The New York herald., 1870-05-01

,,, HEADQUARrEgs April 29, 1870.
HIS Excellency the GovERNon or vLRGINIA, Kichmond
TIE UNION PACIFIC RAILROAD.

Decision in the Case of Davis versus the
Union Pacific Rniiroad-Alicged stupendous
Frauds in the Construction Of the Road
The Credit Observation-Disclosures Contrasts-
Decision IN Favor Of Davis.
CHEYENNE, Wyoming Territory, April 80, 1870
The argument in the case OF Davis against the
Union Pacific Railroad Company was concu ded at
three O'Clock 2. M. yesterday, and the Judge rem
dered MS partial decision this morning The COM
painant claims that the allegations his bill have
been Iully sustained. and tnat the most gigantic
system OF frauds in connection with The construc-
ton Of the raiiroad has been disclosed; that the
directors and trustees OF the road, by The cunning
device of making a contract with Oakes Ames Ior
construction, ana on the same day having it as.
signed TO themselves cleared ten millions OF dollars
Whch they divided among themselves in fraud Of
he rights of the stockholders, aud that the Credit
Mobier OF America was ssed by the trustees to
conceal the device. Upon. the hearing or gnal
owning shares iu the Credit Mobler OF America
was produced, show .ng dividends pad in January,
so-caed trlplicate agreement between the Crtt
Mobiller, Oakes Ames and the trustees
TO whom the construction contract was as.
signed by Ames. A contract between the railroad
| miany and the Wyoming Coal Company i.r fur
nshing coal for fifteen years at six dollars ton was
aso Produced anu it also appeared that the stock of
| tnis company was owned principally by the trustees
OF the rai.road. The clmp annt also claims &, have
| shown tlat Tie railroad obtained bonds from the
Uni.e States amounting $500 0l0 ;ol the repre-
scntltons that they owned ma ,erial Tor which DAVIS
seeks layment; and n view OF all the facts in The
have BIC me LA lie to him.
The defence a Init that great Irregularities Oc-
Cured the banding OF The r1ad but deny the jurs.
dCtOn OF the court TO grant cqui be rel lef In the
case, on various technical grounds; deny that the
Wyoming cOrpO 'aon law is D.nd ng upon the cOurt;
claim ia5 he corporation is sol, and under le
AMI juocious man igenent, and, to avoid the ap-
pointment o. e:ever, tender u bond in the fLal
SUM Oi S1,0O00 00o cOId toned for the payment OF
any jud dsihcHt Davis may obtain. The counsel for
the complainant insist that the bond Is insuthc mt
anu hat they are not bound to receive It,
The dcc.S.On OF Chief Justice Howe this
was received with gr at anxiety. He holds that the
Court OF Equity has jurisdiction OF the Cas- that the
DEF ndalt. upon the showing is respOns BILE to the
complainant; that tn affairs OF the road nave been
50 III snanagcd IN times past to render it doubt
u II it VIII he able to respond to satisfy any udg-
mcnt the cla. nant may obtain. Owing to the vast
interests Affected the Court Is reluctant to appoint
receiver. and adjourns until this art rnoon to give
the defendant opportunity to furnish satisfactory
security IN lieu OF a receiver.
Alter the adjournment Of the court this morning
the counsel for the defendants in order to avoid the
appointment OF a receiver stipulated with the cOun-
sci Tor tbe plaintiff 10 deposit in lawful money the
amount claimed by the plaintiff within twenty days
as security for any judgment the pantif may obtain
The Court ON coming IN this after nOtifledof
the stipulation and deferred entering judgment for
twenty days.