# Appendixc — United States v. Pullman Co. > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385610_0183%3A02 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendixc - **Published:** January 1, 1947 - **Citation:** 331 U.S. 865 ## Text SUPREME COURT OF THE UNITED STATES Ocroser TeRM, 1946 ~ No. 253 THE UNITED STATES OF AMERICA, APPELLANT vs. THE PULLMAN COMPANY, PULLMAN-STANDARD CAR MANUFACTURING COMPANY, PULLMAN INCORPO- RATED, ET AL. No. 254 OTIS & CO., APPELLANT vs. THE UNITED STATES OF AMERICA, THE PULLMAN COMPANY, PULLMAN-STANDARD CAR MANUFAC- TURING COMPANY, ET AL. No. 255 THE CHESAPEAKE & OHIO RAILROAD COMPANY, THE NEW YORK, CHICAGO AND ST. LOUIS RAILROAD COMPANY, AND PERE MARQUETTE RAILWAY COM- PANY, APPELLANTS vs. THE UNITED STATES OF AMERICA, THE PULLMAN COMPANY, PULLMAN-STANDARD CAR MANUFAC- TURING COMPANY, ET AL. No. 256 GLORE, FORGAN & CO., APPELLANT va. | THE UNITED STATES OF AMERICA, THE PULLMAN COMPANY, PULLMAN-STANDARD CAR MANUFAC- TURING COMPANY, ET AL. APPEALS FROM THE DISTRICT COURT OF THE UNITED STATES FOR THE BASTERN DISTRICT OF PENNSYLVANIA - ” INDEX Record from D. C. U. a, Eastern District of Pennsylvania. . and Central R. R. of N. J., effec- tive Jam. 1, 196B.n0- 2224600000. 195 Record from D. ©. U. 8., Eastern District of Pennsylvania— Continued Docket entries—Continued Complaint—Continued Appendices to complaint—Continued 4. Appendix D—Exhibits—Continued Exhibit No.—Oontinued 8—Agreement between Pullman Co. and C. sie * mela ver & Salt Lake R. R., Denver, Colo., dated June 25, 1924 (and INDEX from D. C. U. S, astern District of Pennaylyania— iy il! Lr nA uf i 356 367 } 375 (315 26—Agreement between Pullman Co. and Trustee Intern’!. Gr. North’n. R. B., effective Nov. 1, 1939.. 27—Agreement between Pullman Co. and K. C. So. R. R., effective SI 8 SiR sccnscccccecce a ie FS bet i. i t : Sees aa ey aie + pe ii : adAE beh Tie Wee i ie iy afnelish seed apap — ah iil L Pail 2 we Co. Jan. 598 682 598 743 «= 689 802 6679 879 726 Pacific Co., effecti | ; 5 - Pintdeddeimaddlbesccass and St. > and Trustees, b Divebenlidtbtecacsecscceos is making certain findings of fact and con- law Order of Court designating Circuit Judges to hear the cause. 681 a amended to conform to Court’s order of July Detewesetthtodsaddenadraniiadidboasapconimeoce Goodrich, ©. J., granting judgment in favor of Expediting certificate. ................--..----.---..- RR ci tho cnccntwtctennimidiestincacccce oy i lett th ceabatlindinncttl bnbocncaccesocbous Record from D, ©. U. 8, Hastern District of Pennaylvania—_ ‘ Record from D. ©. U. S., Eastern District of Pennaylvania— the Repair Shope for leave to intervene. Petition of the Pullman Cer Employes Association of the Repair Shops for leave to intervene... Order of Court granting motion of the Pullman Car Em- ployes Association of the Repair Shops for leave to Car Business from the Manufacturing Business” sub- mitted by defendant Pullman, Ine._....-.-... Motion of the Independent Pullman Workers Federation ers Federation for leave to intervene Objections of the Pullman Clerks’ Association, the Pull- man Car Employes Association of the Repair Shops and the Independent Pullman Workers Federation to the plan submitted by Pullman, Incorporated, and sugges- Motion of Pullman Porters Union for leave to intervene. - Petition of the Puliman Porters Union for leave to inter- vim Diimek keine RincinRoRs paeergy pa Ha z eee cin 2 I Weak tk i HG Baas 7 end jl Han say Ha fi ei util Hig st Ai Hil i ie qh il iil Hie Hitt Hasllih 1 | 1122 1063 Me bsscccecdubewkaewcbiqveto INDEX m Record from D. ©. U. 8&., Eastern District of Pennaylvania— pendent Pullman Workers Federation................ 1130 1102 to intervene... .. qeevesnadendedemeccoccosceses ccs 1146 «1112 1944, and the interim order of March 22, 1945........ 1147 1113 Order of Court granting motion of Standard Steel Spring. Company for leave to intervene. .................... 1194 1141 opeka and Santa Fe Railway Company and others... 1196 1141 Railway Company to intervene...................... 1237 1170 Supplemental Petition on behalf of the state of Colorado.. 1238 1170 e | i : : Fe Railway Company and others.................... 1243 1173 of Pullman, Inc., of ite selection of purchaser, ete.. 1250 1177 Chesapeake and Ohio Railway Company............. 1253 1178 Ohio Railway Company... ................ 1257 1181 puSerenne® 1258 1181 | i | i bf i fi Hi fi th ff j : : | | i | pewcoapcese 1272 1188 aH f fi! ff | eomesccens cooce 1274 1189 Fee | : RIEIIG. nec nccawsqucectittdues ides 1275 1190 . 1193 Ff i i Exhibit VII accompanying stipulation of facts._..... Index to Vol. I of Exhibit VII Government's trial exhibits—Continued No. 110—Letter, Richard K. Mellon to D. A. Crawford, Origipal Print 1955 No, 115—Memorandum, D. A. Crawford to L. 8. Hunger- ford and L. 8. Taylor, Feb. 3, 1956 No. 146—Telegram, D. A. Crawford to D. R. McLennan, No. 329—Notice of special and annual meetings of stock- holders of Pullman Inc., with annexed proxy state- ment, March 17, 1000... ......2--00000-00---00- No. 416—Telegram, Henry Sturgis to D. A. Crawford... No. 418—Memorandum for General Contract Committee by No. 419—Letter, Champ Carry to D. A. Crawford, March 31, 1938. No. 422—Letter, Hale Holden, Jr., to D. A. Crawford, Discus tanitiasin tele aie ane. tn Pullman Company, Nov. 5th and 6th, 1945.......... 2559-A Caption and et | i E i i i te ples Te F8aFF vet ly aif iH if i 1 ° : L i i ; ; ; f i : B | Car and Foundry Co., to Robert R. Young... Exhibit 14—Paper entitled “Statement by Carl E. Newton, President of Chesapeake and Ohio Railway to AAR Board, October 26, 1945, on behalf of smaller passenger-carrying roads”... 3151 3152 Government's trial exhibits—Continued ° Transcript of hearings on four offers té purchase—Con. Otis and Company Exhibitse—Continued Company Exhibit 16—Letter dated October 25, 1945, from J. W. Davin, President, the New York, Chicago and St. Louis Railroad Company, to Mr. C, E. Newton, President, the Chesapeake and Ohio Railway Company................ exhibits: m gram, bomb production and gear and axle program of Standard Steel Spring Company - . Exhibit 2—Offer of Standard Steel Spring Company to Pullman Incorporated, dated October 25, 1945, with attached memorandum Exhibit 6—Document entitled “Thirtieth An- nual Report to Shareholders of the Standard Steel Spring Company”................-..- Spring Company and Subsidiary— Consolidated Balance Sheet as of August 31, 1945’’........ Exhibit 8—Document entitled “Standard Steel Spring Company and Subsidiary—Consoli- dated Profit and Loss Statement for the Eight Months ended August 31, 1945”_............ Exhibit 9—Paper headed “Net Sales by Years for the 10% years ended June 30, 1945’... __- Exhibit 10—Paper, the first line of which says “Total Number of Shareholders’”’.........._. Exhibit 11—Paper headed “Shares of Common Owning One Thousand Shares or More of One Dollar Par Value Common Stock as of October Exhibit 18—Document dated October 24, 1945. Railroad exhibits: . Exhibit 1—Paper headed “The Nation’s Stream- DOD” « vavcccerercocereiitbiants dhadiwen 3163 2311 os Government's trial exhibite—Continued Transcript of hearings on four offers to purchase—Oon. Transcript of argument on four. offers to purchase The Pullman Company, December 10th, 11th, and 12th, Print 2367 2389 2390 2391 2393 2402 2404 2404 2404 2409 2431 2437 2445 2447 2449 24€2 2464 2507 2539 2541 2564 2581 2584 2594 2603 2610 2616 2620 2621 2625 2631 2631 2633 2635 2638 2639 2639 THE UNITED STATES V8. THE PULLMAN COMPANY 1265 1432 Tue Potuman Company Pullman Building, 79 East Adams Street CHICAGO D. A. Crawford, President. Mr. Gur A. THomrson, Trustee, Missouri Pacific Railroad Company, Missouri Pacific Building, St. Lowis, Missouri. Dear Sm: As the present operating agreement between The Pullman Company and the Trustees of Missouri Pacific Railroad. Company, Dr., terminates on April 19, 1940, and there may be some delay in the execution of a new term agreement to be effec- tive following the termination of the present agreement, it is pro- posed that during the interim subject to cancellation on _ 80 days notice, Pullman operations over the Missouri Pacific Rail- road shall continue as heretofore. Distribution of the obligations and liabilities of the parties thereto shall be in accordance with the terms of the above mentioned expiring agreement unless and until new agreement is executed, with provision for retroactive effective date. A new agreement in form which we believe should be mutually acceptable to our respective companies is in preparation and will be forwarded to you promptly. I would appreciate proper execution of this letter agreement, which is written in duplicate, with return of one executed copy to us to indicate acceptance of the above understanding. Very truly yours, D. A. Crawrorp. Accepted : Guy A. THompson, Trustee, Missouri Pacific Railroad Company. . Tue Portman Company Pullman Building, 79 East Adams Street CHICAGO D. A. Crawford, President. President, The Nashwille, Chattanooga & St. Louis Railway, Nashville, Tennesses. Dear Sm: As the present operating agveement between The Pullman Company and The Nashville, Chattanooga & St. Louis Aram 15, 1940. Apri 15, 1940. 1266 THE UNITED STATES VS. THE PULLMAN COMPANY Railway terminates on April 30, 1940, and there may be some delay in the execution of a new term agreement to be effective following the termination of the present agreement, namely May 1, 1940, it-is proposed that 1 nigra sn to cancella- tion on 30 days notice, Pullman operations over The Nashville, Chattanooga & St. Louis Railway shall continue as heretofore. Distribution of the obligations and liabilities of the parties hereto shall be in accordance with the terms of the above mentioned expiring agreement unless and until new agreement is executed, with provision for retroactive effective date. A new agreement in form which we believe should be aon - acceptable to our respective companies is in preparation and be forwarded to you promptly. T would a iate proper execution of this letter agreement, which is rng re rfl errr nartenllnr Prevygedhn be spam to us to indicate acceptance of the above understanding. Very truly yours, D. A. Crawrorp. Accepted : Frrzcrrato Ha, President, The Nashville, Chattanooga & St. Louis Railway. 1434 Tue Portman Company Pullman Building, 79 East Adams Street ' CHICAGO D. A. Crawford, President. Mr. C. E. Denney, President, Northern Pacific Railway Uompany, St. Paul, Minnesota, Dear Sm: As the present operating agreement between The Pullman Company and the Northern Pacific Railway Company terminates on March 31, 1940, and there may be some delay in the execution of a new term agreement to be effective April 1, 1940, it is proposed that during the interim period, subject to cancella- tion on 30 days notice, Pullman operations over the Northern Pacific Railway Pope continue as heretofore. Distribution of the obligations and liabilities of the parties thereto shall be in accord- ance with the terms of the above mentioned expiring agreement unless and until new agreement is executed, with provision for retroactive effective date. Marcu 16, 1940. THE UNITED STATES VS. THE PULLMAN COMPANY 1267 I would appreciate proper execution of this letter agreement, which is written in duplicate, with return of one executed copy to us to indicate acceptance of the above understanding. _ Very truly yours, Accepted : D. A. Crawrorp. C. E. Denney, President, Northern Pacific Railway Company. Tae Pouiman Company Pullman Building, 79 East Adams Street CHICAGO D. A. Crawford, President. June 21, 1939. Mr. Norman Can, President, Richmond, Fredericksburg and Potomac Railroad Company, Richmond, Virginia. Dear Sm: As the present operating agreement between The Pullman Company and the Richmond, Fredericksburg and Po- tomac Railroad Company expires on June 30, 1939 and there may be some delay in the execution of a new term agreement to be effective following the expiration of the present agreement, namely July 1, 1939, it is proposed that during the interim period, subject to cancellation on 30 days notice, Pullman operations over the Richmond, Fredericksburg and Potomac Railroad shall continue as heretofore. Distribution of the obligations and liabilities of the parties thereto shall be in accordance with the terms of the above mentioned expiring agreement unless and until new agree- ment is executed, with provision for retroactive effective date. I would appreciate proper execution of this letter agreement, which is written in duplicate, with return of one executed copy to us to indicate acceptance of the above understanding. Very truly yours, D. A. Crawrorp. Accepted : Norman Catt, President. ’ Richmond, Fredericksburg and Potomac Railroad Company. 7248084780 1268 THE UNITED STATES VS. THE PULLMAN COMPANY 1436 ‘Tae Putman Company Pullman Building, 79 East Adams Street . CHICAGO D. A. Crawford, President. Mr. Eannsr E, Nous, President, Beatie ieiioen Company, The Alabama Great Southern Railroad Company, The Cincinnati, New Orleans and Texas Pacific Railway Company, Georgia Southern and Florida Railway Company, New Orleans and Northeastern Railroad Company, Washington, D.C. Dear Sm: As the present operating agreements between The Pullman Company and the Southern Railway System roads above mentioned expire on June 30, 1939 and there may be some delay in the execution of a new term agreement to be effective following the expiration of the present agreements, namely July 1, 1939, it is proposed that during the interim period, subject to cancellation on 30 days notice, Pullman operations over the Southern Railway System shall continue as heretofore. Distribution of the obliga- tions and liabilities of the parties thereto shall be in accordance with the terms of the expiring agreements unless and until new agreement is executed, with provision for retroactive effective date. I would appreciate proper execution of this letter agreement, which is written in duplicate, with return of one executed copy to us to indicate acceptance of the above understanding. Very truly yours, D. A. Crawrorp. Accepted : Ernest E. Nouns, Southern Railway Company, The Alabama Great Southern Railroad Company, The Cincinnati, New Orleans and Texas Pacific Railway Company, Geor- gia Southern and Florida Railway Company, New Orleans and Northeastern Railroad Company. June 26, 1939. THE UNITED STATES VS. THE PULLMAN COMPANY 1269 1437 Tue Portman Company Pullman Building, 79 East Adams Street eHICAGo D. A. Crawford, President. Mr. J. L. Lancaster, President, The Tewas and Pacific Railway Compny, Dallas, T ewas. Dear Sm: As the present operating agreement between The Pullman Company and The Texas and Pacific Railway Company expires on June 30, 1940, and there may be some delay in the execution of a new term agreement, to be effective following the expiration of the present agreement, namely July 1, 1940, it is proposed that during the interim period, subject to cancellation on 30 days notice, Pullman operations over The Texas and Pacific Railway shall continue as heretofore. Except that all matters relating to the division of revenue during this interim period shall be suspended, distribution of the obligations and liabilities of the parties thereto shall be in accordance with the terms of the above mentioned expiring agreement unless and until new agreement is executed, with provision for retroactive effective date. I would appreciate proper execution of this letter agreement, which ie written in duplicate, with return of one executed copy to us to indicate acceptance of the above understanding. Very truly yours, D. A. Cxawronn. Accepted : J. L. Lancaster, - President, The Texas and Pacific Railway Company. 1438 Tue Portman Company Pullman Building, 79 East Adams Street CHICAGO June 29, 1940. D. A. Crawford, President. Comm 96, 1008. Mr. Cuas. A. Wi President and Géneral Manager, Atlanta and West Point Rail Road Company, The Western Railway _ of Alabama, Atlanta, Georgia. Dear Sm: As the present operating agreement between The Pullman Company and the Atlanta and West Point Rail Road Company and The Western Railway of Alabama expires on June 30, 1939, and there may be some delay in the execution of a new term agreement to be effective following the expiration of the present agreement, namely July 1, 1939, it is proposed that during 1270 THE UNITED STATES V8. THE PULLMAN COMPANY the interim period, subject to cancellation on 30 days notice, Pull- Distribution of the and liabilities of the parties thereto shall be in accordance with the terms of the above mentioned ex- ae ees eee fer ae ee eee Ss ee for retroactive effective date. D. A. Crawrorp. Cuas. A. WickersHam, Atlanta and West Point Rail Road Company, The West- ern Railway of Alabama, 1439 On the same date sleeping car service was being provided by Pullman Company on the following railroads during negotiations without interim had all revenue the negotiation of a new contract. Atlanta, & Coast Railroad Company; Chicago, Barlingten & Ouinty BB. Oo. The Colored ond’ Gothen nat” way Company, and Fort Worth and Denver City Com- =; ay sei head as ; Louisiana & Arkansas Ry. Co. ; Railway Company On December 2, 1940 the Pennsylvania Railroad served notice of the termination of its agreement on December 31, 1941 in accordance with the terms of such agreement. On Decem- ber 16, 1940 the New York Central Railroad Company served a. similar notice. Every operating agreement between Pullman Company and the Railroad contains a provision substantially as follows: “The Railroad Company shall have the right to cooperate with other. railroad companies in forming through or continuous lines of sleeping and parlor-car service, and The Pullman Company pear phe tas, occharsnptboces yond oak se hela and mana wich tbgmipen? ch or continuous lines pon the mileage of the Railroad y in said lines, ond diaslt too nagiad Yo receive Wit Bes!’ Siete Ser tha uno of eo” commodations therein upon the lines of the Railroad Company, and its mileage proportion of through and intermediate fares.” Joint routes over railroads having Pullman service, and those operating their own sleeping car service during the past forty years are shown on Exhibit IV, attached hereto. THE UNITED STATES VS. THE PULLMAN ComPANY 1271 COPY BOUND VERTICALLY 1272 THE UNITED STATES VS. THE PULLMAN COMPANY ki dt iti i 3 THE UNITED STATES VS. THE PULLMAN COMPANY 1273 . _ 1274 THE UNITED STATES VS. THE PULLMAN COMPANY THE UNITED STATES VG. THE PULLMAN ComPANY 1275 4a | a r3 Mee aw Boston & Halifax... . é : aie | id aa a i ot Sen 1276 THE UNITED STATES VS. THE PULLMAN COMPANY i i . sn Ws | ; THE UNITED STATES VS. THE PULLMAN COMPANY 1277 ADEE. 1278 THE UNITED STATES VS. THE PULLMAN COMPANY THE UNITED STATES VS. THE PULLMAN GOMPANY 1279 ASSSASASASAA ASSES SAA ee ae $h a 1280 THE UNITED STATES VS. THE PULLMAN COMPANY a ceLt CON pe) ont x : 8 z Ed : & ~ THE UNITED STATES VS. THE PULLMAN COMPANY 1283 a ; : : bd z : : = s Zz ; : a . “ : cc 1286 Tus pica i |) gb 2 ae caged 1288 THE UNITED STATES VS. THE PULLMAN COMPANY it 2 4 THE UNITED STATES VS. THE PULLMAN COMPANY 1289 wet ee So e--=NaRaAReS - 8 g 5 R THE UNITED STATES VS. THE PULLMAN COMPANY 1291 | ‘el@li-s. Ala ttt. ee eee 1292 THE UNITED STATES VS. THE PULLMAN COMPANY 1465 SECA wn" RSSRs 4 Pr td aesay3933 asana-seg #89238223 Se ’ a°343"°"* ’ ; ' ’ —_— see sreee ' Pallinan Ce ’ The to the pro rata interests ~ : 2 : 7 : s E 4 oe E = = waeete u aes THE ated s dlieadil a3 by THE UNITED STATES V8. THE PULLMAN COMPANY 1319 facturing Corporation by issuing in exchange 675,000 shares of its stock, the directors set a value thereon, being the net worth raked cack of Tas Webmenr Otieier, aectioons eo on appraisal of the assets of The Pullman Company as at April 30, 1927, which represented a valuation in excess of its book value or net worth of $56,117,366.56. This appraisal and the write-up of its assets are not given effect to or recorded on the books of The Pullman Company as its books are kept in accordance with ac- counting requirements of the Interstate Commerce Commission which do not permit a carrier to give effect on its books to a write- up of its assets.” 50. In 1927, Pullman Incorporated, became a holding company Corporation became a wholly subsidiary of Pullman. Pursuant to the reorganization plan, set forth above, holders of the stock of Pullman Company turned in their stock from time to time in exchange for stock of Pullman, as described above, so that at the present time ital stock of Pullman Company is more than 99.99% owned by man. 1498 Since that time Pullman Incorporated, has 1320 THE UNITED STATES VS. THE PULLMAN COMPANY Payments made by Pullman-Standard Car Manufacturing Company pti siccce| HE] tee] Nee 70, 761. 03 cars to Plan 4084—6 Section, 6 Double Bedroom, pair by the Car Company and its subsidiaries as descri original complaint. These assets were transferred to a newly created corporation organized under the laws of the State of : = i 38 fs Hs EF : 4 Ff : ; i 5 : : i buildings, and real estate in Hammond, Indiana, and Butler, Pennsylvania.” : THE UNITED STATES VS. THE PULLMAN COMPANY 1321 Starting in 1934, a series of transactions occurred whereby title to the domestic properties owned by Pullman Car & Manufactur- ing Corporation and Standard Steel Car Corporation of Penn- Sai: Seine: tenants: to tha evemnliip ot ‘tee doleadant Standard. These transactions were accurately described by Pull- man in its annual report for the year ended: December 31, 1935, to the Securities and Exchange Commission as follows: ' “On February 18, 1930, Pullman Incorporated entered into agreements with Standard Steel Car Company and Osgood Brad- ley Car Company, whereby it acquired substantially all of the fixed properties and net current assets of these companies in ex- change for shares of stock of Pullman Incorporated and cash. The value of the property so acquired, for which shares, in part, were issued therefor at a value per share predicated on an appraisal made of these properties at the time. By authority of the Board of Directors February 19, 1930, a new corporation was formed . for the purpose of acquiring and operating said properties. The Standard Steel Car Corporation of Pennsylvania was then or- ganized, with an authorized capital stock of $1,000,000 (par value), _ which was issued to Pullman Incorporated in exchange for the ies. The books of this company then reflected the value of its assets based on the said appraisal, with a net worth of $57 332,338.88. Subsequently various moves were made in segre- ing and/or merging the properties carried by the Pullman & Manufacturing Corporation and Standard Steel Car Cor- — of Pennsylvania without any change in property values. md now consists of the following companies: ‘ € -Standard Car Manufacturing Company; Pullman Standard Car Export Corporation; Pullman Car & Manufactur- 4, eNO of Alabama.” consolidation in 1934 of the domestic manufacturing subsidiaries of Pullman into Pullman-Standard Car Man- uf. ing Company of Delaware was for the purposes, among others, of effecting economies in operation, reducing taxes, and simplifying the corporate structure. 52. By the various corporate moves and transfers described above all the Pullman assets were consolidated into a unified corporate structure headed by Pullman Incorporated as the hold- ing and management company, and consisting primarily of Pull- man Company as operating subsidiary and Pullman-Standard -Car Manufacturing Company as the manufacturing subsidiary. 54. In all instances where Pullman Company took over sleeping car operations conducted by railroads and other sleeping car com- panies, the rates charged the para: K pmny were continued in effect, notwithstanding increases in cost of operation, until changed as described in paragraph 75 of this stipulation. 1501 1322 THE UNITED STATES V8. THE PULLMAN COMPANY 55-56. The Pullman Company, since the beginning of its opera- tion, has negotiated individual operating agreements with the . 0 operating agreement & St. Paul Railroad Company in 1889, operated its own i i THE UNITED STATES V8. THE PULLMAN COMPANY 1323 1503 Exhibit VI In the District Court of The United States for the Northern District of Illinois, Eastern Division Guaranty Trust Company or New York &f Al., COMPLAINANTS v. Curcaco, Mirwavuxer anv Sr. Pavt Ramway Company, DEFENDANTS In Equity—Consolidated Cause No. 4931. PETITION OF RECEIVERS FOR AUTHORITY TO MAKE AND PERFORM THE _ WORK OF, REPAIRS, RENEWALS, REPLACEMENTS, IMPROVEMENTS, ADDITIONS, ETC., AND TO INCUR AND PAY THE COST THEREOF Now come H. E. Byram, Mark W. Potter and Edward J. Brundage, Receivers of Chicago, Milwaukee and St. Paul Railway Company (hereinafter called “Railway Company”), and respect- fully show to the court : I They refer to the original Order of this court appointing them Receivers, dated March 18, 1925, in which they were directed preserve, manage, maintain and operate the railroads and property of the defendant Railway Company, including such railroads and ' property as it held, controlled or operated under lease, agreements, stock ownership or otherwise ; to discharge duties obligatory upon it; to preserve its rail 1504 property in proper condition and repair, . efer to their Application No. 15 filed herein No. 15 entered thereon, June 25, 1925 (Printed Record, pages 11 to 1202 inclusive), for a description of the cha r of the re- pairs, renewals, replacements, improvements, ments, etc., which the Receivers are required to carry out the terms and requirements of Appointment, dated March 18, 1925, as above receivers have continued such operation since their appointment ; that among other trains upon which said sleeping cars have been ; : : 4 : Py E 5 7 3 7 j Hal Company and the Receivers, respectively, constructed some years ago and are not y oys a similar reputation; that = BA HF He tu $ a s&s S353" iz: cars; which include twenty percent in actual operation under normal in order to take care of the idle time for shop repairs, Olympian thirty-six, bear more cars than are 33 rc) 8 E and two drawing rooms; room and one compartment car, and two, igs LEE a =e = THE UNITED STATES VS. THE PULLMAN COMPANY 1325 Company. The average earnings said two trains for 1924 and 1925, were $11,176 and upon net earnings than they 1326 THE UNITED STATES VS. THE PULLMAN COMPANY ments, improvement, additions, betterments, etc., and enter into the agreements, as set forth in this application and to pay the cost or expense thereby incurred. In the District Court of the United States, for the Northern District of Illinois, Eastern Division Goarnanty Trust Company or New Yoru, er al., COMPLAINANTS v Cu1caco, Mipwatxer anv Sr. Pauw Ramwar Company, er au, DEFENDANTS In equity—consolidated cause No. 4931 ORDER IN RESPECT OF REPAIRS, RENEWALS, REPLACEMENTS, IMPROVEMENTS, ADDITIONS, ETC. Mark W. Potter and Edward J. interested, and counsel having been heard, and it appearing that the proposed work, projects, repairs, renewals, replacements, THE UNITED STATES VS. THE PULLMAN COMPANY 1327 improvements, additions, etc., described in said petition are neces- sary for the economical and efficient operation of the railroad in the possession and management of the Receivers, for the best inter- ests of the public in the transaction of the business of the Receivers as a common carrier of freight and passengers, and for the 1509 maintenance, preservation and improvements of the prop- erty, and the Court being advised in the premisés, it is therefore, Ordered, Adjudged and Decreed that the Receivers be and they are authorized : 1. To do and perform the work in respect of the projects of repairs, renewals, replacements, improvements, additions and bet- terments set forth and described in Paragraph II of said petition. ee ee ee their 2. To expend the sum of not exceeding Forty Thousand Dollars ($40,000.00) out of the funds now or hereafter in their hands, for the ts and additions to the stockyards at the city of Milwaukee, Wisconsin, in accordance with the plan more particu- larly set forth in Paragraph ITI of said petition. 3. To enter into an t with the Pullman Company for the building and ing of eighteen sleeping-cars for the “Pioneer Limited” and thirty-six -cars for the “Olympian” and for the operation thereof by the ivers upon substantial! the terms and conditions and set forth in Paragraph I of said petition. uae an wo their expenditures Fl 16 rree ein it and set forth and descri n Paragraphs and TV of enld petition in such a way that all of, and sal such expendi- tures an are made to property covered by the Firat Mortgage dated rere , 1909, of efendant, Chicago, Milwaukee and Puget Sound Railway Company shal! be paid out of the income from the property subject to the lien of said Mortgage, and heretofore Dated, July 26, 1926. . Enter ; James H. Wrixerson, U.S. District Judge. 1510 In the District Court of the United States of America for the Northern District of Illinois, Eastern Division I, Charles M. Bates, Clerk of the District Court of the United States of America for the Northern District of Illinois, do hereby the above and foregoing to be a true and correct of an made and entered in said Court on the 26th day of July, A. D. 1926 as fully as the same appears of record in my office. 1328 THE UNITED STATES VS. THE PULLMAN COMPANY In testimony whereof, I have hereunto set my hand and affixed the seal of said Court at my office in Chicago,in said District, this 13th day of January, A. D. 1927, Cranes M. Bates, Clerk. 1511 _In 1982 The Duluth, South Shore and Atlantic, on whose however, on joint i July 12, 1940, the following agreements between Pull- man Company andthe railroads wore in fl 1. Agreement between The Pullman Company and The Atchison, Topeka and Santa Fe Railway Company, effective ar gs ovens between The Pullman Company and The Balti- rt Agreanent between The Pullman Company and Boston snd Maine Deiiventh erent ee aa 5. Agreement between Pullman Compan Canadian Pacific Railway Maras effective June 1, 1936. 6. Agreement between The Pullman Company and H. D, Pol- lard, Receiver, Central of Georgia Railway Company, effective eras 1940. 7. Agreement between The Pullman Company and The Central Railroad Company of New Jersey, effective January 1, 1940. 8. Agreement between between The Puliman Com pany and The Chesa- psi sod Onl ally Company, oferta Jy 1939. 9. Agreement between The Pullman bare effective January 1, 1939. - 18. Agreement between The Pullman Company and Frank O. Lowden, James E. Gorman and J: B. Fleming, Trustees of the Property of the Chicago, Rock and Pacific Railway Company, effective May 1, 1939. THE UNITED STATES VS. THE PULLMAN COMPANY 1329 14. Agreement between The Pullman Company and The Dela- ware and Hudson Railroad Corporation, effective January 1, 1941. 15. Agreement between The Pullman Company and Wilson McCarthy and Henry Swan, as Trustees for The Denver and Rio Grande Railroad Company, effective July 1, 1938. 16. Agreement between The Pullman Company and The Dela- ware Lackawanna and Western Railroad Company, effective December 1, 1937. 17. Agreement between The Pullman Company and John A. Hadden and Robert E. Woodruff, Trustees, Erie Railroad Com- gy rng are 1939. between The Pullman Company and The Grand Trunk y Company of Canada, dated June 7, 1916. between The Pullman Company and Sibheten omnes, Internationa] Great Northern Railroad pany, effective November 1, 1939. 20. Agreement between The Pullman Company and The Kansas ~ Southern Railway Company, effective March 1, 1938, between The Pullman Company and Berryman i masons between The Pullman Centtal Railroad Company, effective July 1, 1939. 24. Agreement between The Pullman Compan y and G. W. Webster and Joseph Chapman, Trustess of The Mineepolis, St. Paul and Sault Ste. Marie Railway Company, effective May 1, 1939. 25. Agreement between The Pullman Company and Guy A. Thompson, Trustee of Missouri Pacific Railroad , effec- tive May 1, 1940. 26. Agreement between The Pullman Company and C. E. Erwin and T. M. Stevens, Receivers, Mobile and Ohio Railroad ee effective November 1, 1934. 27. Agreement between The Pullman Company and Guy A. Thompson, Trustee of New Orleans, Texas & Mexico Railway Company, The Beaumont, Sour Lake & Western Railway Com- pany, The St. Louis, Brownsville and Mexico Railway Company and San Antonio, Uvalde & Gulf Railroad Compa.y, effective January 1, 1939. 28. Agreement between The New York Central Railroad Com- pany The Pittsburgh and Lake Erie Railroad Company, Rut- Railroad Company and The Pullman Company, effective January 1, 1936. 1330 THE UNITED STATES VS. THE PULLMAN COMPANY 29. Agreement between The Pullman Company and The New York, Chicago and St. Louis Railroad Company, effective May 1, 1939 80. Agreement between The New York, New Haven and Hart- ford Railroad Company and The Pullman Company, effective January 1, 1935. 81. Agreement between The Pullman rca Ah and Norfolk and Western Railway Company, effective July 1, 1927 Pennsylvania Railroad Company, January 1, 1936. 33. 6 ree ety tei” te nan: a plan ermal bem a Railway Company, effective J 1, 1939. between The Pullman pany and Reading Company eiltive Jy 1, 1939. between The Pullman Company and Leigh R. Powell, Jr., sornee da Anderson, as Receivers of Seaboard Air Line Railway Comp , effective July 1, 1938. 36. Agreement between Pullman Company and Southern ee ene 1, 1940, 37. Agreement between The Pullman Company and St. Louis- San Francisco Railway Company, J. M. Kurn and John G. Lons- dale, Trustees, effective November 1, 1934. 38. Agreement between The Pullman Company and The Toronto, Hamilton and Buffalo Railway Company, dated January 1, ae 39. Agreement between The Pullman Company and Union Pacific Railroad Company, effective January 1, 1940. : 40. Agreement between The Pullman Company and Norman Bi Pitcairn and Frank C. Nicodemus, Jr., Receivers of The Wabash Railway Company, effective May 1, 1934. 41. Agreement between The Pullman Company and T. M. Schu- macher and Sidney M. Ehrman, Trustees, The Western Pacific — Company, effective May 1, 1939. 42. Agreement between The Pullman Company and’ E. A. Whit- man, as Reeciver of Wisconsin Central Railway Company, effec- "2 oda i Com 58. 12, 1940 Pullman had with the following railroads covering air condition Teter, "aaa a eae and Santa Fe Railway , hah a 1515 Atlantis, Co Coast Line Railroad Company—Electrically Driven Compression System. The Baltimore and Ohio Railroad Company— York System. THE UNITED STATES VS. THE PULLMAN COMPANY 1331 Boston and Maine Railroad Company—Ice-activated. Canadian National Railway Company—Ice-activated or Canadian Pacific Railway Company—Mechanically Driven Compression System with brine tank auxiliary. Central of Georgia Railway Company—Electrically Driven Compression System The Central "Railvond Company of New Jersey—Electrically Driven Compression System. The Chesapeake and Ohio Railway Company—Mechanically Driven Compression System. Bi cage Burlington and Quincy Railroad Company—Mechani- Driven Compression System. po Poona & Eastern Illinois Railway Company—Mechanically Driven Compression System with brine tank auxiliary. Chicago Great Western Railroad—Mechanically Driven Com- pression System, brine tank. MQaleneo, Milwaukee, St. Paul and Pacific Railroad Company— Carrier Safety Steam System. Chicago and North Western Railway Company—Ice-activated. Chicago, Rock Island and Pacific Railway Company—Mechani- cally Driven Compression System, brine tank auxiliary. Colorado and Southern Railway Company—Mechanically Driven Compression System, brine tank auxiliary. Delaware, Lackawanna and Western Railroad Company—lIce- activated. The Denver & Rio Grande Western Railroad Company—Ice- activated. Erie Railroad Company—Safety Carrier Steam Jet Sys- tem. 1516 ‘Florida East Coast Railway Company—Electrically Driven Compression System. es cope Fort Worth and col tees City Railway Company—Mechani- Great Northern Railway Company—Ice-activated. Illinois Central Rai Company—Mechanically Driven Com- pression System, brine tank auxiliary. ae Northern Railroad Company—Ice-acti- v Kansas City vases Railw ee a Driven Compression System Lehigh Valk Re fallsoet Cotapenietia-edttvaed: Louisville & Nashville Railroad Company—Mechanically Driven Compression System, brine tank auxiliary. Maine Central Railroad Company—Ice-activated. 724808—47-——_84 1332 THE UNITED STATES VS. THE PULLMAN COMPANY St. Paul & Sault Ste. Marie Railway Company— iven Compression System, brine tank auxiliary. The Nashville, Chattanooga & St. Louis Railway Company— Driven System. New York Central Railroad Company—Mechanically Driven Compression System. The New York, Chicago and St. Louis Railroad—Mechanically Driven Compression System. New York, New Haven and Hartford Railway Company—Ice- activated. Norfolk and Western Railway Company—Mechanitally Driven Compression S: brine tank auxiliary 1517 += Northern Railway Companty—Mechanically Driven “ma System. Pennsylvania Railroad Company—Mechanically Driven Com- pression System, brine tank auxiliary. ‘Pere Marquette Railway Company—Mechanically Driven Com- Reading Company—Electrically Driven Compression System. Richmond, Fredericksburg and Potomac Railroad Company— Ice-activated. Richmond, i and Potomac Railroad Company— Electrically Driven System. St. Louis-San Francisco Railway Company—Mechanically Driven Compression System, brine tank St. Louis Southwestern Railway Company—Ice-activated. Seaboard Air Line Railway Company—Mechanically Driven Compression System. Southern Railway Company—Mecharically Driven Com- pression System, brine tank Southern Pacific Company—Mechanicaliy Driven Compression System, brine tank auxiliary. The Texas and Pacific Railway Company—Mechanically Driven Compression System, brine tank auxiliary. Union Pacific: Railroad Company—Mechanically Driven Com- pression System, brine tank Wabash Railwa Company—lIce-activated. Western Pacific fic Railroed Company—Mechanically Driven Com- pression System, with brine tank added. Wisconsin Central Railway Company—Ice-activated. THE UNITED STATES V8. THE PULLMAN COMPANY 1333 61. Copies of all the operating agreements, including letter between Pullman Company and the railroads which were in effect on July 12, 1940, are contained in separate volumes and will constitute Exhibit VIL. 1518 63. There are two types of sleeper equipment which are referred to as coach sleepers or sleeper coaches. One of these, which will be referred to as new-type coach sleeper, is a car of new interior design developed as the result of research by Pullman Company and Standard for the purpose of providing coach passengers with sleeping accommodations at night. These cars are divided into compartments in which three tiers of beds may be made up at night. They furnish seating and sleeping ac- commodations for more than forty people. A pamphlet prepared by Pullman Company and relating to such cars is attached hereto as Exhibit VIII. [illustrations and specifications of the interior of said cars, applicable rates for sleeping-car service therein and proposed methods of operation are set forth in said pamphlet. THE UNITED STATES VS. THE PULLA(AN COMPANY Exhibit VIII COPY BOUND VERTICALLY {THE UNITED STATES VS. THE PULLMAN COMPANY 1335 COPY BOUND VERTICALLY : = 8 : Es THE UNITED STATES VS. THE PULLMAN COMPANY COPY BOUND VERTICALLY THE UNITED STATES V8. THE PULLMAN COMPANY 1339 1340 THE UNITED STATES V8. THE PULLMAN COMPANY COPY BOUND VERTICALLY THE UNITED STATES VS. THE PULLMAN CoMPANY 1341 THE UNITED STATES V8. THE PULLMAN COMPANY 44 THE UNITED STATES V8. THE PULLMAN COMPANY . COPY BOUND VERTICALLY {HE UNITED STATES VS. THE PULLMAN COMPANY 1345 Four of such cars have been prepared by Pullman Com- a ly $43,000 each as shown been used experimentally on in June experimen , the Great Northern, the Northern the Chi & North Western, the Union Pacific, the Pacific, the Santa Fe, and the Denver & Rio Grande i completed by De- service as of regular tions. The es traffic that usually m the service in the opinion of Pul of developing much new business from pay the higher rail and Pullman fare for the Pullman i service. Another type of equipment referred to herein as a combination coach-sleeping consists of old cars the interiors of which have been semorieled to contain seats for coach passengers at one end and a number of sleeping car sections at the other end. The operation ne these cars is an arrangement which has been put into effect on some lines where there is not passenger i to f both coaches and sleeping cars. Company put the use of train . N. D., 1346 THE UNITED STATES VS. THE PULLMAN COMPANY As of April 21, 1936 Pullman Company entered into a special for five years with the St. Louis-Southwestern Rail- (then being reorganized under Section 77 of the In the District Court of the United States, Eastern Division, Eastern Judicial District of Missouri In Tue Marrer or Sr. Louis Sovurmwestern Rauway Company, DEBTOR In Proceedings for Reorganization of a Railroad; No. 8497 PETITION OF TRUSTEE FOR AUTHORITY TO ENTER INTO AGREEMENT WITH THE PULLMAN COMPANY COVERING TWO COMBINATION CAFE-COACH- SLEEPING CARS OPERATED ON LINES OF THE DEBTORS The peti of Berryman Henwood, Trustee of the property of the St. Louis Southwestern Railway Company, respect- virtue of the ownership by said Southern Pacific Company majority of the capital stock of the St. Louis THE UNITED STATES VS. THE PULLMAN COMPANY 1347 Southwestern Railway Lines,” and after January 29, 1936, the ion of cars of The Pullman Company continued over lines of the Debtors under an informal arrangement pending negotia- tion of a new agreement. 3. That as of January 29, 1936, The Pullman Company and your Trustee propose to enter into a new principal agreement cov- erifig the operation of Pullman cars over lines of the principal Debtor and its subsidiaries (as defined therein), including the Debtor St. Louis Southwestern Railway Company of Texas, and that as of June 12, 1936, The Pullman Company and your Trustee to enter into an agreement supplemental thereto, known as the “Air Conditioning Agreement,” covering the air-condi- tioning of the Pullman cars covered by said principal agreement. Both of said agreements may be terminated at the time of the adoption of a plan of reorganization herein, and for that reason and for the reason that said agreements are operating agreements executed in the regular course of operation of the said Debtors’ properties, he is not requesting specific authority of this Court to enter into said agreements. 4. That, in addition to the standard Pullman cars operated over said Debtors’ lines of railway under said agreements, there are operated over said lines two combination cafe-coach-sleeping cars built and owned by The Pullman Company. The operation of said cars over said lines began on April 21, 1936. The 1524 operation of such cars over the lines of railway operated by your Trustee has been and now is desirable and necessary in furnishing adequate and efficient passenger transportation service over said lines. 5. That The Pullman Company and your Trustee have nego- tiated a proposed agreement covering the operation of said com- bination cafe-coach-sleeping cars over the lines of railway of said Debtors, that a copy of said agreement is attached hereto, marked Exhibit “A,” and made a part hereof, and that in view of the fact that said proposed principal agreement is referred to in said agreement marked Exhibit “A,” a copy of said proposed principal agreement is attached hereto, marked Exhibit “B” and made a part hereof. 6. That said proposed agreement provides, inter alia, that The Pullman Company shall receive $16.24 per car per day; that The Pullman Company shall furnish cafe service in said cars, subject to the right of your Trustee to take over the operation of such cafe service; that said cars shall be equipped with mechanically driven compression system of air-conditioning apparatus; that The Pullman Company shall operate, inspect and maintain said apparatus; that your Trustee shall pay the Pullman Company 7248084785 1348 THE UNITED STATES VS. THE PULLMAN COMPANY wd wth day for o ion of said apparatus, and that meng * mie 7 it euaieues.oa tas teak Uneaten ex panes gmt ma "The roposed contract sets forth mutual and liabilities of the parties covering the operation of the cars furnished in similar form to provisions in con- tracts between The Pullman Company and other railroad com- panies. 7. That it is proposed that said agreement shall remain in effect for a period of approximately five years, or from April 21, 1936, to April 30, 1941, and that said agreement shall be binding upon any successor trustee or trustees of the said Debtors’ property hereafter appointed in this proceeding, and, after reorganization, upon said ors or any company which may succeed said Debtors in the ownership or operation of the said Debtors’ lines of railway. 1525 8. That your Trustee believes that the rental and other terms of the proposed agreement are fair, and that it is in the best interest of the trust estate that he be authorized to enter into said agreement. Wherefore, your Trustee prays that an order be entered herein authorizing him to enter into an agreement with The Pullman Company substantially in the form of Exhibit “A” hereto attached. BerryMan Henwoon, Trustee, St. Louis Southwestern Railway Company, Debtor. A. H. Kisxappon, General Counsel, Carteton S. Haptey, Assistant General Counsel, Cotton Belt Building, St. Louis, Missouri. Dated January 29, 1937. Unrrep Srates or AMERICA, Eastern Judicial District of Missouri, Eastern Division, City of St. Louis, Missouri, 8s: Berryman Henwood, being duly sworn, upon his oath says that he has read the above and foregoing petition and that the facts therein stated are true, as he verily believes. BerryMan Henwoon. Subscribed and sworn to before me this 28 day of January 1937. [smau] Tuo. R, Scunemer, Notary Public, My Commission expires August 2, 1937. THE UNITED STATES VS. THE PULLMAN COMPANY 1349 (Exhibits A and B filed but not printed.) Filed Jan. 29, 1937. Jas. J. O’Connor, Clerk. 1526 [Order No. 162.]} In the District Court of the United States Eastern Division, Eastern Judicial District of Missouri Iw Tue Marrer or Sr. Louis Sournwestern Rar-way Company, DEBTOR In Proceedings for Reorganization of a Railroad; No. 8497 ORDER AUTHORIZING TRUSTEE TO ENTER INTO AGREEMENT WITH THE PULLMAN COMPANY COVERING TWO COMBINATION CAFE-COACH- SLEEPING CARS OPERATED ON LINES OF THE DEBTORS The petition of Berryman Henwood, Trustee, for authority to enter into an agreement with The Pullman Company covering two combination cafe-coach-sleeping cars for a period of approxi- mately five years being this day presented to the Court, and it appearing to the Court that notice of the filing of said petition has been served upon the mortgage trustees of the Debtor’s property and interveners herein, and the Court being fully advised in the premises, it is ordered : 1. That the Trustee be and he hereby is authorized to enter into said proposed agreement with The Pullman Company covering two combination cafe-coach-sleeping cars, for a period of terms stated by the “Trustee in his said petition and set 1527 approximately five years, embodying substantially the forth in Exhibit “A” attached thereto, and 2. That said agreement, if and when it becomes effective, shall be binding upon any successor trustee or trustees of said Debtor's property hereafter appointed by this Court in this proceeding; that, in accordance with the terms and conditions of the agreement to be executed substantially in the form of Exhibit “A” attached to the Trustee’s petition, as a condition to the final confirmation by this Court of any plan of reorganization of said Debtor, said Plan shall provide that said Debtor or any person or corporation acquiring substantially all of said Debtor's railways and properties shall be or become bound by all of the terms and provisions of said agreement ; that upon dismissal or termination of the trusteeship or upon any sale, lease, transfer or assignment of said railways and properties shall, as a condition to such acquisition, be or be- come bound by all of the terms and provisions of said agreement ; 1350 THE UNITED STATES VS. THE PULLMAN COMPANY and that thereupon the Trustee, or any successor trustee or trus- tees of said Debtor’s property, shall be di and relieved come bound by all of the terms and provisions of said agreement ; Cuarzes B. Davis, District Judge. 1528 At the present time this operation is being continued pend- ing the making of a new agreement. In 1936 as a result of negotiations between Pullman Company and the Chicago & North Western Railway Company, the Chicago, Burlington & Quincy Railroad Company, the Illinois Central Railroad Company, the Northern Pacific Railroad Company, and the Great Northern Railway Company (commonly known as the Granger Roads) , the provision in the operating agreements which gave Pullman Company the exclusive right to operate sleeping car service on the lines “| those railroads was modified by supple- mental agreements to exclude from its scope the operation by the railroad companies of combination coach sleepers on lines where there was no Pullman service, and on existing sleeping car lines where the earnings were less than $4,000 per car per year. Sim- ilarly, the operation of combination coach sleepers by these rail- roads which had been begun on November 1, 1935 was removed from the scope of this provision of the operating agreements. In these supplemental agreements it was also provided that at the option of the railroad company, Pullman Company would furnish such service under special arrangements to be mutually agreed upon. The only railroads in this group which ever established their own service under the provisions of these supplemental agreements were the Illinois Central and the Northern Pacific. In 1939 the Illinois Central, because of the insistence of the people of Natchez, Mississippi that they be given sleeping car service, remodeled some old business cars into combination lounge, dining and sleeping cars, and placed them in operation between Memphis, Tennessee, and Natchez, and between New Orleans and Natchez. In 1938 the Northern Pacific Railway Company remod- 1529 eled two old coaches into coach-sleepers and put them in operation between Seattle and Yakima, Washington. This operation was discontinued on April 3, 1941. 68. The results of operations by the Pullman Company on various railroads and the financial settlements with such railroads, as shown by the records of Pullman Company, for the last ten years, are shown in the following table designated Exhibit X. ‘ 2 | 3 ) : ; ccpiring in the period 1981 to 1940, inclusiee 1530 Exuisrr X.—-The Pullman Company, results of THE UNITED STATES VS. THE PULLMAN COMPANY 1351 x i Saas 6a] 8 SIESBSS BER gsegs38 58|8 sadaued 63/8 222 rer z*- BSZsRxe2 se Yscdass 8 s“gaae 42 RLSEKSVSeRS SHRSESERS = q ee a peeehs Ht vegan TET un eee g COPY BOUND VERTICALLY 1352 THE UNITED STATES VS. THE PULLMAN COMPANY for the contract years expir- | ‘ 3 = 5 : § ? : | 2 is AT oe ee Seerennrnen - BPR eee oa tote ete ee H Pe EeEeeesay a iiifiiiiig uecededates | tne ‘iii : S€ee ere es j PAMMAEEEEAEES | j = ‘ee lal alalalaLalal nnacsersess S azsensea ah OR sessie R223 z\8 Ra ScZks CRE i i staal a) egtag “|| 4 seaed 03 ae|3 gandig ae va le Edees 464 ; : Re ‘a as seas se822 8 S23 Dasss +88 en ns eee 3 S g7=48 gq ave @ “2 é¢ddda dda 2 2 8 aa & BSS S88 $ $sc3 22258 8 $8 88524 abe : g3gz $533 © 89-8 «SERES 38 _ g%sa ioe = a¢ d¢daad ada z S888 88 S888k See sss BSaTaB 2 RS B83nee Gea : , eeee adds od 20s Se ESSE es au} i |° 4424 degig ¢ 20d decide dee t 8592 RSsas 8 49 88982 Oo SRieeaewe ei! al lee 3Sa 4 ow ee wes 5 Bets tf eee 8 ' ‘ #30 8 Be © pees, | Peek kt oe SF —¢%¢ ¢@ €e 2 eae ¢ 8a 7 As, 2G Ge @ieeeeee £ we Ff og ee gis & 2a Viweeeee fF Oe ee BP ee a ie Bae ee ee hat" @ £0 Oat ee it ek gk oe eT SY 24 ay We ww &« wee ete eS eS one La. we Cn Baie maa a £284 @a wiv Oey i ak hl kl oe a ona nre -e* fe “es @830e8 82a *reteee Crna ta aa Lae. eae es ae sos) Ge @ ee ewe t RE ee eee gc 8 8 ee Oe FS Fe: gee *rtretm + BW ¢tmpeteeetmweeens erreewm@m@e 6§ Me eeet meee eee ome 6 ae . ¢ @meee be ete gray ee eee. 2 ee ee A ites i olalal @-_ memes fe Fee1asrn 684A CUT ee ae or Ae Ul THE UNITED STATES V8. THE PULLMAN COMPANY 1355 gi®| s3ee8 anes 5 3 $853 455 ser G| Seess cade & EcS8 faa o8¢ ¢ sedge ads z ads" “24 ddd|g & Ba BASS BAS z Besse 92n8 F 7 SSsg 228 as= z ESshS ae 2 3 353 S29 rT égued dius a * aa" dus a BASAS AAAS & & K&S BAK z R&SRS S8eF Ff 3 $853 282 ses z #9248 20a 2 : Ea8s AS S88 a igdag oad 4 ‘ agen dud “4 & BASAS AAS A & BSAA ABA AS 2 BRscB Be=e 8 2 AGES ABA sxu z S282 azu8 § 5 e8e8 S86 328 a SeSss ssi i a Raa S88 aad z ASSAS SARS AB 8 S282 288 BRR : Seuss 4528 &§ | Kase $88 Bde a saagg saea 2 a 4253 G88 SZ a ES@28 BRRe s a SSR SBR See ° Sstu8 se85 3 a S888 aka dad 5 g8833 2588 . a - - - | BeAR CBB SBE rereet #8 ete Senpeane eens 72a eres petrrte #8 e#e jeree #8 eee $23 6 Bees Ride * mys. seree teee eretnre f# fe Ff _onaene 2e5 reere fbeve perre #8 eee pereprre f# fee ' *rereet # Ote ' BSete smarts ' AaQa™S sce ' ' June ii 7st, wvTTY, © sean 825 885 Tee 2232 £2.28 Ve te 28 AEP Zee me ea oe ei nae Bee Bese Sener 88S 8823 Boe Mama & a eee .2an nen s8 8 .a0 wre £2 6 ao. 2s se ef 8 & ee oe See [oan en bee a a- see 6S CS ae ss. oe aoe ee 2 ee an “anwTo ©OFee S222 B22 RAN A 1356 THE UNITED STATES VS. THE PULLMAN COMPANY 22222 28338 \8 S&ses 2282 aad2¢ 89958/9| Sees dese gua dde~d|g| dant “22 & BS SAS SSSZe BSSsk F225 Sh8SE BgSd3 22984 585 ga" # reees idudd diag | BRSEE Ray3z3 SREz2 3298 e8254 28935 BRSSE SEZ gfdus d-“pank seddd Yard SSS & BA SSSA ASKS 23225 SR2RF RELZR RISE Gagsg 22582 ZEfE8 S258 sadag s28a REMSa seat aff e S352 g282g3 4 9 SEES SERS Sauck SegNce 40 dee e¥as a” 1 to 1940, inclusive—Continued Prereeettres asidss sists RESss a SRk2s RARS E ing in the period Baas 3 : er Ha #383 i a lal alalal | 1 : : | i : : THE UNITED STATES VS. THE PULLMAN COMPANY 1357 2 RSS3ER BtSee=|s SSRRRISE -|8| 888883 Segeas|s| Exasudda -.|9 E| Weide “ddan“|g| ésde-dg 2*| 9 Hiiais Sake] = aA OL 7 $3 seecss eeeeeeee 22 Z aan rt TT a Fs gidaa- ; 3s & Aadane Ba “ RSS3E8 Sses8= RBRRSISE == 4 988882 ceagz2 020 adda 95 ro aSesa= ddddi* e*dde-ds Ju i ABBKEK BAER saa HA Bd s S=ESSLA ~S5288 Sysxcsszee @B ¢ sedge deecee © asad ba 4 «= iS tse = shad . SSsSSe SNsRer RSRSSBkS oz é S9g8ua ZeRzcs Seussaee 59 s siued deve geedzgdg ig z SSRRSa B2BxrR58 RSNSSRAR 2B $ RagSSm Ssnsea eeedaees Se : gigdgg sueess gagggee a2 addi HitHD o6@ HEEUEE SHE HTT © THEEEE Qi ; Hilt EE tus e epetehetetes - = EET a Li Te n “ans oe > aaaas £333333 i EESSSSS3032 o g AAO OS HOBORN & SRSnSSRa NR A 1358 THE UNITED STATES VS. THE PULLMAN COMPANY 3 Bsn 433 3288 1940, inclusive—Continued 2322 aul ade eied ae aa a ing in the period 1931 to ae ore operations included Chicago & N Western Ry. 7 j i | : é é , COPY BOUND VERTICALLY THE UNITED STATES VS. THE PULLMAN COMPANY 1359 9 HRAzSAE9 F BEE SBASRS |S 25AER of ¢ dsuddcss g\4@ skeeeveds|s 5 “ gietdedd alg 89 "deeded |e § BAKA BA BAK E ggsesecs 3 ssgegezes $ 436282 2 Et | rs _ 2 RRBRKSes 2 ancsenssse & BSestese 2 gaet8aaes | Ss) Ee i é SAASKA AA BS BASAA F3gses Esa 8 33 |. Pa aes ts ‘or 3 Zz Ws" Jig ¢ g A BAA AS & Ssssan ses a S22 EF S82ne8 f |, Se gee ed dtaaes : gacdas gan ¢ aau 4 &xsgcg KSSAS ASS 8 Hi BRAS BSSI8R Bes a S88 2 SeReeas i ¢ «sa 42 # 836883 ; gidsue god g aed § SSeS 899988 e825 8 SSS 8 292585 i , ««SS8NEY HE a85 2 2ecees i gasne sae g kag & Cuduad & 4 RS283h $28 5 5 ee Sil |s BREE Bae ; G28 3 280882 pulp £665 ome Sree nrne £22 Penreae e868 Seeenn Bee seers Ss £24 ER et Seee Sepenpes 889 rerane ave Saag? aa ae [ee ene Bes ,eec aes see creates 2.) Serene BEE [erpaan\ tart Seearten. Bee ,Seeeaes Ott errreet tbe Pee GBS £84 errreeete fee rr ree fee PER &mets [sacs 2 eu SVPaget teres ‘ee ret. the Toe. x 68S a ee rr ££ FPetere oa. €. £2828 2.9 5 @ BS Oy PR aE RSE ee Ff S243 98 ean) @) £528 3 9% GR Sees pees age 72.8.8 €&88 0888 se. sete ee se ee ttt tee eee asta! Pete prem rreene ee Adds i i 2 HHT sed aaa fee @s SQ&z 8 Snsean a THE UNITED STATES V8. THE PULLMAN COMPANY 1373 e813) S@skaasace|s ARSzANR FRx \F ezanes gz'2| sesthsdeed 2 #8eu83S asi g Sk8séa aa|¢| Sdauead--+|g| 0 Sdt“net aid |z| | Sage AS aaa Syd sao aa ‘Ue BRBSSVSRzB S2AIBNs BRB RBSans a6 PSShessaea Seeesse ESE epegsg ve dddiiessss dsideea ANX Perr && SASSAS Bad BA PT S28R=8ERRE R@eseaa B28 g8aces §¢ HESSSSHSZE $3nsse2 G83 gegsas aa agsinsant $4 aéig “d gansa4 kE SSSA Ba a PF Qsasaseese S29RRSs BZN PT tt Ee | gaseaseces gegaee6 g53 Peps tt] oa PEELS S 13 1 ggsgad2 c3e gsugie BS SAKSSSARSS SSRsBaS RSA aNSess ds «SGRRGECESA §=— | REESENS ABZ RUSEHE “ uae =a eee EMEA SeRxessreae 398 ddgdeee dee sankee - S295888 283 peesae epuMeeeecRea BECP ELT eae errereprrehne SeeGarRreBea® eee eeaaen PRaeeeRezas -ereeuaena ® OBZ See eee Begeseeaaga Seupnrean nan ee Sate eartrte [een ee 8 2 8 Rea EEEEeE Bene repaaee Pee EReR EE SE Seep enaertne earn a aon 2 eo PReSRQRSeC ee Zener ea 3 5 Baeaveeages [22a ne Ps ay @RUELEReRaE VR Ceecaeege Sa-ceseerp. = Geet gasees ee ,e ne ee ee & BREEPVTAa se seep eeeegeEe oo ae STOTT eit i pn Bekheé emma BEeaeeBe #8235 Seagest cea ee ZBagi.rts Begs E@Qeas 5 Begs .eranreas: £28 Teer ens 28.5 SaEeeanpa 2 BT See enn. 2.9.9 7Seeeas,p @2ey Seraeugk aweean Beaeagerztneate BaVeagk Svea a San eaVamenh Baxvegss Sa aa B@Gskegam swe e se Raa Ea vate anne. A.e8 rereees #8 Bepvrregiwa vy eB eerl7. eS aa Ba BSS Bt ae ee Peeves “=F 3 a sissisissisi-olaa i an fA peeeEEEEE . Saage sreeeee ‘te 8-3 2 Sestasa ee © S48 2 2 aoe seener®? erreeue seers 6226-5 Beaaag i. 8 6-9 erereeuet Beka a settee es 8 fom 288 Beas. GSEBE®. rrr ‘iit ae F lal alalal R2nk2Ra RRA A 3 mane 1374 THE UNITED STATES VS. THE PULLMAN COMPANY for the contract years eapir- 3 | : 3 = 2 3 & z ! : 3 | | i | | | PEE EES Sggrécd SS =A be 8 & S5988583 kereddes ESRSERSS 88345852 egsessae BSeESSs8 PEPEL TEs Rkasssee SSSREIaR 22283385 dseeesas aseaee peereerr Railroad Pennsyleania 1, 1936 December 31 I icsccussecessenccanscene’ Contract effective Jan. Year end Year end uly 1, 1925: Contract effective J 1556 | Reading Company and Atlantic City Railroad Company SLSISSSeKz RERSESREE givegased THE UNITED STATES VS. THE PULLMAN COMPANY 1375 Bet SEbRe2 #88 SReESS S"a asecda 323588538 822352228 ae saasocens? PETE EELS F —— AS= SaeRes $28 556292 fe digas f 35,960.91 | Dr. 14,734.76) Dr. 14,734.76 Segnggage sreene:| aaaeceude SRS R2RRTS a2 Gdseag uka ssagus 21, 226. 15 SNSSSSALKE agkzgSceE prpprreres| : 25S B3a8K2 BES RSZEZE Esa $8222 ezassaeens SkaNARRRA RR S2BRso SSS $25822 ..| 1940 SS Seespeanenes& Ssenesegeeen @e sees eeeese se PEeegegxree eeereteeunne erereevpeunree sseevpee eee 8 eeereenrvree seeeceeees8 & -eseecee ee es -eneenee are Seer eeeat et tee eanreeee eerreenneenne oe St. Louis & San Francisco Railroad Contract effective April 1, 1927: Year ending Moreh $1..................---------- i Zeca AAZSSoRsaa A owe cranes 1376 THE UNITED STATES V8. THE PULLMAN COMPANY eReaN SSES | BRRz|8 segs 8 3S gare s BASS 884 8 for the contract years ezpir- | | the period 1931 to 1940, inclusive—Continued Company, results of ing in uly 1, 1907 as modified, effective St. Louis Southwestern Railway Company Contract effective J J a aaa ~ 2222 SS2R 8 3 Exuisir X.—The Pullman THE UNITED STATES VS. THE PULLMAN COMPANY 1377 at ciel a gsatgeed 26\4| seeauses 3/6 sa“degee Ga|s| ssksdsids §)6 — & B55sasg2 Be § gande 38 a désdg od S@seszass 3 PETS Pit tS gsiseaues & Rggsee aad BAS SESSRSAR 8B SSZEREKE BE aa“Zea6& 36 Trot SSES9K2ES & SeSeSRESR 2 Aaa a98892 Rae8s= onegse: S2eShRee 5B ASgRSSa5 £5 eseicetd #8 SSNSTESV=A 3 Prerrerrr ar aededa ghd 4 Sadaednae 2 PELEES. éaridie ZRESLBZAR BB SASREEE $2 Sdageeds 24 SSSzNN=Sa x EZGRE829E 2 aagsceazg 8 Stated ddd F SRIESS82 FF SESSLASS BE SSS2ekeees & SAkS28SSS 8 Ppt spt 2 g fie i tf ni i int arene «TTT #2 ' 1378 THE UNITED STATES VS. THE PULLMAN COMPANY RSS229S5R38 |5 SS22S8R\2 Se¢ggeee3|§| Sdagzug|s gedeeggeg |_| f* : = = : z I xn 2 f+ a THE UNITED STATES VS. THE PULLMAN COMPANY 1379 SBgNcRas=s |e SSRERSRASS |S 88 BERSSAESS 3) #saskssaded|¢ —_— SseskKkaae | gs mead | wails sseeaeeaca ga astaeee a= tddedes S| Dr. LT Fei ti tf PrePerer er? SISIARVRSs rrrtitiee sdasaaeana aaasdseat 0 Guida 272.61) Dr. 2,076 7%) Dr. S2858382F2 S2ORRS08K retire re #EBE SCARE — — eseaassess SR2SRRRESE SRSLSSRASB del dubabed obel ab at S$haducead i Ha pussies punnnn *Raamzaenas go “NeTeerees 5 1248084787 1380 THE UNITED STATES VS. THE PULLMAN COMPANY 1 to 1940, inclusive—Contioued ing in the period SIitdtdat ag\2 -~ ‘Sa2eeseas rerere Peer re rt | gig4- +a sissies aeasssars CEE LP EE Cidsassay SSRSRs2Ra a iter Perr rer es Er ET EEE EE Peerert ier BResanere SANGESEEE PELE ES aS hagegeceed gained Reseetses SSAEE8=09 SeeSesoee esssaene-e sddcidcticictctet RRSESSRRE = - Widesdsacs 4 ih pen f idddeddde j i if y HH aes aaanans g = R2cs2Rane % E | | : : i | | THE UNITED STATES V8. THE PULLMAN COMPANY 1381 aH HHH a Hp oui aja; 38 sens eesa92 senzeerey z\% 62 a? #368 882895 eagegeens aig aad agie sddadd = ss - Beee a.A6.00 0 Sax ge 2 rt) 98 ss2neR z ; "Megas EE 4 ne 4i¢ shud * RB ti oe ae ee B22 Baresz SSarteecses & g 8% #623 AGEREA S49025288 & ‘ 22 igqe Sédddd “gid4 “ad 6 aE BAAS ASASAAA BAAR ORB + ae 2222 Sstsen SERVES s 4 0s si(iéSG SUC «= SRG ? 22 ease sigugg gidersdza g 2 as ease SRRzae RaRBN2ZsE 8 4 8h 0s ba AGERE «= Segegaeds 5 ee = ss SR2R RORaSS B2eSseseer cc R ae $88c ddsdad Higssicds # : 3 88s 288882 sila i rE AH ' a zannans j cttecccan “a ! fl ere 2 Sujannaiss pump SRESLRARR A BR 1382 THE UNITED STATES V8. THE PULLMAN COMPANY 4), SSG] BE i: i= = a |4le aa HARAAAA AAR i) = ae ; ) Exuiarr X —The Pullman Company, results of operations Railroad aan Redwaey hechanen _— peaeé£ ets A Gums 6 eee 6 ome the period Com ureet so (@ 2 sc) ie 1885 io 1640 = 1985 iaae 1987 io Ts) 8. SL GES 2 0 peer ¢ Pg Re cee. oe eee t The dental lavatory was first applied. 1909—The first steel sleeper was placed in service. iding window screens replaced folding screens. “First Aid” kits were added. + Pn sg air brakes were adopted. Steel sheathing was applied to the exterior of cars. Improved anti-telescoping construction was adopted. 1913—Electric exhaust fans were added to sleeping cars and toc club cars and rooms where smoking is permitted. Solid steel wheels were tried out in place of steel-tired wheels. Water and ice were separated, a tank for each being used. 1914—The vacuum cleaning of cars was begun. 1915—Mirrors were placed in upper berths. 1916—Divided berth curtains replaced old type. . The safety ladder replaced the step-ladder. Universal control brakes er aha petra ade pay hapleme ae ange the safety cord used to support the upper berth. 1917— lights were installed. The clasp brake was adopted (two brake shoes being applied to each wheel). 1919—Draft gears were improved. A buffer mechanism was added. Window sash ventilators were added. Safety locking center pins were added to hold the truck to the Split front toilet seats replaced solid seats. . 1920—The use of heavier couplers was begun. 1569 1921—Various improvements in electric lighting gen- erator suspensions and regulators were adopted. A new style truck was placed in service. 1386 THE UNITED STATES V8. THE PULLMAN COMPANY “Quiet” signs were installed. , ; -1922—Luminous berth numbers and “quiet” signs were installed. 1928—Permanent headboards were added. A larger stepping box supplanted a smaller surfaced one. The upper berth shelf replaced the hammock. Rubber battery jars replaced lead-lined tanks. Passenger and platform men were uniformed. Carpet padding was applied. 1924—A safety-razor- receptacle was added. An anti-pinch device for doors was installed. End-door car numbers became standard. A dressing shelf was installed in the men’s washroom. “Watch Your Step” signs were applied to steps and vestibules. Improved valves and were added to the water system. A new three-position rest for sleeping-car sections was developed. New toilet indicator locks were added. Porcelain wash bowls adopted. 1925—Shoe receptacles were added for rooms and compart- ments. An improved and more attractive design of seat end was adopted. ' Porcelain wash bowls and stands were installed. Women’s lounge rooms with baths were added. Water coolers arranged so they can be iced from hallways were placed in women’s dressifig rooms. The four-tread step was adopted, thereby shortening the dist- ance between the lower step and the step box. Larger fans were provided in smoking rooms. The general application of variable interior designs with plain colors instead of graining, new decorative schemes and improved lighting fixtures were 1570 Observation rooms were provided with lounges and tables. Semi-enclosed section partitions with narrow sliding headboards were installed. The amount of insulating material in car frames was increased and im The lighting of toilet rooms was improved for shaving purposes ep ane bracket lamps over mirrors. Cars were introduced. tek deen id tae Calle eases Called thaeneioch Goals! to improve the general] illumination. Berth curtains were changed in color scheme. fixtures ae THE UNITED STATES VS. THE PULLMAN COMPANY 1387 Adjustable reading lamps were ‘added for the drawing-room sofa. 1926—Lower-berth reading lamps were changed from the recess to the bracket-and-shade type. Additional racks were provided in drawing rooms and com- 1927—Brass window sash was employed. A new truck was adopted to accommodate the various types of roller-bearing applications. The two-part vestibule door became standard. Car flooring was improved by a change in the materials 1927—The electric generator drive was changed and new driving pulleys with belt guards were provided. 1928—Movable revolving chairs were provided for the women’s Two-inch metal steam connections were provided between cars in of rubber hose. curtain arrangement in the women’s lavatory was improved t entangling when entering women’s room with baggage. smoking-room sofa was improved. An automatic locking device for the train connector was applied. The design of jéurnal boxes was changed, the single guide Larger steam pipes were applied. 1571 A wardrobe was provided for compartments. ing mattresses for lower berths were developed and generally applied. 1929—Water coolers were redesigned to overcome overflow. A new washstand faucet with an overhanging spout was adopted in place of the concealed spout. ‘ric exhaust fans were added generally to improve venti- lation when cars are standing. A section seat with a slanting top and with a second stop pro- vided on the seat slide to permit pulling the seat cushion out, | to make a wider and more comfortable seat, was adopted. The journal-box design was improved to prevent the ingress of water, _ A special upper-berth spring mattress was adopted. ' A non-slip shoe was provided for the upper berth ladder. A larger rack was provided for the drawing room. , The vitrolite shelf was adopted for the smoking room in place of enameled steel. . ' 1980—Mechanically refrigerated air-conditioned car placed in test service. to 1388 THE UNITED STATES V8. THE PULLMAN COMPANY Improvements in brake cylinder protectors and Universal valves adopted. Test application made of individual heat control for rooms, concealed heat and thermostatic heat control applied to parlor and lounge cars. Spring cushions for chzirs, settees and couches adopted. Tiluminated display lockers added to buffet cars. Folding upper berth step ladders developed for bedrooms. Exten supplementary coat hangers for single occupancy sections. Toilet cabinets applied to drawing rooms and compartments, Extensive use made of chromium plating on observation railings and gates. More legible “Men” and “Women” bulkhead signs 1572 Bottle holders installed in drawing-room annexes and compartments. Mattress roll and shelf installed in cars having spring mat- tresses. Experiments made with rubber buffer mechanism and draft gears. New design sunroom end, known as the “Clipper” type, developed and applied. Automobile type windows and regulators applied to some ob- servation sun rooms. New window curtain fixture adopted. Upper berths developed and adopted for bedrooms having convertible sofas. Adjustable mirror lights applied as test to washstand mirrors in bedrooms. Convertible sofa bed devised for bedrooms. Double pan hoppers applied to prevent spraying. Improved drawing room sofa adopted. 1931—Adjustable four-position section seat developed and placed in service. Travel accessories sale cabinets installed. New inner spring construction developed for upper berths. Types of positive generator drives applied for test purposes. Cars with private sections with adjbining toilets placed in service. Cars with enclosed section placed in service. Test application of permanent ladders for upper berths. New ice-cooled air-conditioned car in service. THE UNITED STATES VS. THE PULLMAN COMPANY 1389 One private and five sleeping cars equipped for air-conditioning by means of mechanical refrigeration. Chaise lounge section cars placed in service. Two cars equipped with double deck bedrooms. Air-conditioning applied in nineteen cars. 1932—Cars equipped with dressing platforms in upper berths. 1573 Improved spring construction for mattress support for convertible sofas in bedrooms. Improved vestibule trap door lock. Improved buttoning arrangement devised for berth curtains. vement in three-position headrest locking plates to pre- vent ing. Use of sound-deadening metal and improved platform mecha- nism. Improved shades applied to reading lamps and bracket fixtures. Improved fastening arrangement for hopper casings in bed- rooms to prevent rattling. Design of coat hangers changed to provide more space for hang- ing trousers, and hooks provided at each end so trousers can be suspended from the belt straps. New hinge construction applied to drop tables in bedrooms. Improvement in water tank filling valve by using a weighted cover. Catch developed for the upper ¢=rt of vestibule doors in order to hold them in partly open posiicn to increase air circulation. Aid-conditioning applied to 100 «ars. 19833—Cars equipped with eight apper and eight lower rooms, air-conditioned, placed in service. First lightweight (all aluminum) sleeping car, George M. Pull- man, constructed and put on exhibition at A Century of Progress. New type rigid ladder devised for drawing rooms and compart- ments. New type adjustable seat arrangement adopted. Several types of wearing plates applied to truck center plates to reduce noise. Air-conditioning applied to 155 cars. 1934—Installation of double pan hoppers. New type automatic coupler appli Standard use of metal hose. Light excluder for single gccupancy section used in open section cars. 1574 er: Sone pene empire a Sandee fe place of hairfelt previously Air-conditioning applied to 1,018 cars. 1390 THE UNITED STATES VS. THE PULLMAN COMPANY First streamlined train “City of Salina” designed and built at Pullman. Second streamlined train with Pullman sleepers “City of Port- land.” 1935—Soldered joint fittings adopted as standard for air-con- ditioned cars. Synthetic varnish (quick four-hour dry) adopted as standard. oe rds for drawing room sofas for protection of children, ore a keys of improved design. Secoane steel liners for center plates. Magazine and eyeglass case pocket for bedrooms. Use of enamel for exterior of wood sash. New design antirattle diaphragm suspension arrangement. Various modern developments in cushions and mattresses, such as rubberized hair of various kinds and sponge rubber cushions. Development of “streamline” car. Individual control of air-conditioning in sections. Air-conditioning applied to 1,947 cars. 1936—Safety guards adopted for single occupancy sections. rubber mattresses adopted for bedrooms. ppers (enclosed) for bedrooms, lowered to present a better appearance as a daytime chair. facial tissues and paper towels adopted as auxiliary service for men’s and women’s rooms. Armrest for convertible sofa backs in bedroom, adopted as standard. Air-conditioning applied to 875 cars. Third streamline train “City of Los Angeles.” Fourth streamlined train “City of San Francisco.” , Sixth and seventh streamline trains “City of Denver.” Two-car unit, lightweight, streamlined cars “Advance” and “ Alloy steel truss-frame sleeping car “Forward.” 1575 1937—Developed new standard for Pullman equipment for lightweight cars for high speed service, including: New and improved type of trucks for 4 and 6 wheels. New truck brakes. New air brakes for high speed service. Entire new car — structures; (a) Girder type of welded high ae steel; (b) Welded truss frame type with stainless steel siding. New draft gears and coupler attachments. New platform and end construction with complete enclosure between cars for single unit cars. THE UNITED STATES VS. THE PULLMAN COMPANY 1391 ‘New materials for inside finish and bright and striking color schmes for interior paint and upholstery. Greatly increased illumination. Improvement in air-conditioning with full thermostatic control for each individual room and space in cars. Introduction of porter’s call connections between cars. Development of converter transformers for converting 32 volt direct current to 110 volt alternative for electric shavers, etc. Provided new Pullman accommodations as follows : (a) New type drawing-rooms with folding bed, sofa, upper berth and lounging chairs. (b) New type compartment with sofa, upper berth and lounging chairs. (c) Improved type of, connected bedrooms, fully open folding partition between rooms. (d) Roomette accommodation, single room with folding bed. Disappearing type of swivel and folding hoppers for bedrooms. Telephone communication between cars. : Latex rubber cushions for all seats and chairs and for all mat- tresses. New and modern design for all hardware trimmings and light- ing fixtures. New color scheme for car exteriors. _ Duplex car developed and put into service. _ 1576 1938—Developed DeLuxe Drawing Room accommoda- tion. Special lightweight stainless steel exterior truss frame cars de- veloped for service in, Santa Fe “Super-Chief.” Guard ropes for Single Occupancy Sections. Lightweight. full-vitreous washstands. Synthetic interior enamels adopted standard for lightweight cars. Developed new four-wheel truck with helical bolster springs and one-way shock absorber (extensively applied in 1939). “1939—Propane gas engines for driving air-conditioning com- pressors and electric generators. Nonbreakable rubber buttons versus hard rubber buttons for berth curtains. Metal end door name plates, lightweight cars. sangpes steel hoppers. ew underframe construction developed incorporating in- creased antitelescoping. a . 1940—Development of fluorescent lighting. Coach-Sleeper developed. New shaving mirrors developed for washstand cabinets for Roomettes, Bedrooms, Drawing-Room Annexes. 1392 THE UNITED STATES VS. THE PULLMAN COMPANY New ‘Zone’ heating system adopted. New air brake with Decelostat brake pressure control on each car provided.” Following the construction of the first steel passenger cars, the pregee cteeDed s Nen tne ec tamim, gt Bt, Armee were greatly accelerated. To this end, among other things, Gas Geeetled'tetsiine Gf ta Pian cand weee whale mak stronger and their weight increased accordingly. This increase in weight continued gradually until the advent of lightweight equip- ment. Railroad passenger cars went through a similar evolution. During this period emphasis was also placed upon the standard- ization of passenger equipment. Standardization reduced 1577 the costs of construction and lessened the investment in inventory for the of wornout part or parts destroyed in accidents. Pu Company had a committee on standards that met frequently and considered improvements de- SE her ee others. There were no substantial changes during this period in the structural members of cars except that they were made stronger; most of the consisted of improvements in trucks, brakes, couplers and draft gears and in the heating and lighting and other functions of the cars. Aside from miscellaneous improvements thereof, the accommodations remained generally the same. Com- partments and drawing rooms were available to those who cared y the higher price necessary to use them. 1925, Pullman Company built and placed in operation bedroom cars with fixed beds on the trains which departed at a late hour. In addition to the types of accommodation, conventional in America—sections, drawing rooms and com Scllowiag ortuianndations have been dovdieped by Pelinty Com. pany and Standard: The Bedroom The double bedroom of today is an enclosed private room, and contains a sofa. For night-time use, this sofa forins a bed 6 feet and 5 inches long. Above the sofa is an upper berth which similarly makes down into a bed. The bedroom has toilet facil- ities and a folding wash basin. A hinged desk provides a writ- pr Be are tare nab wg tenn omc Each room is pro- in the door, and exhaust fans, to regulate room temperature and ighting. Each room is completely air-conditioned. On July 12, 1940, 745 cars containing 3,484 bedrooms were in service and on August 31, 1941, 889 cars containing 4,521 bedrooms were in serv’ THE UNITED STATES VS. THE PULLMAN COMPANY 1393 Pullman charge for one adult, or one adult and a child under five years of age, is approximately 14 of the lower 1578 berth fare, or for two adults is approximately twice the lower berth fare. The Pullman charge for two bedrooms en suite is the price of two bedrooms not to exceed the cost of a drawing room. An illustration of this type of room is attached hereto as Ex- hibit XI. 1579 1394 THE UNITED STATES VS. THE PULLMAN COMPANY © 1580 ‘Du Room is a new accommodation consisting of upper and lower interlocking rooms. The method of construction makes possible twelve duplex rooms in each car together with five double bedrooms. In the “Du Kiww ng cng anthranilate pedro i words, the rooms are arranged on two there is a sofa, convertible into a bed. In each room there are individual toilet facilities, fans, and appli- ances to regulate lighting and heating. Each “Duplex” is air conditioned. The upper room has a locker above the sofa for luggage. In the lower room luggage space is under the sofa and in an overnight rack. The upper and lower rooms are equipped with small ee Se eee tr ee ee noes of There al tht fd agin be wal which may be vd Arm rests fold sofa. Some of ‘ae aoe downstairs “Duplex” rooms are en suite, and a sliding ition can transform two or more of them into large rooms. of the upper rooms have communicating doors. The “Duplex” room affords accommoda- tions for one passenger. The duplex car was first developed in May, 1983. On July 12, en oceans aoe veers ane on ee 1941, 24 cars containing 405 duplex bedrooms were The Pullman charge for a Duplex Room is approximately 1% th Nn ena | ge ge tllell peace» flrs ogy 5 years of age two approximately 14, lower berth fare. An illustration of this type of room is attached hereto as Ex- hibit XI (a). THE UNITED STATES VS. THE PULLMAN COMPANY 1395 1582 The Roomette The “Roomette” is a small completely enclosed private room containing one bed. In daytime the bed folds into the wall at one end of the room, and the passenger has a sofa seat, with space for undressing before the bed is lowered. For dress- ing the passenger can make the whole room space and its com- piste toilet facilities available by returning the bed to its niche in the wall. The bed can be raised or lowered without assistance from the porter. When the bed is made down for the night it is fastened at the foot by a lock. This may be released when the passenger desires to raise the bed, and the lock then reverses and holds the bedding in place. The bed is 6 feet 5 inches in length. 724808—47—-88 1396 THE UNITED STATES VS. THE PULLMAN COMPANY The door of the “Roomette” can be locked at night, or left open and a zipper curtain drawn across the opening. Ventila- tion, heat and light may be separately regulated. Toilet facilities and the washstand fold into one wall. Above the washstand iss mirrored cabinet for toilet articles, with tubular lights on each side. There is a locker in which to hang clothes; a large rack for luggage; a vacuum water bottle in cabinet, and box from’ which the porter can remove shoes at night. The roomette was first developed in August, 1937. On July 12, ’ 1940, 116 cars containing 1,608 roomettes were in service and on August 31, 1941, 166 cars containing 2,156 roomettes were in service. The Pullman charge for a Roomette for occupancy by one adult, or one adult and child under 5 years of age, is approximately 1% lower berth fare. Illustrations of the roomette are attached hereto as Exhibit XI (b). 1583-84 THE UNITED STATES VS. THE PULLMAN COMPANY 1397 1585 The New Compartment A new compartment has heeri evolved which, through re-arrangement of the fixtures, has made more space available to the passengers than was found in conventional type of compart- ment. Section seats by the windows have been replaced by « transverse sofa which affords lounging space. The upper berth remains above the windows, and is at right angles to the convertible sofa-bed. There is space between the sofa and the opposite wall for the lounge chair. At night the chair is placed under the upper berth where it is still available for lounging and reading. Both beds are 6 feet 5 inches in length and of standard berth width. The New Compartment also has an electric fan, individual regu- lation of the lighting and ventilation, and thermostatic heat con- trol. Each Compartment is provided with complete toilet facili- ties, a locker for clothes and a shoebox. Space is provided for luggage and each compartment is air-conditioned. For daytime travel there is room to seat four passengers. At night there is a bed and upper berth. The new compartment was first developed in November, 1933. On July 12, 1940, 99 cars containing 310 compartments were in 1398 THE UNITED STATES VS. THE PULLMAN COMPANY service and on August 31, 1941, 137 cars containing 456 compart- ments were in service. Illustrations of this type of room are attached herete as Ex- hibit XI (c). 1586-87 THE UNITED STATES V8. THE PULLMAN COMPANY 1399 1588 The New Drawing Room In the new drawing room there is more space available to the passenger than is found in the conventional type. A longi- tudinal bed folding into one cross wall has been substituted for the fixed couch; the section seats by the windows have been re- moved, and transverse sofa, convertible into a bed along one of the cross walls of the room has been substituted. All three beds are 6 feet 5 inches in length and of standard berth width. The lavatory and toilet are enclosed in a separate annex. - When the room is prepared for three persons, with the two-full-sized lower beds in place and the upper also made down, there is still dressing space and easy, unobstructed access to the annex, clothes closet and to the doors to the passageway and adjacent rooms. For day travel the wall bed d:sappears, the upper is put away and the third bed becomes a sofa. This leaves space for the two comfortable folding lounge chairs. The new drawing room has:an electric fan, is provided with in- dividual regulation of lighting and ventilation, and is air-condi- tioned. There is a wardrobe; storage space above the annex and under the sofa for luggage, and a shoebox on the passageway. 1400 THE UNITED STATES VS. THE PULLMAN COMPANY The aew drawing room was first developed in November, 1933. On July 12, 1940, 89 cars containing 178 drawing rooms were in service and on August 31, 1941, 127 cars containing 252 drawing rooms were in service. Illustrations of this type of room are atiached hereto as Ex- hibit XI (d). 1589-90 THE UNITED STATES VS. THE PULLMAN COMPANY 140] 1591 The Master Room The Master Room is entirely new and is the most spacious accommodation afforded. The room has two folding beds that can be returned to their place in the wall during the daytime, thus affording the occupants complete use of the entire floor space of , the room. One of the beds oceupies the space next to the windows. The other bed takes the place of the couch and folds up against the aisle wall, permitting the installation of a folding partition between the Master Room and the adjoining Double Bedroom These accommodations can be had en suite and the two rooms can be made into one large room. The Master Room is provided with four large comfortable folding chairs for daytime use. These are placed beneath the folding beds at night. bathroom, which is separate but adjoining and connects ‘ with the Master Room, contains toilet facilities, wash basin, mir- 1402 THE UNITED STATES YS. THE PULLMAN COMPANY rored cabinet, for toilet accessories and a shower bath with pas- senger-control of the water temperature. The room has an electric fan, individual control of lighting and ventilation and thermostatic control of the heating facilities. There is a shoebox opening on the aisle. Each room is air- conditioned. The Pullman charge for one person is three times the lower berth fare; for two or more persons it is approximately 41% times the lower berth fare. The master room was first developed in August 1936. On July 12, 1940, and on August 31, 1941, 8 cars containing 12 master rooms were in service. Illustrations of this type of room are attached hereto as Ex- hibit XI (e). 1592-8 THE UNITED STATES VS. THE PULLMAN COMPANY 1403 1594 New Coach Sleeper This type of car is described in paragraph 63 of this stipulation. The Duplex Roomette This is an entirely new sinmiantesiad which the Pullman Com- pany intends to eventually replace the lower and upper berths. Each room has complete privacy, individual control of heating and air conditioning, modern lighting, wash and toilet facilities and a bed and seat. As in the duplex car described above, the Duplex Roomettes are built on two levels. Twenty-four roomettes are provided in each car, These roomette cars have not yet been placed in operation. Sketches illustrating the new duplex roomette are attached here- to as Exhibit XI (f). 1404 THE UNITED STATES VS. THE PULLMAN COMPANY 1595-96 Tre Pv. an ——s = ee vue. ix ROOMETTE WON? OC CUPANEY COPY BOUND VERTICALLY agawar27e Ave pesanwood X27AING 1406 THE UNITED STATES VS. THE PULLMAN COMPANY 1597 Improvements in Pullman sections have been made: Study was made to determine the most comfortable contour for the seat and back to accommodate the average individual. Seats and backs were made adjustable and sponge rubber seat and back cushions adopted as the most comfortable construction avail- able. Sponge rubber mattresses of comfortable design were developed and placed in use. An arrangement has been developed which permits the raising by the passenger of the bed after it has been made up in order to provide seating and standing space within the section while the passenger is dressing and undressing. This arrangement was developed in January, 1938, and has been applied to over 7,000 sections. A study was also made by Pullman in the lighting of its cars. New types of lighting fixtures were introduced, increasing the amount of illumination to the reading planes without glare. Pull- man Company, as soon as fluorescent lighting became available, after research, developed several devices to ‘accommodate the use of this type of lighting to the power conditions available on Pull- man cars, and installed such lighting on some cars. Pullman Company and Standard over a period of seven years devoted considerable time to research and experimentation on air- conditioning equipment for passenger cars. As a result of an application filed in November, 1927 it obtained a patent in 1935 relating to the air-conditioned equipment. It was the first to use freon, a non-inflammable and non-toxic refrigerant. In 1932, Pullman Company built the first air-conditioned train for the Chesapeake & Ohio Railroad. Thereafter, the air con- ditioning of equipment progressed so that by the summer of 1935 thete were almost 6,000 passenger cars so equipped, of which more than one half were Pullman cars. 1598 Theair conditioning of railroad passenger equipment was an important step in improving the comfort of railroad passengers. It made possible the maintenance of comfortable temperatures, fresh air and proper humidity during both hot and cold weather. In air-conditioned cars, the double window sash has replaced the old single-glass sliding window. In order to prevent the view of passengers from being obscured, a method of dehydrating the air space between the two panes of glass to prevent the condensa- tion and frosting of the interior of the panes was worked out. ~ Pullman Company participated with glass and sash manufacturers in working this out. In 1923, Pullman Company used aluminum extensively for non- structural parts in the construction of surburban cars for the Illinois Central and the Chicago & North Western. In 1934 THE UNITED STATES VS. THE PULLMAN COMPANY 1407 Standard built 21 lightweight interurban coaches of aluminum alley throughout for the Indiana Service Corporation. These cars are still in operation. Standard built and Pullman Company placed on exhibition at the Chicago World’s Fair in 1933 the George M. Pullman, the first all-aluminum sleeping car, It constructed and delivered to the Union Pacific in February, 1934 the first operable lightweight streamlined train. This was built of aluminum alloy. Neither Pullman Company nor Standard has ever built a stain- less steel car, although Standard has used stainless steel as exterior sheathing on some cars. The cost of aluminum alloy, as well as the cost of stainless steel, is high, and the steel companies at the request of Standard and other car manufacturers developed a low-ailloy, high-tensile steel which. since then has sold at lower prices than aluminum or stain- less steel. In 1934 Standard built a sample car of this material for the President’s conference committee and also built fifty 1599 passenger coaches for the New Haven Railroad and thirty- one passenger coaches for the Boston & Maine Railroad of this material. Standard also began the construction of lightweight sleeping cars built of this steel for the use of Pullman Company. Since that time the low-alloy, high-tensile steel has been used extensively in the construction of lightweight railroad equipment. Following is a list of patents granted to Standard and Pullman Company in recent years: 1,712,811 of May 14, 1929, bedroom car with sleeping and twilet facilities. 1,755,239 of April 22, 1980, vestibule Dutch door arrangement. 1,783,480 of December 2, 1930, covering slidable partition arrangement for oper.-section Pullman cars. 1,804,428 of May 12, 1931, covering skeleton underframe of light weight used quite extensively under New Haven and other passen- ger train cars. 1,828,063 of October 20, 1931, showing the first rubber-and- metal spring shock-absorbing mechanism and used on early lets of Canadian Pacific cars. 2,000,477 of May 7, 1935, covering air conditioning system utilizing recirculation of air and almost universally used on the railroads of the country. 2,035,113 of March 24, 1936, showing side sill construction used in early Union Paciic cars for attaining the streamlining contour of the first three or four Union Pacific trains. Design 100,000 of June 16, 1936, for first articulated, stream- lined Union Pacific train. 2,056,218 of October 6, 1936, for the Railplane car having stream- lined contour and of light weight with a framing covered by a 1408 THE UNITED STATES VS. THE PULLMAN COMPANY relatively thin metal skin which supplemented the framing in support of the car, and built for high-speed service. 2,056,225 of October 6, 1936, for streamlined steps with 1600 covered underside forming sheathing of the car when steps are raised to preserve streamline contour of the car side. 2,056,227 of October 6, 1936, for articulated car with streamlined contour diaphragm as used on first Union Pacific trains in connec- tion with cylindrical vestibule units. of September 21, 1937, covering streamlined construc- tion of the trailer car of the early Union Pacific trains having a substantially ovate rotundate, 3. en pecaer foto form with bottom chute continuously curved from side wall to side wall with lowest of the curve at car center line. 2,083,971 of June 15, 1937, covering early refrigerant — Suna ad tame speed control means means including electric utch. September 21, 1937, covering lightweight, high- genes ation anmered gravity with nose and tail portions constructed with curves sloped to offer relatively small resistance to head winds as in our Railplane car. Fe of October 26, 1937, covering passageway diaphragm plate supporting rods fitted with cushioned hinges to reduce and maintain face plate against movement sauce teaastioeeeahs aitettay tein ta eae Gal 2,101,557 of December 7, 1937, covering the coach and the George M. Pullman Pullman car built of aluminum and utilizing extruded shapes in the stress longitudinal members of the cars. These cars were exhibited at Century of Progress Exposition in Chicago in 1933. 2,122,159 of June 28, 1938, for welded draft sill used, generally, oe Se eee “9,184,082 of October 25, 1938, for the closed section sleeping cars used on trains to California—City of Portland and City of San Francisco. - 2,147,011 of February 14, 1939, for roomette cars having its rooms arranged u pon opposite sides of a single aisle. 1601 2,149,840 of March 7, 1939, covering our tightlock coupler arrangement for reducing slack between the cars. 2,152,596 of March 28, 1939, for roof welding machine forming part of our Pullman installation. 2,154,769 of April 18, 1939, for ice-activated air conditioning pene emetic y Pullman and contract cars. 2,177,881 of Qetober 31, 1989, covering the welding carriage forming part of our welding installation at Pullman. 2,193,836 of March 19, 1940, covering our holdover system of air conditioning. THE UNITED STATES VS. THE PULLMAN COMPANY 1409 2,198,839 of March 19, 1940, covering controls for our holdover air conditi system. rrr of 1, 1940, covering flexible footplate for wide cars as used on Union, Pacific and Southern Pacific trains. of October 29, 1940, for trap door and step arrange- ment utilizing ice breaker equipment as now used on Pullman and other passenger train cars. 2,290,704 of November 5, 1940, covering welding carriage form- Spaniel thn welding installation at Pullman. Serie of November 12, 1940, covering welding jig and track arrangement for shifting welding carriage from one side of the jig frame to the other to alternately work upon assembled side frame mounted upon the jig and forming part of welding installa- ‘tion at Pullman. 2,225,951 of December 24, 1940, covering dual passageway insulated for wide platforms, as used on Union Pacific Southern Pacific articulated cars. ’ of December 24, 1940, covering the truss side construc- tion with sheathing flexibly mounted thereon with floating window frames, as used on Southern Pacific cars and other trains. 2,229,047 of January 21, 1941, for rocker type, rigid 1602 footplate arrangement for narrow passageway cars, as used on Union Pacific and Southern Pacific articu- lated cars. 2,230,580 of F 4, 1941, covering the power units used on the early Union Pacific trains and covering the body having a raised cab at the front above the air passage inlet leading to the engine room and including a trough-like depression in the roof with perforated sides forming outlets for cooling sir after the air had swept across the radiator in the engine room. 2,239,634 of April 22, 1941, for un center sill which forms no part of the structure used in supporting the floor so that vibrations from the sill are not communicated to the floor. 2,243,854 of June 3, 1941, for hinged face plate arrangement having diaphragms conforming to the contour of the car. There are now pending applications of Standard Jase fourteen patents relating to devices to be used in 77-80. Materiais suitable for lightweight train cminiiion have become available in recent years and new designs for the use of lightweight materials for passenger car construction have been perfected, with the object of preserving in lightweight cars safety features present in the heavier steel cars. A Diesel two- cycle engine practical for high speed service was developed. This type of locomotive, now made by Electro-Motive Company and Sa tronmrennty baieg ened on a number of railroads. 1410 THE UNITED STATES VS. THE PULLMAN COMPANY original trains have been replaced 1608 pre eres glacrwme ny epee caver. ag operated during the daylight hours. This obviates the oni A ae ee cars. PULLMAN CoMPANY 1411 Normal consist Omak Otte Pees C. B. & Q.-Alton. Leale Kane Tey. C. 0.0. & wigs, i 6 care—1 baggage-ciub; | refreshment; 3 chair; 1 diner. 4 care—1 mail-Deggngs; | mail-baggage-chair; 1 deluxe chatr; 1 diner-tounge. . i 7 ; 4 coaches. fs i : 1 baggage; 8 coaches, 2 diners; 1 i - | combination coach; | diner; | roomette- : betas 1 i i f HT 1412 THE UNITED STATES VS. THE PULLMAN COMPANY List of exiting modern high-«peed trains| a gt A Rel N. ¥. ©. trains). Penna. New York Chien WLS Frm ee a en a wee. N.Y. ©. Ohi- Reeser, to The : & New The Scout cago 1608 The trains). Penna. New tek Pittebarth, "yale, Wag Sak, trains). Santa Fe. Chi- 13 cars—1 4 Slaepers, T master fot double compartment- we Chicago- =e. B.& 0. Chicago-8t. “ace eSe e THE UNITED STATES VS. THE PULLMAN COMPANY 1413 110 Silver bs res 3 trains). Sea- board. tote Oe iiiemiee. Petersburg Vuleans g trains). Southern. . Southern. Birming- . Southern. Oakdale- The (2 trains). Southern, of U.P. Kansas- y, i City- and return. Kansas Oity- of Portland. U. P. O Port- ._ jomcralaialnamee ops i see aT psig tee tetess? Ha a8 a! tf Q C. & N. W. Chicago and ee). Kansas City ity-New Orleans. wil City of Miami, Il). Cent. Chi- a lil, Cent. Chicago- The} (¢ trains) Sou. Pac. . A 1414 THE UNITED STATES VS. THE PULLMAN COMPANY List of existing modern high-speed trains Normal consist OC EN: W. Oblengo tan Prancios. By ;1 cars; 2 bedroom eee cc, —t 1 ior f dtnstte-coach; 1 we 8 “eta Se Se fe Sees | ee mg nee (eS ETERS) * eos =e ger 1 baggage; 1 coach; 1 sleeper; | yr-Silver Streak. C. B. & consist: ag traffic conditions) i onne 5 Kansas City. ° oe om railway post office-bag- reacTan tna | es a = coset Lowes ph ae ~~ — Eh The cost to Pullman Com Pilg. soi mpeanngch yoda twice the cost to Pullman heavier cars and for depreciation Af ileal aa an pet pony en oth pe Miegare Beet elle Fo § hem Arafiecge team - to the railroads on w cars regular o are wn in Exhibit XIII. 7 1613 Exhibit XITI The Pullman Company, New-Type Lightweight Cars as of March 31, 1941 Investment as of Mar. 31, 1941 Union Pacific-Southern Pacific-Chicago & North-Western (Streamliners) . Southern Pacific. =| Sxeeess THE UNITED STATES VS. THE PULLMAN COMPANY 1415 1614 81. In Pullman Company’s operating contracts with the railroads the term “present-type heavyweight” car is now used to distinguish cars of riveted carbon steel construction from the lightweight cars of welded alloy steel. Passenger cars of the riveted carbon steel type of construction constitute more than 90% of the railroad cars in the United States. 85. It has always the general practice in ing contracts between sleeping car companies and railroads to ide that the sleeping car company should have the exclusive right to operate over the lines of the railroad except as to joint arrangements for through line service. 87. On December 16, 1935, the Chicago, Burlington & Quincy Railroad Company ordered from the Budd Company two 10-car trains containing a total of eight sleeping cars for service between Chicago and Denver. At that time the Burlington was negotiating for a new principal operating contract with Pullman Company. An operating agreement between Pullman Company and the Bur- lington had expired January 31, 1935, and at that time the parties entered into negotiations for a new operating contract, which was not signed until March 24, 1936. In the intervening period Pull- man Company furnished its service on all lines of the Burlington. In the course of negotiations questions arose as to the furnish- ing of sleeping car service by Pullman Company in the Budd-built cars. An agreement was finally reached with respect to such cars which was embodied in a principal operating agreement and a tal agreement, both dated March 24, 1936. By the terms of the supplemental agreement Pullman Company agreed to lease from the Burlington certain lightweight cars owned by that rail- road and built by the Budd Company, for a period of twelve and one-half years, upon the condition among others that the railroad og pian staan os Lange aly To any tual cg do death of passengers therein. Pullman Company agreed to make Shs seemsaole bo Che wilivend cetenty Su Ue wn ef maak cars. 1615 The amount of rental paid by Pullman Company to the Burlington for the use of these Budd-built cars is as follows: 1416 THE UNITED STATES VS. THE PULLMAN COMPANY The Pullman Company—Chicago, Burlington and Quincy Railroad Company (Fupmente pemting tenet Gs Pullinen Consnag an8 tie muibeal cunpeny with respect to open, — ME 68, 872. 61 2, 182. 80 2, 182. 80 66, 055. 41 Nors.— Payments to railroad under supplemental agreement dated 3-24-36. May 21, 1941. ‘ 1616 The Pullman Company has during the past few years added 424 lightweight sleeping cars to the Pullman pool, and there were on order 199 additional lightweight sleeping cars as of May 31, 1941. This represents 11.42% of the total number of standard sleeping cars in the pool as of May 31, 1941, and 23.07% of the investment of Pullman therein. The railroad-owned light- bi cars, including those on order, aggregate 4% of 454 cars owned by the railroads as of Decem- ber 31, 1940. Since February 2, 1931, no standard heavy weight prem ees have been added. 91 foll , in interior of vestibule; brake equipment; tight Such betterments have been i ts with individual The details are shown in Exhibit XIV, hereto attached. HE UNITED STATES VS. THE PULLMAN COMPANY 1417 Exhibit XIV i i B) 8) ERES siz| sess ~8}8)| gs32 a Bo > BIR) ~ ee 5 8/8) 2 825 alsis ESES| 3) 855 #)| e225 Bis| .cee|ls| Bsesen w ola! wo) S| BoBt 218 | oxee) 8) Saas, net tier 0 200) ociors cope Mighapess LetiarenENS etets ext Secrion 1. The Pullman Company shall, during the term of this agreement, furnish present-type standard class sleeping cars properly equipped and acceptable to the Railway Company, in sufficient number in the judgment of the Passenger Traffic Manager of the Railway Company, to meet the requirements of travel over the lines of railroad operated by the Railway Company and the lines of railroad operated by companies of which at least a major- ity of whose capital stock is owned by the Railway Company, and, except so far as prevented therefrom by then existing contracts, over all additional railroads which shall come under the above THE UNITED STATES VS. THE PULLMAN COMPANY 1425 description; also over lines upon which any of the companies at any time embraced herein shall have trackage rights, but only te nekerence to peasenger trains operated thereon by any of the 1632 Puliman Company also agrees to furnish to the Rail- erly equipped and acceptable to the Railway Company, in t number, in the judgment of the Passenger Traffic Manager of the Rail Company, to meet the requirements of travel in that class. ipment and to operate in regular line service over the lines of railway defined in the first paragraph of this Section. The quality and equipment of the cars furnished under this Sec- tion 1 of Article I shall be equal in every respect to the highest galt and equipment of sleeping cars of this type furnished by Pullman Company for use at the same time in the United It is understood that this agreement shall immediately terminate as to any line of railroad which may, during the term hereof, cease to be a line coming under the above description. Secrion 2. Upon request of the Railway Company from time to time The Pullman Company shall also furnish new-type light- weight sleeping cars which may be substantially different in con- struction, contour, weight, length or cost from the present-type standard class sleeping cars now in general use by The Pullman Company, subject, however, to mutual agreement as to the number, design, basic construction material, interior arrangement and equipment of such new-type lightweight cars; it being the inten- tion of the parties that the Railway Company shall at all times ing the term hereof receive for use on the lines of railroad em- in this agreement its proper share of any new-type light- weight equipment supplied to railroads based on class of trains operated and its competitive importance in the sleeping car pas- senger field. Ifthe parties shall fail to reach a mutual agreement . within sixty (60) days after the date of any such request 1633 of the Railway Company, then the Railway Company may terminate this agreement upon six (6) months’ written no- tice. In the event of such termination of this agreement under the above provision or of the failure of the parties hereto to make & new agreement upon the cancellation or termination hereof, the Railway Company may and on request of The Pullman Company shall purchase any new-type lightweight cars furnished by The Pullman Company at the Railway Company’s request since the effective date of this agreement at their then depreciated value, depreciation to be computed at the rates charged to “Expenses of Operation” in Article IV hereof for the cars so purchased. 1426 THE UNITED STATES V8. THE PULLMAN COMPANY Szorion 3. The air conditioning of pi cars furnished shall be equipped with air condition- ing systems, the installation cost of which shall be included in and treated as part of the investment cost of the cars upon which such systems are applied; but maintenance costs (excluding deprecia- tion) and costs of operation of such air ing systems (after giving effect to Section 5 of Article II hereof) be distributed Seventy-Five Per Cent (75%) to the Railway Company and Twenty-Five Per Cent (25%) to The Pullman Company, and such costs shall not be included in operating expenses in the set- tlement of accounts under the provisions of said Article IV. Szorton 4. The Pullman Company shall have the right to col- lect from the occupants of its cars for the use of seats and berths and other accommodations therein such fares shall be 1634 charged on lines of railroad competing with the lines of railroad embraced in this agreement where similar accom- modations are furnished, except where different fares may be fixed by law, and shall provide suitable employees for collecting such fares and to provide the usual sleeping car service to the passen- gers therein ; such employees shall when on duty be subject to the rules of the Railway Company governing its own employees. The Pullman Company, in order to maintain service acceptable to the Railway Company and to the traveling public, shall furnish agents or inspectors to supervise the conduct of employees, cleanli- ness of cars, etc., while en route, and the Railway Company will transport free over its own lines the employees, agents or inspec- tors mentioned in this Section. Secrion 5. The Pullman Company, except as hereinafter pro- vided, will keep all such cars in good order and repair, and main- tain and improve the same so far as may be necessary to keep them up to the standard of such cars furnished by The Pullman Com- pany for use on any other railroad or system of railroads in the United States. It is understood and agreed that The Pullman Company shall not be obligated to install in Pullman cars furnished hereunder apparatus, appliances or facilities involving substantial cost for installation and operation and not in use in or upon Pullman cars at the time this agreement is entered into. The reservation stated in the preceding sentence shall not apply to the ordinary additions and betterments that may now be, or hereafter become, standard THE UNITED STATES V8. THE PULLMAN COMPANY 1427 Ma arpes etn ay cou hesttoommats tae ont ef batidina’ sc pin Anan ri econ Ges ag sets ra mae and operating railway passenger cars comparable with IT tc tosses oeet a to cle seettdhattee Sener In the event of development of such new apparatus, appli- 1685 ances or facilities for railway passenger car service or con- struction during the term of this agreement, such features, if installed in Pullman cars furnished for operation on the lines _ of any other railroad or system of railroads in the United States shall upon request of the Railway Company also be installed in ears furnished hereunder, to the extent and upon terms and condi- tions as favorable as those placed in effect by The Pullman Com- with any other railroad or system of railroads in the United Sxrcrion 6. The Pullman Company shall pay all taxes and assess- ments on its cars and other property. Article II Sxcrion 1. The Pullman Company shall repair all damages to ears furnished under this agreement caused by accident or casualty originating inside of said cars, or from acts or omissions of its own employees on said cars, or from fire resulting from the heating or lighting arrangements thereof, except damages due to acts or omissions of employees of the Railway Company, and the Rail- way Company shall repair all damages to said cars resulting from accident or casualty originating outside of said cars except those due to acts or omissions of employees of The Pullman Company, as herein provided. Wherever mentioned in this agreement the inside of the cars shall be understood to mean everything inside of the end doors of the car and shall not include the vestibule. Szcrion 2. The Railway Company (except in cases where its facilities are inadequate for doing so) shall promptly make for account of The Pullman Company all such repairs as may be necessary to put the cars furnished under this agreement 1636 in good order whenever requested by The Pullman Com- pany so to do, and, shall without request make for account of The Pullman Company such repairs as may be obviously nec- essary for the safe operation of the same, but in no case shall the Railway Company be required to exercise more than ordinary care with respect to the necessity for such repairs and, except as pro- vided in Section 1 of this Article, the Railway Company shall at the end of each month render to The Pullman Company bills for such repairs, charging the cost of labor and material expended on / 124808—47——00 1428 THE UNITED STATES VS. THE PULLMAN COMPANY such repairs with an additional Fifteen Per Cent (15%) for all overhead expense, including dead shop labor, handling, store de- i emariarg a ma he rin of Sion 1 of he Ati The repair damage for which the Railway Secrion 3. The Railway Company shall haul over its lines, as hereinbefore defined, the cars furnished under this agreement to and from such points as may be necessary to meet, the require- ments of travel and to and from repair shops without charge to The Pullman Company, except that in cases where cars which shall have been in service on said lines of the Railway Company, includ- ing the through or continuous lines mentioned in Section 1 of Article ITI hereof, less than thirty days are required to be hauled . to and from repair shops for causes not due to negligence of the Railway Company or to accident to such cars while in the service of the Railway Company, the Railway Company may charge and The Pullman Company will pay the usual tariff rates for such haul. Secrion 4. The Railway Company shall furnish free of charge at convenient points on the lines of railroad operated by 1637 the companies at the time embraced in this agreement, rea- sonable rooms and necessary facilities for airing and storing bedding, linen, supplies, and other movables belonging to or de- signed for use on the cars operated under this agreement, but the Railway Company shall be responsible, for any loss or damage to such materials by fire, theft, or otherwise. paragraph to be maintained, repaired, and renewed man Company, and shall clean the outside of the The Pullman Company shall clean i account of the Railway Company, the be mutually agreed upon. The own cost, furnish and completely equip satisfactory to the Railway Compgny and shall maintain, —-. and renew, in a manner satisfactory to the Railway Company, all conduits, wiring, battery boxes, distribution boards, lighting THE UNITED STATES VS. THE PULLMAN COMPANY 1429 fuses, lamp fixtures (but not incandescent lamps), shades and re- flectors, fans, and any other similar devices which are necessary in the opinion of the Railway Company for the comfort of the Szorton 6. The Railway Company shall require its ticket agents, at such offices as may be mutually agreed upon, to sell tickets for seats, berths and other accommodations in cars 1688 furnished hereunder, without charge to The Pullman Com- pany but the proceeds of all such sales shall be at the risk of The Pullman Company and such agents shall be regarded solely as agents or employees of The Pullman Company in the perform- ance of any act for it. Szcrion 7. The Pullman Company agrees to perform such duties as may be required by law in assisting passengers while en- aided Yebving Palbnan evn ob chetions end op etrival ot destination. Szctton 8. The Pullman Company agrees to indemnify and save harmless the Railway Company against liabilities and claims for loss or damage to or destruction of property and for injuries . to persons or deaths and for patent infringments as follows: (a) All claims of employees of The Pullman Company or their representatives, on account of death, personal injury or loss of or damage to property which may occur while such employees are acting in the line of their duty with respect to the equipment fur- nished under this agreement, or are being transported free by the Railway Company, or are performing any act for or on behalf of The Pullman Company ; provided, however, the Railway Com- pany shall idemnify and save harmless The Pullman Company against such claims of employees of The Pullman Company or of their representatives, where such death, personal injury or loss or damage to property arises from the negligence of the Railway Company or its employees in handling, moving or causing collision with equipment furnished under this agreement in switching operations in yards. (b) All claims and liabilities arising from any negligent act or omission, whether ‘wrongful or not, of the ticket agents or other servants of the Railway Company in performing any duty or service for The Pullman Company, but the Railway Com- 1639 pany shall indemnify and save harmless. The Pullman Company against all claims and liabilities of passengers arising from any act or omission of employees of the Railway Com- pany while not performing a duty or service for The Pullman pany. (c) All claims and liabilities arising by reason of The Pullman Company’s employees failing or refusing to furnish passengers 1430 TH® UNITED STATES VS. THE PULLMAN COMPANY with the accommodations sold them by the ticket agents of the whether negligent Pullman ; however, the Railway Company shall indemnify and save harmless a aan aia ge Tague eee yaataipe om sara i y, while acting as such, or ir representa- reat dP ne, es Treat pina. ope yr sar item aa or ilway (f) All claims and liabilities on account of of property of the Pullman Company, or of passengers in said cars, except such loss or theft as may arise from the acts of em- ployees of the Railway Com , and the Railway Company shall indemnify and save The Company against all claims and liabilities for loss or theft so arising. 1640 (g) All claims and liabilities for infringement of patent rights in the construction or use of any of the cars furnished pany (h) The Railway Company shall not be responsi damage resulting from frozen cars as the result of neglect of The Pullman Company’s employees. In case suit shall at any time be brought against either com- pany, party hereto, for the enforcement of any claim or liability against which the other company in Section 8 hereof agrees to save the company sued harmless, the indemnifying company shall, at its own cost and expense, and without any cost or expense what- ever to the company sued, defend such suit or suits and indemnify and save harmless the company sued against all costes and ex- penses thereof, and promptly pay or cause to be paid or dis- a ccantead taba catmehagittibthd opens otkh, abich said com may pay or be compelled to pay in any such suit or suits ; i however, that the company sued shall promptly THE UNITED STATES V8. THE PULLMAN COMPANY 143] upon the bringing of any such suit against it give notice in writing to the indemnifying company. | Article IIT . The Railway Company shall have the right to co- i railroad companies in forming through or 1641 ceive all local fares for the use of seats, berths, and other: accommodations therein upon the lines of the Railway Com- y and its mileage proportion of through and intermediate Szction 2. Each party hereto, insofar as it legally may, shall ’ furnish free passes to the general officers and such other officers and employees of the other party as may be mutually agreed upon for use on lines operated under this agreement. Article IV Secrion 1. The Pullman Company shall first retain from the gross earnings from the sale of seats, and other accommoda- tions in all present-type standard sleeping cars and tourist sleep- ing cars operated under the terms of this agreement, an amount equal to the total of The Pullman Company’s “Expenses of Operation” of such cars, plus an initial return of $1,000.00 per annum car furnished and operated hereunder on the lines of Sar sohoccd i this saceamall, eie tae Gaaiter af cons operated determined as provided in Section 2 of this Article. The investment per car operated for present-type standard sleeping — cars and tourist sleeping cars shall be the average investment cost, including additions and betterments, of all such cars of each class y owned by The Pullman Company on the effective date of this ent. If during any contract year of this agreement The Company furnishes to the Railway Com- pany new present-type standard sleeping cars or tourist sleeping cars, or [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385610_0183%3A02. Public record. Not legal advice.