment on that; you see the mayor had to, judge of that, and he judged of it, taking everything into consideration, and I would be disposed, as I always am, to say that those in authority act wisely; I always regret to condemn any one in authority; he acted from his standpoint, and from the standpoint of public welfare, and I should regret to say that I thought it was not a wise thing to, do. Q. Are you a stockholder in any of the Brooklyn city railroads? A. Oh, no-in noi railroads. Q. Or interested in any way? A. No. By Mr. Ivins: Q. The suggestion has been made in connection with the proposition looking to compulsory arbitration, that the parties to these controversies might be compelled to submit their differences after certain preliminaries to a judge of the Supreme Court, or possibly to the presiding justice of the General Termi; do you know of any reason why, if arbitration is to be had compujsorily, it would be undesitrable to have these matters submitted to a Supreme Court justice? A. Well, I have never thought of that, Mr. Ivins; you see any 'opinion that I could give upon it now would not be worth the snap of your finger; if I had time to think it over I could answer it; my impression would be it ought to be an independent board of officers, yet that is only an impression; I might change it on reflection. Q. Well, if you will think about that particular matter, which was the thing that the committee most particularly desired to have your testimony in regard to, and give us a, more formal opinion on that, the committee will be obliged? A. There is a way now by which the Supreme Court could pass upon the question of railroads standing still and not running their cars until they sent all over the United States to bring men in, and 565 that Is by allowing the Supreme Court to reduce the 20-day time of an alternative mandamus to one day or five days or any reasonable time; the court might see fit to summar'ily try the issues of fact; but, as it is now, the remedy by mandaamus is practically worthless in such an emergency. Q. Because of the length of time required? A. Yes, sir; the law makes the time 20 days, and there is no power to shorten the time. Q. Would you recommend an amendment which would cover that, that would give the Supreme Court justices, in cases of great emergencies, and where great public interests were involved, the right to compel the return of a mandamus within 20 days? A. I think it ought to be so, not only for thiat but many public questions come up here, as you know, as all people dealing with public affairs know, there are public matters for the public interest, which should be decided speedily —but where a mandamus has to run 20 days, and then issue joined upon that, and a party appear, together with other causes there are delays sometimes for a year. Q. As it stands now the mandamus is not a sumnary proceeding? A. As it stands now the mandamus is not a summary proceeding; I will give you an instance; three years ago the Long Island railroad abandoned the station at Arverne, Long Island, simply abandoned it without a word, and put a station about a mile below on land that certain people bought for speculative purposes, and a station would enhance its value; I was at the bar at that time and applied to the court for a mandamus to compel them to resume their station; they put in affidavits, making a very small issue of facts on lone point; and, of course, I had to take an alternative writ; that was in June or July; that threw it over that year, and the case did not come up for trial that fall, so that that community had to go one entire summer without a station. Q. The writ was finally granted? A. The writ was finally granted; the issue of fact was nothing; they were compelled to resume the station; but, of course, to resume it in the winter was nothing; it was not resumed until the next summer season. Q. Supposing the law had been, during the last strike, such as you think it should be amended to be, what do you believe the result would have been as to stopping or decreasing the tvtroversy between the men and the companies? A. It Cottld have stopped it immediately. Q. Why would it have stopped it immediately? A. The dfirence between the men and the companies w es so very slia;t; I never viered the question as one between the mn, alla the 566 companies, but one between the public and the companies, so far as the strike or lockout was concerned; there was no justification for the strike, if it was a strike, in my judgment, and no justification for the lockout if it was a lockout; the point of difference was too small; but the railroad companies sat down and did not move their cars, meanwhile having an advertising agent in Brooklyn advertise in all the big and little cities all over the United States to supply men to run their cars; they got men from all over the United States; whereas, if the mandamus had been granted they would have been compelled to move their cars; they would not have been allowed to stand idle. Q. An application was made to you for a mandamus? A. Yes, sir. Q. You granted an alternative writ? A. Yes, sir. Q. You had no power to grant a, peremptory writ, did you? A. No, sir. Q. If you had power at that time to grant the alternative writ, after two days' notice, let's say, you would -have granted an alternative writ returnable within two days? A. Yes, sir. Q. And then decided the question upon what appeared upon return of the writ? A. Yes, sir; the cases would have gone to trial and each side would have called witnesses. Q You think, had the court at that time had that power, the publicity of the facts, calling of witnesses and determination of the case would have given about all the power of arbitration to the Supreme Court that it really needed? A. Well, that would have protected the public; I am speaking all the time from a public standpoint, but the controveMsy between the men and the companies is another thing; I really don't know the merits' of that, and never bothered my head with it; I think the whole thing was unjustifiable, and the public suffered from it. Q. How would that have protected the public-through compulsion to run the cars? A. Yes, sir. Q. How would you have compelled the railroads to mun the cars if they didn't have the men? A. They would have had to ran them on the market rate of wages existing here; that is the law: I never could really find out what this trouble was about; I believe it wa,s about nothing; it was about 10 &hourl or wages, or trippers, or nobody seems to know what; but they could have been obliged to run the cars. Q. You believe that the decree of the court could, under such circumistances. after return upon short notice, have been enforced, do you? A. Oh, yes: it oculd have been enforced. Q. Assuming that the 'company did not find the men here, and assuming that the men still stood out on the strike, how 567 could it have been enforced? A. They would have had to: run their cars at the market rate, and the conditions existing here. Q. They would have been obliged to run the cars at any rate, $2.50 or $3 a day? A. Yes; that is the law of the State; they could not beat the price,r condition of labor down by standing their cars still and saying we wont employ you until you come down; I don't know that the companies did that; I am only giving that as an illustration. Q. Have you any other suggestion, oz have you thought of any other possible amendment in the law of procedure, which would help relieve the public' from the losses and trials and disadvantages iaccompanying these strikes? A. No; I haven't thought it over, Mr. Ivins; that one thing I have thought of; the question of arbitration as between the men and the conmpanies and the best paper in the world that has come out of any investigation of trouble between employer and employe is one that came out of the Australian committee of investigation six years ago, which I have read, but I can not now' summarize it without re-reading it; it is the most valuable paper written in the world on this subject Q. I did not know of that; I am much obliged for the suggestion? A. Most good things for the last 50 years have come from Australia, as is well known. Q. Some have come from Brookl]yn? A. Well, very few. Q. Have you studied, or thought at all, of the question of compulsory arbitration? A. Oh, yes; I have read a great deal about it. Q. Well, do you believe in its practicability and desirability? A. Yes, sir; I may say that I do. Q. Do you believe that means could be found to compel bobt sides to abide by the decree of a court of arbitration? A. Oh, I should judge so. Q. How wouldl you do it in the case of the men; it is apparten how it could be done in the case of the company, because they have corporation property, franchises, etc.; they could be reached, but how would you do it in case of the men? A. I should think in the case of the men-that if the matter is submitted to arbitration, on the question of wages for instance, and the decision is against the men, if they don't go to work, somebody else will; it is a mere moral force that regulates itself: but it is a thing that is so difficult to discuss without thinking it over -I should regret to state any pos'tive opinioa on suich things without collecting my thoughts about- them. Q. I had been led to suppose, through the fact that you had been in communication with the State Board of Arbitration that you haid already been thinking about it? A. No; you will 568 observe that in my letter to the State Board of Arbitration, I viewed the matter only from the standpoint of the public. Q. Well, if you have any further suggestions, Judge Gaynor, to make with regard to the amendment of the law, particularly.the amendment of the Code with regard to the time within which.an alternative wirit of mandamus should be returned, we should be very much obliged to you, and it is possible that you might be willing to suggest the very phraseology of the amendment of that section of the Code; would you do that? A. I am; sure I will do anything to assist, because I recognize that investigations of this kind have dolne all tha.t has been done on, the subject that is under investigation. Mr. Ivins. —If you will draw up the proposed amendment to the Code in regard to that point of which you spoke it will come up for consideraftion and I know the committee will consider it very carefully; that is all, Judge. By Mr. Donnelly: Q. I would like to ask if the equitable remedy of injunction could be invoked in cases of this kind, and, if so, the remredy of injunction would be more efficacious and quicker than the remedy by mandamus? A. Injunction is not the process; you might obtain a mandatory injunction. Q. Injunction has sometimes been been used indirectly to compel a person? A. Yes, sir; a mandatory injunction, that might,work beter; yes, sir; it might be more efficacious. Q. The idea was suggested by the fact that in order to have the writ of mandamus have any efficacy you would have to wait 20 days? A. Yes, sir. Q. That might come under the head of a failure of a reanedy at law, and practically result in the person invoking the aid -of equity? A. I recognize that what you say is of a great deal of force; that has been tried right here in the case of the Long Island Railroad Company laist year; they applied for a mandatory injunction; but the trouble is to grant a mandatory injunction without a trial - the court would regret to do it without a trial, because the facts are so conflicting; you would be met by the same trouble. Q. Should you think that the duties of the companies under their charter were so definitely settled to run cars that a court couid say upon the facts being presented whether there was a violation of duty and that the court might find a way to compel them to run:? A. Well, you see the court always likes.to act rightfully and carefully; it is probably better that it is so, and 569 not proceed with a high hand in anything even though you have got the power. Q. I am saying this as an idea of my own? A. I recognize in a given case it would be more efficacious. Q. Nothing that I said is offered as a criticism? A. No. Q. Just an idea suggested by your testimony? A. Yes; I desire to say to the committee that this is the first opportunity that I have had to come before the committee; I was subpoenaed Saturday morning at 9, to be here at 10:30; I had to hold court, and was there until half-past 2; I have always been ready and willing to come before the committee; I have had no commuiication with the committee whatever, in any way, shape or form. Chairman Friday.- I thank you for your attendance, Judge Gaynor. The committee then adjourned. B. 72 l EXHIBITS. II~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~. I~~~~~~~~~~~~~~~~~~~~~~~~~~~ EXHIBIT A. Brooklyn, N. Y., April 2, 1886. The understanding come to between the employes of the Brooklyn City Railroad and the company. First That no employe of this company shall be required to work more than 12 consecutive hours per day with 30 minutes for dinner and 15 minutes for breakfast or supper, as the case may be. Second. That on Greenpoint, five trips per straight day's work; Flushing Avenue, six trips per straight day's work; Myrtle Avenue, six trips per straight day's work; Gates Avenue (Ridgewood), five trips per day straight day's work; Gates Avenue (Broadway), six trips per straight day's work; Putnam Avenue, six strips per straight day's work; Fulton Avenue (Eastern New York), five trips per straight day's work; Fulton Avenue (Ralph), seven trips per straight day's work; Fulton Avenue (Bedford), eight trips per straight day's work; Flatbush (through) six trips per straight day's work; Flatbush (city line), eight trips per straight day's work; Third Avenue, seven trips per straight day's work; Court Street, eight trips per straight day's work; Hamilton Avenue, 11 trips per straight day's work; Fort Hamilton, nine trips per straight day's work; Furman street was left to the company. Third. A reasonable number of cars to be run as trippers, not to exceed one-fifth of the number of cars run on straight runs, the tripper cars running out mornings and evenings and run by two sets of men, provided they can not be run inside of the 12 hours. Each man running a trip car to be paid at the same rate per trip as straight runs. Tf they do not run sufficient trips so that the tritprate amounts to $1.50 per day, the amount will be made $1.50. Fourth. No driver or conductor will be required to clean his car inside or out when it goes in ait night, but will be cleaned by car-cleaners ready to start out in the morning. The driver will see that the outside of the car, except the windows, is kept reasonably clean while in use and the conductor 574 to keep the inside and the windows reasonably dusted and cleaned while in use, and also keep the platform clean. Fifth. Drivers will not harness or unharness their hlorses, but it will be done by the changenian all ready for the driver in the changeroom. Sixth. All supplies required for running the cars to be furnished by the company, bells to be placed on the harness. Seventh. When four horses are required to run a car, two drivers to be in charge. Eighth The conductors in seniority in service which are entitled to a straight ran on April 1, 1886, will take the first run and so on down until all the straight runs are filled, the same rule will apply lo the trippers. Ninth. In all cases where passengers prefer complaint against the employes, the said employe to be given a hearing in the presence of his accuser, so that he may have a chance to defend himself. This also shall apply to the officials employed by the company. Tenth. The hostlers, hitchers, changers, car-cleaners and all employes working in and about the depot of the said com-.,any, shall not work more than 12 consecutive hours per day, less one hour for breakfast and one hour for dinner; the hcstlers to care for 18 horses each, and assist in getting the meal from the meal truck to the mealroom and clear the snow from sidewalk in front and rear of depots. Eleventh. Head changer to receive $2 per day. Twelfth. Towboys to receive $1.25 per day and work 10 hours. Thirteenth. Truck drivers will not be required to work more than 10 hours per day. Fourteenth. Horseshoers not to work more than 10 hours per day, with one hour or half-hour, as the case may be, at the end of the first five hours. Firemen to receive $3.25 per day. Floormen to receive $3 per day. This is contracted out to the Goodenough Company, and this company does not control it. Fifteenth and Sixteenth. Sections 15 and 16 have been attended to. Seventeenth. No man will be discharged for belonging to the Empire Protective Association, or to any labor organization, so long as he does not injure the company's property or business. Eighteenth. Each employe discharged will be furnished with the cause of such discharge, and if he requests it, the same will be given in writing. Nineteenth. Thos. McK*-lht, switchman at Sands street, to 575 be cautioned against doing any ungentlemanly acts or using bad or ungentlemanly language to any of the employes of thin company, and if he does and proper proof is furnished of such facts he will be discharged. Twentieth. Patrick O'Rourke, driver of Gates Avenue; Richard Coleman, driver of Myrtle Avenue; Timothy Ryan, driver of Greenwood; that they are all restored to their respective places April 5, 1886, and Michael Cook, the car-cleaner, to be investigated by Mr. Hazzard, and if he finds that Cook has been wrongfully discharged, he is to be reinstated, and, if not, will not be reinstated. Twenty-first. Drivers and conductors making a full day's work to receive $2 per day. All employes named in section 10 to receive $1.75 per day, except the head changer, who will receive $2 per day. Truck drivers will receive $2 per day. Drivers working on snowplows to receive double pay for nightwork. Mr. Young, assistant foreman at Ridgewood, to receive $2.50 per day. Night watchmen to receive $2 per night. The brakemen on Fort Hamilton will do no extra work, except to assist the engineer with his engine and fire at the Fort Hamilton terminus, and to report 15 minutes before his starting time; he is to receive $1.60 per day. EXHIBIT B. The following arrangements are hereby made by the Brooklyn City Railroad Company and its employes: First. That no conductor, driver, brakeman or gripman shall be required to work more than 12 hours per day. Second. That all men going to work before 7 o'clock a. m. shall have an average of 2'0 minutes for breakfast, and an average of 30 minutes for dinner; and all men going to work after 7 o'clock a. m. shall have an average of 30 minutes for dinner, and an average of 25 minutes for supper. Third. That nort more than cne-fourth of the number of cars run shall be swing cars. The work on swing cars to be performed within 14 consecutive hours. That not less than threefourths of the nunber of cars run shall be full day's work, ai.d no car on the table shall pay less than $1.50 per day, except otherwise nlutually algreed upon. Fourth. That liostlers, hitchers, changers, harness-cleaners, car-waihers, feeders, nightmen, switchmen, towboys, and other employesbelow the rani of starter, shall not be required to work more than ten (10) hours. to be performed within 12 consecutive hours, with one hour for breakfast and one hour for dinner. Fifth. That all extra vwork performed by conductors and drivers shall be paid for at the rate of 30 cents per hour for any fractional part of a half-day. and not more than $2 for a full day of 12 hours. Sixth. Each emplo3e discharged will be furnished with the cause of such discharge, and if he requests it, the same will be given him in writing, or to his representatives. Any employe when called into the office on any complaint, shall have a fall and impartial hearing by the president, and if found innocent by him, shall be paid for all time lost Seventh. That the under officials of the road shall be instructed to treat employes with cii-ility on all occasions. Eighth. The numlber of trips which shall constitute a day's work on' ea;ch of the lines of the company, shall not exceed that which can be made in the hours provided for conductors and drivers in sections 1. 2, and 3. fCALE OF WAGES. NinthL Conductor and drivers (regular and extra), truck-drivers, 577 night watchmen and head changers, $2 per day. Hostllrs, hitchers, changers, harness-eleaners, car-washers, switchmen, lampmen and any other elmploye working in or around the depot, $1.75 per day. Snowplow and sweeper-drivers, $2.50 per day or $3 per night, to (lo extra work to complete day or night work if not completed on the plow or sweeper. Helpers on sinowplowv or sweepers, $2 per day and $2.50 per night, and subject to do extra work to compllete day or night work, as provided for drivers on plows and sweepers. Towboys5 $1.25 per day of 10 hours, to be performed within.12 consecutive hours. Tenth.- Truck drivers shall not be required to work more than 10 hours per day in 11 consecutive hours from the time of reporting for work at their respective depots, with one hour for dinner at the end of the first five hours. Eleventh.- That when employes are suspended from their regular positions for any offense, they shall not be required to attend any changes, unless paid for the time so lost; no suspension shall exceed' the term of one week. Twelfth.- Conductors or drivers shall not be required to clean their cars or attend to fires, except when on, the road, and all supplies necessary for the operation of the car, such as belts, straps, pokers, shovels, coal-boxes, brooms, etc., shall be furnished by the company. The question of uniforms for employes shall be left to the company. Conductors shall be allowed to wear capes to their caps if they so desire. When four horses are required to a car, two drivers shall be placed in charge. Thirteenth.- Hostlers shall not be required to take care of more than 20 horses, and they shall not be required to do any extra work,, storing of meal, hay and straw excepted. Fourteenth.- Drivers shall not be required to hitch or unhitch their horses. Fifteenth.- The number of extras shall not exceed the necessities of the business. Sixteenth.-Conductors and drivers shall go out on Sundiays and holidays according to seniority as on other days; provided the convenience of the public is' not injured thereby. Regular brakemen shall be required to fire and clean the engines, clean cab windows, and shall be paid $1.75 per day. All other brakemien shall be required to do no extra work, and shall be paid $1.60 per day. No brakeman shall be required to report more than 15 minutes before the time of starting their train. Seventeenth.- In all cases where a car is detained on the road through fire or other unavoidable accident, not the fault of the employe, they shall be paid as if running on the road. B. 73 578 Eighteenth.- No employe shall be discharged or discriminated against by the company, because of his connection with any labor organization, so long as he complies' with the rules of the company and this arrangement. Nineteenth. —In consideration of the above arrangementf on the part of the company, its emrployes will not join or take part in any strike or tie-up, or leave the service of the company except after two weeks' notice of such intention given to the president of the company; a like notice from the company shall be given of any intention to depart from the conditions of the foregoing; also, the employes will not show any discrimination in their conduct to one another in consequence of their being union or non-union men.j Twentieth —Any difference or dispute arising between the parties hereto under these arrangements, shall be submitted for settlement to arbitration. The company shall have the right to select one arbitrator and the employes one arbitrator. If the two so choisenl fail to agree, the said arbitrators shall select a third arbitrator, and the decision of a majority so chosen shall be binding and final upon the parties hereto. Pwenty-first. This arrangement is not to be the basis or ground for any legal proceeding, or right in law, but is to stand as a pledge to the public between the company and its employes. Twenty-second. The foregoing shall go into effect on January 23, 1887, and continue until January 1, 1888. JAMES H. MAGEE, Chairman, JAMES F. DOWNING, THOMAS KING, Executive Board D. A. 75. January 19, 1887. Brooklyn, January 19, 1887. It is. hereby understood and arranged between the Brooklyn City Railroad Company and its employes as follows: That wet-weather tables are to be run in stormy weather only. All Sunday and holiday tables, also Saturday tables on Flatbush line, to be mutually approved. Meal times on Sundays and holidays -to be arranged for as fully as the conditions of the business will admit. The pay of conductors and drivers in extra rushes on Greenwood lines will be at trip rate. JAMES H. MAGEE, Chairman, JAMES F. DOWNING, THOMAS KING,;tf ~ '.~ ~ Executive Board D. A. 75. EXHIBIT C. Brooklyn, N. Y., January 1, 1888. Agreement between the Brooklyn City Railroad Company, of Brooklyn, N. Y., and the employes of said company. First. That no conductor, driver, brakeman or gripman shall be required to work more than 12 hours per day. Second. All men going to work before 6.30 o'clock a. m. shall have at least 20 minutes for breakfast and not less than 30 minutes for dinner. And all men going to work after 6.30 o'clock a. m. shall have at least 30 minutes for dinner, and not less than 20 minutes for supper.. Third. That not more than one-fourth of the entire number of cars run shall be trippers; the work on trippers to be performed within 14 consecutive hours; and not less than three-fourths of the entire number of cars run shall be full-day cars And no car shall pay less than one dollar and a half per day. Foir th. Hostlers, hitchers, chaingers, harness-cleanes, carcleaners, feedmen, nightmen, switchmen, towboys, and any other employe below the rank of starter, and not named in section 1 of this agreement, shall be required to work more than 10 hours per day, to be performed within 12 consecutive hours, with one hour for breakfast and one hour for dinner. Fifth. That no employe shall be discharged without a good and sufficient reason being given him or his representative in form of printed notice. And any employe when called into the office on any complaint shall have a full and impartial hearing, and, if proved innocent, shall be paid for all time lost Sixth. The number of trips which shall constitute a day's work on each of the lines of the company shall not exceed that which can be made in the hours provided for conductors and drivers in sections 1, 2 and 3. Seventh. Scale of wages: Per day Conductors.................................... $2 00 Drivers........................................... 2 00 Truck-drivers..................................... 2 00 580 Night watchmnan.................................... $2 00 Head changers....................................... 2 00 Hostlers........................................... 1 75 Hitchers.......................................... 1 75 Towboys......................................... 1 25 Snowplow-driver......................... 3 00 Sweeper-driver..................................... 3 00 Changers............................. 1 75 Harness-cleaners..................................... 1 75. ar-cleaners.......................................... 1 75 Switchc m an....................................... 1 75.Lamnpmen....................................... 1 75 Heaid brakemen...................................... 1 75 Regular brakemen................................... 1 60 Engineers........................................ 3 50 First assistant on snowplow or sweeper................ 3 00 Helpers on snowplow or sweeper...................... 2 50 And no employe in or albout the depot 'shall receive less than $1.75 per day. Eighth. Conductors and drivers shall be relieved from all responsibility while at meals, and at such times there shall be a relief at all depots. Extras to do, all the work and be paid one trip for each meal. Ninth. Truckdrivers shall not be required to work moer than 10 hours per day from the time of reporting for work at their respective depots with one hour for dinner at the end of the first five hours. Tenth. When employes are suspended from their regular positions for any offense, they shall not be required to attend any chtnges, unless paid; for the time so lost. Eleventh. Conductors or drivers shall not be required to clean their cars or attend to fires, except when on the road; and all supplies necessary for the operation of the cars, such as bells, strais, pokers, shovels, coal-boxes, brooms, etc., shall be fu'rnished by the conpany. When four horses are required to a oar, two drivers shall be plaiced in charge. Twelfth. Hostlers shall not be required to take care of more than twenty horses, and they shall not be required to do any extra work, storing of feed, hay and straw excepted, not to carry meal upstairs. Thirteenth. Drivers shall not be required to hitch or unhitch their horses 581 Flourteenth. All night cars shall be paid at least $2. Late car conductors land drivers shall have preference of early runs on their respective lines, according to seniority, as nmw in practice. Fifteenth. Before any employe is suspended on complaint from parties not officials connected with the company, the case shall be investigateda ' Sixteenth. In all cases where a car is detained on the road through fire or other unavoidable accident, not the fault of the employe, they shall be paid as if running on the road. Seventeenth. No employe shall be discharged or discriminated against by this company because of their connection with any labor organization. Eighteenth. Should a car or other property of this company receive damage of any kind while in charge of any conductor, driver or other employe, he s'hall bie exonerated from all blame and expense, if found not to be liable for such damage, a thorough examination to be made in all cases; and he shall not under any circumstances be compelled to collect bill for damages to cars, etc. Nineteenth. As conduclolrs and drivers are excused, their names shall be placed on a, slate or paper, and at 6 p. m. each day extras shall be assigned to the plaices of all such employes excused to that time. Twentieth. Special arrangements for the Brooklyn City Railroad Complaaly: First. That no extra conductor or driver shall be jumped unless work falls to them, ulnles ctherwise ordered to report. Second. Stablemen who do not repolrt in- time to go to work, for first offense, will go to bottom of list for two days; second offense, three days; third offensp, ii e days, and fourth offense within six months, lose his gang of horses or be discharged. Any stableman who fails to replort nithin one hour, in any case, of their reporting time, will lose i's gang of horses, except excuse is sent as now arranged for conductors and drivers. Third. Conductors shall not be compelled to dump fres. Fourth. Towboys, when taking the place of a regular man for a full day, shall be paid the rate of wages -of the man, he is in place of, and be promoted according to seniority on the road. Fifth. timne ables on Sundays and holidays on roads terminating at.Ridgewood, Greenwood and Flatbush, shall be made with a wet weather slip, so arranged as to leave as many of the runs off in full as is p)racticable, in order to have the necessary headway. Slip to take effect at 12 m. 582 Sixth. The foregoing shall go into effect~ on January 1,188,Q and continue until January 1, 1889, and all provisions not contained in the foregoing and contained in the agreement made to cover 1887, are to be conined until January 1, 1889. (Signed.) JAMES H. EAGEE, Ohairnman. MORThIMER O'CONXELL, Secrefary. JAMES P. GRAHAM. JAMES F. DOWNING. THOMAS KING. Witness: (Signed.I T. NV. WRIGHT. THO3AS, F. CALLAIIAN. EXHIBIT D? Brooklyn, N. Y., January 24, 1889. Agreement between the Brooklyn City Railroad Company of Brooklyn:. New York, and; the employes of said company: First. No conductor, driver, brakeman or gripman shall be required to work mlore than 10 hours per day, the work to be performed within 12 consecutive hours. The said 10 hours to be calculated as follows, viz.: The time consumed in running from one enid of the line to the other and return only, and shalf not include anv other time, sucht as " stand " time, meal time, etc. Second. All men going to work before 7 a. m. shall have at least 20 minutes for breakfast, and not less than 30 minutes for dinner; and all men, going to work after 7 a. m. shall! have at least 30 minutes for dinner, and not less than 20 minutes for supper, which shall include night cars; it is understood that a margin of two minutes be allowed from the above time when necessary. Third. That not more than one-quarter of the entire number of cars run on any table shall be trippers, the work on trippers to be performed within 14 consecutfive hours; and not less than three-quarters of the entire number of cars runt shall be full-day cars; and no car shall pay less than $1.50 per day. Fourth. Hiostlers, hitchers, changers, harness-cleaners, carcleaners, feedmen, nightmen, switchmen, towboys and other employes below the rank of starter, and not mentioned in section 1 of this agreement, shall not be required to work more than 10 hours per day, to be performed within' 12 consecutive hours, with one hour for breakfast and one hour for dinner. Fifth. That no employe shall be discharged without a good and sufficient reason being given to him or his representatives in writing, if requested in writing; and any employe, when called into the office on any complaint, shall have a full and impartial hearing, and if proved innocent shall be paid fQr all time lost. Sixth. The number of trips which shall constitute a day's work on each of the lines of the company shall not exceed that which can be made in the hours provided for by section 1, also 2 and 3. Seventh. Scale of wages per day: Conductors........................................ $2 00 584 Drivers.......................................... $2 00 Gripmen.......................................... 2 00 Trtck-drivers 2 00 TrucCl k-d rivers...............,........................ 2 00 Night watchmen........ 2 00 Head changers.................................. 2 00 H ostlers......................................... 1 75 H itchers............................................ 1 75 Towboys......................................... 1 25 Snowplow-drtiveirs.................................... 3 00 Sweeper-drivers.................................. 3 00 Changers........................................ 1 75 Harness-cleaners................................... 1 75 Oar-cleaners................................... 1 75 Head brakemen...................................... 1 75 Regular brakemen.................................. 1 60 E ngineers.......................................... 3 50 First assistant on snowplow or sweeper................ 3 00 Helpers on snowplow or sweeper....................... 2 50 And no employe in or around the depot shall receive less than $1.75 per day. Eighth. Conductors and drivers shall be relieved from all responsibility while, at meals, and at such times there shall be a relief at all depots. Extras to do all the work and be paid one trip for each meal. Ninth. Truck and cart drivers employed on cars shall not be required to work more than 10 hours per day from the time of reporting at their respective depots, with one hour for dinner at the end of the first five hours, and shall receive $2 per day. Tenth. When employes are suspended from their regular positions for any offense, they shall not be required to attend any changes, unless paid for the time so lost. Eleventh. Conductors or drivers shall not be required to clean their cars or attend 'to fires, except when on the road; and all supllies necessary for the operation of the cars, such as bells, straps, pokers, shovels, ciolal-boxes, broomsl, etc., shall be furnished by the company. When four horses are required to a car two drivers shall be placed in charge. Twelfth. Hostlers shall not be required to take care of more than 20 horses, and they'shall not be required to do any extra work, storing of feed, hay and straw excepted; not to carry meal upstairs. Thirteenth. Drivers shall not be required to hitch or unhitch horses. Fourteenth. All-night cars shall pay a.t least $2. Late-car 585 conductors and drivers shall have preference of early runs on their respective lines according to seniority. Fifteenth. In all cases where a car is detained upon the road through' fire or other unavoidable accident, not the fault of the employes, they shall be paid as if running on the road. Sixteenth. No employe shall be discharged or discriminated against because of his connection with any labor organization. Seventeenth. Should a car o'r other property of the company while in charge of any employe, receive damage of any kind, he shall be exonerated from all blame and expense, if found not liable for such damage, a thorough examination to' be made in all cases; and he shall not, under any circumstances, be compelled to collect bills for damages' to; cars!, etc. Eighteenth. As conductors and drivers are excused their names shall be placed on a paper and posted, and at 6 p. m. each day extras shall be assigned to their places. Nineteenth. Tlhat no extra conductor or driver shall be jumped unless work fall to him, unless otherwise ordered to report. Twentieth. Stablemen who do not report in time to go to work, for first offense, shall go to the bottom of the extra list for two days; second offenise, three days; third offense, five days, and fourth offense within six months, lose their gangs of horses. Any stableman who fails to report within one hour of his reporting time will lose his gang of horses, unlesis excuse is,sent as now arranged for conductors and drivers. Twenty-first. A tolwboy when taking the place of a regular man for a full day, shall be paid at the same rate as the main whose place he fills. Twenty-second. Any employe leaving his car to take another position with the conmpany shall forfeit all claim to his car after the lapse of three months,. Twenty-third. (hn Sundays and holidays, conductors; and drivers shall go out according to seniority. Twienty-fourth. All timie-tables on Sundays and holidays shall be mandie with a wet-weather slip. In case said slip makes swings of any straight runs; such runs shall pay at least $1.50; in case the said slip takes off the first part of,any run,, it shall pay at least $1.50; and in case said slip takes trips off the latter part of any run it shall be paid for' at trip-rate, according to the number of trips run. Twenty-fifth. If any enmploye be -sent to another depot in rush times or on Sund;ays, he shall be paid at least $1.50, whether working or noto; but he shall report at his own depot in time to know whether he is wanted or not, except when it is done to accommodate the employes for picnics, etc. B. 74 586 Twenty-sixth. Whosoever shall be in charge of depot during the day, shall have power To excuse employes for one or two days and to put them to work again. When an employe desires to be excused as sick, he shall be so excused until he reports for work; but must report before 6 p. m. of day previous to going to work. He may report sick either personally or by messenger. In case of " reporting by messenger," any undue advantage is taken of this plan; of reporting sick, it shall be discontinued. The nightman may excuse men on cars starting out between the first ca:r and the time the dayman arrives, provided extra men are at depot tio take their plaices. Twenty-seventh. The starters at all depots shall shall designate on the time-tabes when; changes commnence, and when they end. When one run is intended to relieve another, the relief notice shall be written in red ink. Twentyeighth. In all cases where cars are blocked on the road, the company shall make provisions so as to give the men their full mealtime, ais near as practicable. Twenty-ninth. All extra work shall be paid at the rate of 30 cents per hor: if more than 1 hour and less than 1 1-2 hours, 1 1-2 hours time shall be paid for; if more than 1 1-2 houis and less than 2 hours, 2 hours' time shall be paid for, and so on. Extra trips to; be run at the option of the men. Thlirtietht All tlicme-tables shall be posted at 3 o'clock prior to the day it is to be run, and shall be submitted to the regular committee of the employes of the road for approval before run. In case the committee wish to refer the approval of time-tables to executive board it shall do so, immediately, when the executive board shall sign any table made in, accordance with the agreement Thirty-first. Failu,re on the part of any conductor to set his register as provided in the rules of the company; for first offense he shall be warned; for second offense, he shall be suspended for one week. Thirty-second. In cases wchere a conductor or driver desires to lay cff for his own convenience after having started his day's work he shall pay to the extra taking his car enough to make it.1.50 at least, and first for work shall accept such work when it so falls to lim. Thirty-third. In wm:king time-tables for the several lines, the Court Street and Third A.v(nue are to be considered together. Thirty-fourth. Conductors who lay off on the Fort Hanilton steam line shall be replaced by extras who shall be chosen by the Inspector or starter. 587 Thirty-fifth. When wet-weather tables are run on week day~s, all trips taken off shall be paid for as though run. The foregoing shall go into effect at once and continue until January 1, IS90. All sections and parts of sections of the agreements covering 1S87 and 1888 inconsistent with the terms of this agreement are hereby repealed, othcrwvise the remaining terms, etc., of the said agreemlents are to be continued as though they formed a part of the foregoing. EXHIBIT E. Brooklyn, N. Y., December 22, 1892. Agreement between the Brooklyn City Railroad Company and the employes of.said company un.til January 1, 1894: First. That no driver, conductor, motorman, brakeman, or gripman shall be required to work more thian 10 hourS per day, the work to be performed within; 12 clonsec:utive hours, to be calculated in the same manner as provided for year 1889. Second. All men going to work befoire 7 a. m. shall have at least 20 minuites for breakfast and 30 minutes for dinner, and all men; going to work after 7 a. m. shall have at least 30 minutes for dinner, and ast fair as possible 30 minutes for supper, and if not possible, to remiain the same as 1892, which shall include night-cars. All men' gOing out after 7 a. m. shall not have the 20 minutes for breakfast, after 12 oclock noion, will not have the 30 minutes for dinner and aafter 6 p. m. will not have the 30 minutes for supper. It is understood that a margin of two minutes be allowed; frotm above time when nmcessary, but in making out time-tables where the margin lof two miniutes is used, the same number of runs shall be over the required time for breakfast, dinner and supper as there are under the required time. Third. That time-tables' be made on the following basis for year 1893. The number of cars run on all tables of December 1, 1890, sh11 be preserved on ea:ch table, a list of same to accompany this agreement, except shoiud -the necessities of the company require a reduction i:n same, such rednltion shall be made on a basis of three-fourth full-day cars and one-fou;rth trippers, and in all cases no ca!r oin the table shall! pay less than $1.50 per dlay; but for the,purpose of enlarging the tables over those run on December 1, 1890, and which may be ma'de and run after Janulary 1, 1893, and thereafter duiring that year 'it is mutwually agreed that the company miay aidd trippers on any table to the number of two without makinlg any additional straight runs, but when, the third tripper is addedi one aidditional straight run of full-day's work shall be addded, then two more tripper miay be e added wiftout adding an additional straight run, but if the second third tripper is put on then an additional straight nun of fufll-day's work shall be added and so on until thie time-tables shall not exceed a baisis of two-third straight runs of full-day's work and one-third trippers, the pay of which 589 shall not be less than $1.50 per day. When trailer cars are run on Sundays and iholidays they will pay at least $1.50. This shall apply to all lines except otherwise Specifically provided for. Fourth. Hostlers, hitche-s,, changer, harness-cleanerls, carcleaners, nightmen switchmen, towboys and any others employed below the rank of starter and not mentioned in seotion 1 shall not be required to work more than 10 hours per day, to be performed within 12 consecutive hours, with one hour for breakfast and one hour for dinner. Fifth. That no employe shall be dischairged or suspended without a good and sufficient reason, being given to him or his representative, in writing, if requested; and when, called into the office on any complaint he shall have a full and impartlial hearing and if proved innocent shall be paid for all time lost. Before an employe is suspenided both sides of the case is to be heard, if practiealble, before the suspension is enforced. sixth. That the number of trips which shall constitute a day's work on each line shall not. exceed that which can 'be made in the hours provided for in sections 1, 2 and 3. Seventh. Scale of wages per day: Conductors, drivers, gripmen, motormen, truck drivers, nightmen, and head changers, $2; hostlers, hitchers, changers, car-cleaners, switchmen and brakemen, $1.75; towboys and switch-turners, $1.25; snowplow and sweeper-drivers and first assistant on, snowplow and sweepers, $3; helpers on plow and sweepers, $2.50; and no other employe around the depot shall receive less than $1.70; and snowplow and sweeper-drivers, when not required for a full day, will be paid at the rate of $1 for three hours or less, $2 for six hours or less, and if they work over six hours will be paid for full day; helpers will be paid,at the iate of 90 cents for three hours or less, $1.75 for six houres or less, and if over six hours will be paid for full dlay; but it is understood that if these snowplow or sweeper-men are called after 12 o'clock, midnight, they will: be paid at least for one full day. Eighth. Conductors and drivers will be relieved from all responsibility while at meals, and at such times there will be a relief at all depots. Ninth. Truck and cartbdrivers employed on cars shall not be required to work more than 10 hours per day from time of reporting at depot, with one hour for dinner at the end of th first five hours, and shall receive $2 per day. Tenth. When employes are Isuspendedl from their regular positions they shall not be required' to' attend changes unless paid for time lost. Eleventh. Conductors and drivers shall not be required to clean their cars or attend to fires, except when on the road, but it is. understood that conductors will' light fires when cars are out on the street. Condiuctors will keep their cars in a clean and 590 orderly manner when in their charge. All supplies necessary for the operation of the cars shall be furnished by the company. Twelfth. When four horses are required for a car, two drivers will be placed in charge. Thirteenth. Hostlers will not be required to take care of more than 20' horses, and shall not be required to do any extra work, storing of feed, hay and straw excepted, and not to carry meal upstairs. Fourteenth. Drivers shall not be required to hitch or unhitch horses. Fifteenth. All-night cars ishall pay at least $2. Sixteenth. In all cases where a car is detained on the road through fire or other unavoidable accident not the fault of the employe, they shall be paid as if running on the road. Seventeenth. That no employe shall be discharged or discriminated against because of his connection with any labor organization. Eighteenth. Should a car or other property of the company, while in charge of any employe, receive damage of any kind, he shall be exonerated from all blame and expense if found not liable for such damage, a thorough examination to be made in all cases, and he shall not be compelled to collect bills for damages to cars, etc. Nineteenth. That no motorman shall be held responsible for the breaking or dislodgment of any of the electric mechanism if proven not his fault Twentieth. As conductors and drivers are excused their names shall be placed on a paper and posted when first out is.through at each depot where it can be seen, and at 6 p. m. each day extras shall be assigned to their places. Twenty-first. That no extra conductor or driver shall be jumped unless work falls to him, unless otherwise ordered to report. Extras at Greenwood, Bush street and Second avenue depots will not be jumped if they are in the extra room where excuse list will be posted. Twenty-second. Stablemen who do not report in time to go to work, for first offense, shall go to the bottom of extra list for two days; second offense, three days; third offense, five days, and fourth within six months, shall lose their gang of horses. Any stableman who fails to report within one hour of his reporting time will lose his gang of horses unless excuse is sent as now arranged for conductors and drivers.' Twenty-third. A towboy, when taking the place of a regular a, shall be paid the same rate as the man whose place he fills 591 Twenty-fourth. Conductors and drivers (except truck drivers) who may leave their cars to take another position with the company shall forfeit all claim to their car after the lapse of six months; when any conductor or driver is so excused his name shall be posted on excuse list, and at 6 p. m. first for work will be assigned to the run for the remainder of that week, and for the week following; then after the second week has expired the table shall be changed temporarily and the man entitled to the run shall be advanced and shall remain so until the man that is excused reports for work. It is understood that if the man should report for work through the week he will have the privilege of standing for work as first extra until the table can be changed. Twenty-fifth. On all week days conductors and drivers shall go out according to seniority, on full-day cars; on Sundays and holidays conductors and drivers shall go out according to seniority on all straight work irrespective as to whether a full day's work or nolt. Conductors and drivers on trippers shall have preference of work on Sundays and holidays according to seniority. Twenty-sixth. That the men on the Greenwood division shall be placed on the time-table according to seniority, and after being so (placed the lines shall be divided as follows: Third and Hamilton avenue ishall be considered as one line, Court street will be made a separate line as well as the Second avenue line will be separate. ( Twenty-seventh. All time-tables on Sundays and holidays shall be made with a wet-weather slip and shall be considered part of that table. In case said slip makes swing of any straight runs such runs shall pay at least $1.50; in case said slip takes off the first part of any run it shall pay at least $1.50, and in case the said slip takes off the latter part of any run it shall be paid for at trip rate according to number of trips run, but it is understood that no wet-weather slip shall make swings of straight runs if it is Ipossible to avoid doing so. Twenty-eighth. If any employe be sent to another depot in rush times or on Sundlys, he shall be paid at least $1.50, whether working or not, but shall report at his own depot in time to know whether he is wanted or not, except when it is to accommodate the employes at picnics, etc. Twenty ninth.:Wholever shall be in charge of the depot during the day shall have power to excuse employes for one or two days and place them at work a;-ain. When an emploNe desires to be excused sick he shall be so excused until he reports for work, but must report before 6 p. m. 592 of the dayv previous to going to work, he may repolt, sick either personally or by messenger representing him, but in no case will an employe be excused either by letter, telegraph dispatch or telephone. in case of reporting by messenger, any undue advantage is taken of this plan of reporting, it will be discontinued. The nightman may excuse men on calrs starting out between the time of first car and the time the dayman arrives, provided extra men are at the depot to take their places. Any employe when off sick and found working elsewhere will be discharged. Thirtieth. The starters at all depots shall designate on the tables when changes commence and when they end, when one run is intended to relieve another the relief notice shall be wri'ten in red ink. Thirty-first. In all cases where cars are blocked on the road the company shall make provision so as to give the men their full meal time as near as practicable. Thirty-second. All extra work shall be paid at 30 cents per hour if more than one hour, less than one and one-half hours one and one-half hour's time will be plaid, if more than one and one-half hours and less than two hotwo orstwo hours' time will he paid, extra trips to be run at the option of the men; such extra work as watching holes in the street, washing cars, or any othler work less than a fill day's work, shall be paid at the above rate of 30 cents per hour, not exceeding three hlours; if they work onehalf day they shall receive $1, and over t;hat at the rate of $1.75 per day. Thirty-third. All time-tables shall be posted at 3 p. m. prior to the day it is to be run, and shall be submit'ed to the re'lular authorized committee for approval before being run, and they are to have pIossession of said table for 24 hours as near as p1ossible, and in case the committee wishes to refer the approval of time-table to the Executive Board it shall do so immediately when the said board shall sign any table made in accordance with this agreement. All time-tables made out in accordance this agreement shall be signed 'as above and then shall be run. But if the depot committee wishes to submit any modification of such table they may dio so, and if the headway of any such modified table does not change or add to the expense then said modified table will be adopted, but until then the said table made by the company and approved as above shall be run, all su!h modified tables must be made strictly in accordance with the agreement between the company and the men. Thirty-fourth. Failure on the part of the meni to set their registers as provided' for in the rules of the company; for first offense, they shall be warned; second offense, suspended three davs. Thirty-fifth. In case where a conduotor or driver wishes to lay off for his own convenience after having comomenced his day's work, he shall pay to the extra taking his car enough to make it $1.50, lat least, and first for work shall accept such work when it falls to him; every man is allowed to lay off every fourth Sunday between November 1st and April 1st, if practicable. Thirty-sixth. When wet-weather tables are run on week days, all trips taken off shall be paid for as if run, and in making out wet-weather slips the first or last part of runs will be taken off as far 'as practicable. Thirty-seventh. The rate of work for feedmen shall be placed at 200 horses, and any more than that amoqnt at any depot extra help will be provided to help mix feed. Thirty-eighth. Thiat all regular men on Myrtle, Gates, Bushwick, Tompkins and Nostrand Avenues, Lorimer Street, Orosstown, Union Avenue, Bedford, East New York and Flatbush, and all the lines of Greenwoiod division are permitted to; have two jumps during the fiscal year; first jump, suspended seven days; second jump, to lose their car. It is understood.that the extras on those lines will have only one jump; also, if a regular man falls off on 'Sundays or holidays and goes on the extra list, he shall be treated as a regular man in regard to jumps. Thirty-ninth. That 'at Lorimer Street deplot there shall be. man to bring the teams to and from, the cars during the summer month's. Forty. On Sundays, during the summer months, when there are three or more cars on! the steam trains, there will' be an assistant at the terminus of the line to assiist engineers with fires, etc., if practicable. Forty-one. That extras on all the lines working after 11 p. m. shall be excused until 8 ai. m. the next, if possible, unless they are assigned for work the night before, but such extras shall ask to be excused until 8 a. m., and shall see their names posted on excuse list. Particular attention must be paid to this section and the mien are to be iaiccommlodated as far as possible. Forty-second. That in' case of changing from, horse or steampower to electricity o'r cable system, the men; shall retain trheir positions and places according to seniority, if competent. Forty-third. 'Time-tables on, Tompkins Avenue line shall be made on a basis of three-quarter straight runs and one-quarter trippers, when operated only to Atlantic avenue; when cars run through 'to Prospect Park, time-tables will be made on a basis of two-third straight and one-third trippers. On Nostrand Avenue, Lorimer Street, 3Meeker Avenue and Grand Street, two-tifrd B. 75E 694 stra'ight runs, and one-third trippers. Union Avenue, twothird straight runs and one-third trippers; the Crosstown line will be made the same as 1890, except as provided for in secltion 3. Number of runs on tables December 1, 1890: Greenpoint.................................... Myrtle......................................... Fulton................ Putnam avenue................................ Court street................................... Furm an....................................... Bushwick...................................... No istranid........................ Crosstown..................................... Grand street.................................. Flushing avenue................................ Gates avenue................................ Flatbush...................................... Third avenue.................................. H am ilton....................................... Fort H amilton................................. Tompkins..................................... L orim r....................................... M eeker....................................... Union......................................... $2 cars. $1.50cars. 36 10 28 9 42 27 9 27 9 5 26 9 18 16 58 9 6 51 16 45 14 36 12 31 12 11 6 14 5 17 6 8 8 9 7 10 10 BLACKSMISHS. First That no horseshoer shall receive less thian $3.25 at the fire, and $3 on the floor per day. Second. That the hours of labor shall not exceed nine per day for five days, Saturdlays, eight and Sundays, sevenq but if the hours per day named for the work provided for in the following sections shall not be sufficient the men are to continue the work until it is completedl, without further compensation. Third. That the rate of work shall not exceed 100 horses per man for six days, and each additional fifteen hours -shall require a man one day per week extra; the foreman of each separate shop,shall have power to work whatever help is required on Sundays not exceeding the regular amount of work requiired through the week nor less than onehalf the amount, but if practicable the amount of help required on Sundays will be put on through the week by additional men, whose total pay shall not exceed the total amount paid if work was done on Sunday. PourtiL Any misunderstanding or dispute arising in any of the shops between the parties hereto under these arrMangements B9ll shall be setled by arbitrartion, the company shall have the rigi i to select one arbitrator and tie employes one, and if the two so chosen fail to agree the said larbitrators shall select a ftird arbitrator and a decision of a miajority so chosen shall be 'binding and final upon the parties hereto. Fifth. That each man in the shop shall receive rasps every three weeks. Sixth. That whenever there is a vacancy in any of the shops it shall be filled by the first man! entitled to thje same amd in case of new men applying for positions their competency shall be left to the company. Seventh. That green horses shall be sent direct 1to the depots for which they are intended, as far ais practicable. Eigth. The menl agree that they will not leave the service of the companay 'in a body without giving the president two weeks' notice, and the company agree to give like notice 'of any intention to depart from the foregoing agreement All sections and parts of sections of the agreements of 1887, 1888, 1889, 1890, 1891, and 1892, are hereby repealed, if inconsistent with this agreement, otherwise the terms etca, of said agreements are to be continued as thoulgh they formed a part of the foregoing. The foregoing shaill go into effect January 1, 1893, and continue until January 1, 1894. The Brooklyn City R B. Co., by DANIEL F. LEWIS, Preaident. lWitness: J. C. CAMERON, Genl. Supt. Accepted for the employ es: ANDREW D. BEST, D. M. W., WM. L. HOLCOMBE, D. R S., THOMAS J. COOPEY,.: THOMAS J. OOLLINS, JOHN MANN, Executive Board, D. A. 75, K. of. L... EXHIBIT F. Agreement entered,into this 24th, day of Marchi,b1894, between Messrs. McDonald, Gaffney, Kelly, Sheerins and IHolcomb, repr,senting the employes of the Brooklyn Heights Railroad OompanJy, and the Brooklyn Heights Railroad Oomany. First Witnesseth, That the parties herto covenant and agree to accept, and do approve and accept, the agreement of 1893, between the employes of the company and the company, with the following modifications and interpretations: Second. Section 5 isi modified as follows: That a man,sspended for examination may not be adjudged guilty by having his name posted; the company will agree when posting a man's name for suspension to use the expression "For investigation," and affix the words " Guilty," or "Not Guilty," as the officers of the company may decide,after investigatinig the caise. Third. The clause reinstating him and giving him his, full pay if not guilty, as provided in the agreement of previous years, is a just and proper one, and prevents lany injustice to employes. Fourth. Sectionl 32 is modified to read as follows: Such extra work as watching holes in the street, washing cars, or any other work less than one full day's work, shall be paid for at the rate of 30 cents per hour. not exceeding three hours. For more than one hour and less than an hour and a half's work one and a half hour's time will be plaid; and for more than one and a half-hour and less than two hours' work, two hours' time will be paid'; and if they work half a day they!shall receive one dollar, and after that at the rate of $1.75 per day. Fifthk This section is also modifiedi to read: All extra trips are to be run at the directlon of the company, and the option of the employes, and such extra trip's arP to he plid for at double regular trip rates. Such extra trips are hereby defined as meaning trips in addition to te number of trips on tlie time-table then posted, and' in event of the change to the time-table an addition of a trip shall not be deemed as an extra in this clause. Sixthi Section 35 should read: In case a conductor, driver or motrman wishes to lay off from his car, after having commenced his day's work, he may do so, provided there is an extra to take his place. The istarter must give to each extra in order for work an opportrnity of taking the said car, and the extra taking said car must complete the day's work at trip rate. 697 Seventh. Special arrangements for Bushwick line is to read as follows: All stem and electric, lines construlcted, and in operation bbranching from the' BuaShwick depot shall be subject to this agreement Men shall be assigned to rums on the Buishwick line and its branch roiads; accordinng to, seniority if competent, and on Sundays and holidays men from the Bushwick line may be assigned to extra cars on these branch! roads, for which they shIall receive at least the same pay as if working on their Own run on the Bushwick line. Eighth. It is mutually agreed and stipulated that any employe failing to arrive at the depot in time to report to take his car out shall nolt be jumped between the hours of 3 a. m. and 7 a. il., provided the reason for his delay in arriving at his depot is caused by the breaking down of a car, or the failure of power on the line which terminates at his depot. It being understood that such breaking down of a car or failure of power is the cause of a delay to the,car which would have brought him to his depot on time. The fact of the delay, the cause of it, and the place of the delay, as well as the fact that the employe was oni said car, must be certified to by the conductor and motorman on the delayed car, immediately uponi their arrival at the depot as to the facts before stated. Ninth. It is further stipulated, that it is left discretionairy with the general manager to excuse any employe late at any time of the day, provided such lateness was caused by any general blockade on the line terminating at his depot, and, provided, that such blockade 'shall be of sufficient nature to cause his lateness. It being further understood that a report of all the facts must be made by the conductor and motorman of the car which is delayed. Tenth. It is further agreed, however, that it 'shall be the duty of any delayed employe, as heretofore specified, to report to the conductor and motorman on the car delayed by such blockade and thus causing the lateness of the employe before stated. It must be clear, however, that any delayed employe could not have reached his depot in time to take his car either by walking or taking other means of transportation. Eleventh. It is mutually stipulated, that any of the provisions before stated, relative to jumps, shall be terminated at the disretion of the president or general manager, upon the ground that such provisions were improperly taken advantage of by the, employes. Twelfth. It is hereby mutually stipulated and agreed that this agreement and all the pr visions thereof sball. cease and terminate on the 31st day of December of this year. Witness our hands and seals this 24th day of March, 1894. JOSEPH F. McDONNEL~ Ohairmain. WM. L. HOLCOMB, JAME'S D. KELLY, ~MICHAEL GAFFNTEY, M-ATTUREW SHEERTINS. The Brooldyn, Heights Railroad Company, 4By W. A. H. BOGARDUS, General Manager. EXHI B I T G. Brooklyn, December, 1894. Agreement between the Brooklyn City Railroad Company and the employes of said company: First That no conductor, motorman, gripman or brakeman be required to work more than! 10 hours per day, the work to be performed within 12 consecutive hours, as provided for by State law. Second. All men going to work before 7 o'clock a. m. shall have at least 20 minutes for brealfast, and 30 minutes for dinner. All men going to work after 7 a. m. shall have at least 30 minutes for dinner, and not less than thirty minutes for supper, which shall include night cars. Third. That time-tables be made on a basis of three-quarters full-day cars, and one-quarter trippers and no car shall pay less than $1.75 per day. Fourth. In case where a conductor or motornian wishes to lay off for his own convenience after having commenced his day's work, he shall pay to the extra taking his car enough to make it $1.50 at least, and first for work shall accept such work When it falls to him. Every man is allowed to lay off every fourth Sunday between November 1st and April 1st Fifth. That no employe shall be discharged or suspended without a good and sufficient reason being given him, or hi representative, in writing, if requested; and when called into the office on a complaint he shall have a full and an impartial hearing, and if proven innocent he shall be paid for all lost time. VWhen an employe is suspended the words "for investigation" shall be placed after his name, and when tle case is setied the words "guilty" or "not guilty" shall be affixed. Sixtil Scale of wages per day: Conductors and motormen............................ $2 25 Truck-drivers................................... 2 00 Carcleaniers................................... 2 00 Nightmen......................................... 2 00 Brakemen....................................... 1 75 Cartmen...................................... 1 7 Trackma en........................................** 1 75 -Switch-turners................ 5................ 1 50 Snowplow and sweeper aws, eaich mia............... 3 00 600 And no employe in or around depot shall receive less than $1.75. Sinow-plow or sweeper, motormen or drivers, when not required for a full day, will be paid at the rate of $1 for three hours or less, $2 for six hours oir less, and if over six hours shall be paid for a full day; helpers will be paid dt the rate of 90 cents for three hours or less, $1.75 for six hours or less, anid if over six hours shall be paid for a full day, but if called out after 12 o'clock midnight, they shall receive a full day's pay. Seventh. Conductors shall be relieved of all responsibility while at their meals and at such times there shall be a relief at all depots. Eighth. When emplloyes are suspended from their regular positions they shall not be required to attend changes unless paid for time so lost. Ninth. Conductors or motormen shall not be required to clean their cars or attend to fires except when on the road, but it is understood that conductors will light fires when cars are out on the street Conductors will keep their cars in a clean and orderly manner while in their charge. All supplies necessary for the operation of cars shall be furnished by the company. Tenth. All night cars shall pay at least $2.25. Eleventh. In all cases where a car is detained oin the road through fire or other unavoidable cause not the fault of the employe, they shall be paid as if running on the road. Twelfth. That no employe shall be discharged or discrillnated against because of his connection with any labor organization and that the members of the grievance committee of the local assembly of the Knights of Labor existing on any road, shall have the privilege of being excused from duty when the business of the organization requires it. Thirteenth. Should a car or o ther property of the company, or any vehicle or oher property not belonging to the said company, or any person, be injured or damaged while said car is in charge of an employe, said employe upon furnishing the evidence of at least two reputable witnesses whose statements of the facts shall exonerate him, he shall be declared innocent of all blame and freed of all expense, and a thorough examination is to be made in all such cases and if the employe be found in.nocent he shall be paid for all lost time. Fourteenth. As conductors and motormen are excused, their names shall be placed on a paper and when first out is through at each depot it shall be posted where it can be seen, and at 6 o'clock p. m. each day extras shall be assigned to their places. Fifteenth. That no extra conductor or motormaan shall be .601 jumped unless work falls to him, unless otherwise ordered to report extras shall not be jumped if they are on the premises. Sixteenth. Conductors and motormen, except truck-divers, who may leave their cars to take any other position with the company, shall forfeit all claim to their cars afer the lapse of three months. It will be understood that tis privilege be extended to an employe only once for the same position. When any employe is so excused, his name shall be posted on excuse list at 6 oclock p. m., first for work will be assigned to the run for that week and for the week followimg, then after the secondi week hias expired the table shall be changed temporarily and the man entitled to the run shiall be advanced and shall remain so until the man so excused reports for work. It is understood that if the man should report for work through the week he shall have the privilege of standing for work as first extra umtil the table can be changed. Employes leaving positions under the, provisions of his section shall Uot ladvance by reason of jumps. Seventeenth. In all week days, conduictors and motormen shall go out according to seniority on full-day cars; on Sundays and holidays, employes shall go out according to seniority on all straight work, whether a full day's work or not. Conductors or motormen on trippers shall have preference of work on Sundays and holidays, according to seniority. Eighteenth. Whoever shall be in charge of depot during the day shall have power to excuse employes for one or two days and place them at work again. When an employe desires to be excused sick, he shall be so excused until he report for work, but he must report before 6 p. m. on the day previous to his going to work. He may report sick either personally or by messenger representing him, but in no case will an employe be excused by letter, telegram, dispatch or telephone. In, case an employe, who is a passenger on a car which is due at the depot before his reporting time, should meet with any delay, he shall not be jumped through that delay. The night man may excuse him on cars starting out between the time of the first car and the time the day man arrives, provided extra men are at the depot to take their places. Any employe found working elsewhere while excused sick, will be discharged. Nineteenth. The starter at all depots shall designate on the tables when changes commence and when they end. When one run is intended to relieve another, the relief note sall be written in red ink. Twentieth. In all cases where cars are blocked on the road, the company shall make provision for giving the men their ull meal time. Twenty-first All extra work shall be paid, for at the rate of 30 cents per hour, if for more than one hour and less than one and a half hoars, thiea one anrd one-ilf hours time shall be paid; if more than one and one-half hours, and less than two hours, two hours' time shall be paid; extra trips shall be paid for at double-trip rate, such extra trips to, be run at the option of the men. Such extra work as watching holes on the street, washing cars or any other work less than a full day's work, shall be paid for at the above rate of 30 cents per hour, not exceeding three hours, and if they work a half a day, they shall receive $1.25, and over that at the rate of $2 per day, Twenty-second. All time-tables shall be posted at 1 o'clock p. m. prior to the day it is to be run, and shall be submnitted to the regular authorized committee for approval before being run, and they are to have possession of said tables for 24 hours, and in case the committee wish to refer said time-tables to the executive board for approval, it shall do so imnmediately, when the said board shall sign any table made in their judgment in accordance with this agreement. All: time-tables, so made shall be signed as above, and then run, but if at any time the depot committee wish to submit any modification of such tables, they may do so, and if the headway of such modificationl does not change or add to the expense, then said modified table will be adopted, but until then the said table made by the company and approved of as above, sall be run. All such modified tables must be made strictly in accordance with this agreement between the company and the men. Twenty-third. Failure on the part of the men to set their registers as provided for in the rules of the company, may be punished as follows: For the first offense, to be warmed; second, to be suspended for three days. Twenty-fourth. All tables on Sundays and holidays may be made with a wet-weather slip, and shall be considered part of that table. Said slip shall not make swings of any straight runs, and no car to pay less than $1.75. Wet weather shall be understood to mean days that are wet, gloomy or stormy, but in no case shall this section apply to election day. Twenty-fifth. That all regular men, on, Myrtle Avenue, Gates Avenue, Bushwick and Tompkins Avenues, Lorimer Street, Nostrmn Avenue, Crosstown, Union Avenue, Fulton Street, Flatbush Avenue, Flushing Avenue, Greenpoint and Franklin Street and Nassau Avenue, and all lines of the Greenwood division, shall be permitted to have two jumps during the fiscal year. For finst jump) iaspenaion for seven days, and, second, to lose their car. It s understood thai extras on tese lines shall have one jump only. But if a regular man fall off on Sunday or holidays, and he goes on the extra list, hee shall be treated as a regular man with regard to jumps. Twenty-sixth. On Sundays during the summer months, when there are three or more cars on a steam train, there shall be an assistant at the terminus oaf the line, to assist engineer with fires, etc. Twenty-seventh. That extras on all lines working after 11 p. m. shall be excused until 8 a. m., or second change the next day,, if possible, unless they are assigned for work the night before, but such extras shall ask to be exctused and {shall see their names posted on excuse lists. Particular attention must be paid to this sections and thJe men are to be accommodajted as far as possible. Twenty-eighth. That in case of changing from horse or steam power to electricity or cable system, the men' shall retain, their positions and place according to seniority, if competent. Twenty-ninth. If any employe be sent to another depot, in rush times, or on Sundays, or detained at his own depot so as to, lose his chance for work, or assigned for work at such depot the night before, he shall be paid at least $1.75, whether working or not, but shall report at his own, depot in time to know Whiether he is working or not, except when it is to accommodate the employes for picnics, etc., and that such employes be furnished with meals. Thirtieth. Employes shall be required to make but one report of any accident which may occur while they' are in charge of their cars, to be written by the conductor and signed, if necessary, by the motorman. Thirty-first Should an employe be discharged for his bad record, the executive board claims the privilege of inspecting said record, as entered on the books of the company. Thirty-second. Should a motorman or conductor be arrested for any accident while in charge of his car, the company agrees to furnish bail in all' such cases. Thirty-third. Special arrangements for Bushwick division: All steam and electric railroads branching from the Bushlwick depot shall be subject to this agreement. Men slall be assigned to runs on the Bushwick line and its branch roads, according to seniority, and on Sundays and holidays when men! from the Bushwick line may be assigned to extra cars on these branch roads, they shall receive at least as much pay as if working on their own runs on! Bushwick line. 604 Thirty-fourth. In case the parties to this agreement should fail to agree on any case or to arrive at a satisfactory settlement, it is mutually agreed that the question at issue be referred to a board of arbitration, said board to consist of five members, two to be chosen by each party to this agreement, and the fifth by the four selected as above. The decision of the above board to be accepted as binding. EXHIBIT II.~ Agreement between the Atlantic Avenue Railroad Company, of Brooklyn~ and the employee of said -company: First- No iconducitoor, motormnan or any other employes shall be required to work- more than 10 hours. per day, the work- to. be performed within 12 cunsecutive hours. Second. All conductor or motormen, going to' work before 6:30 a. inl., shall have not less than 20 -minutes for breakfast and not less than 30 minutes for d-inner and all conductors. ai4d motormen going, to work after 6:30 a. in., and before 11:30 a. mn., shall have at least 30 minutes for dinner and not less, than 20 ininutes for,supper.. Third. The time-tatbles of Fifth and Seventh avenues and Bergren street, if -not co-stling any more than thie pre-sent taibles; shall be made on the three-quar-ter regular clars and one-quarter tripper cars biasis: Fifteenth street and: Vanderbilt avenue, on twothird regular and on-e-third. tripper -baisis; Butler street, Hoyt street and, Hicks street -on one-half and one-half basis. And: no regular triipper car ruin shall p~ay leess than $1.50 per day. Fifth. The cleaning of cars inside and outside toi be done bys others than conductors or motormen; so, as- to be ready for the next -day,'s use. Six-th. Scale of wages: Conductors, per day, full-day car............$2 00 Motormen, per day, full-day car............ 2 00 Truck drivers, per day, full-day-car........... 2 00 Oar-cleaners, per day................. 1 75 Lampmen, per day.................... 1 75 Switchmen:, per day.................. 1 25 Snow plowmen, per day................ 3 00 Sweepermen, per day................. 3 00 Helpers on snowplows and sweepers, per day...... 2 50 Lever switchmena, per mionth.............. 0P 00 And no other -adult enmploye in or around the, depot less than $1.75 -per day. Seventh. Conductor-s or motorinen shall be. relieved of,all responsibility while at their meals and at such.times there shall be a relief at all depots and a suitable placek sfrAll'be prorvde at eachdepot where the enmpioyes nia sit and eat - Eighth Wihen employes are umppended for any offense they shall not be required toi attend any changes unless paid for the time so lost. Ninth. Conductoirs and motormen are to have two jumps during the fiscal year: For first jump to lose his car for the space of five days; for the second offense, tol be placed at the bottom of extra list Tenth. Conductors or motormen shall not be required to.clean their cars, and all supplies necessary for the operation of the cars will be furmished by the company. Eleventh. Truck-drivers shall not be required to work more than 10 hours per diay. Twelfth. 'The station-master or starter, or, in hig absence, whosoever shall be in charge of the depot, may excuse employes for one day only, and enmployes shall be excused at any time on a good case shown, provided there are extras at the depot to take their places Thirteenth. In all cases where a car is detained on the road by fire or other uniavoidable accident, niot the fault of the employe, theyI shall be paid as if running on the road, Fourteenth. No employe shall be discharged or' discriminated againts because of connection with any labor organization. Fifteenth. Should a car of this company receive damage of any kird while in charge of an employe, said employe, upon furnishing evidence of at least two reputable witnesses, whose statements of the facts shall exonerate him, he shall be declared innocent of all blame and expense; a thorough examination to be made in all cases, and if found innocent, to be paid for all time lost Sixteenth. Conductors and motormen will go out on all days according to seniority. SeventeenthL All roads running from the different stations shall be combined and run as one road, and all' conductors and nmotormen shall go up in seniority on these combined roads until they get a full-day car, when they shall stay on that road without further change. Eighteenth. When any charges are made against an employe by any one not officially connected with the company, he shall be suspended pending an investigation, which shall be made as soon as possible.' In case the employe is found innocent of the charges made, he shall be allowed for his lost time. After his name the words " Guilty " or " Not guilty " shall appear. Nineteenth. Extra work or overtime, such as trips to ball grounds, railroad, depots or ferry, where cars have to wait to be loaded, shall be paid for at the rate of 30 cents per hour; extra 607 trips by a regular man, to be paid for at double-trip rate; the running of such extra trips to be optional with the employe, after the mans day's work is over. Twentiethl Any extra conductor or motorman who desires to be excused from the steady man's car he is running, shall receive the same privileges as the steady man; no extra shall be jumped unless twork falls to him. The roll-call of extras shall be abolished. Twenty-first. That when an extra falls to a steady man's car he be allowed to, hold said car until the regular man reports for work. Twenty-second. Conductors and motormen (except truckdrivers) who may leave their cars to take another position with the company, shall forfeit all claims to their cars after the lapse of three months; when any conductor or motorman is so excused, his name shall be posted on excused list, and at 6 p. m. first for work will be assigned for the run for the remainder of that week and for the week following, then, after the second week, the table shall be changed temporarily, and the men entitled to the run shall be advanced and shall remain so until the man that is so excused reports for work. It is understood! that if the man should report for work through the week he, will then have the privilege of standing for work as first extra until the table can be changed. Twenty-third. The work on trippers to be performed within 14 consecutive hours. Where trailers are run, they shall be run according to law.; Twenty-fourth. That men be provided at the different depots for the proper switching and tabling of all cars that the responsibility of conductors and motormen shall cease upon arriving at depot. Twenty-fifth. The dinner time to commence as near 12 m. as possible; supper hour, as near 6.30 p. m. as possible. Twenty-sixth. If any employe be sent to another depot in rush times or on Sundays he ishall be paid at leastl $1.50 whether working or not, but shall report at his own depot in time to know whether he is wanted or not, except when it is to accommodate the employes' piicnlc, etc. Twenty-seventh. Every time-table shall be posted at 3 p. m. prior to the day it is to be run, and if a man loses time through failure of not having it posted at 3 p. m. prior to the day it is to go into effect, he shall be paid for time so lost. Twenty-eighth. All supplies for the operation of cars such as controller handles, transfer tickets and punches, etc., shall be IW- 608 furnished by the company at the various starting pointr or depots. Twenty-ninth. Any employe when suspended shall receive an immediate hearing, and in no case where a suspension is deemed neessary, after investigation and trial, shall the penalty exceed seven days, nor shall it be for less than one day. Thirtieth. All conductors and motormen hereafter shall be granied the privilege of purchasing and.wearing any overcoat they may desire, with the understanding they shall place the buttons of the company upon saiid coat'; such overcoat to be presentable in appearance. Thirty-first. The employes on their part hereby agree to, obey all reasonable published rules and regulations of the Atlantic Avenue Railroad Company, provided, of course, they do not interfere with the terms of this agreement, and hereby also agree.to serve the company faithfully in all things, understanding that willful disobedience or insiubordination will be punished! by dismissal. Thirtysecond. In case there should be a grievance tol discuss, it is expressly understood that such grievances shall be first submitted in writing, and engagement made and hour fixed for a hearing with the superintendent. In case an appeal shall be taken at any time to the president, it is also expressly understood that he will be notified in advance of the case, and a day and hour fixed when he will receive the committee. It being understood that any committee waiting upon either of the above officials is to receive prompt and careful attention, according to the terms of this section. The foregoing shall go into effect June 1, 1894, and continue until January 1, 1895. (Signed.) JOSEPH F. McDONNELL, I}. Chairman of Executive Board. (Signed.) WM. L. HOLCOMBE. Atlantic Avenue Railroad Company, (Signed.) By BENJ. NORTON, President. Employed Atlantic Avenue Railroad Company, (Signed.) JVAMES A. KELLY, Representing Elmployes and Exlerutive Bloard. EXHIBIT I. Brooklyn, N. Y., December, 1894. Agreement between the Atlantic Avenue Railroad Company of Brooklyn, and tihe employes of said company: First. That no conductor, motormani gripman or brakieman be required to work moire thian 10 hours per day, the work to be performed within 12 consecutive hours, as provided for by State law. Second. All conductors and miotormen going to work before 6:30 a. m. shall have not less than 20 minutes for breakfast, and not less than 30 minutes for dinner, and all conductors and motormen going to work after 6:30 a. m. and before 11:30 a. m., shall have at least 30 minutes for dinner and not less than 30 minutes for supper. Third. The titne-tables of Fifth avenue, Seventh avenue and Bergen street shall be made on. a three-qualrter and one-quarter basis and Fifteenth street, Vanderbilt avenue, Butler street, Hoyt street and Hicks street on a twothird and one-third basis, and no car shall pay less than $1.75 per day. Fourth. The cars to be cleaned inside and out by other than eonductors or motormen, so as to be ready for use the next day. Fifth. Scale of wages: Conductor, full-day car............................. $2 25 Motormen, full-day car.............................. 2 25 Truck-drivers, full-day car........................ 2 00 Car-cleaners..................................... 2 00 Lampmen.......................................... 2 00 Switchmen................................;........ 1 50 Snow plowmen..................................... 3 00 Sweepermen....................................... 3 00 Helpers on snowplows and sweepers.................. 2 00 Track laborers.................................... 1 75 Lever switihmen, per month........................... 50 00 And no other adult employe in or around the depot less thia $2 per day. Sixth. Conductors and motormen shall be relieved of aJl responsibility while ait their meals, and aJt suehi time there shall be a relief at all depots and a suitablle place shall be prvided at each depot where employes shall sit and eat B. 77 610 Seventh. When employes are suspended for any offense, they shall not be required to attend any charges unless paid for the time so lost. Eighth. Conductors and motormen are to have two jumps; during the fiscal year. For the first jump to lose his car for the space of five days; for the second to be platced at the bottom of the list; one jump for extras, and work to go, round the list as formerly. Ninth. All supplies necessary for the operation of the cars shall be furnished by the company. Tenth. Truck-drivers shall not be required to work more than 10 hours per day, inside 12 consecutive hours. Eleventh. The station maister or starter, or in his absence whosoever shall be in charge of the depot, may excuse employes for one or two days, and employeis shall be excused at any time on a good cause shown, provided there are extras to take their places. Twelfth. In all cases where cars are blocked on the road, or detained on the road by fire oir other unavoidable cause not the fault of the employe, the company shall make provision for giving the men their full meal-time, and the employes shall be paid as if ruining on the road. Thirteenth. That no, emplolye shall ibe,discharged or discriminated against because of his connection with any labor organization, and that the members of the grievance committee of the Local Assembly of the Knights of Labor, existing on any road, shall have the privilege of being excused from duty when the business of the organization requires it. Fourteenth. Should a car or other property of the company ort other vehicle or person, or property not belonging to the company, be damaged or injured, in any way, while said car is in charge of an employe, said employe upon furnishing the evidence of at least two reputable witnesses whose statements of the facts shall exonerate, he shall be declared: innocent of all blame and freed from expense, and a thorough examination, is to be made in all sutch clases, and if found innocent, to be paid for all time lots Fifteenth. Conductors and motormen shall go out on all days according to seniority. Sixteenth. All roads running from the different stations shall be combined and run as one road and all conductors and motormen shlall go up in seniority on these combined roads until they get a full-day car, getting through at 8 o'clock p. m., or sooner, when they shall stay on th'at road without further change and that at the Fifth Avenue depot, seniority shall begin with the first senior man and end with the last. 611 Seventeenth. When' any charges are made against an employe by any one not officially connected with the company, he may be suspended pending an investigation, which shall be made as soon as possible. In case the employe is found innocent of tkhe charges made, he shall be allowed for his lost time, after his name the words "guilty" or "not guilty" shiall aippear. Eighteenth. Extra work or overtime such as trips to ball grounds, railroad depots, or ferry, where cars have to wait to be loaded, shall be paid for at the rate of 30 cents an hour; extra trips by a regular man to be paid for at double trip-rate, the running of such trips to be optional with the employe after the man's day's work is over. Sand and salt cars to be operated by others thlan car-cleaner, such work to be paid at the rate of 30 cents per hour. Nineteenth. Any extra conductor or motorman who wishes to be excused from a steady man's car he is running, shkall receive the same privileges as the steady man. No extra shall be jumped unless work fall to him. The roll-call of extras shall be abolished. Twentieth. That when an extra falls to a steady man's car, he be allowed to hold said car until the regular man reports for work. Twenty-first. Conductors and motormen (except truckmen), who may leave their cars to take another position with the company, shall forfeit all claims to their cars after the lapse of three months. It is understood that. this privilege be extended' to the same employes only once for the same position. When any conductor or motorman is so excused, his name shall be posted on the extra list at 6 p. m., first for work shall be assigned for the run for 1he remainder of the week following, then after the second week the table shall be changed temporarily and the man entitled to the run shall be advanced and shall remain so until the man that is so excused reports for work. It is understood that if the man should report for work through the week he will then have the privilege of standing for work as first extra until the table can be changed. Twenty-second. The work of the trippers shall be performed within 12 consecutive hours; where trailers are run they shall be run according to law. Twenty-third. Thiat men shall be provided at the dfferent depots for the proper switching and dtabling of all cars and hatt the responsibility of conductors and motormen shall cease upon arriving at depot. Twenty-fourth. The dinner time to commenee as near 12 m. as possible: supper thne from 6:30 p. m., till 8:30 p. m. Twenty-fifth. If any employe be sent to another depot or 612 detained at his own depot in rush times or on Sundays he shall be paid at least $1.75, whether working or not, but shall report at his own depot in time to know whether he is wanted or not, except when it is to accommlodate the employes for picnics, etc., and that the company furnish each man so sent with meals. Twenty-sixth. Every time-table shall be posted ait 3 p. m., prior to the day it is to be run and if a man loses time through failure of not having it posted at 3 p. m., prior to the day it is to go into effect, he shall be paid for time so lost. Twenty-seventh. All supplies for the operation of cars such as controller handles, transfer tickets and punches, etc., shall be furnished by the company at various starting points or depots. Motormen shall not be held responsible for accidents resulting fron d(efctive controller handles, or cars that are charged which have been previously reported. Twenty-eighth. There shall not be more than one swing on any run on the table. Twenty-irinth. That Hicks and Sackett street cars shall not be required to run beyond the Bergen street depot on their run off trips. Thirtieth. That extras be assigned to work at 6 o'clock the evening before going to work. Thirty-first. That sand-boxes be provided on all cars. Thirty-second. That signs be placed on cars so that conductors may be able to turn them without having to stand on dash board. Thirty-third. That the air-brakes which are no longer used be remioved, as they render it difficult or impossible for conductors to put his trolley pole on the wire should it come off, without getti.ig down on the street. Thirty-fourth. An employe when suspended shall receive an immediate hearing. Thirty-fifth. All conductors and motormen iereafter shall be granted the privilege of purchasing and wearing any overcoat they may desire, with the understanding that they shall place the buttons of the company upon said coat, such overcoat to be presentable in appearance. Thirty-sixth. That the employes on their part hereby agree that obey all reasonable rules and regulations of the Atlantic Avenue Railroad Company, provided, of course, they do not interfere with the terms of this agreement, and hereby also agree to serve the company faithfully in all things, understanding that willful disobedience or insubordination will be punished by dismssal. EXHIBIT J. Agreement entered into this 5th day of July, 1894, between Messrs. Connelly, Donovan, Butler and Giblin, representing the empioyes of the Brooklyn, Queens County and Suburban Railroad Comppany, aand the Brooklyn, Queens County and Suburbuan I: iltoad: FihEt. Witnesseth: That the parties hereto covenant and agree and accept, and do approve and accept, the agreement en!,,led into the 24th day of March, 1894, between the Brooklyn }leiglts Railroad Company and its employes (copies of which are- ereto attached, and form a part of said agreement), namely, the agreement of 1893 and amendments thereto. Second. Clauses Nos. 3 and 43 of the agreement of 1893 before mentioned, are especially excepted from this agreement Third. It is further agreed that the following clauses and stipulations be added, namely: "'That time-tables be made for the year as follows, for the following lines: "Broadway, Reid and Sumner Avenues, the basis shall be two-tlhirds full-day cars and one-third trippers, and all addition;u to, or cars taken from the time-tables, munst leave the tables in this proportion." I'ourth. Ralph Avenue line is hereby excepted from the foregoing rule, and it is agreed that it shall be run upon the basis now in operation until the line shall be trolleyed and cars run through to Brotadway ferry, when the basis of this line shall be made and kept two-thirds full-day cars and one-third trippers. Iifth. Time-tables on the Cypress Hills extensions shall be operated as they are now, until the road shall be trolleyed and depots and terminal facilities arranged, when the table shall be numde two-thirds full-day cars and one-third trippers, if possible. Sixth. It is hereby agreed that on the Jamaica and Brooklyn roar! the cars shall be operated as they are now, until terminal faciiities and necessary changes in the tracks and stations of the line can be made, when the proportion shall be made two-thirds full-day cars and one-third trippers, if possible. Seventh. The agreemnt of 1893 on the North Second Street line, in relation to the proportion of the cars, is approved, namely, one-half trippers and one-half regular cars. 614 This agreement shall expire December 31, 1894. For employes of the Brooklyn, Queens County and Suburban Railroad Company: MARTIN J. CONNELLY,; E{ Chairman. JOHN J. BUTLER, D. J. DONOVAN, JOHN GIBLIN. The Brooklyn, Queens County and Suburban Railroad Company, by W. A. H. BOGARDUS. General Manager. COPY OF AGREEMENT OF 1894, BETWEEN THE EMPLOYES OF THE BROOKLYN HEIGHTS RAILROAD COMPANY, AND THE BROOKLYN HEIGHTS RAILROAD CO. Agreement entered into this 24th day of March, 1894, between Messrs. MlcIDoIald, Holcomb, Gaffney, Kelly and Sheerins, representing the employes of the Brooklyn Heights Railroad Company and the Brooklyn Heights Railroad Company. First. Witnesseth, That the parties hereto covenant and agree to accept, and do approve and accept, the agreement of 1893, between the employes of the company and the company, with the following modifications and interpretations. Second. Section 5,is modified as follows: That a man suspended for examinatioan may not be adjudged guilty by having his name posted; the company will agree when poating a man's name for suspension, to use ther expression "For inves'iogation," and affix the words " Guilty" or " Not guilty," as the officers of the company may decide after investigating the case. Third. The clause reinsta;tiing him and giving him hIs full pay if not guilty, as provided in the agreement of previous years, is a just and proper one, and prevents any injustice to emlployes. Fourth. Section 32 is modified to read as followls: Such extra work as watching holes in the street, wealshing cars or any other work less than one full day's work, shall be paid for at the rate of 30 cents per hour, not exceeding three hours. For more than one our, and less than an hour anda half's work, one and onehalf hours' time will be paid; and for more than: one and one-half hour, and less thlan two hoiurs' work. two lhours' time will be paid; and if they work one-half a day they shall receive one dollar 615 ($1) and after that at the rate of one do'lar and seventy-five cents per day ($1.75). Fifth. This section is modifed to read: All extra trips are to be run at the direction of the company and the option of the employes and such extra trips are to be paid for at double regular trip rates. Such extra trips are hereby defined as meaning trips in addition to the number of trips on the time-table then! posted, and in the event of the change to the time table, an addition of a trip shall not be deemed as an extra in this clause. Sixth. Section 35 should read: In case a conductor, driver or motorman wishes to lay off from his car after having commenced his daay's work, he may do so, provided there is an extra to take his place. The starter must give to each extra in order for worl., an opportunity of taking the said car, and the extra taking said car must complete the day's work at trip rate. Seventh. Special arrangement for Buishvick line is to read as follows: All steam and electriic lines conistrlrcted, and in opera, tion,;branbching from the Bushwick depot shiall be subject to this agreement. Men ishall be,assigned to runs on the Bushwi'ck line, and its branch roads, accordinig to seniority if competent; and on Sundays and holidays men from the Bushwiick line may be assiged to extra cars on these branch roads, foir which they shall receive the isame pay at least as if worling on their own run on the Bushwick line. Eighth. It is mutually agreed and stipulated that any employe failing to arrive 'at the depot in time to report to take his car out shall not be jumped between the hours of 3 and 7 a. m., provided he reason for his delay in arriving ait his 'depot is caused by the breaking down of a car, or the failure of power on the lile which terminates at 'his depot. It being un:derstood that such breaking down of al car or failure of Ipower is the cause of a delay to the car which would have brought him to his depot on time. The fact of the delay, the cause of it, and the place of the delay, a:s well as the fact that the employe was; on said car, must be,certified to by the conductof and motorman on the delayed} car immediately upon their arrival at the depot, as to the facts before stated. Ninth. It is further stipulated that it is left discretionary with the general manager to excuse any employe late at any time of the day, provided such lateness was caused by any general blockade on the line terminating at his depot, and, provided, that such blockade shall be of sufficient nature to cause his lateness. It being further understood that a report of all the facts must be made by the conductor and motorman of the car which is delayed.! 616 Tenth. It is further agreed, however, that it shall be the duty of any delayed employe, as heretofore specified, to report to the conductor and motorman on the car delayed by such blockade and thus causing the lateness of the employe before stated. It must be clear, however, that any delayed employe could not have reached his depot in time to take his car either by walking or taking other means of transportation, Eleventh. It is mutually stipulated that any of the provisions before Stated relative to jumps shall be terminated at the discretion of the president or general manager, upon the ground that such provisions were improperly taken advantage of by the employes. Twelfth. It is hereby mutually stipulated and agreed that this agreement and all the provisions therefor shall cease and terminate on the 31st day of December of this year. Witness our hands and seals, this 24th day of March, 1894. JOSEPH F. TMcDONALD, Chairman. VWM.. L. HOLCOMB, JAMES A. KELLY, MICHAEL GAFFNEY, MATTI EW SHEERINS, The Brooklyn Heights Railroad Company, By W. A. H. BOGARDUS, "i~ '~General Manager. Brooklyn, N. Y., December 22, 1892. Agreement between the Brooklyn City Railroad Company and the employes of said company, until Ja.nary 1, 1894: First. That no driver, conductor, motornan, brakeman or gripman shall be required to work more than 10 hours per day. The work to be performed within 12 consecutive hours, to be calculated in same manner as provided for year 1889. Second. All men getting to work before 7 a. m. shall have at least 20 minutes for breakfast, and 30 minutes for dinner, and all men going to work after 7 a. m. shall have at least 30 minutes for dinner, and as far as pessible, 30 minutes for supper, and if inot possible, to remain the same as 1892, which shall include night cars. All men going out after 7 a. m., shall not have the 2() minutes for breakfast, after 12 o'clock, noon, will not have the 30 minutes for dinner, and after 6 p. mn., will not have the 30 minutes for supper. It is understood that a margin of two minutes be allowed from above time when necessary, but in making 617 out time-tables where the margin of two minutes is used, the same number of runs shall be over the required time for breakfast, dinner and supper, as fhey are under the required time. Third. That time-tables be made on the following basis for year 1893: The number of cars run on all tables of December 1, 1890, shall be preserved on each table a list of same to accompany this agreement, except should the necessities of the business require a reduction in same, such reduction shall be made on a basis of three-fourth full-day cars, and one-fourth trippers, and in all cases no car on the table shall pay less than $1.50 per day; but for the purpose of enlarging the time-tables over those run on December 1, 1890, and which may be made and run after January 1, 1893, and thereafter, during that year, it is mutually agreed that the company may add trippers on any table to the number of two, without adding any additional straight runs, but when the third tripper is added, one additional straight 'run of full-day's work shall be added, then two more trippers may be added wilthoutl adding an additional straight run, but if the second third tTipper is p it on then an ddit o aa' strai ht run o full. day's work shall be added, and so on, until the timentables shall not exceed a basis of two-third Istraight runs of full day's work, and one-third trippers, the pay of which shall not be less than $1.50 per day. When trailer cars are run on Sundays and holidays, they will pay at least $1.50. This shall apply to all lines except otherwise specifically provided for. Fourth. Hostlers, hitchers, changers, harness-cleaners, carcleaners, nightmen, switchmen, towboys, and any other employe below the rank of starter, and not mentioned in section 1, shall not be required to work more than 10 hours per day, to be perfornmed within 12 consecutive hours, with an hour for breakfast and one hour for dinner. Fifth. That no employe shall be discharged or suspended without a good and sufficient reason being given to him or his representative, in writing, if requested, and when called into the office on any com plaint he shall have a full and impartial hearing, and if proved innocent, shall be paid for all time lost. Before an employe is suspended both sides of the case are to be heard, if practicable, before the suspension is enforced. Sixth. That the number of trips which shall constitute a day's work on each line shall not exceed, that which can be made in the hours provided for in sections 1, 2 and 3. Seventh. Scale of wages per day: Conductors, drivers, gripmen, motormen, truck-drivers, night-watch and head-changers, $2; hostlers, hitchers, changers, car-cleaners, switchmen and brakemen, $1.75; tow-boys and switch-turners, $1.25; snowplow and sweeper drivers, and first assistant on snowplow and sweepB. 78 618 ers, $3; helpers on plows and sweepers, $2.50; and no other employe around the depot shall receive less than $1.75. Snowplow and sweeper drivers, when not required for a full day, will be paid at the rate of $1 for three hours or less, $2 for six hours or less, and if they work over six hours, will be paid for full day. Helpers will be paid at the rate of 90 cents for three hours or less, $1.75 for six hours or less, and if over six hours, will be paid for a full day, but it is understood that if these snowplow or sweeper men are called after 12 o'clock, midnight, they will be paid at least for one full day. Eighth. Conductors and drivers will be relieved from all reapotnsibility while at meals, and at such times there will be a relief at all depots. Ninth. Truck and cart-drivers employed on cars shall not be required to work more than 10 hours per day, from time of reporting at depot, with one hour for dinner at the end of the first five hours, and shall receive $2 per day. Tenth. When nemployes are suspended from their regular position, they shall not be required to attend changes, unless paid for time lost. Eleventh. Conductors and drivers shall not be required to clean their cars or attend to fires, except when on the road, but it is understood that conductors will light fires when cars are out on the street. Conductors will keep their cars in a clean and orderly manner when in their charge; all supplies necessary for the operation of cars shall be furnished by the company. Twelfth. When four horses are required to a car, two drivers will be placed in charge. Thirteenth. Hostlers will not be required toi take care of more than 20 horses, and shall not be required to do any extra work, stowing of feed, hay and straw excepted, and not to carry meal upstairs. Fourteenth. Drivers shall not be required to hitch or unhitch horses. Fifteenth. All-night cars shall pay at least $2. Sixteenth. In all cases where a car is detained on the road, through fire or other unavoidable accident not the fault of the employes, they shall be paid as if running on the road. Seventeenth. That no employe shall be discharged or discriminated against because of his connection with any labor organization. Eighteenth. Should a car or other property of the company, while in charge of any employe, receive damage of any kind, he shall be exonerated from all blame and expense if found not liable for such damage, a thorough examination to be made 619 in all cases, and he shall; not be compelled to collect bill for damage, to cars, etc. Nineteenth. That no motorman or conductor be held responsible for the breaking or dislodgement of any of the electric mechanism, if proven not his fault. Twentieth. As conductors and drivers are excused their names shall be placed on a paper and posted when first out is through at each depot where it can be seen, and at 6 p. m. each day extras shall be assigned to their places. Twenty-first. That no extra conductor or driver shall be jumped unless work falls to him unless otherwise ordered to report; extras at Greenwood, Bush Street and Second Avenne depots will not be jumped if they are in the extra room, where excused list still be posted. Twenty-second. iStablemen who do not report in time to go to work, for first offense shall go to the bottom of extra list for two days; second offense, three days; third offense, five days, an3 fourth offense within six months shall lose their gang of horses. Any stableman who fails to report within one hour of his reporting time will lose his gang of horses unless excuse is sent as now arranged for conductors and drivers. Twenty-third, A tow-boy when taking the place of a regular man shall be paid the same rate as the man whose place he fills. Twenty-fourth. Conductors and drivers (except truck drivers), who may leave their cars to take another position with the company shall forfeit all claim to their car after the lapse of six months; when any conductor or driver is so excused, his name shall be posted on excuse list and at 6 p. m. first for work will be assigned to lthe run for the remainder of that week and for the week following, then after the second week has expired the table shall be changed temporarily and the man entitled to the run shall be advanced and shall remain so until the man that is so excused reports for work. It is understood that if the man should report for work through the week he will have the privilege of standing fcr work as first extra until the table can be changed. Twenty-fifth. On all week days conductors and drivers shall go out according to seniority on full Iday cars; on Sundays and holidays condluctolrs and drivers shall go out according to seniority on all straight work, irrespective as to whether a full day's work or not. Colnductors and drivers on. trippers' shall have preference of work on Sundays and holidays according to seniority. Twenty-sixth. That the men on the Greenwood division shall be placed on the linme-tables according to seniority and after being 620 so placed the lines shall be divided as follows: Third and Hamilton Avenues shall be considered together as one line. Court Street will be made a separate line, as well as the Second Avenue line will be separate. 'Twenty-seventh. All time-tables on Sundays and holidays shall be made with a wet-weather slip and shall ~be considered part of that table. In case said slips make swings of any straight runs such runs shall pay at least $1.50, in case the said slip takes off the first part of any run it shall pay at least $1.50, and in case the said slip takes off the latter part of any run it shall be paid for at trip-rate according to number of trips run, but it is understood that no wet-weaither slips shall make swings -f straight runs, if it is possible to avoid doing so. Twenty-eighth. If lamy employe be sent to another depoit in rush timles or omi Sundays he shall be paid at least $1.50, whether working or not, but shall report at his own depot in Itime to know whether he is wanted or not, except when it is to accimmnodate the employes for picnics, etc. Twerty-ninlh. Wrhoever shall be in charge of the depot dluring the day shall have power to excuse employes for one or two days and place them at work again. When an employe desires to be excused he shall be so excused until he reports for work, but must report before 6 p. m. of the day previous to going to work, he may report sick personally or by messenger representing him; but in no case will an employe be excused either by letter, telegram or telephone. In case of reporting by messenger any undue advantage is taken of this plan of reporting it will be discontinued. The nightman may excuse men on cars starting out between the time of lthe first car and the time the dayman arrives, provided extra men are at the depot to take their places; any employe when off sick and found working elsewhere will be discharged. Thirtieth. 'The starters at all depots shall designate on the tables when changes commence and when they end. When one run is inteiIded I o relieve another, the relief notice shall be written in red ink. Thirt —first. In all cases where cars are blocked on the road the company sh1all make provision so as to give the men their full meal-time as near as practicable. Thirty-second. All extra work shall be paid at the rate of 30 cents per hour; if more than one hour oir less than one and onehalf hours and less than two hours, two hours time will be paid. Extra trips to be rln at the option of the men. Such extra work as watching holes in the street washing cars, or any other work less than a full day's work shall be paid at the above rate of 30 621 cents per hour not exceeding three hours; half a day they shall receive $1, and over that at the rate of $1.75. Thirty-third. All time-tables shall be posted at 3 p. m. prior to hle day it is to be run and shall be submitted to the regular Authorized committee for approval before being run and they are to have possession of said table for 24 hours, as near as pow sible, and in case the committee wishes to refer the approval of time-tables to the executive boards it shall do so immediately, when the said board shall sign any table made in accordance with this agreement. All time-tables made out in! accordance with this agreement shall be signed and then shall be run, but if the depot committee wishes to submit any modifications of such tables they may do os, and if the headway of atrch modified table does not change or add to, the expense, then said modified table will be adopted, but until then the said table made by the company and approved as above shall run. All such modified tables must be made strictly in accordance with the agreement between the company and the men. Thirty-fourth. Failure on the part of the men to set their register, as provided for in the rules of the company, for first offense they shall be warned; second offense, be suspended for three days. Thirty-fourth. In case where a conductor or driver wishes to lay off for his own convenience after having commenced his day's work, he shall pay to the extra taking his car enough to make it $1.50 at least and first for work shall accept such work when it falls to him. Every man is allowed to lay off every fourth Sunday between November 1st and April 1st, if practicable. Thirty-sixth. When wet-weather tables are run on week-days all trips taken off shall be paid for as if run, and in making out wet-weatiher slips the first or last part of runs will be taken off as far as practicable. Thirty-seventh. The rate of work for feed-men be placed at 200 horses, and any more than that amount at any depot extra help will be provided to help mix feed. Thirty-eighth. That all regular men on Myrtle, Gates, Bushwick,. Tompkins and! Nostrand avenues, Lorimer, Crosstown, Union avenue, Bedford, East New York and Flatbush, and all the lines of Greenwood division are permitted to have twojummps during the fiscal year. First jump, suspended seven days; second jump, lose their car. It is understood that the extras onu thee lines will have only otne jumpa also if a regular mani falls off on Sundays or hblidaiys, and goes on the extra list, he shall be treated as a regular man in' regard to jumps. Thirty-ninth. That at Lorimer street depot there shall be a man to bring the teams to and from the cars during the sumer months. 622 Fortieth. On Sundays during the summer months when there are three or more cars on a steam train there will be an assistant at the terminus of the line to assist engineers, etc., if practicable. Forty-first. That extras on all the lines working after 11 p. m. shall be excused until 8 a. m. the next day, if possible, unless they are assigned for work the night before, but such extras shall ask to be excused until 8 a. m. and shall see their names posted on excused list. Particular attention must be paid to this section, and the men are to be accommodated as far as possible. Forty-second. That in case of changing from hose or steam power to electricity or cable system the men shall retain their positions and places according to seniority, if competent. Forty-third. Time-tables on Tompkins avenue line shall be made on a basis of three-fourths straight runs and one-fourth trippers when operated only to Atlantic avenue; when cars run through to Prospect park time-tables will be made on a basis of two thirds straight runs and one-third trippers on Nostrand avenue, Lorimer street, Meeker avenue and Grand street, twothirds straight runs, and one-third trippers; Union avenue, twothirds straight runs and one-third trippers. The Crosstown line will be made the same as 1890, except as provided for in section 3. Number of runs on tables, December 1, 1890: $'2 5cars.50 ca Greenpoint................................. 36 10 M yrtle avenue.............................. 28 9 Fulton street.............................. 42 9 Putnam avenue............................ 27 9 Court Street............................... 27 9 Furman street.................5.......... 5...... Buishwick avenue...................... 26 9 Nostrand avenue........................... 18 16 Crosstown................................. 58...... Grand street............................... 9 6 Flushing avenue..........................51 16 Gates avenue.............................. 45 14 Flatbush avenue........................... 36 12 Third avenue............................... 31 12 Hamilton avenue.......................... 11 Fort Hamilton............................. 14 5 Tompkins avenue.......................... 17 6 Lorimer Street............................. 8 8 M eeker avenue............................. 9 7 Union avenue.............................. 10 10 623 BLACKSMITHS. Firms Th'at no horseshoer shall receive less than $3.25 at me fire, and the met onl the floor, $3 per day. Second. That the hours of labor shall not exceed nine hours per day for five days, Saturdays eight, and Sundays seven, but if the hours per day named for the work provided for in the following sections shall not be sufficient the men are to continue the work until it is completed, without further compensation. Third. That the rate of work shall not exceed 100 horses per man for six days, and each additional 15 horses shall require a man one day per week extra. The foreman of each separate shop shall have power to work whatever help is required on Sundays, not exceeding the regular amount of help required through the week, nor less than half the amount, 'but if practicable the amount of help required 'on Sundays will be put on through the week by additional men, whose total pay shall not exceed the total amount paid if work was done on. Saturdays. Fourth. Any misunderstanding or dispute arising in any of the shops between the parties hereto under these arrangements shall be settled by arbitration!; the company shall have the right to select one arbitrator and the employes one and if the two so chosen shall fail to agree, the said arbitrators shall select a third arbitrator, and a decision of a miajority so chosen shall be binding and final upon the parties hereto. Fifth. That each man in the shops shall receive rasps every three weeks. Sixth. That whenever there is a vacancy in any of the shops it shall be filled by the first man entitled to the same, and in case of new men applying for positions,' their competency shall be left to the company. Seventh. The green horses shall be sent direct to the depots for which they are intended as far as practicable. Eighth. The men agree that they will not leave the service of the company in a body without giving the president two weeks' notice and the cotmpany agree to give like notice of any intention to depart from the foregoinig agreement All sections and pairts of sections of the agreements of 1887, 1888, 1889, 1890, 1891, and 1892, are hereby repealed' if inconsistent with this agreement, otherwise the terms, etc., 6f said agreements are to be considered as though they formed a part of the foregoing. 624 The foregoing agreement shall go into effect January 1, 1893, and continue until January 1, 1894. The Brooklyn City Railroad Co., By DANIEL F. LEWIS, President. Witness: J. C. CAMERON, Su)t. Accepted fo'r tlv- employes: ANDREW D. BEST, D. M. W., WILLIAM L. HOLCOMB, D. R. S., THOMAS J. COOPEY, THOMAS J. COLLINS, JOHN MANN, Executivie Board, D. A. 75, K. of L, EXHIBIT K. LIST OF STREETS UPON WHICH FRANCHISES HArVE BEEN OBiTAINEI) AND TH:E ROUTES OF WHI[ICIH THEY FOR)M PARTS. Solth Ninthl street, from Kent avenue to Marcy avenue; Rodney street, from Broadway to South Second street; South Second street, from Rodney street to Union avenue; Stagg street, from Ulnion avenue to IMorgan avenue; and Morgan avenue, from Stagg street to Johnson avenue: To form a part of Ihe present Greenpoint line, to rum as follows: From Newtown Creek Bridge to Commercial street, to Franklin street, to Kent avenue; thence to Soduth Ninth street; thence to Marcy avenue; thence to Broadway; thence to Rodney street; thence to South Second street; thence to Union avenue; thence to Stagg street; thence to Morgan avenue; thence to Johnson avenue. Wallabout street, from Clas!son avenue toi Rutledge street; Rutledge street, from Wallabout street to Broadway; Johnson avenue, from Broadway to Union avenue; Bushwick avenue, from North Second street to Meserole street; Maspeth avenue, from Kingsland avenue to Bushwick avenue; Kingsland avenue, from Paidge avenue to Maspeth, avenue; and Paidge avenue, from Oakland street to Kingland avenue: To be an extension, in part, of our Crosstown line, Oakland Street line and Greenpoint line, and to run as follows: Borden avenue and Vernon avenue. Long Island City, to Manhattan avenue; thence to Box street; thence to Paidge avenue; thence to Kingsland avenue; thence to Maspeth avenue; thence to Bushwick avenue; tLhence to Meserole street, thence to Union avenue; thence to Johnson avenue; thence to Broadway; thence to Rutledge street; thence to Wallabout street; thence to Classon avenue; thence to Flushing avenue; thence to Navy street-; thence to Sand street; thence to Brooklyn Bridge; and by transfer from the corner of Classon and Flushing avenues, th.rough 'Classon avenue to 'Myrtle avenue; through) Myrtle avenue to Fulton street; through Fulton street to Fulton Ferry. Fresh Pond road, from Jamaica plank road to Grand street (Newtown): B.. 626 Prom Jamaica plank road through Fresh Pond road, to Lutheran crossing; thence by transfer to Bowery Bay line to Bowery Bay and Flushing. Jefferson street, from: Broadway to Central avenue; Melrose street, from Broadway to Flushing avenue; Broadway, from Melrose street to Myrtle avenue; Central avenue, from Flushing avenue to Jefferson street: An extension of the Myrtle Avenue line; also the Flushing Avenue line and the Grand Street line, from Bowery Bay to City Hall and Fulton Ferry, by way of Bowery Bay route to Grand street; from Grandi street to Flushing avenue; from Flushing avenue to! Melrose street; thence by single track through Melrose street to Broadway; thence to Myrtle avenue; with a supplementary single track through Central avenue to Jefferson street, to Broadway and Myrtle avenue; through Myrtle avenue to Fulton street; through Fulton street to Fulton Ferry. Throop avenue, from Park avenue to Myrtle avenue: An extensiojn of the Union Avenue line, continuing its present route to Throop and Park avenues; thence through Thrcop avenue to Myrtle avenue; throuigh MIyrtle avenue to Ridgewood. Raymond street, from Willoughby street to Fulton street to Navy,st-reet, fron' WNillonahll- y s-reet to Fulton street: An extension of thie Crosstown line for the convenience of passengers wishing to reach the shopping district. Malbone street, from the city line, below New York avenue, to the city line above Albany avenue; East New Yoik avenue, from the city line to Fulton street: An extension within the city of Brooklyn of the county buildings line in Flatbush, which will be operated from Prospect Park through Malbone street in Flatbuls and in.the city of Brooklyn, to East New York avenue to Fulton street. Division avenue, froim Roebling l street to Kent avenue: An extension of the Nostrand Avenue line to relieve the congested condition of Broadway, we would run the Nostrand Avenue line through its present route from Prospect Park, through Malbone street to Nostrand avenue; thence to Lee avenue; thence to Division avenue, to Kent avenue; thence to Broadway Ferry. Clypner street, fron Washington avrenue to Division avenue: To form a part of the Orosstown line so as to make a more direct route from Washington and Kent avenues, through Clymer street to Driggs avenue, through Driggs avenue in continuation of the Grosstown line. Halsey street, from the city line to Broadway: A contiutation of the Halsey Street line through Fulton street to Putnan avenue; thence to Nosttand avenue; thence to fEalseey street; thence to Broadway; thence to the city line. 627 Howard avenue, from Br~adwa~y to Fulton street: A continuation of the branch of the Gates Avenue line noGw stopping at Broadway; thr, ough Fulton street to Greene avenue; themce to Franklin avenue; thence t o Gates avenue; thenee to Broadway; thence, to Howard avenue; thence to Fulton street;. thence to East New York. Wilson street, from Division avenue, to Kent avenue; Water-,bury street, from (iraud street to' Johnison avenue: An extension of the Greenpoint line, the Tompkins Avenue line, the -Union Avenue lineS the Bushw~ick Avenue line and the Grand Street line, to be operated as follows: From Fulton Ferry through Fulton street.; thence to Myrfie avenue; thence to. Clasxon avenue; thence to Wilson street; thlence to Division avenue; thence to Harrison avenue; thence to Broa-dway; thence, to Johnson avenue; thence to Union avenue; thence to MWeserole' street; thence to Bushwick. avenue; thence- to Stagg street; thence to Waterbury street; thence to Grand street; thence to the 'city line.I Morr~ell Street, from Busliwick avenue to Flushing avenue; Beaver street, from Flushing to Ellery street; Ellery street, from Beaver street to B'roadway; Broadwa-y, fom, Ellery street to Lewis avenue; Lewits avenue, from Broadway to, Fulton street: An extension of the Fulton Strueet line and of the Busliwick Ave-nue linefrom East New York-through Fulton street to Lewis avenue; thence to Broadway; thence to Eliery street; thence to Beaver istreet; thence to Flushing avenue; thence tol Morrell street;. thence to Busliwick avenue; thence to Maspefit avennue; thence to Kin~gsland avenue; thence to Paidge avenue; thence to Box street; the-nce to. Manhattan avenue. Forty-ninfth street: An extension of the Thirty-nin-th Street line from Thirty-ninth street ferry through Thirty-ninth 'street to Third avenue; thence to Forty-nifnth street. Bainbridge'street, from Sumner avenue to Broadway: An extension of the Fulton Street Fine, from Fulton Ferry thirough Fhilton street to Sumner avenue; thence to Bainbridge street; thence to Broadway. Laurel Hill boulevard, Thompson a-venue, Jamaica road, Hoff. man. boulevard, Trotting Couxrse lane: From ferries foot of Gireenpotiut avenue, along Greenpoint a-venue to Mnnhattan Pvenue, to Nassau avenue, to Varick avenue, to Meeker avenue, to Laurel Hill boulevard, to Thompson avenue, to Jamaie~a road, to Hoffman boulevard, to town of Jamnalca,_ alternating cars or by transfer at Trotting Cou~rse lane-a'nd 6(28 Jamaica road, along Trotting Oonurse lane to Myrtle avenue; also by transfer at B:roadway and Thompson avenue by way of Grand Street line to iownery Bay and Flushing. Transfers at Nassau and Maihattan avenues would give transportation to Long Island City, and thence to Thirty-fourth street, New York city, or Brookl. y, by nmleans of Crossttown line. Shell road, Flushing and Newt'own road: Prom fer'ries foot of Broadway, Brooklyn, by way of Meeker avenue route to Newtown creek; thence by Laurel Hill boulevard to Shell road, to Flushing and Newtown road, to Jackson avenue; thence by right of way yet.to be acquired or by traffic arrangement with Gleason's system to Flushing. The original route included Jackson avenue in the application, but at: the hearing it was necessary to withdraw this street; or fail to receive grant of any. This was done as we intended to enter intol Flushing by route over Strong's Causeway. Strong's Causeway, Ireland Mill road, Grand avenue, Summit avenue, Newtown aven;ue, Caronai avenue, Carona park: From Fulton Ferry, through Fulton street to Myrtle avenue, to Melrose street, to Flushing avenue, to Grand street, to Broadway, to Union avenue, to Newtown avenue, to Carona avenue, to Carona plark, to Strong's Causeway. to Ireland's Mill road, to village of Flushing. It was intended to reach village, of Flushing by continuing along Union avenue fronm the point to which it is at present constructed io Granrd avenue. to Sulnmit avenue, to Jackson atvenue, and soluth to Flushing; but a. route along Jackson avenue having been denied, plans were changed in accordance with route abov.e stated. A route through the village of Flushing has not yet been acquired. Betts avenue: To be used as stand for cars running only as far as New Calvary cemetery. Remsen avenue, Avenue N, East Ninety-third street: By continuous route over Flatbush line to Malbone street, to Remsen avenue, to East Ninety-third street, to Jamaica Bay, with transfer from East New York by line over East New York avenue to Junction of Rni(nsen and East New York avenues. Nostrand avenue, Vernon avenue: Extension of present Nostrand Avenue line aind to replahce County Buildings line, which now rmns over Old Clove road, which is to be declared closed. Avenue C, Coney Island avenue, Avenue E, West street, Sixteenth avenue, Forty-ninth street: For a line from Thirty-ninth street ferry to Canarsie beginning at Thirty-ninth street ferry, through Thirty-ninth street to 629 Third avenue, to Forty-ninth street, to Sixteenth avenue, to Fortieth street, to West street, to Avenue E, to Coney Island avenue, to Avenue C, to Remsen avenue, to Avenue N, to East Ninety-third street, to Jamaica Bay. Flatbush avenune: Extension of Flatbush Avenue line tol Avenue U. Flatlands avenue and King's highway: To be used ais Crosstown linke from Gravesend bay to Canarsie; also as portion of Coney Island route, when grants in Gravesend are secured. Island avenue, Avenue N, East Seventy-sixth street: Route to conniect Flatbush Avenue line with Bergen Beach. Second avenue, Sixty-sixth street, First avenue, Marine avenue: Thirty-ninth street ferry, through Second avenue to, Sixtysixth street, to First avenue, to Marine avenue, to Third avenue at Fort Hamilton. **, EXHIBIT L. THE BROOKLYN CITY RAILROAD COMPANY TO TH]V BROOKLYN HEIGHTS RAILROAD COMPANY- LEASE.DATED FEBRUARY 14, 1893. This indenture, made the 14th day of February, 1893, between the Brcoklyn City Railroad Company, ia domestic corporation, duly incorporated under the laws of the State of New York, party of the first part, and hereinafter designated as the lessor, and the Brooklyn Heights Railroad Company, a domestic corporation, also dully organized under the laws of the State of New York, party of the second part, and hereiniafter designated as the lessee; WVhereas, The parties hereto, the lessor and the lessee, are street surface railroad corporations, duly organized and existing under the laws of the State of New York, and are each engaged In operating street surface railroads in the city of Brooklyn, county of Kings and State of New York; Now, therefore, this indenture witnesseth: Tint the lessor and the lessee, for and in consideration of the sum of $1, each to the other in hand paid, the receipt whereof is hereby acknowledged, and for and in consideration of the covena:nts and agreements hereinafter contained on the part of each to be kept and performed, and other valuable considerations, have agreed as follows: I. The lessor hereby grants, demises and leases unto the lessee and its successors all and singular the railroad and railroads owned, constructed or operated by the lessor in the city of Brooklyn, in the county of Kings or in the conmty of Queens, in the State of New York. Beginning at a point at or near Fulton ferry; thence through, along, over acd upon Fulton street to Alabama avenue; thence through, along, over and upon Alabama avenue to At.lantio avenue. Fron the intersection of Sands and Fult;n streets, through, along, over and upon Sands street to Navy street; thence through, along over and upon Navy street to Fluslhiing avenue; also from the intersection of Hudson avenue, through, along, over and upon Hudson avernue to Flushing avenue; thence through, along, over and uron Fluishing.;venue to Me.ropolitan avenue in the twn of 631 Newtown; also from the intersection of Flushing avenue, Broadway and Graham avenue; thence through, along, over aArd upon Graham avenue to Van Cott avenue; thence through, along, over and upon Van Cott tavenue to Manhattan aveue; thence through, along, over and upon Manhattan avenue to the Newtown Creek bridge. Beginning at a oint at or near the Newtown Greek bridge and Vernon avenue in Long Island City; thence through, along, over and upon Vernon avenue to Borden avenue; thence through, along, over and upon Borden avenue to Ferry street; also from the intersection of ilox street and Manhat,;an avenue; thence through, along, over' and upon Box street to Oaklandd street; thence through, along, over and upon Oakland street to Van Cott avenue; thence through, along, over and upon Van Cott avenue to Graham avenue; also from the intersection of rnion avenue and Van Cott avenue; thence through, along, over and upon 'Union avenue to Broadway; thence through, along, over and upon I;roadway to Throop avenue; thence through, along, over and upon Throop avenue to Park avenue. BeginnilngI at the intersection of Diiggs s'reet and Broadway; thence hllrouglI, along, over and upon Driggs street to Van Cott avenue; thence through, along, over and upon Van Cott avenue to Manhattan favelime; also from the intersection of. Bedford avenue and Broadway; thrvnce throvrgh, r o'ng, over and ur on PT'e:fo.: d avenue to Vdn Cott aven-e; thence h: ough, alorg, ( ver and upon lan Cott avenue to IDriggs street. Beginning at a point at or near Erie basin; thence through, along, over and up(;n Ficliards! street to, Woodhull stieet; thence through, along, over and upon Woodhull street to Columbia street; also from a point at or near South Ferry; thence through, along, over and upon Atlantic avenue to Court street; also from the intersection of Court and Joralemon streets; thence through, along, over and upon Joralemon street to Willoughby street; thence through, along, over and upon Willoughby street to Raymond street; thence through, along, over and upon Raymond street to Park avenue; also from the intersection of Navy and Willoulghby streets; thence through, along, over and upon Navy street to Park avenue; thence through, along, over and upon Park avenue to, Washington avenue. 'Beginning at the foot of Greenpoint avenue; thence through, along, over and upon Greenpoint avenue to Calvary Cemetery, in the town of Newtown. Beginning at the intersection of Lee avenue and Gwinnett street; thence through, along, over and upon rGwinnett street to Lorimer street; thence through, along, over and upont Lorimer f 632 street to Nassau avenue; thence through, along, over andi upon Nassau avenue to Manhattan avenue; also from the intersection of Manhattan avenue and Meserole avenue; thence through, along, over and upon Meserole avenue to' Franklin street. Beginning at the intersection of Broadway and Driggs street; thence through, along, over and upon Driggs street to, Division avenue; thence through, along, over and upon Division avenue to Lee avenue; thence througll. along, over and upon Lee avenue to Nostrand avenue; thence through, along, over and upon Nostrand avenue to Malbone street (in the town of Flatbush); thence through, along, over and upon Malbone street to Flatbush avenue; also from the intersection of Malbone street (in the town of Flatbush) and Nostrand avenue; thence through, along, over and upon Malbone street to Clove road; thence through, along, over and upon Clove road to Clarkson street; thence through, along, over and upon Clarkson street to, East Thirty-seventh avenue; thence through, along, over and upon East Thirty-seventh avenue to Canarsie lane. Beginning at a point at or near the foot of Grand street; thence through, along, over' and upon Grand street to Newtown creek; thence through, along, over and upon Grand street (in the town of Newtown) to the Flushing turnpike; thence upon and along said turnpike to the station of the North, Shore branch of the Long Island railroad. Beginning at the intersection of Grand and Humboldt streets; thence through, along, over and upon Humboldt street to Meeker avenue; thence through, along, over and upon Meeker avenue to Newtown creek. Beginning at the intersection of Myrtle avenue and Fulton street; thence through, along, over and upon Myrtle avenue to Ridgewood Park, Queens county. Beginning at the intersection of Greene avenue and Fulton street; thence through, along, over and upon Greene avenue to Franklin avenue; thence through, along, over and upon Franklin avenue to Gates avenue; thence through, along, over and upon Gates avenue to Myrtle avenue. Beginning at the intersection of Myrtle avenue and Wyckoff avenue; thence through, along, over and upon Wyckoff avenue txo Willow street, in the village of Evergreens, town of Newtown; thence through, along, over and upon said Willow street to Ridgewoodc Park, town of Newtown. Beginning at the intersection of Putnam avenue and Fulton street; thence through, along, over and upon Putnam avenue to Nostrand avenue. Beginning at the intersection of Nostrand avenue and Halsey 638 street; thence through, along, over and upon Halsey street to Broadway. Beginning at a point at or near the foot of Broadway; thence through, along, over and upon Broadway to Roebling street; thence through, along, over and upon Roebling street. to Division avenue; thence through, along, over and upon Division avenue to Haritson avenue; thence through, along, over and upon Harrison avenue to Tompkins avenue; thence through, along, over and upon Tompkins avenue to Fult.on street. Beginning at the intersection of Kingston avenue and Fulton street; thence through, along, over and upon Kingston avenue to Butler street. Beginning at the intersection of Broadway and Bedford avenue; thence through, along, over and upon Bedford avenue to South Fourth street; thence through, along, over and upon South Fourth street to Meserole street; thence thlrough, along, over and upon Meserole street to Bushwick avenue; thence throuigh, along, over and upon Bushwick avenue to Myrtle avenue. Beginning at the intersection of Flushing and Knickerbocker avenues; thence through, along, over and upon Knickerbocker avenue to Myrtle avenue. Beginning at the intersection of Cypress and Myrtle avenues; thence through, along, over and upon Myrtle aveune to Jamaica turnpike. Beginning at the intersection cf Flaltbush. avenue and Fulton street; thence through, along, over and upon Flatbush avenue its entiere length to a point 200 feet southeast.of Vernon avenue in the town of Flatbush; thence through and along Flatbush avenue toi King's' highlway. Beginning at the intersection of Flatbu.-sh and Third avenues; thence through, along, over and upon Third avenue its entire length in the city of Brooklyn and the town of New Utrecht to Fort Hamilton in the townl of New Utrecht. Beginning at the inters ection cf Court and Fulton streets; thence through, along, over and upon Court street to Hamilton avenue. IBiminig' at a poiint at O' n!oinr Hanmilton Ferry; thence through along, over and uipon Hamilton avenue to Third avenue. Beginning at the intersection of Twenty-fourth street and Third avenne; thence through, along, over and upon Tweenty fourth!street to Fifth avenue; thence through, along, over, and upon Fifth avenue to Twenty-fifth street; thence through, along, over and upon Twenty-fifth street to Third avenue. Beginningat a point at or near Fulton Ferry; thence thto'mgh, allong,, oveir:aind n!ipon, PFrnmain stTret to Atlantic a.veniue; thence 634 tharough, along, over and upon Atlantic avenue to Columbia street; thence through, along, over and upon Columbia street to Sackett street; thence through, along, over and upon Sackett street to Hamilton Ferry. Beginning at the intersection of Classon and Myrtle avenues; thence through, along, over and upon Classon avenue to Kent avenue; thence through, along, over and upon lKent avenue to Franklin street; thence through, along, over and upon' Franklin street to Comniercial street; thence through, along, over and upon Commercial street to MAanhattan avenue; also from the intersection of Myrtle and Washington avenue; thence through, along, over and upon Washington avenue to Kent avenue. Beginning at the intersection of,Palm!etto street and M-rtle avenue; thence thro:ugh, along, over and upon private property to Myrtle avenue; alsol from the intersecticn of AIyrtle and Cypress avenues; thence thiough, along, over and upon Cypress' avenue to the westerly entrance to Cypress Hil's Cemetery; also from the intersection of Palmetto street and Myrtle avenue thence through, along, over and upcn private property to, Metropolitan avenue in the town of Newtown. Beginning at the intersection of Sixtieth street and Second avenue; thence through, a'ong, over and upon Second avenue and Sixty-fifth street; thence through, along, over and upon Sixtyfifth street to Third avenue. Beginning at the intersection of Third and Bay Ridge avenues, in the town of New Utrecht; thence through, along, over and upon Bay Ridge avenue to ThirteenthI avenue; thence through, along, over and upon Thirteenth avenue to Eighty-sixth street; thence through, along, over and upon Eighty-sixth street to Twenty-fifth avenue; thence through, along, over and upon Twenty-fifth avenue to Gravesend Bay. Beginning at Third avenue and Thirty-ninth street; thence along Thirty-ninth street to Second avenue; thence along Second avenue to Sixtieth street Together with all stands, switches, turnouts, turn-tables, connected with or appurtenant to said railroad and railroads, and all extensions of and branches from said railroads now owned, constructed or operated, or that may hereafter be owned, constructed or operated by the said lessor, and all and singular the emoluments, revenue, income, rents, issues and profits of said railroads and extensions and branches. Also all and every franchise, right and privilege to construct or operate said railroad or railroads, or any railroad or railroads now constructed or operated by the lessor, or that may hereafter be constructed or operated by or on behalf of the lessor upon 635 any portion of the line or route of railroad of the lessor, or any extension or extensions thereof, or branch or branches therefrom. Also all the lessor's right, title and in'terest in and to all and singular the several pieces or parcels of land occupied or used in or for the construction or operation of any portion of said railroad or railroads of the lessor, and in and to all streets, highs ways and public places in or on which the track or tracks of said railroads are located. Also all real estate, and every interest of every nature in and to real estate, together with he buildings and improvements thereon and the appurtenances thereto, situate in either of said counties of Kings or Queens, now owned by said lessor or leased to it, or which may hereafter be owned or leased by said lessor or acquired by it; subject, however, to the conditions contained in the conveyances and leases to said lessor. Also all and every franchise, right, privilege and easement, of whatsoever kind or nature now or hereafter owned, possessed or exercised' by said lessor, or to M hich it may be or Lec' me entitled, as respects the construction, maintenance or operation of the said or any railroad or railroads now or hereafter owned, leased or operated by it in either of the said counties of Kings and Queens. Also all and every franchise, right, privilege and easement of whatsoever kind or nature now owned, posesssed or exercised by said lessor, or which may hereafter be owned, possessed or exercised by said lessor, or to which it may be or become entitled under and by virtue of any act of the Legislature of the State of New York, or any contract or agreemenrt between it and the city of Brooklyn, or by said city, or any grant made by the common council of the city of Brooklyn, or by said city, or by any resolution of the common council of the city of Brooklyn, or under or by virtue of any authority whatsoever authorizing said lessor or its grantors or assignors, to construct, maintain or operate a railroad in, over, upon or along or across' any portion of any street, avenue or highway or public place, in the said city of Brooklyn, or in the said counity of Queens, by whatsoever name said street, avenue, place or highway may now or hereafter be known. Also all and every franchise, right and privilege which said lessor now has or may hereafter acquire to extend the route of its railroad or railroads, or to construct a branch or branches therefrom, or in any manner connected with the construction, maintenance or operation of any extension or branch. Also all and every franchise, right, privilege and easement of whatsoever kind or nature now owned, possessed or exercised 636 by said lessor, or which may hereafter be acquired by it, or to which it may be or become entitled under or by virtue of any oon'tract or agreement between it and any person or corporation for the use of the railroad or railroads, track or tracks, or any portion thereof, belonging to such person or corporation; subject, however, to the conditions of such contracts or agreemenits. Also all horses, harness, cars, locomotives, engines, tools, implements, machinery, railroad equipments, power stations, electrical appliances and equipments, stable equipments and fixtures, office furniture and office fixtures, and all other property of whatsoever kind or nature except money, credits and securities, acquired, owned or possessed by said lessor for use in the construction, maintenance or operation of said demised railroad or railroads and properties, or in extension of branch thereon, or which may hereafter be acquired by said lessor for such use. Saving and excepting from this grant and lease the franchise, right and privilege of the lessor to be a corploration and necessary for its continued existence and organization as such. To have 'and to hold the said railroad and railroads, real estate, improvements and appurtenances, franchises, rights, privileges, easements and grants, and personal and other property hereinbefore described unto the said lessee and its successors for and during the term of nine hundred and ninety-nine (999) years from the date this lease shall take effect. II. 'he lessor covenants and agrees that the lessee shall, during the term by this lease demised and during any extension or extensions thereof, peacefully and quietly enjoy the franchises, rights, privileges and easements, railroad, railroads, real estate and properties herein demised, without let or hindrance from the lessor, or from any person or corporation whatsoever claiming under or through the lessor. III. 'The lessor further covenants and agrees that it will, at any time, upon the reasonable request and at the cost and expense of the lessee or its successors, execute, acknowledge and deliver to the lessee or its sccessors, any and all such other or further instruments and assurances in the law for the better granting, demising and securing tot the lessee or its successors said franchises, rights, privileges, easements, railroad and railroads, real estate and property by this lease granted and demised or intended so to be, which it, the said lessee or its successor or successors, or its or their counsel learned in the law shall reasonably advise, devise or require. IV. The lessor further icovennantsl land agrees that all moneys, credits or securities on hand at the date this lease shall take effect, less the amount required to pay and discharge the 637 inudebtedness, obligations and liabilities of the lessor as of that date other than its bonded indebtedness upon bonds issued or assumed by it, and less the amount of its surplus earnings diminished by a pro rata amount of accrured interest and accrued rentals agreed to be paid by the lessor and a pro rata amount of taxes for the current year estimated upon the amount of the taxes for the preceding year, shall be used, applied and expended by the lessor in payment, at the request of the lessee, from time to time of the cost of converting the railroads of the lessor into an electric railrolad, or into any other kind of railroad authorized by law, which shall be approved of by the lessor and lessee, and if said moneys, credits and securities be not required for such purpose, then they shall be expended in the payment as aforesaid of the cost of additions, improvements, extensions, branches and equipments of the said railroads and propertie of the lessor, other than those necessary to keep said railroads and properties in good condition and repair and other than those necessary to preserve or secure efficiency in the operation of said railroad or railroads. Provided, however, that the lessor shall pay and discharge its said indebtedness other than its bonded indebtedness and its liabilities assume by the lessee, as of the date when this lease shall take effect, and also' the said pro rata amount of accrued interest upon its said bonded indebtedness and of its rentals and shall pay over to the lessee udpon demand the said pro rata amount of taxes for the current year, estimated as aforesaid. V. The lessor further covenants and agrees to issue three million dollars ($3,000,000) of its ocapital stock now unissued, but authorized to be issued, within six months after the delivery of this lease, and to sell and dispose of the same at par, and:lso to issue three million dollars ($3,000,000) of its bonds, now unissued, but authorized to! be issued, which said bonds shall be issued from 'tme to time, as requested by said lessee, and shall be sold or disposed of for the highest price bid or offered thterefor, and the proceeds of said stock and bonds, less any premium realized or received on the sale of the said bonds, shall be expended by the lessor in payment, at the request of the lessee, from time to time of the cost of converting the railroads of the lessor into an electric railroad or into any,other kind of railroad authorized by law, which shall be approved of by the lesser and lesee, and if all of such proceeds be not requiredi for suk. purpose, then any balance shall be expended by the lessor in payment as aforesaid of the cost of such additions, improvemens, extensions, branches and equipments to the said railroads and pMperties of the lessor as in its judgment and in that of the 638 lessee shall be necessary or advantageous to the property of the lessor or the interest of the lessee, other than those necessary to keep the said railroads and properties in good condition and repair, and other than those necessary to preserve or secure efficiency in the operation of said railroad or railroads, and it is agreed that all expenses incident to the issue, sale and disposition of said stock and bonds shall be borne and paid by said lessee. VI. The lessor further covenants and agrees that it will, at least six months before the date fixed for the redemption or payment of any bonds issued, authorized to be issued or assumed by said lessor at the date this lease shall take effect, issue at the iighest price obtainable therefor a new series of bonds, secured by mortgage or mortgages covering, if necessary, all its franchises, rights, privileges and property, of whatsoever kind or nature, which said mortgage or mortgages shall be for an amount equal to, but not greater than, the principal of the bonds to be redeemed and paid, and which said new or renewal bonds shall bear the lowest rate of interest at which the same can be sold or disposed of at par, and that the said lessor will, from time to time, during the continuance of this lease, issue bonds in renewal of outstanding bonds falling due secured by a like mortgage or mortgages covering property of the lessor upon like terms and conditions; all expenses incident to the making of any sub-mlortgage and the issue, sale and disposition of any such bonds shall be borne and paid by the lessee. The lessor further agrees that it will apply the proceeds realized upon the sale of said bonds, in the payment and redemption of the bonds falling due, andi in renewal of which they were issued and not otherwise, and that it will credit any surplus of the proceeds realized on any such issue of such bonds on account of rent due or thereafter to become due to the lessor from the lessee under the terms of this lease. The lessor hereby covenants and agrees to apply from time to time, in discharge of the interest falling due upon any bonds made or assumed by it, the moneys paid by the lessee as rent on account of said interest. VII. The lessor further agrees that the amount of annual rental hereinafter.stipulated and agreed to be paid by the lessee shall, after the issue of any new bonds in renewal or redemption of old bonds, be reduced in an amount equal to the reduction of the annual interest effected by the redemption of outstanding bonds by the issue of new bonds in lieu thereof, at a lower rate of interest VIII. The lessor further covenants and agrees that the lessee may collect and receive to its own use all rent falling due, sub 639 sequent to the date this lease takes effect, under or by virtue of any lease, contract or agreement, except this lease, between the lessor and any person lor corporation for the use of theb track or tracks of the said railroads or any portion thereof, belonging to the lessor, or for the use or occupation by any person or corporation of any property mentioned in this lease or covered by its terms or intended so to be. And the lessee agrees to account and, pay over to the lessor so much of.the said rent as shall have accrued prior to the said date. IX. The lessor further covenants and agrees that it will use every effort to maintain and preserve its corporate existence and organization during the continuance of this lease, and will take any and all proceedings authorized by law for the extension of its charter or charters, and that it will endeavor to obtain the right to construct such extensions of the route of its railroads and such btancih or branches therefrom as shall be approved by the lessor and lessee, and to that end will take such proceedings as may be authorized by law; the expense of all proceedings for obtaining such extensions of its charter or charters and of all proceedings for obtaining the right to construct such extensions and branches of the route of its railroads shall be borne and paid by the lessee. X. The lessor further covenants and agrees that in the event of the expiration of this lease, or other sooner termination thereof, it will pay to the lessee the actual cost of all property, extensions, branches, additions, improvements,and equipments, made, acquired and paid for by said lessee out of its own funds for use in connection with the operations of the railroads of the lessor, less the cost of such part thereof as was required to preserve said railroads, extensions, additions, improvements and equipments in good repair and serviceable condition, and less the cost of such part thereof as was necessary to preserve and secure efficiency in the operation of said railroad. XI. The lessor agrees to transfer and deliver to the lessee at the date this lease shall take effect all supplies and materials then on hand for use in connection with the construction, mainm tenance or operation of said railroad, upon payment by said lessee to the lessor of the cost price thereof, which payment the lessee promises and agrees to make upon such transfer and delivery. XTI. The lessor covenants and agrees that the lessee shall have the light from time to time to sell and dispose of all horses, cars and materials which shall not be required for further use in the construction, maintenaince and operation of said railroads by reason of the conveTisao of the said railroads from a horse 8r rsteam 640 I railroad, into an electric railroad, or such other kind of railroad as may be approved by the lessor and lessee, and to apply the proceeds realized upon any such sale to the construction of such extensions, branches, additions and equipmeInLs of said railroads as shall be approved by the lessor, and not otherwise, which said extensions. branches, additions and equipments shall be the properly of the lessor. XIII. The lessor hereby constitutes and appoints the lessee its att!crney and agent, with full power and authority to, institute any suit or proceeding in the name and stead of the lessor for the collection of any rents payable or falling due to ihe lessor as aforesaid subsequent to the date this lease shall take effect, and with full power and authority to institute and conduct any and all condemnation proceedings which may be necessary, the expenses of all which suits and proceedings are to be borne and paid by the lessee. XIV. The lessee hereby leases and hires from the lessor the said iaillroad and railroads, franchises, rights, privileges, easements, real estate and properly hereinbefore mentioned, desc ibed and demised, for and duritng said term of 999 years from the date this lease takes effect, and upon the terms and conditions in this lease expressed, and agrees to pay to the lessor therefor an annual rental, which rental shall be at the rate of 10 per cent. net per aninum upon the capital s'ock of the lessor from time to time outstanding, *not in excess of twelve million dollars ($12,000,000), and also agrees to pay to the lessor during the said term as additiioial rental the interest on the bonded! indebtedness of the lessor upon bonds issued or assumed by it, at any time outstanding, not in excess of six million nine hundred and twentyfive-thonsand dollars ($6,925,000), and to make such payments as follows: The rental equal to 10 per cent. net per annum on the capital stock of the lessor, as hereinbefore provided, shall be paid quarterly on the first day of July, October, Januiary and April, in each and every year. T1'.- rental eqnual to tllhe interest on. the bonded indebtedness of the lessor on bonds issued or assumed by it shall be paid by the lessee to the lessor from time to time at least five days before the semi-annual interest shall become due and payable by the terms of said bond respectively. The lessee also covenants aad agrees to pay to the lessor durinug ite term herein demised as rental the interest on all bonds at any time hereafter outstanding issued by the les!sor, not in excess of $6,925,000, either in renewal or extension of, or for the purpose of the redempion, payment or discharge of the said bonds issued or assumed' by said lessor, and to make such payment to 641 the lessor at least five days before the semi-annual interest shalk by the terms of said bonds respectively become due and payable.. For all of the aforesaid payments well and truly to be made during the term by this lease demised, the said lessee hereby binds itself and its successor or successors firmly by theew — presents. XV. The lessee further covenants and agrees, in addition to the rental hereinbefore provided to be paid and as part thereof,. to pay and discharge, within a reasonable time after the sameshall become due, any and all taxes, asssessments, license fees,. car licenses, water rents, charges and impositiors whatsoever,. whether ordinary or extraordinary, hicih may be levied, confirmed, imposed or assessed by.any lawful authority upon the lessor, its capital, or shares of capital stock or dividends or the said demised railroad or railroads, real estate, personal property, franchises, or easetnents, or any part 'thereof, or for the use 'or enjoyment thereof, by State, municipal or other authority during the term by this lease demised; provided, always, that the lessee shall have the right before making such payment to contest the validity of any such tax, assessment or charge; and in case such tax, assessment or charge shall be contested as aforesaid, the time occupied in such contest shall not be deemed a part of areasonable time within which the lessee is required to make such payment as aforesaid. Should the lessee fail to make payment: of any tax, assessment, license fee, charge or imposition, within the time herein required, then the lessor may, after the expiration of said time pay the,same, and the lessee agrees to repay the amount so paid to the lessor on demand. XVI. The lessee further covenants and agrees during the term by this lease demised to pay all reasonable expenses of keeping upthe organization of the lessor and to furnish suitable offices for the lessor free of rent, including heat and light, and in case the lessor and lessee are unable to agree as to the amount of the reasonable expenses necessary to keep up the organization oa. the lessor, such amount shall be determined by the method of arbi. tration in this lease provided for. XVII. The lessee further covenants and agrees to pay all rena tals accruing after the date when this lease takes effect, under the terms of any contract or agreement or lease then existing between the lessor and any person or corporation for the use of the railroad track or tracks, or any portion thereof belonging to such person or corporation, or for the use of any real estate or property leased by the lessor fromu any person or corporation. XVIII. The lesee furtier covenants and agrees that any mortgage hereafter Issued by the lessor to secure bonds issued for the B. 81 642 pgyment or redemption, or in renewal of any outstanding bonds of the lessor or any outstanding, bonds assumed by the Il.'s r aiall not be subject to this lease or to any of the provisions thereof, but thait the lien of any such mortgage or mortgages upon the property by this lease granted and demised shall take precedence of and constitute a prior lien to th's lease and to any and all liens created by this lease and to any franchise, right, privilege, property or interest acquired by the lessee under the terms of this lease and covered by such mortgage, hereafter issued as aforesaid; provided, always, that the principal of any such mortgage or mortgages and the bonds secured thereby sWall not exceed the sum of $6,925,000. XIX. The lessee further covenants and agrees that in case any bonds issued for the redemption anld payment of any bonds mentioned in this instrument or covered by its terms shall sell for less than their parvalue, tthehn e lesse will pay to the lessor an amount equal to the difference between the par value of such bonds and the amount for which they shall be sold, which amount so paid must be applied by the lessor in the payment and redemption of said outstanding bonds. XX. The lessee further covenants and agrees that all extensions, branches, additions, improvements and additional equipments to the property of the lessor which shall be made during the term of this lease andl which shall be paid for out of moneys belonging to the lessor, or out of the proceeds of either the stock or bonds or property of the lessor, or other moneys of the lessor, shall be the property of the lessor. XXI. The lessee further covenants and agrees that it shall not have the right to and will not make or construct any extensions, additions, branches and improvements, or furnish any equipments to the said railroad and railroads and properties by this lease demised, to be paid for out of its own funds other than such as shall be necessary to keep said railroads and properties in good condition and repair, and to preserve efficiency in the operation of said railroad until after the said unissued stock and bonds of the lessor shall have been issued and the proceeds realized upon the sale of said stock and bonds shall hiave been expended as in this lease provided, and that it will not construct or apply for the right to construct any extension or branch of said iaxiload or railroads without first obtaining the consent in writing of the lessor thereto. XXII. The lessee further covenants and agrees that it will proceed faithfully and diligently with the work of converting the said railroad and railroads into an electric raiiratd, or into such other kind of railroad as shall be apptoved by ter ldsmr 648 and lessee; and that in the, event that the said moneys belonging to the lessor on hand at the date this lease takes effect, after 1tih. deductions aforesaid and the proceeds of said stock and bodads of said lessor authorized to be issued, but unissued, shatll bb insufficient to pay and discharge the cost of converting' the sa$d railroad and railroadjs of the lessor into an electric railr5ad~ or into such other kind of railroad as may be agreed upoa by thbe lessor and lessee, that then and in that event the lessee will forthwith furnish and supply all such sums of momey, materials and supplies as may be requisite and necessary for that ptorpose, and will proceed faithfully and diligently with the work of constructing and converting said railroad and railroads into an electric road or such other kind of railroad as may be agreed upon by the lessor and lessee. XXIII. The lessee further covenants and agrees that at the expiration of this lease, or upon any sooner termination thereof, all property, extensions, branches, additions, improvements and equipments constructed, made or furnished by the lessee out of its own funds to the said railroad oir railroads or property shall be and become the property of the lessor upon the payment by the lessor of the co!sts thereof, as in this lease provided. XXIV. The lessee further covenants and agrees, upon the expiration or any sooner termination,of this lease, to surrender, transfer and deliver to the lessor all materials and supplies on hand for use in the construction, maintenance or operation of said railroads, which materials and supplies shall be paid for by the lessor at their cost price. And the lessee further covenants and agrees at the expiration of this lease, or any sooner termination thereof, that it will execute and deliver to the lessor a good and sufficient deed conveying to the lessor any real estate acquired by the lessee for use in connection with the construction, maintenance or operation of said railroad or railroads and property upon payment by the lessor of the cost price thereof, as in this lease provided. XXV. The lessee further covenants and agrees, at the expiration or any sooner termination of this lease, to surrender to the lessor all property, additions, improvements and equipments which shall be furnished, constructed or completed out of the proceeds of the stock or bonds of the lessor, or moneys advanced by the lessor subsequent to the delivery; of this lease, or frHiki the proceeds of sales of property of the lessor, equal in value and in as good condition as when! so furnished, constr.uctAted and completed, reasonable wear and tear ccepted, XXVI. The lessee covenatitS and agrees.not to grant to any 644 corporation the right to use the tracks or any part of the tracks of the lessor's railroads, or any extension or extensions thereof, or branch or branches therefrom, without the consent in writing of the lessor to such use shall have first been obtained; and the lessee also agrees not to assign this lease or any interest therein without the consent in writing of the lessor being first had and obtained, and that in the event that it does assign said lease or any interest therein without such consent, then this lease shall at the option of the lessor cease and determine as to said lessee, and all rights of the lessee thereunder or in the term hereby demised or any part thereof shall be at an end. XXVII. The lessee further covenants and agrees that it will at its own proper cost and expense operate and run the said railroad and railroads during the said term, and will maintain, preserve and keep the said railroad and railroads, or any extensions or branches thereof, real estate, properties and premises by this lease demised, and every part thereof, in good order, repair and condition, and will rebuild all buildings and replace all property destroyed by fire; and will, at the expiration or termination of this lease for any cause, return and deliver the said railroad and railroads, real estate and properties by this lease demised, to the party of the first part in as good' order, condition and repair as they were at the date this lease takes effect, reasonable wear and tear excepted, excepting, however, all property of the lessor sold by the lessee the proceeds of which shall have been applied to the improvement of the leased property, and will surrender said franchises, rights and privileges, easements and property unimpaired by any act of the lessee. XXVIII. The lessee further covenants and agrees that it will at all times during the continuance of this lease, at its own expense, keep the said cars, tools, implements, machinery and equipments in good order, condition and repair; and will as the same shall be worn out and rendered unserviceable, supply new cars, tools, implements, machinery and equipments, at its own expense, so that the said railroa:d and railroads shall always be kept and maintained in good condition and effective working order. XXIX. The lessee further covenants and agrees that it will at all times during the continuance of this lease, at its own expense, comply with all lawful requirements of the statutes of this State and resolutions and ordinances of the local authorities now existing or that may hereafter be passed or adopted with respect to the construction, maintenance and operation of said railroads, extensions or branches thereof, and that it will pave and keep in repair such portion of the streets, avenues and high 645 ways upon which said railroads or any extensions or branches thereof now exist, or may hereafter be constructed, in accordance with the lawful requirements of any statutory or municipal regulations with respect thereto. XXX. The lessee further covenants and agrees that it will at all times during the continuance of this lease, at its own expense, keep said railroads supplied with sufficient motive power, rolling stock and equipment, so as fully to accommodate 'the public traffic; and that it will operate said railroads, extensions and branches, so that they shall furnish all reasonable conveniences and facilities to the public; and that it will use all reasonable efforts to maintain, develop and increase the business of the said railroads hereby demised, or of any addi'ions thereto, or any extensions or branches thereof, now existing, or which may hereafter be constructed. XXXI. The lessee further covenants and agrees that the lessor and its duly authorized committee or agent may at all times, during the term by this lease demised, enter in and upon and have free access to the railroads and properties by this lease granted and demised, and that it, 'the lessee, will furnish to such committee or agent every facility to examine into the condition of the said railroads and properties, and the system and manner of operating said railroads. XXXII. The lessee further covenants and agrees that it will not at any time during the continuance of this lease reduce the fare charged upon said railroads, or upon any additions, extensions or branches thereof, below the present rate charged to each passenger for a continuous ride thereon, without the consent ofthe lessor in writing first had and obtained. XXXITT. The lessee further covenants and agrees that it will at the expiration or any sooner termination of this lease for any cause, transfer, deliver and return to the lessor, horses, harness, cars, locomotives, engines, tools, implements, machinery, railroad equipment, power stations, electrical appliances and equipments, stable equipments and fixtures, office furniture and office fixtures, and all other property of like kind or nature then owned or possessed by it for use in the maintenance and operation of said demised railroad and railroads, and that said property so returned shall be equal in value to the property received by it at any time from the lessor under the terms of this lease; excepting, however, all property sold by the lessee, the proceeds whereof shall have been applied to the improvement of the leased property. XXXIV. The lessee further covenants and agrees to hold, save and keep harmless and indemnify the lessor from and against the expenses of the defense of any and all actions involving the validity of this lease, or the validity of the franchises, rights or eisepieits of the lessor, or the title of the lessor to any real estate, property or premises covered by the terms of this lease; and further agrees to notify the lessor of the commencement of any action against the lessee involving like questions, and to allow the lessor to interplead therein. without objection and to assist it in the effort so to do; and further to hold, save and keep.harmless aind indemnify the lessor from and against the expense of the defense of any and all actions which shall be pending against the lessor on the date this lease takes effect, or which may hereafter, during the said term or the continuance of this lease, be brought against the lessor for injuries to persons or property, or for causing the death of any person on account of negligence in the maintenance or operation of said railroad and from and against any judgment existing against the lessor upon like causes of action on the date this lease takes effect, or at any time thereafter during the continuance of this lease; also from and against the expense of any action upon any other cause of action now epending or which may be hereafter brought against the lessor and against any judgment rendered in any of said actions. And the lessee further agrees to hold, save and keep harmless and indemnify the lessor from and against the expense of the defense of any action which shall be pending at the date of the expiration or any sooner termination of this lease, or which shall thereafter be brought against the lessor or the lessee for injury to persons or property, or for causing the death of any person, on account of negligence in the maintenance or operation of said railroads during the continuance of this lease, and from and against any judgments that may be rendered in any such action, less the amouant which shall have been paid by the lessee, under or by reason of the preceding inden!ity'clause, upon causes of action of a like character arising prior to the date of this lease. XXXV. The lessee further covenants and agrees to deposit or cause to be deposited in the Brooklyn Trust Company, or such oompary or companies, as trustee, as may be designated by the lessor, on! the date of the delivery of this lease and prior to the date of delivery of possession thereunder, the sun of four million dollars ($4,000,000) as a guarantee and security for the performance by it of each and every covenant contained in this lease on its part to be kept and performed. which sum of. four million dollars ($4,000,000) shall be invested t Brooklyn city or New York city or United States government ondOs, or in such other securities and mortgages as shall be 647 approved by the lessor and the lessee, all of which securities and mortgages shall be deposited with the said trustee or trustee. XXXVI. The securities and mortgages in whichi said guarantee fund is invested may, from time to time, be changed with the consent of the lessor and the lessee, but whenever thie market value of any of said securities and mortgages shall have so depreciated as to reduce said guarantee fund by such depreciatiou below four million dollars ($4,000,000), then the said lessee agrees, upon the request in writing of said lessor, to make good such depreciation in cash or securities, or to substitute in, place of the depreciated securities and mortgages other securities and mortgages approved by the lessor which shall be of a market value sufficient to restore said fund to four million dollars ($4,000,000), within ninety days after being requested in writing so to do. XXXVII. It is mutually agreed between the lessor and lessee that the interest received upon said four million dollars ($4,000,000) shall be paid by the trustee to the lessee as the same shall from time to time accrue and be collected until such time as the trustee shall have been notified in writing by the lessor that the said lessee is in default in the payment.of the rental reserved in this lease, or any part thereof, or is in default in making any payment on its part agreed or provided or required to be maide by any provision of this lease. When the lessee shall be so in default as aforesaid, then the said trustee or trustees, upon the request in writing of the said lessor or the lessee, shall fromn time to time apply the interest of the said four million dollars ($4,000,000), as the same shll accrue and be collected, and two hundred and fifty thousand dollars ($250,000) of the principal of the said guarantee fund, or so much thereof as may be necessary, to the payment of said rental as the same becomes due, but said four million dollars ($4,000,000) guarantee fund shall, under no condition! or circumstances, be impaired by expenditures and disbursements of any kind or otherwise to an extent which shall reduce said fund below three million seven hundred and fifty thousand dollars ($3,750,000). XXXVIII. The lessee further covenants and agrees that no dividend shall be paid on its capital stock, or any part thereof,, when said guarantee fund shall be less than $4,000,000, or when; the market value of the securities constitutinig said fund shall be less than $4,000,000. XXXIX. The lessee further covenants and agrees that in the event of the termination of this lease by reason of any 648,breach, default or omission on its part in the performance of either or any of the covenants on its part to be kept and performed, the said guarantee fund of four million dollars ($4,000,000) deposited with the said trustee or any balance thereof shall at once become the sole and absolute property of the lessor,.and shall be paid and transferred by said trustee or trustees to the lessor, its successors or assigns, not by way of penalty, but as.liquidated and stipulated damages; and it is mutually agreed that if this lease shiall terminate otherwise than on account of breaoh, default or omission cf the lessee, then the said four mil-lion dollars ($4,000,000), or any balance thereof, shall be paid to the lessee. XL. It is mutually agreed that when the $6,000,000 mortgage and bonds of the lessor shall become r)ayable in 1916, olr in 1941, the lessee may pay off the aforesaid mortgage and bonds, and should the lessee,so elect and make such payment, then the trustee of the guarantee fund of $4,000,000 shall pay over the whole -of the said guarantee fund to the lessee, and all of the provisions of this lease relating to said guarantee fund shall thereupon cease.and determine. And in the event that said mortgage shall thus be canceled, and this lease shall thereafter be terminated for any reason other than a default or omission on the part of the lessee in the performance of any of the covenants on its part to be kept and performed, then the lessor shall pay to the lessee, ine addition to the other payments herein required by it to be made, the sum of $6,000,000 advanced by the said lessor for the payment and discharge of said mortgage. But in the event that this lease -shall be terminated thiough or because of any default or omis-sion upon the part of the lessee in the performance of any of the ~covenants on its part to be kept and performed, then the lessor shall be required to pay to the lessee the sum of $2,000,000; but shall retain and keep unto itself the benefit and advantage of such payment of the said mortgage and bonds by said lessee to the extent of $4,000,000, not by way of penalty, but as liquidated and stipulated damages. XLI. It is mutually agreed between the pariies hereto that the trustee or trustees holding said guarantee fund may from time to time be changed by the consent of the lcsosr or lessee, and that in case said trustee, or any of such trustees, shall be dissolved or cease to exist, or refuse or become for any cause incapable to act, and the lessor and lessee shall be unable lt agree upon a successor in the trust, that then and in that event either party hereto, upon eight days' notice to the ctler, may apply to the -Supreme Court for the appointment of a successor to such trustee 649 or trustees with like powers and duties. The compensation of the trustees shall be fixed and be paid by the lessee, and the lessee may, with the consent of the lessor, agree with any trustee with respect to the liability of any trustee and in respect to other proper details of the trust aforesaid. XLII. The lessee further covenants anid agrees that in case of default by it inl the payment of the rental in this lease reserved and agreed to be paid, and iif said rental, or any part thereof, shall remain unpaid for the space of 60 days from and after the time when it shall become due and payable, or if the said lessee shall be in default in the performance of either or any of the covenants in this lease contained and on its part to be kept and performed, and such default shall continue for the period of 60 days 'after notice and demand of performance by the lessee, given in writing by the lessor to the lessee, or if the lessee shall fail or refuse to comply with any decision of arbitrators appointed as herein provided, for 60 days after service of notice of such decision upon it, then, and in either of said events, the term by this lease created, granted and demisd shall at the option of the said lessor end and cease and determine, and the lessor shall have the right to enter upon and take pcssession of the property by this lease granted and demised, and the same have and possess as of its former estate, and without such entry may recover possession thereof in the manner provided by statute, by summary proceedings; it being understood that all right of any further demand or re-entry other than that above specifically referred to is hereby waived by the lessee. XLITI. It is mutually covenanted and agreed between the lessor and lessee that no waiver of any breatch oir default of the other by either shall extend to or be taken to affect any subsequent default or to impair the rights arising thereunder unless such subsequent breach or default shall itself be waived. XLIV. The lessee further covenants and agrees that nothing in this lease contained is intended or shall be construed as authorizing the lessee to increase the funded debt of the lessor, or to mortgage or create any lien upon the railroad or railroads, franchises and property by this lease demised without consent of the lessor. And the lessee further covenants and agrees that nothing in this lease contained is intended to or shall be construed as an express or implied warranty on the part of the lessor of its right to construct, maintain or operate said railroad or railroads, or any part thereof, or of its right, title or interest in or to any of the rights, privileges and franchises, easements and property by this lease demised. B. 82 And the lessee further covenants and agrees that in the event.that the right, title or interest of the lessor of, in or to the said railroad or railroads, franchises, rights, privileges and property by this lease demised shaill for any reason or cause, fail or be in any particular defective, it, the said lessee, will not claim and shall not be entitled to claim or recover from the lessor any damages whatsoever for or by reason of such failure or defect. XLV. It is mutually covenanted and agreed between the lessor and lessee that if the continued use of any real estate included in or covered by the terms of this lease shall not be necessary or required for the maintenance of operation of said railroad. orl 'railroads, extensions or branches, then in that event, the lessor, with the consent in writing of the lessee, may sell and dispose of said real estate, and the proceeds realized therefrom shall be expended by the lessor for the same purposes as in' this lease provided for the expenditure of the proceeds of the stock and bonds of the lessor. XLVI. It is further mutually covenanted and agreed between the lessor and lessee that in case of any disagreement between them concerning the performance of either of the covenants and stipulations in this lease contained on the part of the other party to be kept and performed, or concerning their respective rights, duties and obligations under the provisions of this lease, such disagreement shall be submitted to arbitration as follows: In case either the lessor or lessee shall desire the appointment of arbitrators or arbitration, the party so desiring the appointment of arbitrators shall state to the other in writing the point or points of difference to be submitted to arbitration, and shall within 10 days thereafter select an arbitrator to act upon its behalf, and notify the other party in writing thereof, and thereupon said other party shall within 10 days thereafter select its arbitrator and notify the party demanding said arbitration of its selection. The arbitrators thus selected shall, within five days thereafter, meet, and may adjourn from time to time, and after hearing the respective parties shall, within 10 ten days after the last hearing, render their award in writing, and their decision shall be binding and conclusive upon the lessor and lessee. If the arbitrators so selected are unable to agree, thiey shall, within 15 days after their last hearing, select a third arbitrator, to whom all the evidence taken shall be submitted, with such further evidence as either party may give, and after such further hearing as the arbitrators or a majority of them shall permit, the decision of a maijoity of the three shall be binding and conclusive upon the lessor and lessee. If the two arbi 651 trators first chosen can not agree upon the selection of. third arbitrator, then such arbitrator may be appointed. by any person selected by the lessor and the lessee for that purpose. If the lessor and the lessee l can not agree upon a person to select said third arbitrator, then either of them may, upon a nolice of eight days to 'the other, apply to any judge of the Supreme Court in the second department to appoint a third arbitrator. If, upon notification, either party hereto shall fail, within the time designated, to select an arbitrator, as required by the terms hereof, then, in that event, the arbitrator appointed by the other party shall have the right to proceed and fully determine the matters submitted, and render his decision and award in writing, which award and decision when made in writing and served upon either party by the other shall be binding and conclusive upon the lessor and lessee. Either party against whom lihe arbitrators report shall have 60 days within which to comply with the decision of said arbitrators, and said arbitrators shall have power, for good cause shown, from time to time, to extend the time for such compliance for a further period, not exceeding in all 30 days. XLVII. It is mutually covenanted and agreed between the lessor and lessee that this lease shall not be binding or valid as to either of the parties hereto until approved by the vote of the stockholders of the lessor and lessee as required by laW, and that if so approved, this lease shall be delivered to the lessee at such time and upon such terms and conditions as shall be agreed upon by the boards of directors of said lessor and lessee, but notwithstanding such approval and delivery, this lease shall not go into effect nor shall the lessee be entitled to enter into possession of the premises and property by thiW lease demised until said four million dollars ($4,000,000) shall have been actually deposited either in cash or in securities, or both, pursuant to the terms of this lease, with said Brooklyn Trust Company or companies designated by said lessor and lessee, nor until a certificate of said Brooklyn Trust Company or such companies to that effect is indorsed hereon or attached hereto, which certificate,shall be duly executed by said trust company or companies under its or their corporate seals, and shall state that said four million dollars ($4,000,000), or such! portion thereof as they respectively hold, is held upon the trusts and subject to the terms, covenants and stipulatibns and conditions in this lease contained with respect thereto. In witness whereof, the said'lessor and lessee have eael 652 caused this indenture to be duly executed and its corporate seal to be hereunto affixed and attested by its secretary the day and year first above written. THE BROOKLYN HErGHTS RAILROAD CO. [L. S.} By H. I. NICHOLAS, President Attest6 RICHARD N. YOUNG, Secretary. 'THE BROOKLYN CITY RAILROAD CO. [L. S.J By DANIEL F. LEWIS, President. Attest) W. A. H. BOGARDUS, Secretary. CITY OF BROOKLYN, 188. County of Kings, Be it remembered, that on this 14th day of February, 1893, before me personally appeared Daniel F. Lewis, to me known and known to me to be the person who signed the foregoing instrument, and who, being by me duly sworn, did depose and say: That he resides in the city of Brcoklyn; that he is- the president of the Brooklyn City Railroad Company named in the foregoing instrument; that he knows the seal of said corporation, and that the seal affixed to the foregoing instrument is the seal of said company, and was so affixed thereto by the order of the hoard of directors of said company; and he, the said Daniel F. Lewis, executed the foregoing instrument in the name of said *company as president thereof by like authority. That W. A. H. Bogaxdus is the secretary of said company, and in his presence said W. A. H. Bogardus, by like order of the board of directors of said company, signed his name to the said instrument as secretary of said company. In witness whereof, I have hereunto set my hand and affixed my official seal this 14th day of Febrnary, 1893. W. H. JENNINGS, [Seal.] Notary Public, Kings Co., N. Y. STATE OF NEW YORK, City and County of New York, } ss' Be it remembered, that on this 14th day of February, 1893, before me personally appeared Harry I. Nicholas, to me known and known to me to be the person who signed the foregoing institnment, and who, being by me duly sworn, did depose and 653 say: That he resides at Babylon, L. I.; that he is the president of the Brooklyn Heights Railroad Company named in the foregoing instrument; that he knows the seal of said corporation, and that the seal affixed to the foregoing instrument is the seal of said company, and was so affixed thereto by the order of the board of directors of said company;. and he, the said Harry I. Nicholas, executed the foregoing instrument in the name of said company as president thereof by like authority. That Richard N. Young is the secretary, of said company, and in his presence said Richard N. Young by like order of the board; of directors of said company, signed his name to the said instrument as secretary of said company. In witness whereof, I have hereunto set my hand and affixed my official seal this 14th day of February, 1893. EDWARD CORNELL, [Seal] Notary Public, Orange County. Certificate filed in New York county. ' . EXHIBIT M. Meitomrandum of agreement made this 7th day of April, 1893, between the Long Island Traction Oompany, party hereto of the first part, and the Brooklyn Heights Railroad Company, party hereto of the second part, witnesseth: Whereas, The party hereto of the first part is about to become the owner of all the capital stock of the party hereto of the second part, in part payment for its own capital stock; and Whereas, The party hereto of the second part is about to take possession of the property and franchises of the Brooklyn City Railroad Company, under a lease made and entered into on the 14th day of February, 1893, whereby the said party of the second part hereto has covenanted and agreed to pay over to certain trust.companies, upon taking such possession, the sum of four millions of dollars as a guarantee fund for its faithful performance of its covenants and agreements as lessee, Now, therefore, In consideration of the premises and of the sum of one dollar by each of the parties hereto to the other in hand paid, the receipt whereof is hereby acknowledged, it is agreed as follows: The party hereto of the first part hereby agrees that simultaneousy with the acceptance of possession by the party hereto of the second part of the said leased property, under the said lease, the said party hereto of the first part will pay over, or procure to be paid over, for and on account of the said party of the second part, and in discharge of the obligation to provide a guarantee fund under the terms of the said lease, the sum of four millions of dollars, to be deposited in the proper trust company yor companies, as such guarantee fund, and in all respects subject as such to the terms and provisions of the said lease. It is further agreed that if at any time, by the termination of the said lease, or otherwise, the said four millions of dollars, -or any part thereof, should no longer be subject to be held or disposed of under the terms thereof as such guarantee fund, that then the said fund, or any balance thereof, shall belong.and be paid by the said party hereto of the first part It is further agreed that the entire income of the part hereto -of the second part, after diseharging its obligations under the said lease and remaining after paying an anntral dividOdl d' 10 per centum upon its capital stoick, shall belong and be ptd" over to the party hereto of the first part In witness whereof, the parties hereto have dily etxenuted these presents the day and yeair first above written by aifftidg hereto their corporate seals and causing the same to be dii'l attested. (Signed.) LONG ISLAND TRACTION COMPANY, [Seal.] By Drowell Hadden, Vice-Pref. J. B. Summerfield, Sec'y. (Signed.) THE BROOKLYN HEIGHTS RAILROAD CO., [Seal.] H. I. Nicholas, Pres't Attest: RICHARD W. YOUNG, Secretary. CITY OF NEW YORK, 8 County of New York, s Be it remembered thatl on this 17th day of April, 1893, before me personally appeared Ctrowell Hadden, to me known, and known to me to be the person who signed the foregoing instrument and who, being by me duly sworn, did depose and say: That he resides in the city of Brooklyn; that he is the vice-president of the Long Island Traction Company named in the foregoing instrument; that he knows the seal of said corporation, and that the seal affixed to the foregoing instrument is the seal of said company, and was so affixed thereto by the order of the board of directors of said company; and he, the said Crowell Hadden, executed.the foregoing instrument in the name of said company as vice-president thereof by like authority. That John B. Summerfield is the secretary of said company, and! in his presence said John B. Summerfield, by like order of the board of directors of said company, signed his name to the said instrument as secretary of said company. In witness whereof, I have hereunto set my hand and affixed my official seal this 17th day of April, 1893. j GEO. W. DAVIDSON, Notary Public, Queens County. Certificate filed in New York County. CITY OF NEW YORK, } County of New York, s Be it remembered, that on this 17th day of April, 1893, before me personally appeared H. I. Nicholas, to me known, and known to me to be the person who signed the foregoing instrument, and who, being by me duly sworn, did depose and say: That 656 he resides in the city of Babylon, L. I.; that he is the president of the Brooklyn Heights Railroad Company named in the foregoing instrument; that he knows the seal of said corporation, and that the seal affixed to the foregoing instrument is the seal of said company, and was so affixed thereto by the order of the board of directors of said company; and he, the said H. I. Nicholas, president, executed the foregoing instrument in the name of said company as president thereof by like authority. That Richard N. Young is the secretary of said company, and in his presence said Richard N. Young, by like order of the board of directors of said company, signed his name to the said instrument as secretary of said company. In witness whereof, I have hereunto set my hand and affixed my official seal this 17th day of April, 1893. LEONIDAS DENNIS, Notary Public, Kings County. Certificate filed in New York county. EXHIBIT N. CERTIFICATE AND CHARTER OF THE! LONG ISLAND TRACTION COMPANY. To the Honorable D. Tucker Brooke, Judge of the Corporation Court of the City of Norfolk, Virginia': The undersigned peorson who desire to form at joint-stocld company for the purpose of conducting the enterprise and business hereinafter Pet forth, do make, sign and acknowledge this certificate in writing, under sectionl 1145 of the Code of Vir. giJnia, the edition of 1887, and the amendments' thereto, as follows; that is to say: First. The name of thJe company shall be "Long Island Traction Company." Second. The purposes for which the said company is to be formed are to conduct the business.of purchasing, acquiring, holding, improving, developing, leasing, exchanging and selling real and personal property, including machinery, patent rights, letters-patent, and other rights, for the supplying of power, or the use thereof, to, upon, or in works owned, leased or controlled by any raiilroad corporation or other corporation or individual, and to aid any corpoiratioini or individual in' the construction, repair, improvement or extension of any such or other works by the advancing of money, the furnishing of credit, or otherwise, and also to purchase, subscribe for or otherwise acquire for any valid consideration, and to hold, use and dispose of the stocks, bonds and other evidences of indebtedness of any corporation, domestic or foreign, with which it may have business relations or may have power to contract, and to issue, in exchange for said stocks, bonds tad' other evidences of ina debtedness, its own stock, bonds or other obligations. Third. The capital stock of the said company shall not iU less than $4,000,000 nor more than $30,000,000, and it shall be divided into shares of the par value of $100 each. Fourth. The amount of real estate proposed toe be held by the said company is not to exceed one hundred (100) acres at any time. Fifth. The place at which the principal office of smid company is to be kept is the city of Norfolk, Va. B. 89 ' 658 Sixth. The chief business to be transacted by said company is that set forth in paragraph second of this certificate, which indicates the purposes for which the said company is formed. Seventh. The names of the officers who for the first year are to manage the affairs of the said company, and their residences, are as follows: Felix Campbell, of Brooklyn, N. Y., President and Director. Orowell Hadden, of Brooklyn, N. Y., Vice-President and Director. Henry A. Murray, of New York city, Treasurer. John B. Summerfield, of Brooklyn, N. Y., Secretary and Director. Silas B. Dutcher, of Brooklyn, N. Y., Director. George W. Young, of Jersey City, N. J., Director. Wherefore.we respectfully pray this honorable court to grant the said undersigned persons a charter of incorporation upon the terms set forth in this certificate, together with the necessary and appropriate incidental power. In witness whereof, we have hereunto set our signature, this 10th day of March, 1893. JOHN H. SCOVILLE, THOMAS S. SMITH, WM. H. WHITE, WM. A. YOUNG, THEODORE S. GARNETT. STATE OF NEW YORK, City and County of New York, s. I, Leonidas Dennis, a notary public for the State, city and county aforesaid, do certify that John H. Scoville and Thomas S. Smith, whose names ard signed to the annexed or foregoing certificate bearing date March 10, 1893, have severally acknowledged the same before me in my city and county aforesaid. Given under my hand and official seal this 10th day of March, 1893. LEONIDAS DENNIS, Notary Public, Kings Co. [L. s.] Certf. filed in N. Y. Co. 659 STATE OF NEW YORK, City and County of New York, ' I, Henry D. Purroy, clerk of the city and county of New York, and also clerk of the Supreme Court for the said city and county, the same being a court of record, do hereby certify that Leonidas Dennis has filed in the clerk's office, of the county of New York, a certified copy of his appointment as a notary public for, tibe county of Kings with his autograph signature, and was at the time of taking the proof or acknowledgment of the annexed instrument, duly authorized to take the same. And further, that I am well acquainted with; the handwriting of such notary, and verily believe that the signature to the said certificate of proof or acknowledgment to be genuine. In testimony whereof, I have hereunto set my hand and affixed the seal of the said court and county, the 10th day of March. 1893. HENRY D. PURROY, [L. s.] Clerk. STATE OF VIRGINIA, 1 ' City of Norfolk, I, James W. Willcox, a notary public of the State and city aforesaid, do certify that Wm. H. White, Wm. A. Young, Theodore S. Garnett, whose names are signed to the foregoing certificate, bearing date March 10, 1893, have acknowledged the same before me in my city aforesaid. Given under my hand and official seal, this 11th day of March, 1893, B JAS. W. WILLCOX, Notary Public. In the Corporation Court of the city of Norfolk, Virgina, Charter of "Long Island Traction Company." ARTICLE I. The above-named John H. Scoville, Thos S. Smith, Wm. H. White and Theodore S. Gariett having presented the foregoing certificate, which has been duly made, signed and acknowledged by them as required by section 1145 of the Oode of Virginia, and the other statutes of said State in such cases made and provided, asking for a charter of incorporation upon the terms therein set forth, and the same having been duly considered by the court, it is adjudged, ordered! and decreed, that John H. Scoville, Thoa S. Smith, Wmi. H. White, Wm. A. Yorng and Theodore S. Gamlett, and such others as are now or may hereafter be assocaited with 660 them, and their successors, be, and they are, hereby constituted a body politic aud corporate, by the name of " Long Island Traction Company," and by that name and style shall have perpetual succession, a common seal, which it may alter or amend at its pleasure, and sue or be sued, contract and be contracted with, anid be generally invested with all the rights and privileges appertaining to iincorporated companies under the laws of the State of Virginia, or of the United States, and subject tol the restrictions now imposed upon Ithe same by existing laws, or that may hereafter be. imposed by th Legislature of the State, and upon the further condition that i't! shall pay in current money of the United States, all its taxes and other demands against it due the State of Virginia. ARTICLE II. 'The said company shall ha;ve power to conduct the business of purchasing, acquiring, holding, improving, developing, leasing, exchanging and selling real and personal property, including machinery, patent rights, letters patent, and other rights for the supplying of power or the use thereof, to, upon, or in works owned, leased or controlled by any railroad corporation, or other corporation or individual; and to aid any corporation or individual in the construction, repair, improvement or extension of any such or other works by the advancing of money, the furnishing of credit, or otherwise; and also to purchase, subscribe for or otherwise acquire for any valid consideration, and to hold, use, and dispose of the stocks, bonds and other evidences of ind'ebtedness of any corporation, domestic or foreign, with which it may have business relations or may have power to contract, and said company shall have power to issue in exchange for said stocks, bonds and other evidences of indebtedness, its own stock, bonds or other obligations. ARTICLE III. The capital stock of the said company shall not be lees than 44,000,000, but the company may, from time to time, whenever its directors see fit, increase the capital stock to an amount not exceeding $30,000,000, which said stock shall be divided into shares of $100 each. The said stock shall be deemed personal property, and shall be transferrable on the books of the company in the manprescribed by the board of directors, and each share of stock shall be entitled to one vote at all meetings of the stockholders. The said company may receive in payment for Its capital stock labor, material, stolks or bonds of individuals or oorporaitions, or such other thing or right of value, or contract therefor, as ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. 661 the directors may deem proper, and they may issue the same above or below the par thereof, and at such prices and upon such terns and conditions as the said directors may determine. ARTIOLE IV. The quantity of real estate held and owned by said company shall not exceed one hundred (100) acres at any one time. ARTICLE V. The principal office of the company shall be at Norfolk, Virginia, with the right in the board of directors to establish and maintain other offices elseewhele within or without the State of Virginia. The chief Ibuisineass to be transacted by the said company is that set out in article second.! ARTICLE VI. It shall be laAwful for the said company, and it is hereby a.uithiorized, to borrow from time to time such sum or sums of money as may be necessary for iOts purposes, and for su'ch loans to issue its bonds, registered, or coupon, payable in such time or times and in such amounts and at such a rate of interest as the board of directors may determine, and said company may secure such bonds by deedls of trust or mortgages on all or any of its rights, property and franchises. ARTICLE VII. The officers of the said company shall consist of a president, vice-president, secretary and treasurer, and a, board of directors The directors shall be five in number, of whom the president and vice-president shall be two. The secretary and treasurer may or may not be directors, as the board of directors may determine. The board of directors shhall have power to' create such other offices, and to increase or diminish the number of directors, from time to time, as they may deem proper. The said board shall have power to make and establish such rules, regulations and by-laws, not inconsistent with the laws of the State of Virginia or of the United States, as they may deem desirable, for the management and control of the affairs and business of said company, and for the government of their officers, agents, clerks and other employes, which 'shall be binding on all persons eonnected with or in the employment of the company. ARTICLE VIII. All meetings of the stockholders and directors of th'e said company shall be held at such time and place, within or without 662 the State of Virginia, anid upon such notice, as the board of directors may from time to time determine. ARTICLE IX. The board of directors shall have the management and control of the business affairs of the company, and from their.own body, after the first year, they shall elect a president and vice-president, and shall during the first year and at all times afterward fill any vacancies which may occur in the offices or in their own body, from death, resignation, refusal to act or any other cause. The president shall preside at all meetings of the said board when present, and in his absence the vice-president shall preside. They may also appoint from their number an executive committee, and may prescribe its duties, and also those of the other officers and employes of the said company. They may also appoint such officers as may be necessary for the proper management of the business of the complany, and may, whenever they deem proper, purchase, subscribe to, or otherwise acquire, as in this charter provided, and may hold the stock of any other corporation organized in Virginia or elsewhere, and may exercise in respect thereof all the rights, powers and privileges of individual owners thereof, aud said directors may also sell or otherwise dispose of any or all of the property, rights and franchises of said company. ARTICLE X. The names and places of residence of the officers of the oompany for the first year are as follows: Felix Campbell, of Brooklyn, N. Y., President and Director. Crowell Hadden, of Brooklyn, N. Y., Vice-President and Director. Henry A. Murray, of New York city, Treasurer. John B. Summerfield, of Brooklyn, N. Y., Secretary and Director.: ~ ' Silas B. Dutcher, of Brooklyn, N. Y., Director. Gee. W. Young, of Jersey City, N. J., D lirector. Given under my hand, in the city of Norfolk, State of Virginia, this 11th day of March, 1893. ) D. TUCKER BROOKE, Judge of the Corporation Court of the City of Norfolk, Virginia 668 In the clerk's office of the Corporation Court of the city of Norfolk, Virginia, on the 11th day of March, 1893. The foregoing charter of the "Long Island Traction Company" was this day received and duly recorded and is hereby certified to the Secretary of the Commonwealth for record in his office, according to law. Teste: LAW L. WARING, D. C. COMMONWEALTH OF VIRGINIA. Office of the Auditor of Public Accounts, Richmond, March 13, 1893. This is to certify, that W. A. Young, clerk of the Corporation Court of Norfolk city, has paid into the treasury $190 fee on charter of Long Island Traction Company, less his commission. MARTIN MARYE, Auditor of Public Accounts. COMMONWEALTH OF VIRGINIA, March 13, 1893. (Charter lodged and recorded.) H. W. FLOURNOY, Secretary of Commonwealth. Commonwealth of Virginia: I, H. W. Flournoy, Secretary of the Commonwealth of Virginia, certify that Ihe foregoing is a true copy of the charter of the Long Island Traction Company on file and of record in this otfice. Given under my hand and the lesser ] seal of the Commonwealth, at i Richmond, this 13th day of March, A. D., 1893. J [Seal.] H. W. FLOURNOY, Secretary of Commonwealth. EXHIBIT 0. Prooklyn Eagle, January 8th, 1895. HOW THE?')EAL WAS ADE;. — A COMPREHENSIVE STATEM3ENT FRhtMI PRESII)ENT DANIEL F. LEWIS IN REGARD TO THE SUBURBAN ABSORPTION -THE NEW ACQUISITIONS, EMIBRACING THE BROADWAY, THE J.MAI.CA ANI) BROOKLYN, AND THE METROPOLI0TAN AVENUE LIlNES, GO UNDER THE TRACTION COMPANY-'S MAN. VAGEMEN'T, BUT THE LATTER DOEIS N}T ASSUME ANY LIABILITIES.- THE RESULT WII,L BE IMI'ROVED FA.CI L1 TIES. President Daniel F. Lewis, of the Brooklyn City Railroad, gave ont the following statement concernilng tle recent railroadd deals of the Long Island Traction Company, to an Eagle reporter this morning: To the Public. So much has been said in the various newspapers and elsewhere concerning the consolidation or proposed consolidation of the street surface railroads of the city of Brooklyn within the past few months, and more particularly the negotiation between the Brooklyn Traction Company, the syndicate owning the Broadway Railroad Company and its associated railroads, and the Brooklyn City and Brocklyn Heights Railroad Companies, and the Long Island Traction Company, that it seems proper, in order that the public who may be interested may be officially informed in the important particulars concerning this subject. The Blroadway and associated lines were purchased by a syndicate an number of months ago in the interest of the Brooklyn City and Irooklyn Heights Railroads and the Lontg Island Traction Company. Subsequent to its purchase, the Broloklyn Traction Company made overtures to the same syndicate, with the view to proposing to the Brooklyn City, the Brooklyn Heights and the Long Island Traction Companies, the propriety and desirability of making a grand consolidation of all the properties, including those of the Br:ooklyn Traction Company. It soon followed that meetings ofe p i i int t e hld to c ths i iterest were held to discuss the mat 665 ter, the Brooklyn Traction Company and the syndicate owning the Broadway Railroad COtmpany and its associated lines, sJbmitting certain figures covering their properties and the earnings therefrom and estimates of what 'the future might be in this particular. These meetings were held during the latter part of the summer and fall, and a great many of the details and formalities were discussed. The Brooklyn Traction Company then offered to submit their property and books to an examination for the purpose of verifying the statements submitted to our companies. The oviners of the Broadway and associated lines made a similar offer. An examination of the Broadway books and property was had during the fall, but no examination was ever made of the property or books of the Brooklyn Traction Company. There seems to be a strong opposition to considering the Blrooklyn Traction Company, but the opposition came largely from outside of the board of directors. This seemed quite apparent to the Blrooklyn Traction Company, and they communicated with us on the subject, and expressed a desire to withdraw their properties from further clonsideration, which was acceded to. The negotiations then continued with the synlicate owning the Broadway and associated lines, the transaction being entirely completed on Tuesday last, and these properties are now so connected with the Brooklyn City Railroad and the Long Island Traction Company, that they will complete a grand system of railroads; in fact, the most extensive system of street surface railroads in the entire world. There seemed for a time to bie outside oppositiion to taking in even Broadway.nd associated lines., but the officers and the directors of the Brooklyn City and the Long Island Traction Companies have unhesitatingly believed that the subject was not understood or appreciated. Had it been understood, and the value of the property to our system.known, no opposition could possibly have arisen. And when I speak of opposition I mean to say that it was so much on the outside tiat not even a letter from a stockholder of the I:rooklvyn City Railroad Company or a protest of any kind was made concerning this subject. It was not generally understood what "the purchase of thpe Broadway Railroad" meant. The price which was named for the property seemed very hi lih, and would have in fact been very high, provided the price only covered the Broadway Railroad Company's 1)roperty, but this was not. so. It covered the properties, franllchises. etc., of the Broadway Railroad Company. It also covered extenstions, with the right to operate by electricityvi whicli had been proculred in the city of Brooklyn, aggregating about 4. miles. It also covered the right to conv6rt the B. 84 existing railroads from horse power to the overhead system of electricity. It also covered extensions, with the right to operate by electricity, which had been procured in the county towns, equaling about 20 miles of railroad, so that the mileage of the system aggregated, taking the Broadway and associated companies first at 43 miles, it equals 106 miles of railroad existing and to be constructed. This equals a system more than one-half as large as the Brooklyn City system as it exists to-day. Even with this explanation to persons not familiar with the advantages of these properties to our system and their earning power the price may still seem high, but to' those who are expert and who can appreciate the value of this system in cur control rather than have it in foreign and hostile hands, where the system was arranged to have gone had we not taken it, the price paid is not only considered not high, but is considered very satisfactory. The acquisition makes our system complete and safe, where without it a very dangerous opening would have existed. The acquisition permits of the use of the Jamaica plank-road, upon which the Jamaica and Brooklyn Company now operates a railroad by the Brooklyn City Railroad Company, and will allow the branch which was opened a year and a half ago from Ridgewood to Richmond Hill, to go on through the Jamaica plank-road and through the town and village of Jamaica, by laying a double curve only. The route from Ridgewood to Richmond Hill is now operated by steam power, but within a year this will be changed so that cars can be run from Fulton Ferry and the Bridge through Fulton street, and then Myrtle avenue and Jamaica plank-road to Jamaica. No straighter line could be drawn from the line of Myrtle avenue from the City Hall to Richmond Hill. It will make a most direct connection and a very cheap one for all of these suburban properties from the village line of Jamaica to Ridgewood, with the shopping dis, tricts of Brooklyn and also the City Hall, the Bridge and Fulton Ferry, which will insure their development. At Ridgewood, also, connections are made which will take people by the various routes of the Brooklyn City Railroad Company centering there, with all the ferries along the river front, from the foot of Broadway to Hunter's Point, connecting with the various points of the city of New York. The Broadway system also has in operation lines of cars running on 'Sumner avenue, Reid avenue and Ralph avenue. The Brooklyn City system, west of Sumner avenue, has the Kingstdi Avenue, Tompkins Avenue and Nostrand Avenue lines. This completes a system of crosstown lines from Nostrand avenue 667 to Ralph avenue, and will be, in the future, a most comprehensive system and of very great value. The acquisition of the Jamaica and Brooklyn Road Company will permit lines of the Brooklyn City Railroad Company to run, continuously, cars over Fultoun street and the extesinsi of the Brooklyn City Railroad Company centering at East New York, along the Jamaica, plank-road as far as we icare to continue the operation oT such cars, and will, doubtlessly, prove of very great advantage to that section of the city of Brooklyn, known as the Twenty-sixth ward. The extensions of the Broadway system and the Brooklyn City systems of their crosstown lines running through the towns of Flatbush and Flatlands will, in not many years, be very valuable railroad property. There is not a section of the outskirts of Brooklyn that is so capable of being developed into a very large population as the very districts through which these extensions will run, and one of the features which will permit this development more than anything else, except the extensions themselves, in my opinion, is the large shopping district which is now on Broadway, running at present as it does from Graham avenue to Gates avenue, about one mile in length; as large as this is to-day, it is nothing compared to what it will be in the future. In my opinion, Broadway. property to-day, which is selling at high prices, will be worth five times as much in a very few years, for the reason that the class of establishments which have been put up there, and which are in successful operation to-,day will be increased by additional railroad facilities growing out of this consolidation to a point, where no section of Brooklyn, in my opinion, will be as busy as Broadway in the eastern district. Fulton street in the western district of Brooklyn 10 years from now will not compare with Broadway inl the eastern district in the quantity iof business that will be done at that timbe. The acquisition of the Broadway Ferry and Metropolitan Avenue Railroad Company will, when extended into Jamaica, and the rights now run to the Jamaica line, make the straightest and most direct route to the foot of Grand street from Jamaica. This route has, in the past, operated its cars, after leaving the Newtown Creek bridge through North Second street to the river front, but, under the Long Island Traction pon, pany's management. it can be run, in whole or in part, through Grand street (one of the best business streets in the eastern district), and thereby make a first-class line of it, where, In the past, it has always suffered against the competition of 668 our Grand Street line, which can now be run in conjunction with the Metropolitan Avenue line with better results to the public.and with nmuch greatr economy to the operators and owners of these lines. Another feature of this maitter, which seems to have bothered some' people, is the capitalization of the new road and which is now known as the Brooklyn, Queens County and Suburban Railroad Company, and which now embruaces all the properties of the Broadway and associated lines, also covering the extensions previously refere.d to. This capitalization is, in the aggregate, $10,000,000. It comprises $2,000,000 of capital stock issued, $3,500,000 first mortgage bonds and $4,500,000 of first consolidated bonds. Some people have had the idea thait these securities would all be expended in 'the acquisition of the properties, but this is not so. There will be $1,260,000 of the first mortgage bonds left in the treasury for the purpose of trolleying the existing system and for retiring $350,000 of the outstanding bonded indebtedness. In addition to this there will be $2,000,000 of the first consolidated bonds left in the treasury for the purpose of the future extensions referred to. The investment of the proceeds of these bonds and the trolleying and construction of the extensions and the profit growing oult of it will, in my opinion, cover all the charges of this indebtedness and leave a surplus besides. One only has to look into the future a few years when the surplus ought to be a very substantial one, for, as I have said before, the Broadway system with its allied roads will make at olnce one of the most profitable divisions of the Long Island Traction Company and is destined to, be the most profitable system it will ow,. Another feature concerning this transaction is; the criticism which the boards of directors of the Brooklyn City and the Brooklyn Heights Railroad companies have had to undergo concerning the investment of the guarantee fund, which guarantees the leas, between the Brooklyn Heights Railroad Company and the Brooklyn City Railroad Company. The investment has been made to the extent of $2,000,000 in the first mortgage bonds of the Brooklyn, Queens County and Suburban Railroad Company, and -these bonds are secured by a first mortgage covering the Broadway system. as it exists to-day. Also by a first mortgage on the property of the Broadway Ferry and Metropolitan Avenue Railroad Company and a second mortgage on the property of the Jamaica and Brooklyn Road Company, subject only to $240,000 in bonds. 669 If one will simply look at the earning power of these properties and their value as it is to-day he will see that the investment of $2,000,000 in the first mortgage bonds is as sound as any security which that fund could be invested in. But when the value of the system is added to by the trolleying of these railroad's and putting them in operation equal to the Brooklyn City railroad as it is operated to-day, and as it is intended shall be done as early as possible, it becomes the highest kind of a security. The Long Island Traction Company has purchased $1,260,000 of the first mortgage bonds, and will, in connection with the Brooklyn City Railroad Company, trolley the road with the proceeds of these bonds, and will also pay off within a few months the $350,000 bonded indebtedness now on the Broadway systems' property. The Long Island Traction Company will become possessed of the $2,000,000 of the stock of the Brooklyn, Queens County and Suburban Railroad Company. The Brooklyn City Railroad Company, through its investment of the guarantee fund and other considerations, will, in case of the expiration of the lease or sooner termination thereof, become possessed of this $2,000,000 of stock of the Brooklyn, Queens County and Suburban Railroad Company, so that it will be seen that a!t the expiration of the lease, or if the lease is sooner terminated through any default or otherwise, the Brooklyn City Railroad Company, through the ownership, under this agreement, of the Brooklyn, Queens County and Suburban Railroad Company's stock, will become possessed of the properties and will be enabled to operate the railroad of this company in connection with its own system. The Long Island Traction Company, through its purchase of bonds and other considerations, first became possessed of these lines, and will, through the Brooklyn Heights Railroad Oompany, secure all the surplus over and above the fixed charges, which will go to the benefit of the Long Island Traction stock. I question whether I have ever met with a financial arrangement or the acquisition of a property growing out thereof which will secure benefits such as this transaction secures either to the Brooklyn City Railroad Company or the Long Island Traction Company without practically any risk. It leaves the Brooklyn City in a most enviable position; first, in case of the failure of the Long Island Traction Company it will become possessed of these properties, and that practically adds whatever value there is in these properties to the guarantee fund of $4,000,000 in cash, which has already been provided in the lease between the Brooklyn Heights and the Brooklyn City Railroad Bompa.niees 670 No matter what extensions are made to the Broadway Railroad Company in the future, no matter how many lines of the Brooklyn City Railroad Company and the Broadway Railroad Company may use each others' tracks and become almost inseparably intermingled in their operations, the Brooklyn City Railroad Company will never be embarrassed under the present arrangement through any such intermingling of operation of cars, for the reason that it holds the key to the situation, both through the ownership of the Brooklyn, Queens County and Suburban Railroad Company's stock (in case of failure of the Long Island Traction Company), and also'through the ownership of a majority of the first mortgage bonds of the same company. The $2,500,000 of first consolidated mortgage bonds is to be offered first to the stockholders of the Long Island Traction Company at 80, the proceeds of such sales and any bonds which such stockholders do not take at that price the syndicate takes in part payment for the property; they are paid $2,240,000 of the first mortgage bonds as the balance of the purchase price, $2,000,000 of which is sold to the guarantee fund at par. The Brooklyn, Queens County and Suburban Railroad Company is to receive a credit, as it will receive the profit of the Broadway system from the time the syndicate took the roads, which will amount to nearly $100,000. In conclusion, I should like it understood that this whole mat. ter has been before the boards of directors of the Brooklyn Citj Railroad and the Long Island Traction Companies for some months, and when voted on recently it received the unanimous vote of all the members of both boards, which is the best guarantee that can be offered of the correctness of this transaction. I trust this will end the controversy on the subject and will satisfy all doubting persons as to the wisdom of the parties who have taken the responsibility of this step. (Signed.) DANIEL F. LEWIS, President. EXHIBIT P. LONG ISLAND TRACTION COMPANY AND THE BROOKLYN HEIGHTS RAILROAD COMPANY, TO NEW YORK GUAR ANTY AND INDEMNITY COMPANY, TRUTSTEE. TRUST INDENTURE. This Indenture, made this first day of August, one thousand eight hundred and ninety-four, between the Long Island Traction Company, a Virginia corporation, hereinafter called the "Traction Company," and The Brooklyn Heights Railroad Company, a New York corporation, hereinafter called the "Heights Company," parties of the first part, and the New York Guaranty and Indemnity Company, a New York corporation, hereinafter called the "Trustee," party of the second part, witnesseth: Whereas, The Heights Company is the lessee named in a certain indenture of lease, dated February 14, 1893, whereby The Brooklyn City Railroad Company, as lessor, demised and leased unto the Heights Company and its successors all and singular the certain railroad and other property of said lessor in said indenture of lease mentioned and described; and Whereas, All of the capital stock of the said Heights Oompany is owned by the Traction Company, one of the parties hereto of the first part; and Whereas, The Heights Company has expended large sums of money in and about the electrical equipment and reconstrucion of said demised railroads and for other purposes, and has contracted debts in and about the premises; and Whereas, The Traction Company and the Heights Company, for the purpose of providing means for the payment of the indebtedness so contracted as aforesaid, and for other purposes, desire and hare respectively duly resolved to issue, negotiate and dispose of their joint and several promissory notes, secured by indenture of trust and the pledge of securities and property as collateral as herein provided, andto tohat end have respectively duly authorized the execution and delivery of this instru 672 ment and the execution, delivery and issue of said notes, the said joint and several promissory notes to amount in the aggregate to not exceeding $3,000,000, consisting of registered notes, and of coupon notes with privilege of registration; of principal; all of the said notes to be of the denomination of $1,000 or less, or multiples of $1,000, to bear interest at the rate of 6 per centum per annumn, payable semi-annually, dated July 31, 1894, and payable in three years after date, or sooner, at the option of the Yraiction' Company and of the Heights Company, after July 31, 1895. All of the said notes of ea!ch class to be of the same tenor and date, and each of the said notes to be signed by the presidents or vice-presidents of the Traction Company and the Heights Company, and to bear the corporate seals of the Traction Company and the Heights Company, attested by their respective secretaries, and the said notes to be of substantially the following form and tenor; that is to say: (Form of Registered Notes.) UNITED STATES OF AMERICA. LONG ISLAND TRACTION COMPANY and THE BROOKLYN HEIGHTS RAILROAD COMPANY. No...... Six Per Cent. Collateral Trust Gold Note. New Yotrk, August 1, 1894. The Long Island Traction Company and The Brooklyn Heights Railroad Company, for value received, hereby promise, jointly and severally, to pay to the registered holder hereof, at the office of the New York Guaranty and Indemnity Company in the city of N ew York...................................... dollars in gold coin of the United States, of (r equal to the present standard of weight and fiRtness, on the 1st day of August, A. D., 1897, unless the same Le sonoaer paid as hereinbelow provided, and to pay interest thereon to the registered holder hereof at the office aforesaid, at the rate of 6 per centum per annum in like coin, fromi the date hereof, semi-annually, on the first days of February and August in eailch year until said principal sunn shall be fully paid. And it is hereby agreed that in case the interest or any part thereof shall not be so paid on any day when the same is due and payable, and shall remain in arrears three months after the same shall have been demanded, then the whole of said principal sum may become immediately 673 due and payable, in the manner and with the effect provided in the Indenture of Trust hereinafter mentioned. This note is one of a series consisting of registered notes, and of coupon notes with privilege of registration of principal, amounting in the aggregate to not exceeding $3,000,000; all the said notes being of the denomination of $1,000 or less, or multiples of $1,000, and all of the said notes of each class being of the same tenor and date, and all the said notes, as well registered as coupon, being equally secured by a pledge of certain assets and property of the above-named Traction and Heights Compianies, as provided in a certain indenture of trust bearing even date herewith, made by the said Lonlg Island Traction Company and said The lBr(oollyn h-eights Railroad Company with the New York -Guaranty and Indenmity Company, as trustee, subject to the termIs and conditions of which said indenture of trust this note is issued and held. This note is not valid or obligatory until the certificate hercon shall have been signed by the trustee under said indenture of trust. This note is redeemable at par and accrued interest before maturity, on, or at any time after the 31st day of July, A. D., 1895, upon the conditions and in the manner set forth in the said indenture of trust. It is agreed by the holder of this note that no recourse shall be had for its payment to the individual liability of any stockholder, director or officer of the above-named Traction or Heights Companies. This note is transferable in person or by attorney only on the books of the trustee under the said indenture, upon surrender. of this note duly indolrsed. In witness whereof the said Long Island Traction Company and said The Brooklyn Heights Railroad Company have caused their respective corporate seals to be hereto affixed and attested by their respective secretaries and these presents to be signed by their respective presidents. LONG ISLAND TRACTION COMPANY, By Attest: President Secretary. THE BROOKLYN HEIGHTS RAILROAI COMPANY, By Attest: President Secretary. B. 6 674 (TRUSTEE'S CERTIFICATE.) New York Guaranty and Indemnity Company hereby certifies that the within note is one of the series and issue described in the indenture of trust therein mentioned. NEW YORK GUARANTY AND INDEMNITY COMPANY,,~~~~~~~~~! ~ ~Trustee. JBy I President. (Form of Coupon Notes.) $ $ — UNITED STATES OF AMERICA. LONG ISLAND TRACTION COMPANY And THE BROOKLYN HEIGHTS RAILROAD COMPANY. No. No. Six Per Cent Collateral Trust Gold Note. New York, August 1st, 1894. The Long Island Traction Company and the Brooklyn Heights Railroad Company, for value received, hereby promise jointly and severally to pay to the'bearer, or if this note be registered, then to the registered holder hereof, at the office of the New York Guaranty and Indemnity Company, in the city of New York,............... doll'ars in gold coin of the United States, of or equal to the present standard of weight and fineness, on the 1st day of August, A. D. 1897, unless the same be sooner paid as hereinbelow provided, and to pay interest thereon at the rate of six per cent. per annum, in like coin, from the date hereof, semiannually, on the fist days of February and August in each year, until said principal sum shall be fully paid, upon presentation and surrender at the office of said New York Guaranty and Indemnity Company, oof the interest coupons hereto annexed, as the same become due respectively. And it is hereby agreed that in case the interest, or any part thereof, shall not be so paid on any day when the same: is due and payable, and shall remain in arrears three months after the same shall have been demanded, then the whole of sa:id principal sum may become immedialtely due and payable in the manner and with the effect provided in the indenture of trust hereinafter mentioned. This note is one of a series consisting of registered notes, and of coupoi notes with privilege of registration of principal amounting in the aggregate to not exceeding $3,000,000; all the. - -" 675 said notes being of the denomination of $1,000 or less, or multiples of $1,O()0. all of the said notes of each class being of the samle tenor and date, and all the said notes, as well registered as coupon,,are equall secured by a pledge of certain assets and property of the above-nained Traction and Heighlts Companies as provided in a certain indenture of trust bearing even date herewith, made by the sa4d Long Island T'raction Company alad said The Brooklyn Heights fiailroad Company with the New York Gua'ranty and Indemnity Company, as trustee, subject lo 'the terms and conditions of which said indenture of trust, this note is issued and held. This note is not valid or obligatory until the certificate hereon shall have been signed by the trustee under said indenture of trust. This note is redeemable at par and accrued interest, before maturity, on or at any time after the 31st day of July, A. D. 1895, upon the conditions and in the manner set forth in the said indenture of trust It is agreed by the holder of this note that no, recourse shall be had for its payment to the individual liability of any stockholder, director or officer of the above-named Traction or Heighits Companies. This note may be registered in the name of the owner in 'a book to be kept by he terustee under said indenture of trust, which registration shall be nobted hereon, after which every transfer hereof shall be valid only when made on said books, until so transferred again to bearer. The coupons shall always be transferable by delivery. In witness whereof, The said Long Island Traction Company and said The Brooklyn Heights Railroad Company, have caused their respective coirporate seals to be hereto affixed and attested by their respective secretaries, and these presents to! be signed by their respective presidents, and have also caused fac-simile signatures of their respective treasurers to be engraved on each of the interest coupons hereto annexed. LONG ISLAND TRACTION COMPANY, By President Attest: Secretary. 67ti THE BROOKLYN HEIGHTS RAILROAD COMPANY, By President Attest: Secretary. (COUPON.) Long Island Traction Company and The Brooklyni Heighta Railroad Company will pay to the bearer hereof, at the office of the New Yolrk Guaranty and Indemnity Company, in the city of New York,................................ dollars in United States, gold coin, on the...... day of................ A. D., 189.., for six months' interest on their collateral trust note, No....... Coupon No..... Treasurer, L. I. T. Co. Treasurer, B. H. R R. CO. (TRUSTEE'S CERTFICATE.) New York Guaranty and Indemnity Company hereby certiifle that the within note is one of the series and issue described in the indenture of trust therein mentionied. NEW YORK GUARANTY AND INDEMNIITY CO., Trustee. By, President. Now, therefore, the Traction Company and the Heights COokm pany, in consideration of the premises and of the sum of $1 to each of them in hand paid by the trustee, the receipt whereof is by each hereby acknowledged, and in order to secure equally the payment of the principal and interest of the notes aforesaid, at any time outstanding, do hereby severally and respectively grant, bargamn, sell, assign, transfer, set oven and deliver to the trustee and its successors, and do hereby pledge and hypothecate, simultaneously with the execution of these presents, the following described personal property; that is to say. L All the right, title and interest which the Long Island Traction Company now owns or may hereafter acquire in and to the entire capital stock of The Brooklmy Heights Railroad Company, consisting of 2,000 'shares of the par value of $100 each; IL All dividends, income, interest and increase to which the Long Island Traction Company now is or may hereafter become entitled, by reason of its right, title and interest in and to the entire capital stock of The Brooklyn, Queens County and Suburban Railroad Company, which said right, title and interest ie, however, subject to be diverted to and vested in The Brooklyn City Railroad Company in the contingency mentioned in a certain tripartite agreement made and executed by and between said Long Island Traction Company, said Brooklyn, Queens County and Suburban Railroad Company, and The Brooklyn City Railroad Clompany, dated January 16, 1894. III. All net profits of or in anywise derived or receivable by said Heights Compaany, as lessee as!aforesaid of the railroad and other property of The Brooklyn City Rajilroad Company, under the above-mentioned lease of February 14, 1893, including and intending to include all the present and! future right, title and interest of the Heights Company and the Traction Company in, to and in anywise concerning the income and principal and every part thereof of the certain guoarantee fund of $4,000,000 in said lease mentioned and now established thereunder. IY. All the right, title and interest of the Heights Company in and to the amount of the cost of all property, extensions, branches, additions, improvements and equipments, heretofore and hereafter made, acquired and ),!aid, for by said Heights Company out of its own funds, for use in connection with the operations of the railroads of The Brooklyn City Railroad Company, less the cost of such. part thereof as shall or may be required to preserve said railroads, extensions, branches, additions, improvements and equipments in good repair and serviceable condition during the existence of the lease hereinabove mentioned from said The Brcoklyn City Railroad Company, as lessor, to said Heights Company, as lessee,, and less the cost of such part thereof as shall or may be necessary to preserve and secure efficiency in the operation of isich railroalds; such cost, as aforesaid, being payable, under the terms of the lease above mentioned by siaid lessor company, to, said lelssee company, in the event of the expiration of salid lease or other sooner termination thereof. To.have and to hold the said above-described securities and property to the said trustee, its successor and suiecessors forever. In trust, nevertheless (subject to each and all of the provisions hereinafter in this indenture of truist contained), for the equal pro rata benefit, security anad protection of the several periona 678 and corporations, who shall from time to time hold the said notes or iany of them, and for the enforcement of the payment (thereof and of the interest due thereon when payable, in accordance with the true intent and meaning of the stipulations, covenants, terms anm conditions of this instrument and of said notes. Provided, however, and these presents are upon the express condition that if the Traction Oompany and the Heights Company, or either of them, their successors or assigns, shall well and truly pay or cause to! be paid unto the holders of the said notes so issued olr to be issued as herein provided the sums of money constituting the principal of said notes, and the interest to grow due thereon, at the times and in the manner mentioned in the said notes, accordigng to the true intent and meaning thereof, or shall redeem said notes as herein provided and shall well and truly keep, perform and observe all and singular the covenants, promises and conditions in said notes and in this indenture of trust expressed to be by said Trlaicllion and Ileighits companies kept, performed and observed, then these presents and the rights hereby granted shall cease, determine and be void, otherwise to be and to remain in full force and virtue. It is hereby agreed 'and declared by and between the parties hereto, that the further trusts, uses, purposes, conditions and covenants for and upon which the shares of stock and other propeiyv hereinblefore mentioned and described are assigned, tr.ansferred. delivered and pledged and hyp;,thecaled to and tol be held and dispoised of by the said trustee, are as follows, that is to say ARTICLE FIRST. Upon the execution of this indenture and the transfer and delivery to the trustee hereunder of a certificate or certificates for not less than 1,987 of the shares of stock of the Brooklyn Heights Railroad Company, the trustee shall certify and deliver, to or upon the joint order of the Tractioqn Company and Heights Company, collateral trlust notes of the issue hereby secured, to the amount of $1,875,000, par value. The remainder of said notes shall be held by the trustee and be certified and delivered by it hereafter as directed by a disbursing committee to be appointed by the Traetion C(ompany and the HFeight;l Oompany, with the approval of the president of the New York Guaranty and Indemnity Company, and of the president of the Brooklyn City Railroad Company. The trustee shall in no wise be called upon to look behind any such direction of said committee or to the subsequent or final disposition made of lany of the notes hlereby secured which may be certified and delivered in accordance therewith. No note or notes intendod to he secured hereby 679...'.. shall be so secured or be valid for any purpose until cxtified by the trustee. j Any note or notes aforesaid of either class hereby secured, whether registered or coupon, may be surrendered for the purpose of being cancelled and exchanged for a note or notes of the same or the other class, and such exchange may be made accordingly, provided the nwote or notes so to be issued in exchange shall not exceed in its or their principal or aggregate principal the Iprincipal or aggregate principal of the note or notes so surrendered, so that the total aggregate amount in principal of all the notes' outstanding at any one time shall not exceed said aggregate sum of $3,000,000. ARTICLE SEC(OND. The Traction Company and the Heights Company jointly and severally agree that they will, from time to time, do olr cause to to be done all such acts and will execlute or clause tlo be executed all such instruments as shall be necessiary or proper to carry into effect the purposes and intent of this indenture, and will make suchi further transfer:s and assurances to the trustee as may, from time to time, be necessary or proper to vest in th'e trustee all of the shares of stock and other property assigned and pledged hereby or hereunder and lastly, wvill pay promptly as it matures the interest on the notes hereby secured, as provided in said notes, and also the principal of said notes at maturity. ARTICLE THIRD. The trustee shall collect and receive lall dividends upon the shares of stock of The Brooklyn Heights Company pledged hereunder, and also all dividends, income and increase tol which the Traction Company is, or may hereafter become, entitled by reason of its right, title and interest in and to the capital stock of the Broloklyn, Que-en-is County and Suburbani Railroad Company, and also all net profits, of or in any wise derived or receivable by the Heights Company, as lessee of the railroad and other property of The Brooklyn City Railroad Company, incluin ng all interest so hereafter receivable upon the certain guarantee fund established by thle Heights Company, as such lessee. Thei trustee shall and may from time to time execute such orders or other instruments ais it rmayy deem necesary or proper in olrder, to the due collectioln of the interest and other moneys menti'oned in this article. All nmoneys colllectled and received by the trustee under tlis article shall be by it applied first toward the payment of interest upon the collateral trust naotes, outstanding at the time, of the issue hereby secured. 680 MUbe balance shall be held by the trustee until applied, under the direction of the Traction Clompany and of the Heights Company, in the exercise of the option of the parties hereto of the first part, as in article sixth hereafter provided, to the payment of the principal of notes of the issue hereby secured. Notes whereof the principal is so sought to be paid shall be drawn by lot and payment and cancellation thereof be effected in manner as in article sixth hereof provided. } ARTICLE FOURTH. All certifitates for shares of stock of The Brooklyn Heights Railroad Company received hereunder shall be kept by the trustee in some safe deposit vault or other place of safety, and may be transferred to or registered in the name of the trustee or its nominee or nominees, approved by the Traction Company. But the trustee shall, from time to time, as and when requested by the Traiction Company, transfer or permit to be held shares of said stock to an amount sufficient to qualify directors of said The Brooklyn Heights Railroad Company. ARTIOLE FIFTH. The voting power upon the shares of stolck of the The Brooklyn Heights Railroad Company pledged hereunder shall, until payment of the principal and interest of the collateral trust notes issued and secured hereby and hereunder, be exercised by a committee composed of Messrs. Mlartin Joost, Thomas S. Moore and Joseph S. Auerbach, who are hereby, for such purpose, duly appointed, authorized and empowered by the Traction Company, one of the parties hereto of the first part. Such voting power shall be exercised by the above-named three persons and their successors or substitutes constituting such committee, personally or by proxy, and, in case the said shares of stock of The Brooklyn Heights Railroad Company shall, at any time hereafter, be transferred by or on behalf of the trustee unto any person or corporation other than the Traction Company, then the trustee hereunder shall make and execute or procure and deliver, such proper proxies or powers of attorney as shall empower and enable the above-named three persons and their substitutes, survivors and successors, constituting such committee, or their designiated representative or representatives, to vote upon the said shares of stoick of The Brooklyn Heights Railroad Company at all times, so long as any of the collateral trust notes hereby secured remain outstanding and unpaid, as fully and to the same extent and with the amne effect as if this indenture had not been executed and 681 said shares of stock continued to be voted by, or as directed by, ithe Traction Company; subject only to the provisionis with respect to such voting power hereafter in this article contained. Suchi voting power shall at no time be used or exercised so as to permit or authorize any increase of the capital stock of said The Brooklyn Heights Railroald Company or any lien, security or charge to be created or imposed upon its property or franchises, unless such exercis:e of such power be specially authorized by the consent in writing of the owners of a majority in value of the collateral trust notes sec;ured hereby and at the time outstanding, and then only in, such manner and to such extent as shall be specified in such consent. The three persons above named, and their surviioris and successoi's, constituting the Toting committee, may attend and vote at any and all meetings of the stockholders of said The Brooklyn Heights RaIlroad Company, in person or by proxy. The majority of the committee shall control and no proxy shall be valid unless executed by a majority of the persons constituting the committee at the time. Any vacancy oc;curring in the voting committee (ais now or hereafter constituted), by death, resignation, refusal or incapacity to act, or from any other cause, shall be filled by the other members of said committee. The power of the voting committee to vote on the ishares of stock of said The Brooklyn Heights Railroad Company shall terminate immediately upon the payment in full of the principal and interest of the collateral trust notes secured hereby, or upon the enforcement, with respect to said shares, of the lien of this indenture. Such voting power may also be sooner terminated with the consent in writing of the holders of two-thirds in amount of the collateral trust notes secured'hereby and outstanding at the time, and shall thereafter be exercised by such person or personsi and in such manner as may in and by such consent be prescribed. ARTIOLE SIXTH. It is hereby provided and agreed - anything;in said notes or hereinbefore contained to the contrary notwithstanding -that the Traction Company and the Heights Company.may, at any time and from time to time, on and after August 1, 1895, at their option, upon notice as hereinafter provided, pay the principal of all or any of the notes secured hereby, together with all unpaid interest then accrued thereon, provided.that if only a part of said notes are;sought to be thus paid before maturity, those so to be paid shall be drawn by lot by the trustee, or by some person duly authorized by it, at its office in the city of New York, and the person so drawing shall make a certificate of such drawing Jo. 86 682 and shall make oath concerning the same, before a notary public. The Traction Company and the Heights Company shall publish in two newspapers of general circulation, one published in the city of New York and the other in the city of Broloklyn, New York, at leaist once a week, for a period of 30 days after the first publication, a notice stating the serial numbers of the notes thus drawn (unless all the notes are to be paid, in which event the notice shall so,state, and tile numbers may be omitted) and the time and place of payment of the notes to be paid. Thirty days after the day of sucht first publication the principal of the notes so drawn or called for payment shall become immediately due with all accrued interest thereon, and shall be paid, with accrued and unpaid interest, if any thereon, at the office of the trustee in the city of New York, to; the bearers thereof, unless the same be registered, and in that case, to the registered holders thereof, upon presentation and sulrrender of s.uch notes. Deposit being made with the trustee on or before the date so, fixed for payment, of the amount then due on the notes so designated by notice to be paid, interest shall cease to accrue on said notes after such date of payment. ARTICLE SEVENTIH. In case default shall be made in the payment of any interest accruing upon any of the notes hereby secured to be paid, according to the terms thereof, on any day whalen the same shall become due, and such default shall continue for three months after payment shall have been demanded, or in case the parties of the first part or either of them shal fail or refuse to keep, perform and observe any of the conditions, covenants, and promises herein contained after being reque ted in writing so to do, then and thereupon the entire principal of the not s hereby secured shall, if the trustee so elects and lde(lnres, become immediately due and payable, anything in siaid notis or herein to the contrary notwithstanding, and, if request,.d so to do by the holders of a majority in value of the notes hereby secured and then outstanding, by ant instrument in writing signed by them, addressed and delivered to said trustee. it shall be the. duty of and it is hereby made obliga,rtory upon the trustee in any such case to elect to declare the said principal sum due as aforesaid. ARTICLIE EIGHTH. In case the parties of the first part shall 'mLke default in the payment of any money, principal or interest, secured to be paid by said notes or any of them, at the time when the same shall become due according to the terms thereof, or shall fail, or refuse to keep, perform and observe any of the conditions, covee nants and promises herein contained, and such default in the payment of intere~t shall continue for the space of three months after demand, then the trustee, upon requisition as hereinafter provided or without such request, and upon being indemnified to its satisfaction' against loiss or liability in the premises, may itself, or by its attorneys or agents, with or without the order or decree of any court and as by the trustee may be determined or by any court may be ordered or decreed, sell and dispose of at public auction, upon suck-notice and in such manner asi is hereinafter specified, all or any part of the shares of stock, choses in action and other property pledged hereunder. ARTICLE NINTH. In the event of any exercise of the power of sale hereinbefore contained in respect of the said shares of stock, choses in action or other property pledged hereunder, such sale shall be made by the trustee or by its attorney or. attornneys, agent or agents, at public auction, at such time or times, and at such place or places in the city of New Ycrk as may be determinedi by the trostee. The trustee shall first give notice of the time and place of any such sale by publication thereof in at least two daily newspapers, one published in the clity of New York, and one in the city of Brooklyn, N. Y., not less than twice a week for three consecutive weeks immediately prior to, the week in which sucih sale is to take place. And the trustee shall have power, in its disciretion, to adjourn such sale from time to time, aso to; the whole or any part of the property to be sold, and if so' adjourned tol make sale upon the day to which the adjournment is had without further notice of the time to which the sale inlay be so adjourned other than a publication of a notice of succh adjournmen t t least once a week during the interval covered by such. adjournment, in the same newspapers in which the original notice may have been published. TTpon sulch sale the trustee shall grant, bargain, sell, assign, transfer and deliver possession of all and singular the shares of stock, choses in action an!d other property pledged hereunder and so sold, to the purchaser or purchasers thereof, and the same shall thereupon be freed and discharged from the trust and lien hereby created, ainid the trustee, as the irrevocable attornev in fact of the parties hereto' of the first part and each' of them (for that purpose by thlese presents duly constituted). shiall make, execute and deliver to such purchaser or purchasers such good and sufficient alssignments, transfers, bills of sale or other instrumenets as may be necessary or proper to' vest in such pur 684 iOaser or purchasers full and complete title and ownership of and to the property so sold, and such sale made as aforesaid ahall be a perpetual bar, both in law and equity, against the parties hereto of the first part and their respective successsdeo and all other persons lawfully claiming or to claim the said property or any part thereof, by, from, through or under them or either of them. Upon the making of any such sale, the trustee shall apply the proceeds thereof as follows; that is to say: 1. To the payment of the costs and expenses of such sale, including reasonable compensation to the trustee, its agents, attorneys and counsel, and all expenses, liabilities and advances made and incurred by the trustee in the,execution of the trust hereby created. 2. To the payment of the whole amount of the principal and interest which shall then be owing and unpaid upon the said notes and every of them, whether the principal by the tenor of the said notes be then due or yet to become due, and in case of the insufficiency of such proceeds to pay in full the whole amount of principal and interest owing or unpaid upon the said notes, the same shall be paid ratably, in proportion to the amounts owing or unpaid upon them respectively, without preference of any note over any of the others. 3. The surplus, if any, shall be paid over on, demand to the parties hereto of the first part, or otherwise, as directed by any court of competent jurisdiction. It is expressly covenanted and agreed that the receipt or receipts of the said trustee, its successor or successors, shall be a sufficient discharge to the purchaser or purchasers of the said property pledged and sold hereunder or any part thereof, for his or their purchase-money. Any holder or holders of any of the said notes may become such purchaser or purchasers for his or their own account. ARTICLE TENTH. Upon continuous or other default as aforesaid in the payment of the interest or principal of the notes hereby secured, or in the performance of any covenant herein contained, and upon request in writing, signed by the holders of a majority in amount of said outstanding notes, accompanied by satisfactory indemnity to the trustee against the costs and expenses to be incurred, it shall be the duty,of the trustee to enforce the rights under these presents of the holders of the notes hereby secured, by sale, as herein provided, or by aiction or actions, suit or suits, or other proceedings at law or in' equity, 685 as may be advised by counsel to be most expedient and for the interest of the holders of said notes. ARTICLE ELEVENTH. It is expressly understood and agreed, anything herein contained to the contrary notwithstanding, that the trustee shalll not be under any obligation to take notice of any default hereunder of the parties hereto of the first part, or to give effect to any such default or to recognize the same for any purpose under this indenture, unless requested in writing by the holders of the majority in amount of the notes secured hereby, outstanding at the time, and unless indemnified to its satisfaction in the premises, but nothing herein contained shall be construed as abridging the powers of the trustee to give effect to any default under this indenture or any other powers (expressed or implied) of the trustee under this indenture without such request. ARTICLE TWELFTH. Upon any sale of the property pledged hereunder, or of any part thereof, the purchaser in' making payment therefor shall be entitled, after paying in, cash so much as shall be necessary to cover the costS and expenses of the sale and of the proceedings incident thereto, and all other charges that may be required by decree, or otherwise, to be paid in cash, including reasonable compensation to the trustee and its counsel, agents and servants, to appropriate and use toward the payment of the remainder of the purchase-price, any of the notes,or coupons issued hereunder and entitled to participate in the proceeds of such sale, eckoining each note or coupon so appropiliated and used at such sum as shall be payable thereon out of the net proceeds of the sale; and proper receipts shall thereupon be given to the holders of such notes or coupons for the amount so payable thereon, and the notes or coupons, if the net proceeds of the sale shall be sufficient to pay them in full, shall be delivered up to the trustee or other person making sale under decree of the court or otherwise hereunder, for cancellation; or if the proceeds of the sale shall not be sufficient to pay such notes cr coupons in full, then proper indorsement shall be made thereon of the amount so paid on account thereof, and they shall then be returned to the holderm ARTICLE THIRTEENTH. The trustee may, and upon the written request of the holder or holders of three-fourths in, value of the outstanding notes secured hereby, shall waive any default hereunder on the parties 686 hereto of the first part: Provided, however, that no waiver of any such default shlall extend to or be taken to affect any.subsequent default, or to impair the rights arising thereunder, unless such subsequent default is waived in, manner and form as herein provided. ARTICLE FOURIEENTH. The provisions above set forth for the sale of the property pledged hereunder, in case the parties of the first part make default in payment of the principal or interest of the notes secured hereby, are cumulative and not exclusive, land shall be in addition to all other remedies by action, suit sand proceedings at law or in equity for the! protection and security of the several lawful holders of the notes entitled to the security of and under this indenture. The trustee is hereby specifically authorized and empowered to bring, in its discretion, any and all actions, suits or proceedings at law and in equity that it may be advised for the purpose of carrying out the provisions and intents of this indenture; and such other legal or equitable proceedings may be in lieu of the proceeding by sale of the pledged property hereinbefore provided for..; ARTICIE FIFTEENTH. No proceedings at law or in equity ihall be instituted or conducted ly any holder of any of the n!otes secured hereby to c. mpel a sale hereunder, or to do any other act or thing herein provided independently of thle trustee, except after requi.itiou shall have been made upon the said trustee, in manner and form as herein provided, and after refusal or neglect of the trustee to comply with such requisition according to the provision herein made in respect thereof. ARTICLE SIXTEENTH. The persons in whose names notes are registered upon the books kept by 1th trustee for the purpose, shall be taken by the trustee to be the holders and owners of such notes for the purpose of executing any requests required to be executed by note holders and for all other purposes of this indenture; and the trustee may require the ownership of notes issued under this indenture and not registered to be proven by the production of the notes, or by such other evidence as the trustee may deem sufficient. ARTICLE SEVENTEENTH. The parties hereto of tie first part agree to pay tall expenses of the execution, carrying out and enforcement of the various pro 687 visions of this indenture, including reasonable compensation to the trustee, all expenses otf the protecting the trutst estate, and. all legal and other expenises actually incurred by the trustee, and that all such expenses of the trustee shall be a first lien upon the trust estate until paid. ARTICLE EIGHTEENTH. It is further expressly agreed by said parties of the first part, and all holders of notes issued hereunder, thait no responsibility shall attach to the trustee for its actls hereunder, or fo'r or in respect of any matter or thing, whether of omission or conmmission, except its own willful default or gross negligence. It is understood and agreed that the trustee shall not be answerable for any default or misconduct of any agent or attorney by it appointed hereunder, provided only that such agent or attorney be selected with reasonuable care. ARTICLE NINETEENTH. It is expressly agreed that the trustee may, from time to time, as it shall deem necessary or proper, apply (at th expense of the trust estate) to any court of competent jurisdiction for aid or instructions in any matter connected with the interpreia;ti an of this iiidenltlire or the execulion of this trust. It is further agreed that the trustee shall be under no obligation or duty to take any proceedings for the purpo'se of enfAincing this trust which involves expense or liability, immediate or contingent, unless it shall first be indemnified to its satisfaction in respect thereof. And it is further agreed that the trustee shall have full power and authority, inter alia, and generally at the expense of tihe trust estate, to do any act or thing in respect of the said shares of stock and other property pledged theretnder, as fully and completely as if it were the absolute owner thereof, including the power to ask for, bring or unite in appropriate proceedings in respect thereto, to join in any plan or plans of reorganization in respect thereto of either or both of the parties of the first part hereto, and to take is proportion of the securities issued under any such reorganization. and also, in case of a sale of any proVerty pldedg hereunder, after default by the parties hereto of the first part, to buy.in, for the benefit of the holders of the notes hereby secured, the shares of stock, choses in action and other property, or any part thereof, that may be sold under the provisions hereof. 688 ARTICLE TWENTIETH. It is expressly understood and agreed that this indenture and all its provisions are strictly inter partes, and shall not be construed to create any trust, liability or obligat ion to or in favor of any person; firm or corporation, except the parties to these presents and the holders of Ithe notes hereby secur:ed. All persons accepting any of said notes hereby secured agree that all the provisions of this indeniture shall be binding upon them. ARTIOLE TWENTY-FIRST Upon payment or other satisfaction of the principal land interest of all of the notes which shall have been issued hereunder, sor upon providing for suh payment by depositing with the trustee, upon special trust therefor, the entire amount due upon all the notes outstanding when the same shall be due and payable, and the interest then due and unpaid, together with all other sums which may be payable hereunder the trustee shall, on demand of the parties of the first part, and at their cost and expense, forthwith surrendler, reassign and retransfer and deliver to, the parties of the first part, their respective successors or assigns, all shares of. stock and other property which may be then held by the trustee hereunder. ARIICLE TWENTY-SECOND. In the event of the refusal, failure, neglect or incapacity of the trr:stee herein named, or of its successor or successors in this trust, to execute the same, then the holder or holders of a majority in value of the said notes then outstanding shall select another trustee or trustees to act in its 'or their place, and upon its or their acceptance in writing of said trust, which shall be filed in the office of the clerk or register of the city and county of New York, the person or persons or corporation so selected and accepting shall be thereby substituted for the originally-named trustee, the party of the second part hereto. The parties hereto shall in any and every such case make and execute upon request any suich assignments, conveyances, releases and assurances as may be legally necessary or advisable for the more fully vesting in and confirming to such new trustee or trustees such estate, rights power and duties. The word trustee, when used in these presents shall and for all purposes be taken, held and construed to mean, include and describe the person or persons or corporation who or which shall for the time being, and frmn time toi time, be charged with the trusts hereby created and herein expressed. 689 ARTICLE TWENTY-THIRD. The several covenants, promises and agreements by the parties of the first part herein contained shall be binding as well upon their respective successors and assigns. For the debt and notes secured hereby, the Tralction Company and the Heights Company are liable jointly and severally in personam, and any deficiency, after exhausting the securities pledged hereunder, may be enforced against them or either of them, but not against their officers, directors olr stockholders individually, and it is expressly agreed between the parties hereto, and by every person who shall take oor hold any note or notes issued hereunder, that the existing and all future officers, directors and stockholders of the Traction and Heights companies shall not be individually liable to any extent or for any purpose with respect to said notes or any of them. ARTICLE TWENTY-FOURTH. The trustee is not to see to the recording or filing of this indenture, if such recording or filing shall be necessary, or to take any action or to do any act for protecting, perpetuating or keeping good the lien. of these presents upon the whole or any portion of the property pledged hereunder, for the payment of said notes and interest secured dheneby, save in itsTdiscretion; but the parties of the first part, their successors and assigns, shall and will, from time to time, do all things needful in that behalf. ARTIOLE TWVENTY-FITH. The trustee has become party to this instrument, in order to signify its acceptance of the trusts hereby created. The recitals and statements of fact herein conntaianed, and containied in the notes secued hereby, shall be taken as statements by the paties of the first part, and shall not be construed as made by the trustee. In witness whereof, the Long Island Tractionl Company and The Brooklyn Heights Railroad Company, parties hereto of the first part, have respectively caused these presents to be subscribed, in triplicate in their corporate names, by their respective presidents, and their corporate seals to be hereto aid as well to the two other originals hereof, affixed and attested! by their respective secretaries; and the New York Guaranty and Indemnity Company, party hereto of the second part, has caused these presents to be subscribed in triplicate by its president, and its corporate seal to be hereunto and to the two other originals B 87 Intl hereof affixed and attested by its treasurer, all the day and.,year first above written. LON'G ISLAND) TRACTION COi'dIPANY, By Attest: President. Secretary. THE BROOKLYN HEIGHTS RAILROAD COMPANY, By Attest: President. Secretary. NEW YORK GUARAINTY AND INDEMN-ITY CO.MPANY, By Attest: President. Treasurer. Sealed and delivered, in triplicate, in the presence of STATE OF TNEW YORK, County of.. On this day of July, A. D.,.1894, before me personally camie.........I....., to mce known, and knowit- to mue tbo be the persn who executed the foregoing instrument ais the president of the Said Long Island Traction Company, and who, 'being by me duly sworn, did depose and say that he resides in.~~~~~~~~~~~~~and thalt aIt 11w- timle of the execution of the foregoinugfinstrument he was- and now is the president of the Long Island Traction C'~mpanv; that he knows -the corporate seal of said Traction Company; that the se~al affixed to -the foregoing instrument is the corporate seal of the said Traction Company, and was so. affixed by the board of directors of the said Traction Company, and that by like order lid execut(id the foregoing instrument as its; preszident (On. t-he s-ame (Jay, before me personally came............ to me known, and known to me to be the person who' executed the fc-egoing Instrument as the secretary of the said Traction Comtpany, who, being by me duly sworrn, did depose and say that he ro~sin............., and that at the time of the execution of the foregoing Instrument he was and. now is, the secretary of the Lo~ng Island Traction Complany; that he knows ethe, corporate seal of the said Traction Company; that the seal affixed to the foregoing insfrtnimnt its the corporate seal of. the 691 said Long Island Traction Company, and was so affixed by the order of the board of directors of the said Traction Company, and that by like order he attested the same as its secretary. STATE OF NEW YORK, County of......... On this day...... day of July, A. D. 1894, before me per, sonally came................................, to' me known, and known to me to be the person who executed the foregoing instrument as the president of the said The Brooklyn Heights Railroad Company, and who, being by me duly sworn, did depose and'say that he resides in.......................... and that at the time of the execution of the foregoing instrument he was and now is the president of The Brooklyn Heights Railroad Company; that he knows the corporate seal of said The Brooklyn Heights Railroad Company; that the seal adixed to the foregoing instrument is the corporate seal of the said The Brooklyn Heights Railroad Company, and was so affixed by the order of the board of directors of the said The Brooklyn Heights Railroad Company, and that by like order he executed the foregoing instrumnents as its president. On the same day before me personally came............................. to me known, and known to me to be the person who executed the foregoing instrument as the secretary of the said The Brooklyn Heights Railroad Company,- who, being by me duly sworn, did depose and say that he resides in....................... and that at the tirie of the execution of the foregoing instrument, he was and now is the secretary of The Brooklyn Heights Railroad Company; that he knows the corporate seal of the said The Brooklyn Heights Railroad Company; that the seal axed to the foregoing instrument is the corporate seal of the said The Brooklyn Heights Railroad Company, and was so affixed by the order of the board of directors of the said The Brooklyn Heights Railroad Company, and that by like order he attested the same as its secretary. -:' STATE OF NEW YORK, City and County of New York ( On this...... day of July, A. D. 1894, before me personally cam e......................................, to me known, and known.to me to be the person who executed the foregoing instrument as the......... president of the said New York Guaranty and Indemnity Company, and who, being by me duly sworn, did depose and say, that he resides in.................. and that at the time of -the execution of the foregoing instru 692 ment he was and now is -the........ preside;nt of the New York Guaranty and Indemnity Company; that he knows the aorporate seal of said New York Guaranty and Indemnity Company; that fthe seal affixed to the foregoing instrument is the corporate seal of the said New 'York Guaranty and Indemnity Company, and was so affixed by the order of the board of directors of the said New York Guaranty and Indemnity Company, and that by like order he executed the foregoing instrument as its president. On the samne day before me personally came........................................, to me knolwn, and known to me to be the persaon who executed the foregoing instrument as the treaJsurer of the said New York Guaranty and Indemnity Oompany, who, being by me duly sworn, did depose and say that he resides in.................... and thiat at the time of the execution of the foregoing instrument,:he was and now is the treasurer of the New York Guaranty and Indemnity Company; that he knows the corporate seal of the said New York Guaranty and Indemnity Company, and was so affixed by -the order of the board of directors of the said New York Guaranty and Inilemnity Company, and that by like order he attested the same as its treasurer. STATE OF NEW YORK, City of Brooklyn, County of Kings, 88.: The undersigned stockholders of The Brooklyn Heights Rail. road Company, owning more than -two-thirds of all the stock of the corporation, hereby consent that the foregoing indenture, dated July......, 1894, and executed by-the Long Island T:raction Company and The Brooklyn Heights Railroad Company, parties of the first part, and the New York Guarxanty and Indemnity Company, party of the second part, be issued Witness ou.r htand and salse at said city of Brooklyn, the day of July, 1894. LONG ISLAND TRATION COMPANY, By I! President. [eal.] Seeretary.......................... [Seal.]......................... [Seal.].......................... [Seal.] In fi PlTe0nfe od .....^ '... fi693 STATE O NEW YORK, 8 City of Brooklyn, County of Kings, 8 On this........ day........., 1894, before me, the undersigned, a notary publit, personally came....................... subscribing witness to the foregoing insteruient, with whrom I am personally acquainted, and who, being by me duly sworn, said that he iresides at.....................; that he is personally acquainted with................... and knows them severally to be the persons described in and who executed the said instrument; that he saw them severally execute and deliver the same, and that they then severally acknowledged to him the said........................ t.... that they executed and delivered the same as their free act and deed; that he, the said........................... thereupo subsriRbed his name as witnesg thereto; that he has possession and control of the stock books of The Brooklyn Heights Railroad Company and is familiar therewith, and knows that at the time of the execution and delivery of said instrument the said.............................. and the Long Island Traction Ocmpany were and are owners of more than two-thi:rds of all the capital stock of said The Brooklyn Heights PRairoad Oobmpany. Witness my hand and seal of office the day and year above written. (Signed) I [Seal.], I~~j plF~~~~~Notary Public. STATE OF NEW YORK. City of Brooklyn, County of Kings, s8' On this.......day....., 1894, before me, the under. signed, a notary publi personally came...................... to me known, and known by me to be the person who! executed the foregoing oonsent as the secretary of th)e Long Island Traotion Oompany, and who, being by me duly sworn, did depose and say that he resides n.................-...; that he is the secre tary of the Long Island Traction Company aid knows the corporate seal thereof; that the seal affixed to the foregoing consent is the corporate seal of the said company, and was thereto affixed by order of the board of directors of the said company, and was the voluntary act and deed of the saidl company, and that he signed his name thereto by the like order ais secretary of said company; that he is acquainted with............... and knowes him to be the president of the said' oompanny; that the signature of the said.......................... ~,~~~.. ~'~.~~ 694 scribed to the foregoing consent, is the genuine handwriting of the said............... and was thereto subscribed by the like order of the said board of directorsi and in the presence of this deponent In witness whereof, I have hereunto set my hand and official seal, the day and year above written. (Signed) EXHIBIT Q. This memorandum of agreement, made this 24th day of July, A. D. 1894, witnesseth as follows: Whereas, The subscribers hereto, respectively, have claims against the Brooklyn Heights Railroad Company or the Long Island Traction Company, or both, or are interested in the securities or financial success of one or other or both of said companies, and now desire to facilitate the sale for the sum of $1,500,000 in cash, of joint and several collateral trust notes, to the amount at par of $1,875,000 of the Brooklyn Heights Railroad Company and the Long Island Traction Company, part of a series and issue of $3,000,000, in such notes, described and to be secured and disposed of as mentionede in "Exhibit A," hereto annexed and made part hereof; and Whereas, Said companies desire that the.New York Guaranty and Indemnity Company should,undertake to form a syndicate to secure subscriptions to such portion of $1,875,000 of said collateral trust notes as shall not be subscribed for hereunder; and Whereas, Said New York Guaranty and Indemnity Company has consented to undertake to form said syndicate provided that subscriptions hereto shall amount to at least the sum of $750,000, payable as herein provided: Now, therefore, We whose names are hereunto subscribed hereby, severally but not jointly, agree with the New York Guaranty and Indemnity Cpmpany and with each other to pur chase and take from said New York Guaranty and Indemnity Company, at 85 per cent. of their par value, the several amounts in collateral trust notes of the issue above mentioned which are set opposite our respective signatures hereto, and to make payment for the same in cash, to or uponl the order of said New York Guaranty and Indemnity Company, as installments are called, as hereinafter mentioned. It is, however, understood and agreed that before any payment shall be called from the subscribers hereunder all of the above-mentioned $1,875,000 of such collateral trust notes shall be offered for subscription to the stockholders of the Long Island Traction Company on the terms following, to wit: Such offer shall be made on or before August 15, 1894, and shall 696 remain open for 30 days,,and the first installment of 25 per cent. shall be called on September 15, 1894, and be payable on September 20, 1894, provided that such offer! may be. made on such other date and may remain open during such other period, and the first installment may be called and be made payable on such otfher Idate as may be determined by the New York Guaranty and Indemnity Company. Said notes shall be so offered at 85 per cent. of their par in cash, payable in installments not exceeding 25 per cent. each, as called by the disbursing committee referred to in Exhibit A, at intervals of not less than 60 days. All moneys subscribed for, said notes' pursuant to such offer shall be paid to such depositary as shall be designated by said committee, and shall be subject to the order of said committee. Each subscriber to said notes pursuant to, said offer may anticipate payments therefor, and shall receive proper installment receipts, in form approved by said committee, for all amounts paid. In case of failure on the part of any subscriber for a period of 30 days to make payment of any installment called, said committee may, at their option, sell and dispose of the rights of the delinquent subscriber, who shall, nevertheless, remain liable for any deficiency. All details as to the creation of said collateral trust notes, and of carrying out the plan set forth generally in Exhibit A shall be subject to the direction or approval of said committee. Said committee shall act by a majority of their number. Vacancies in said committee shall be filled by the joint makers of said notes with, the approval of the pre-sident of The Brooklyn City Railroad Company. The committee shall be entitled to reasonable compensation for their services, which, with the legal and other expenses of the committee and of carrying into effect the plan set forth in Exhibit A, shall be allowed and paid by said committee out of the proceeds of,said collateral trust notes. Said notes having been offered to the stockholders of the Long Island Traction Company, as above mentioned, the several amounts thereo hereinabove agreed to be purchased by the undersigned from the New York Guaranty and Indemnity Company shall be reduced in the proportion which the total amount of said notes taken by stockholders of the Long Island Traction Company pursuant to such offer bears to the entire $1,875,000 of such notes hereinabove mentioned. Payments shall be made by each of the undersigned to the New York Guaranty and Indemnity Company for the notes so ascertained to be taken by him hereuirder, in cash and in like installments, as in the ease of notes takenl by stockholders of the Long Island: Traction Company, when and as such payments shall be called for by said 697 New York Guaranty and Indemnity Company; provided, however, that each of the undersigned shall be also liable to pay to the said Guaranty Company, within five days after demand, his proportion of any amounts of said notes taken and not paid for by any of said stockholders. In case of failure on the part of any of the undersigned for a, period of 30 days to make payment to said Guaranty Company of any installment called here under, said Guaranty Company may, at its option, sell and dipose of the rights of the delinquent, who shall, nevertheless, remain liable for any deficiency. The amount of the subscription of any creditor subscribing' hereto shall be paid hereunder by crediting the amount tihereof as installments called are payable upon the amount now due to such creditor from said Brooklyn Heights Railroad Company or Long Island Traction 'Company, and in! no event shall the amount payable by any subscriber hereunder exceed the amount of its or his subscription. Subscriptions hereto shall be binding so soon as and not before the collateral trust notes to the par value of $1,875,000 shall have been disposed! of by subscriptions hereunder and otherwise for the sum of $1,500,000 as above provided. Any balance in excess of said sum of $1,500,000 realized upon said subscriptions hereunder or otherwise in the sale of said $1,875,000 of collateral trust notes shall be retained by aid New York Guaranty and Indemnity Company for itself and its associates as compensation, for the formation of said syndicate. Witness the respective signatures of the undersigned the day and year above written. Brooklyn, July 24, 1894. To the New York Guaranty and Indemnity Company: The accompanying plan, termed Exhibit A,,pursuat to whiho you are asked to act on behalf of the undersigned, as outliued in the accompanying subscription paper and in Exhibit A, is made up of statements and estimates which are in all respects oorret and conservative. THE BROOKLYN HEIGHTS RAILROAD COMPANY, LONG ISLAND TRAOTION COMPANY, By DANIEL F. LEWIS, President B 88 698 EXHIBIT A. MEMORANDUM AS TO SUBSCRIPTION FOR THE JOINT COLLATERAL TRUST NOTES OF THE BROOKLYN HEIGHTS RAILROAD COMPANY AND THIE LONG ISLAND TRACTION COMPANY. The Brooklyn City Railroad Company property, consisting of 200 miles in operation under electrical and steam equipment and having 93 miles of extensions not yet built upon, is leased to The Brooklyn Heights Railroad Company. for a term of 999 years, the total rental charge, including mortgage interest and insurance, being $1,590,000. Brooklyn 12.................. All the capital stock of the Brooklyn'Heights Company is owned by the Long Island Traction Company. The Brooklyn Heights Company, having disbursed large amounts for the electrical equipment of the railroad property, will need -after applying $250,000 of the guaranty fund deposited as security for the performance of the lease and the interest on the guaranty fund toward the July rental - the sun of $2,850,000 in order to pay its existing indebtedness and to complete the electrical equipment. Tlh Brooklyn City Company is willing to provide $1,375,000 of this indebtedness, such amounts to be repayable at the expiration of three years from August 1, 1894, and to be secured by a pledge of collateral trust notes and of certain real estate of the Brooklyn City Company, which under the lease is to be sold and the proceeds applied to the electrical equipment of the property. The first year's operation of the road, under the lease —a peculiarly bad year for railroad earnings -while the electrical conversion of the road was proceeding, with all the loss of income incident to sruch work, will show net profits to the lesseeSfrom all sources exceeding $100,000, the gross receipts of the road amounting to $4,284,000. It is believed, as an unnecessarily conservative estimate, that the gross receipts will average $4,750,000 per annum for the next three years, and, assuming that the road can be operated for not exceeding 60 per cent. of its gross receipts, including payment of all taxes, there will remain as annual net proceeds of operation....... $1,900,000 Adding anmnal interest on the guaranty fund held as security for payment of the rental charge by the Brooklyn Heights Company to the Brooklyn City Company.............................. 187,500 The net income from these sources will be... $2,087,500 699 Deducting rental charges~, including mortgage interest and insurance... $1,590.000 Deducting interest, on. the collateral trust notes now to be issuned, and solid, and on the amo'unt provided as above, which, will be reduced as -the real es,tate and personal property of, the Brooklyn City Company applicable for conversioni purposes under the terms of the lease are di sposed of, say.... 195,000 1,785,000 The annua~l net return to the Brooklyn Hetiglts, Cobnpaony will be................ $302,500 Mem:.- In:addition to, these sources of income, -the Long Island Tr-action Company owns all the capital stock of the Brooklyn, Queens County and Suburban Railroad Company (which owns 44 miles of rail road! now beinag electrically equipped and representing a consolidation of the old Broadway and Broadway and Metropolitan Avenue an-di Jamaicea and Brooklyn Companies), the result of whose operations for the next three years, it is belie'ved, will show an average annual profit of not less than, $25,000 over fixed charges. There is, however, no obligation on the part of the Brooklyn Heights Company, -the Brooklyn City Company or of the Long Island Traction Compsny t~o meet any fixed charge's on this property, the Long Island Traction Company simply owning the capital stock' of the Brooklyn, Queens County an'd Suburban Railroad Company. In- addition to a milea~ge of.44 miles now under orperation and being electrically equipped, the Brooklyn, Queens County and Suburban Company hais the right to! construct a~bout 80 miles of extensions. Refcapitulated, thfe mileage is ais follows: Mi'em. (a) Brooklyn City, MiEag udroperation.........200 (b) Brooklyn City, ~extensions-91..........93 (c) Brooklyn, Queens County and Suburban, mileage -under operation....................44 (d) Brooklyn City, Queens County and Suburban, extensionis....................... 80 Grand total..............d. 417 700 It is,proposed that the Brooklyn Heights and Traction Companies jointly raise the sum of $1,500,000, out of which payment Ahall be made for services and legal and other expenses, by an issue and sale of one-thirdi year 6 per cent collateral trust notes to the par of $1,875,000, which willl be secured, as will be more particularly set forth in the collateral trust-note indenture: (a) By a specific pledge and transfer to the trustee for the collateral trust notes (with full voting power thereon, until payment of the collateral trust notes to Martin Joost, Thomas S. Moore, and Joseph S. Auerbach, their isubstitutes and successors), of all the capital stock of the Brooklyn Heights Company, such value being conservatively esrtimated at $250,000. (b) By a transfer of all the interest of the Long Island Traction Company and of the Brooklyn Heights Company, in! the principal and income of the guaranty fund:. (c) By a specific pledge of the cost value of all property, extenislonis,,branchesi, additions, improvements and equipments constructed, made or furnished by the lessee cut of its funds, the cost of which, under the terms of the lease, is to; be paid for by the Brooklyn City Company on the termination of the lease for any reason, which cost value, when the proceeds of the collateral trust notes ishiall have been expende under the terms of the lease and exclusive of any offset by the Brooklyn City Company, will, as estimated by the Brooklyn Heights Company, exceed $1,100,000. (d) By a pledge of all the net earnings on the capital stock of the Brooklyn Queens Oounty and Suburban COompany, to which earnings the Long Island Traction Company is entitled during the continuance of the lease between the Brooklyn Heights and Brooklyn Oity Companies (e) Finally, by a transfer of all the assignable interest of the Brooklyn Heights Company in the proceeds of tihe Brooklyn City Railroad' Company lease. The total value of these specific assets, transferred as security for the collaiteral trust notes, aside from the surpnlus earnings under the lease, according to la conservative estimate, is in excess of $1,250,000. The right to subscribe to these notes shall subsequently be offered to the shareholders of the Long Island Tractibn. Company at 85 per cent. of their par, 'and, with the consent of the disbursing committie below mentioned, there may be included in said offer notes to the par value of $2,500,000. Thie moneys subscibed ais paid in are to be disbursed under the direction and authority of a disbursing committee to be appointed by the makers of said notes with the approval of the 701 president of the New York Guaranty and Indemnity Company and of the president of the Brooklyn City Railroad Company. Such committee ishall be authorized to consent to the increae of said collateral trust notes to a total amolunt not exceeding $3,000,000. Any and all amounts of said colateral trust notes additional to said $1,875,000 not otherwise disposed of a;s herein provided shall be used as collateral security for the advances to the Brooklyn Heights and Long. Island Traction Comrpanies by the Brooklyn' Cty Company, or the proceeds 'at not less than 80 per cent. of their par may be used in payment of such advances. It is believed that the proceeds of certain real estate and peronal property of the Brooklyn City Company available for sale and of $625,000 of collateral trust-notes, will suffice to discharge these advances to be made by the Brooklyn City Company. EXHI-OT R. CIRCUIT COURT OF THE UNITED STATES, Eastern District of Virginia. WTILLTJAM M. KIIDDER and others. against LONG ISLANL) TRACTION COMPANY and others, in equity. Now on this March 19, 1895, come the complainants by Henry Crawford, their solicitor and counsel, and come also the defendants, the Long Island Traction Company and the Brooklyn Heights Railroad Company, by Messrs. White & Garnett, their solicitors and counsel; and the complainants thereupon bring on for hearing before the Holn. Nathan Goff, Circuit Judge, at chambers the motion of the coemplainants for the appointment of a receiver of the Long Island Traction Company and for an injunction pursuant to the,prayer of said bill. And it appearing to! the sat.isfaction of the court that all of the defendants have had due and timely notice of the said application for the appointment of a receiver and a:n injunction, and the said motion coming up to be heard upon the verified till of complainant and exhibits, no cause being shown against such motion, and it sufficiently appearing to the court that the complaSinants are tntitled to such relief, it is thereupon, on motion of the counsel for the complainants, ordered, adjudged and decreed by the court that H. J. Morse of the city of Brooklyn and State of New York be and is hereby appointed receiver of all and singu-,ar the property, assets, contracts, rights, money, credits, choses in actionr and effects of the Long Island Traction Company, specially including as a part of such property all and singular the right, title and interest art lavw or in equity in expectancy and remainder of the said Traction Conpamy in and to all and singular the -property described in the collateral trust agreement executed to the Newi York Guaranty and Indemnity Company as set out in the bill herein. To have and to hold the said property as the officer of this court and to be protected and administered and delivered over under the orders and directions of this court to be entered from time to time in this cau-se. 703 The said Long Island Traction Oompany and eachand every of its officers, directors and agents are hereby required aad commanded forthwith upon demand of such receiver or his duly authorized agent, to immediately sign, seal, under the corporate seal of said corporation, execute and deliver a proper deed of assignment conveying and transferring to the said receiver hereby appointed any and all moneys, contracts, debts, leases, bills, notes, accounts, books of accounts, vouchers, papers and other property in its possession or their hands or under its or their control. And each and every of such officers, directors, agents and enployes of the said Long Island Traction Company are hereby enjoined from interfering in any way whatever with the possession or management of any part of the property over which the said receiver is hereby appointed, or interfering in any way to prevent the said receiver from the discharge of his duty under the orders of this court. Sakid receiver is hereby fully authorized to employ and discharge and fix the icompensation' of such officers, attorneys, agents and employes as in his judgment are necessary orplroper to assist him in the discharge of his trust hereby created. Said receiver is hereby fully authorized to insrtitute and prosecute oir defend in his own name or that of said corporation, all such suits as may be necessary in his judgment for proper protection of the property andn trust hereby vested in him. iSaid receiver shall keep proper books of accounts wherein, shall be stated all the receipts and disbursements of his said trust under this order of appointment, and preserve proper vouchers for all payments and file in this court monthly statements of such recedpts and disbursements. Said receiver shall from time to time out of the funds coming into his hands from! the inicome or receipts of the trust estate pay all of the expenses of administering the said trust estates. He shall be at liberty from time to' time to make application to the court for such hfrther orders or directions as td the administration cr protection of the trust Iprop'erty in his charge or the performance of any duties in connection therewith which in his judgment may 'be necessary or proper. The said receiver is hereby required within 10 days from the date of this order to file with the clerk of this court a proper bond, with snireties to be approved by this court, in the penal sum of $50,000, unconditioned for the proper discharge of his duties and to, ob.ey all orders of the court herein and to account for all funds according toi such decrees as the court may from time to time enter. 704 Said receiver is instructed with all convenient speed to investigate and report the present condition of said trust Orperty and what steps are necessary, in his judgment, to, initure it adequate protection; against default, diminution and forfeiture, and what action, if any, in his judgment, is necessary to be taken by the court to fully preserve the said trust estate for the benefit of the complainants and other like creditors and stockholdera Pending the further order of the court, the said Brooklyn Heights Railroad Company is 'hereby enjoined and restrained from doing or permitting any act which will operate as a surrender, alteration, default or forfeiture of the lease executed to it by the Brooklyn City Railroad Company as set out in the bill of complaint herein. And is further enjoined and restrained from doing or permitting any act to be done in regard to the operation and administration of the said demised property contrary to the directions and instrulcdtons from time to time to be given to it by the receiver of this court or whichL will tend to the injury or impairment of the trulst estate now vested in such receiver by the orders of this court; NATHAN GOFF, United States Circuit Judge. (A copy.) Teste: M. F. PLEASANTS, Clerk. [Seal.] UNITED STATES OF AMffRICA. Eastern District of-Virginia,.: I, M. F. Pleasants, clerk of the United States Circuit Oourt for the Eastern District of Virginia~ do hereby certify that the foregoing is a true transcript from the records of the said In testimony whereof, I have hereto set my hand and annexed tie seal of the said court, this 20th day of [Seal.] March, 1895. M. '. PLEASANTS, Clerk. }UNITED STATES OF AMERICA,. Eastern District of Virginia, 88. I, R. W. Hughes, one of the judges of the Circuit Court of the United States for the Eastern District of Virginia, do hereby 705 certify tht M. F. Pleasants, whose name is signed to the foregoing certificate, is and was, at the time of signing the samie, clerk of the said court, duly qualified; that his attestation is in due form of law; that his signature is genuine, and all his official acts entitled to full faith and credit. Given under my hand, this 20th day of March, 1895. R M. HUGHES. UINITED STATES OF AMERICA,.: Eastern District of Virginia, I, M. F. Pleasants, clerk of the United States Circuit Court for the Eastern District of Virginia, do hereby certify tlhat R. W. Hughes, whose name is signed to) the foregoing certificate, is and was, at the time of signing the same, one of the judges of the Circuit Court, United States, Eastern District, Virginia, duly certified. Given under my hand, this 20th day of March, 1895. [Seal.] M. F. PLEASANTS, Clerk. R. 89 EXHIBIT S. (Copy.) IN THE CIRCUIT COURT OF THE UNITED STATES, For the Eastern District of Virginia. WILLIAM M. KIDDER and others against THE LONG ISLAND TRACTION COMPANY and others, in equity. The application of the complainants for further instructions to the receiver in this cause and the issue of receiver's certificates and other relief, coming on for hearing before me at my chambers in the city of Baltimore after hearing the bill, the separate answers of the several defendant companies, and after reading and filing the report of Horace J. Morse, receiver, verified March 21, 1895, and the notice given by Wyndham R. Meredith, solicitor, and Henry Crawford, counsel for the complainants, and the admissions of service of all the defendants indorsed thereon, and after hearing Julien T. Davies, of counsel for the receiver; 0. E. P. Howard, Esq., of counsel for New York Guaranty and Indemnity Company of New York, as trustee, and Messrs. Thomas S. Moore and William H. White, counsel for Long Island Traction Company and Brooklyn Heights Railroad Company, and after due deliberation thereon, and no cause to the contrary being shown, and the New York Guaranty and Indemnity Company, as trustee, submitting itself to the direction of the court in the premises; Now, it is ordered, adjudged and decreed that the trust fund, estate and property conveyed and described in the indenturel made by the Long Island Traction Company and the Brooklypr Heights Railroad Company to the New York Guaranty and Indemnity Company, as trustee, bearing date April 1, 1894, is in imminent and immediate danger of forfeiture and diminution unless immediate provision be made for the payment of the sum of $300,000 to the Brooklyn City Railroad Company, being, the quarter's rent due April 1, 1895, under the lease described in the bill of complaint herein, and the further sum of $300,000 to meet the cash requirements between this date and the 1st day of July, 1895, of the Brooklyn Heights Railroad Company and the Brooklyn, Queens County and Suburban Railroad Conm 707 pany, of which the Long Island Traction Company is the ownei of the entire capital stock respectively. It is further ordered, adjudged and decreed that in order to raise the aforesaid sum of $600,000, it is necessary to issue receiver's certificates as hereinafter ordered and decreed. It is hereby further ordered, adjudged and decreed that the receiver is hereby authorized and directed to borrow on the terms as to time of payment and rate of interest set forth in the following form of receivers certificate, a sum of money not exceeding $600,000 for the purpose aforesaid; and to issue to the person or persons advancing said sum or sums of money certificates signed by him expressing the amount so advanced and the terms upon which the same shall be advanced, which certificates shall be in the form following, and shall be signed by the said receiver and shall also be executed by the said Long Island Traction Company and the Brooklyn Heights Railroad Company in their corporate names and under their corporate seals, duly attested by their proper onicers. Until further order of the court, said certificates shall not be sold for less than par, and before aniy shall be sold the receiver must be satisfied that he can sell or place not less than $300,000 thereof. And it is hereby further Ordered, adjudged and decreed that such certificates, after payment of the costs of this suit and of the expenses of the receiver's administration and alllowancies to the New York Guaranty and Indemnity Company, as trustee, shall be arnd they are hereby adjudged to be a lien for the principal and interest thereof upon any and all of the proerty, choses in action and rights of the Long Island Traiction Company, and also for the principal and interest thereof, upon all and singular the trust fund, property and assets in said certificates described, prior and parar mount to all other liens or claim's thereon whatsoever. And he defendanits, the Long Island Traction Compamy, and, the Brooklyn Heights Railroad Company, are hereby Ordered, adjudged and decreed to pay the principal and the interest mentioned in m.such cer(tifica;tes at the tine and in alccorfdance with the terms thereof. and in case of failure of said companies or said receiver to pay the interest or principal accordingly, Thie New York Guairanitv and Indemnity Company, as trustee, for the holders of such certificates, may institute and prosecute a suit to enforce the lien and compel the paynept thereof; and the receiver is hereby authorized' and directed, in case any sums of money shall 'become due and payable on the termination of the said lease by said Brooklyn City Railroad Company to the Brooklyn Heights Railroad Company, or other 708 wise forming a part of the principal and interest of the trust fund, made and described in the said collateral trust indenture of August 1, 1894, then the said receiver shall forthwith proceed to collect and receive the same by action or otherwise, and hold all such moneys subject to the order of this court. It is further Ordered, adjudged and decreed that the receiver pay (ou.i of the proceeds of such certificates. so to be issued to the Brooklyn City Railroad Company, on or before the 1st day of April, 1s95, the sum of $300,000, or such other sum ais may be necessary to discharge and satisfy the rental for the quarter ending on that day from the said lessee to the said Brooklyn City Railroad Company. It is further Ordered, adjudged and decreed that the said receiver be and he is hereby authorized to loan to the Brooklyn, Queens Coounty and Suburban Railroad Company, the sum of $70,000, or so much thereof as may be necessary to enable said company to pay the interest on its coinsollidated mortgage bonds falling due May 1, 1895, and to take the note of said railroad company for such advance. It is further Ordered, adjudged and decreed that the receiver deposit all moneys coming into his hands with such trust ccompany in the city of New York or city of Brooklyn as he may select. It is further Ordered, adjudged and decreed that the New York Guaranty and Indemnity Company, as trustee, shall do and perform all acts necessary to give effect to the pledge created by said receiver's certificates, and insofar as it has, or may have, or is, entitled to possession of any part of the trust property described in said collateral trust indenture, in addition to the trusts created by said indenture, shall hold said trust property, as trustee, for the benefit of the holders of said receiver's certificates, and of the first and prior lien created thereby, and that the said trustee shall make a certificate in form indorsed upon the receiver's certificate hereby directed, and that the receiver may issue said certificates in such amounts and multiples thereof, as he may deem proper, and may agree with the said trustee for the registration thereof, for all of which services the said trustees shall receive from the receiver reasoniable compensation. The following is the form of the receiver's certificates hereby authorized and directed. $............ No.... Richmond, Va.,,1895. On the first day of July, 1895, unless sooner paid, for value received, I, Horace J. Morse, as receiver of the Long Island 709 Traction Company, and the Long Island Traction Company, and the Brooklyn Heights Railroad Company, jointly and severally, promise to pay to (bearer) or to (, or to his order), the sum of dollars in gold coin of the United States of America, with interest thereon, payable in like gold coin, at the rate of six per cent. per annum, at the city of New York, at the office of the New York Guaranty and Indemnity Company. This obligation is issued under and by virtue of certain pro, visions of an order of the Circuit Court of the United States for the Eastern District of Virginia, dated on the 26th day of March, 1895, a copy of which is indorsed hereon, and is part of the loan thereby authorized to be made by the said receiver of the Long Island Traction -Company, amounting in all to the sum of $600,000. The said loan, and every part thereof, is made and constituted as provided in said order of the court a first and paramount lien upon all the property, choses in action and rights of the Long Island Traction Company and also upon all and singular the trust fund and estate, pledged and hypothecated to the New York Guaranty and Indemnity Company as trustee by the said Long Island Traction Company and the Brooklyn Heights Railroad Company by indenture dated August 1, 1894, being (1) All the right, title and interest of the Long Island Traction Company in and to all the shares of the capital stock of the Brooklyn Heights Railroad Company, being 2,000 in number of $100 each. (2) All dividends and increase from the ownership by said Long Island Traction Company of all the capital stock of the Brooklyn, Queens County and Suburban Railroad Company. (3) All net profits derived from the lease of the Brooklyn City Railroad Company to the Brooklyn Heights Railroad Company, dated February 14, 1893, including all present and future right to the principal and income of the $4,000,000 guarantee fund in said lease mentioned. (4) All the right, title and interest of the Brooklyn Heights Railroad Company in and to the amount of the cost of all property, expenses, branches, additions, improvements and equipments heretofore and hereafter made, acquired and paid for by said Brooklyn Heights Railroad Company under the said lease of the said Brooklyn City Railroad Company and payable to said lessee company in the event of the expiration of said lease or ot4her similar termination thereof. The said Long Island Traction, Company and the Brooklyn Heigiht Railroad Oompany have caused this reoetver's oeretifate to be signed in 710 their name and their corpoiate seal to be hereto affixed by thfiir proper officers in obedience t he provisions of the said order. As Receiver. THE LONG ISLAND TRACTION COMPANY. [Seal.] By.................. President Attest:,Secretary. THE BROOKLYN HEIGHTS RAILROAD CO]MPANY. [Seal.] By.................. President. Attest: 'S 'Secretary. CERTIFICATE OF TRUSTEE. It is hereby certified that the within receiver's certificate is one of the series a.uthorized by the order of the United States Circuit Court therein set forth, dated March 26, 1895. Dated New York,................ 1895. THE NEW YORK GUARANTY AND INDEMNITY CO. [Seal.] By..................,. Trustee. A Copy. [Seal.] Teste: M. F. PLEASANTS. I ~~~1; CGlerk. Filed March 26, 1895. EXHIBIT T. Agreement made and entered into this 16th day of January 1894, between qThe Brooklyn, Queens County and Suburban Railroad Company, a corporation duly organized and existing under the laws of the State of New York, hereinafter called " The Suburban Company," party of the first part, and The Long Island Traction Company, a corporation duly organized and existing under the laws of the State of Virginia, hereinafter called "The Traction Company," party of the second part, and The Brooklyn City Railroad Company, a corporation duly organized and existing under the laws of the State of New York, party of the third part. Whereas, The said Suburban Company is about,to issue three million five hundred thousand dollars ($3,500,000) of its first mortgage five per cent. gold bonds, of the par value of one thousand dollars ($1,000) each, and bearing date January 16, 1894; and Whereas, The said Brooklyn City Railroad Company has con sented to the investment of two million dollars ($2,000,000) of the guarantee fund created by article XXXV of a lease bearing date February 14, 1893, between The Brooklyn City Railroad Company and The Brooklyn Heights Railroad Company, a corporation duly organized and existing under the laws of the State of New Yor!T; and Whereas, Said Traction Company is about to acquire the ownership or controLpf the entire capital stock now issued and outstanding of said Suburban Company amounting to $2,000,000; Now this agreement witnesseth, That the parties hereto, in consideration of the premises and the sum of $i, each to the other in hand paid, and other valuable considerations, the receipt whereof by each party hereto is hereby severally acknowledged, have agreed as follows: I. The Suburban Company hereby agrees to sell to The Traction Company nine hundred and ten (910) of its said first mortgage five per cent. gold bonds at par, with accrued interest; and The Traction Company hereby agrees to purchase and take said bonds at the price aforesaid, said bonds to be delivered and paid for as in this agreement hereinafter provided. II. The Suburban Company furtfher agrees that said nine hundred and ten (910) first mortgage five per cent. gold bonds shall, as soon as the sae are issued be deposited with l the Peoples rust Company of the City of Brooklyn, as trustee. IM. The parties hereto mutually agree that said bonds and 712 their proceeds shall be held, used and applied by said trustee solely and exclusively for the purpose of constructing and equipping an electric road, to' be operated by the trolley System, or such other systems as may be approved by The Traction Company and The Brooklyn City Railroad Company, upon the routes designated in the certificate of incorporation of said Suburban Company; and for the purpose of converting the railroad now, or heretofore, operated by The Broadway Railroad Company of Brooklyn, and the railroad now, or heretofore, operated by The Broadway Ferry and Metropolitan Avenue Railroad Company into an electric railroad, to be operated by the trolley system, or by such other system as may be approved by The Traction Company and The Brooklyn City Railroad Company; 'and for equipping the same as such, andi also for re-equipping, if necessary, the railroad now and heretofore operated by The Jamaica and Brooklyn Road Company. IV. The Suburban Company further agrees forthwith to coammence, and with diligence to complete, the construction of a railroad as aforesaid upon the routes designated in its certificate of incorporation, and the conversion, equipment and re-equipment, as aforesaid, of the railroads heretofolre mentioned and described in Article III of this agreement. V. The Traction Company further agrees, from time to time, when and as requested by a resolution of the board of directWs of the Brooklyn City Railroad Company, duly certified under the seal of said company, to pay to said trustee such portion of the agreed purchase-price of said bonds as may be requisite and necessary for the purpose of constructing and equipping said railroad upon the routes designated in the certificate of incorporation of said Suburban Company, and for converting, equipping and re-equipping the said railroads, as aforesaid, into an electric railroad operated by the trolley system, or othier system approved as aforesaid. VI. The parties hereto mutually agree that, upon any such payment being made by said Traction Company to the said trustee, the said trustee shall surrender and deliver to the Traction Company, or to any person or corporation designlated by it, such number of the bonds 'deposited with said trustee as aforesaid, the par value of which, with accrued interest, shall equal the sum so paid by said Tracition Company to said trustee. VII. The parties hereto further mutually agree that no payment shall be made by the said trustee out of the proceeds of said bonds for, or on account of, the construction, eonversion, equipment or re-equipment, as aforesaid, of said railoads, or 713 either of them or any portion thereof, except upon the certificate of the engineer in charge of the work, verified as to its correctness by the affidavit of the said engineer, wJhch certificate must be to the effect that work has been done and material and equipment furnished in the construction, conversion, equipment or re-equipment of said railroads, as aforesaid, equal in value and cost to the amount called for by said crtificate; and such certificate, before any payment tihreon shall be made by saiid trustee, must be approved by the president of The Brooklyn City Railroad Company. VIII. The Traction Company further agrees, whenever and as irequested by resolution of the board of directrs of The' Brooklyn City Railroad Company, 'duly certified under -the seal of said company, to purchase and acquire at par and acerued interest certain outstanding and past-due, but extended, 5' per cent. bonds, now liens, to the amount of three hundred and fifty thousand dollars ($350,000) on certain portions of the railroad and other property covered by said first mortgage, which property was formerly owned by The Broadway Railroad Company of Brooklyn, and to surrender and deliver the bonds so purchased or acquired to The New York Guaranty and Indemnity Company, the trustee under said first mortgage, in exchange for first mortgage 5 per cent gold bonds, of said Suburban Company to the amount of three hundred and fifty thousand dollars ($350,000) now held by said truistee, for the purpose of retiring and redeeming the 'bonds agreed to be purcbaseid as aforesaid. The Traction Company further agrees that this covenant on its part to purchase said bonds may at any time be enforced by The New York Guaranty and Indemnity Company; it being expressly understood and agreed, however, that no; obligations shall exist uponi the part of the Traction Company to make said purchase by reason of anything herein contained, until said bonds shall become due and payable, or unless the holders of said bonds shall before that date be willing to sell said bonds at the price aforesaid. IX. The Traction Company further agrees to transfer and assign in blank the certificates of all such issued and outstanding capital stock of said Suburban Company of which said Traction Company is about to acquirre' the ownership or conr trol as above provided, and to deposit the same with said People's Trust Company of Brooklyn, as trustee; and it further agrees that at the expiration or sooner termination of the lease, dated February 14, 1893, between The Brooklyn City Railroad Company and The Brooklyn, Heigh-s Railroad Company, said B. 90 714 oertificates of stock so transferred; assigned and deposited as aforesaid, shall be and become the sole and exclusive property of the said Brooklyn City Railroad Company, and ishall be transferred, asisgned and delivered to said Brooklyn City Railroad Company by said trustee. The Traction Company further agrees that, during the continuance of said lease, it will not sell, incumber, pledge, transfer or assign said capital stock of said Suburban Company, or any portion thereof, or any interest therein, withotut the onw sent in writing of The Brooklyn City Railroad Company. X. The Traction Company and the said Suburban Company each hereby agree that the present capital stock of the said Subur'ban Company shall not be increased, nor shall the present isshe of two million dollars ($2,000,000) of the capital stock of said Suburban Company be increased, without the consent in writing of said Brooklyn City Railroad Company.' In witness whereof, the parties beretol have severally caused these presents to be executed by their respective presidents, and their corporate seals to be hereunto affixed, duly attested, by their respective secretaries, the day and year first above written BROOKLYN, QUEENS COUNTY AND SUBURBAN RAILROAD COMPANY, (Signed.) By CHARLES M. ENGLIS, [Seal.] President Attest: (Signed.) HENRY T. BRAGG, Secretary. THE LONG ISLAND TRACTION COMPANY, (Signed.) By FELIX CAMPBELL, [Seal.] I President Attest: (Signed.) J. B. SUMMERFIELD, Secretary. THE BROOKLYN CITY RAILROAD OOMPANY, (Signed.) DANIEL F. LEWIS, [Seal.] President Attest: (Signed.) W. A: H. BOGARDUS,. Secretary. 715 STATE OF NEW YORK, City and County of New York, 88 On this 16th day of January, in the year A. D. 1894, before me personally came Henry T. Bragg, the secretary of The Brooklyn, Queens County and Suburban Railroad Company, with whom I' am personally acquainted, who, being by me duly sworn, did depose and say: That he resided at city of Yonkers, and was secretary of The Brooklyn, Queens County and Suburban Railroad Company, one of the corporations described in and which executed the foregoing instrument; that he knows the corporate seal of said railroad company; that the seal affixed to the foregoing instrument was isuch corporate seal, and that it was so, affixed by order of the board of directors of said railroad company; that he attested the same by subscribing his name to said instrument as secretary'of said railroad company. And the said Henry T. Bragg further said that he was acquainted with Charles M. Englis, and knew him to be the president of said railroad: company, and that the signature of the said Charles M. Englia subscribed to the said instrument was in the genuine. handwriting of said Charles M. Englis, and was thereunto subscribed'by like order of the board of directors of said railroad company, and in the presence of. him, the said Henry T. Bragg. EDWARD CORNELL, [Seal.] Notary Public, Orange County. Certificate filed in New York county. STATE OF NEW YORK, County of Kings, City of Brooklyn, 88.: On this 16th day of January, in the year A. D. 1894, before me personally came John B. Summerfield, the secretary of The Long Island Traction Company, with whom I am personally acquainted, who, being by me duly sworn, did depose and say: That he resided at the city of Brooklyn, and was secretary of The Long Island Traction Company, one of the corporations described in and which executed the foregoing instrument; that he knew the corporate seal of said company; that the seal affixed to the foregoing instrument was such corporate seal, and that it was so affixed by order of the board of directors of said company; that he attested the same by subscribing his name to said instrument as secretary of said company, And said John B. Summerfield further said, that he was acquainted with Felix Campbell, and knew him to be the president of said company, and that the signature of the said 716 Felix Cambpell subscribed to the said instrument was in the genuine handwriting of said Felix Campbell, and was thereunto subscribed by like order of the board of directors of said company, and in the presence of him, the said John B. Summerfield. CHARLES A. BOODY, [Seal.] Notary Public, Kings County. STATE OF NEW YORK, County of Kings, City of Brooklyn, S. ' On this I Gth day of January, in the year A. D. 1894, before me personally came Washington A. H. Bogardus, the secretary of the Brooklyn City Railrolad Company, with whom I am personally acquainted, who being by me duly sworn, did depose and say: That he resided at the city of Brooklyn and was secretary of the Brooklyn City Railroad Company, one of the clorporations described in and which executed the foregoing instrument; that he knew the corporate seal of said railroad company; that the seal allixed to the foregoing instrilment was such corporate seal, and that it was so affixed by order of the board of directors of said railroad company; that he attested the same by subscribing his name to said instrument as secretarv of said railroad company; and the said Washington A. H. Bolgardus further said that he was acquainted with Daniel F. Lewis and he knew him to be president of said railroad company, land that the,signature of the said Daniel F. Lewis subscribed to the said instrument was in the genuine handwriting of said Daniel F. Lewis and was thereunto subscribed by like order of the board of directors of said railroad company, and in the presence of him, the said Washington A. H1. Bogardus. [Seal.} W. H. JENNINGS, Notary Public, Queens o., N. Y. Certificate filed in Kings county. The People's Trust Company hereby accepts and agrees to execute the trusts expressed in the foregoing instrument THE PEOPLE'S TRUST COMIPANY, By EDWARD JOHNSON, Secretary. [Seal.] Attest: CHARLES A. POODY,, Aslstant Secretary. 717 Received, Brooklyn, Jainuary 27, 1894, from the Long Island Traction Company, certificates for $2,000,000 of the capital stock of thie Brooklyn, Queens County'and Suburban Company, being 20,00() shares of the same, assigned in blatik, which this compa~ny agrees to hold upon. the trust set forth ]in the foregoing agmreement. THE- PEOPLE'S TRUST COMPANY, (Signed.) By EDWARD JOHNSON, Secretary. [Seal.] Attest: CHIARLES A. BOODY, Assistant Secretary. STATE' OF NEW YORK, City of Brooklyn, County of Kings,8: On thuis 16th day of January in th~e year A. D. 1894, before me personally came Charles A.. Bo~ody, the assistant secretary of the People's Trust Company, with whom I am personally acquainted!, who being by me duly sworn., did depose -and say that he reisided at the city of Brooklyn, and was the 'assistant secretary of the People's Trust Company, one of the corporaitionsidescribed in, and which executed the foregoing instrument; that he knew the corporatc seal of said company-; that the s9eal affixed to, the folregoing instrument was such corporate seal, 'and that it was so affixed by order:of the board of trustees of saiid People~a Trn~t Comp any; that he attested the same by subscribing his name to said instrument as the assistant secretary of said. 4company. And the said Charles A. Boody further said that he wasi acquainted with Eldward Johnson, 'and knew him to be the secretary of said The People's Trust (Tompany; that the signature of the said Edward Johnson, subscribed to, the said instrument was hIn the genuine hhandwriting of said' Edwardl Johnson and, was there. unto subscribed by like order of the board' of trustees of said The People's Trust -Company, and In the presence of 'him the said Charles A~. Bood~y. JOSEPH M. PEARSALTX, [Beal.-] Notary Public, Kings Cotmnty. TEXHIBIT TU. CERTIFICATE OF INCORPORATION. STATE OF NEW YORK, City and County of New York, s.' We, the undersigned, being of full age and citizens of the United States, and residents of the State of New York, being deAirous of organizing a corporation to carry on a lawful business,'pnrsuant to the provisions of the "Business Corporations Law,' as amended by the act entitled "An act to amend the Business Corporations Law," approved May 18, 1892, being chapter 691 of the Laws of 1892, do hereby certify: 1. The name of the proposed corporation is to be "Brooklyn Traction Company." 2. The objects for which it is toi be formed, including the nature and locality of its business, are as follows, to-wit: To purchase, acquire, hold, improve, develop, use, operate, lease, mortgage, exchange, sell or otherwise dispose of real and personal property, including machinery, inventions, patents, patent rigohts, applications for patents and other rights for supplying electrical or other power, or the use thereof, upon or in the works, buildings or railroads of railroad corporations, street railroad corporations, or other corporations or individuals, and in connection therewith to make and. perform contracts, to build, construct, equip, enlarge, complete or connect, or cause to be built, constructed, equipped, enlarged, completed or connected railroads or other works of improvement, including in such businesr, authority to purchase, acquire, hold and dispose of the stocks, bonds or other evidences of indebtedness of any corporation, domestic or foreign, and to issue and exchange therefor its stock, bonds or other obligations, and in respect of any stock so acquired, to exercise all the rights, powers and privileges of individual owners or holders thereof, provided that no banking business shall be transacted by the company. The locality of the business is to be in the city of Brooklyn, county of Kings, State of New York, and elsewhere as occasion may arise. 3. Its eapital stock is to consist of ten thousand dAllrs ($10,000), of which five thousand dollars ($5,000) shill be preferred stock, 719 and five thousand dollars ($5,000) comrnoin stock Upon said preferred stock, dividends shall, from time to time, be paid up to the rate of six per cent (6 %) per annum from the date of subserip tion, payable on the first days of January and July of each year out of the net income of said corporation. If the income of the said corporation applicable to dividends' on said stock shall not be sufficient to pay such interest or dividends to the amount of six per cent (6 %) as aforesaid, such dividends, or so much thereof as shall remain unpaid, shall accumulate, and all payments or dividends shall be without deductions for any tax or taxes which by any present or future laws may be payable for or in: respect to the said dividends. The dividends upon said preferred stock accruing in any one year, together with all accumulations or dividends remaining unpaid from preceding years, shall be paid in full before any dividends whatsoever shall be paid upon the common stock of said corporation. In case the corporation shall at any time or times reduce the amount of its capital stock, then authorized or issued, it must effect such reduction first in respect of the preferred stock, and, after all such preferred stock shall have been retired, then in respect of the common stock. In the event of any reduction in respect of preferred stock, the surplus net cash assets in excess of all liabilities shall be applicable first to the extinction, retirement and satisfaction of preferred stock and of all rights thereunder at the price or rate of one hundred and' ten dollars ($110) per share, exclusive of accrued dividends; the preferred stock thus to be extinguishied, then to be designated under authority o-f the board of directk)rs, and all rights in respect of any suich preferred sstoick thus designated shall thereupon merge in the right to' receive payment therefor at the rate of one hundred and ten dollars ($110) per share, and, in addition thereto, unpaidi dividends accruing up to a day three months subsequent to such designation, all present or future holders of common or preferred' stock agreeing that sucih assets may be so applied, and shall be so received in reduction of such preferred stock. This. right of retirement shall be reserved on the face of every certificate of stock as notice thereof to all purchasers or holders thereof. -4. The capital stock shall consist of fifty (50) shares of pre. ferred stock, and fifty (50) shares of common stock, of tihe par value of cue hundred dollars ($100) each. 5. The principal business office of said corporation shall be in the city of Brooklyn, county of Kings, State of New York. 6. The duation of said corporation shall be fifty (50) years. 7. The,number of directors of saidi corporation shall be seven. 8. The names and post-office addresses of the directors for the 720 first year are: E. D. Phillips, 31 Beekman place, New York city; P. F. Vaughan, 336 Lexington avenue, Brooklyn; Albert Strauss, 124 West Ninety-seventh street, New YoIrk city; Henry S. Glazier, 17 East Sixty-seventh street, New York city; John A. Snyder, 113 East Fifty-fourth street, New York city; J. H. Lockman, 150 Berkeley place, Brooklyn, N. Y.; E. J. Kavanagh, 148 West Thirty-seventh street, New York city. 9. The post-office addresses of the subscribers and the nuniber of shares which each agrees to take in the corporation, are correctly stated in our subscriptions to this certificate. In witness whereof, we, the subscribers, have made, signed and acknowledged this certificate in duplicate, and have hereunto subscribed our respective names, post-office addresses and the number,of shares of stock which each of us agrees to; take in said corporation: Dated, New York,; this 9th day of January, 1893. HENRY S. GLAZIER, 17 East 67th street, N. Y. city, 25 shares preferred. ALBERT STRAUSS, 124 W. 97th street, N. Y. city, 25 shares preferred. JOHN A. SNYDER, 113 E. 54th street, N. Y. city, 10 shares common. E. D. PHILLIPS, 31 Beekman place, N. Y. city, 10 shares common. P. F. VAUGHA.N, 336 Lexington ave., Brooklyn, 10 shares common. J, H. LOCKMAN, 150 Berkeley place, Brooklyn, 10 shares common. E. J. KAVA.NAGH, 148 W. 37th street, N. Y. city, 10 shares common. STATE OF NEW YORK, I City and County of New York, 8s. On this 9th day of January, 1893, before me personally came E. D. Phillips, P. F. Vaughan, Albert Strauss, Henry S. Glazier, John A. Snyder, J. H. Lockman and E. J. Kavanagh, to me severally known, 'and known to me to be the persons described in and who made and signed the foregoing certificate, and severally duly acknowledged to me that they had made, signed and executed the same for the uses and purposes therein set forth. F. STRAUSS, [Seal.],Notary Purblic, City and COoimty of New York. STATE OF NEW YORK, City and County of New York, s ' Albert Strauss, E. D. Phillips, P. F. Vaughan and Henry S. Glazier, being duly and severally sworn, each for himself says, that he is a director in the Brooklyn Traction Company, and one of those named in the foregoing certificate of incorporation; that the subscriptions made by the persons who signed said certificate 721 aggregate ten thousand, doltarms ($10,000), being thOe entire capital,stock thereof, and, tiiat the entire amount ha8 been pald in cash. to the directors named in the certificate. HKNRY S. GLAZIEER, ALBERT STRA UTSS E. D. PHILLIPS, P. F. VAUGHLAN. Swom to bere me, tIiStiti day ot January, 1893. F. STRAUSS, [Seal.] Notary Public, C0ity and County qf New York. (Ind-orsed): 'Cer-tificate of incorporation of Brooklyn Tractiorn Company. Dated, January 9, 1893. Tax for privilege of org~anization of this coriporation, $12.50, under chapiter 143, Laws of 1886. Paid to State Treasurer lxef ore filing. STATE OF NEW YORK, OFFICE OF SECRETARY OF STATEM. Filed and recorded January, 13, 1893. TH. H. BENEDICT, Deputy Secretary of State. B. 91 To renew the charge, book must be brought to the desk. DO NOT RETURN BOOKS ON SUNDAY DATE DUE e "s -. beo L5 jz Form 7079a 6-52 5M 1 5 02831 0681 Transportatio tibrary HD 5325.S8 1895 B8 N5 New York (State) Legislature... Report of the Special coumiittee the Assembly... r -- ~ t i: x~ i ~: t i:j r J r -1