The sun. [volume] (New York [N.Y.]) 1833-1916, 1870-04-21
THE Union PACIFIC ROAD.
THE ROU0H WYOMING FRONTIERS
MBN THREATEN TO TEAM UP
THE TRACK,


known by the people OF tie East that notwthstaUd-
Ing tho liberal subsidies afforded BY the Govern.
ment TIC Union Pacific Railroad is deepy in debt,
and that not long ago application was made to TIE
Supreme Court Of Wyoming Territory to have re-
ceiver appoi ted TO tako urge OF its property.
The Indebtedness Of the Company TO contractors
for furnishing ties, lumber and WORK is in tho az
eregate about 81 .00OOOO After many vain efforts TO
obtain settlement OF their accounts the impatient
but reasonable creditors offered TO e6ve their claims
to the arbitration OF three OF the Board o Directors,
their decision TO be final THIS otter was declined.
ATTEMPTS AT SETTLEMENT.
They then proposed to submit their claims to
referees; but when after i've weeks OF discussion
and labor, the articles Of agreement between the
contractors and the Company we're presented fcur
Of the trustees refused TO sign. The contractors
next proposed leave the question to be settled by
the Superintendent, Col Hammond and the attor.
ney Of the road and after these gentlemen had pre-
pared their abatement and for warded IL to Boston,
the reply Of the Company was that the claims could
not be allowed. The accounts az presented are
sworn 10 accurate by the Superintendent OF Con-
structon. Samuel u. Reed, q gentleman OF well
known integrity
TIE ROCK ON TUE TRACK.
There IL law on the statute books OF Wyoming
providing that n any corporation doing business In
that Territory shall proved guilty OF fraud. the
supreme Court shall have the power TO appoint
receiver to hold the aseets OF that CORPORATION until
n sufficient amount Of money Ia realized to lquldate
It's Indebtedness. This law IL nimicil to the inter
ests of the Union Pacific Railroad Company, and
the Ameses and Durants and others who WELD the
detirios Of that corporation have petliioned Con.
rrcss TO rcpcs the law. Tdis viii hsrily be done.
however, until the nuairs Of the Company have been
officially investigated. Tho law seems To DO IA Just
one. aud the Union Pacific Railroad COMPANY IL the
only corporation that mas asked TO have IL abrogaed
the NOTION AND THE COMPLAINT.
The motion to appoint receiver will be heard on
tire 18th inst. at which time the Company vii be
cal cd upon to show cluse why the prayer Of the
petitioners shall MT he granted The com ,lnint on
whicii the motion In made Il that OF James W. Davis
Of this city, Who, In November 1e61, contracted
vitr The Company to deliver On the line OF the road
1UO0O00 ties Mt from seventy-ive to ninety cents,
and 100000 feet OF square timber at $40 ler thou
sand, ana did 30 deliver the articles BY the let OF
contracts we're immediascy entered into between
the same parties; aud now Mr.. Davis COMEDIANS
that tho terms Of a. csc contracts we're vi lated by
Ames Duf, Dillon. Dur mt Bates, Alley, Bushnell,
and McComh the Directors, Tru tees and agents
Of the Union Pariac Railroad Company. He
char { at The COMPANY obtained large amounts OF
money from the Govern nent by means OF misrepre-
sentaton and fraud thar the gigantic contract given
CowunS,. was pos, dated in order to AFFORD the Di-
rectnrs 60 whom the contract had been ASSIGNED
~ Dukes ADcsl a pretcxt to oyercdarge and to re-
-FOUR HUNDRED THOUSAND DoLLAus
for work they I'D no, done He charges thrt thcv
also csorted TO the trick OF obtaining the charter OF
Pennsylvani corporation, The Crecit Mo6iier
Du.;ness in IL, name. TSi. Arrangement WIS made
by oakes Ames toe Directors, and the Credit Mo-
bilier, who made contract known M
1.-THE TniPLIcArs AGREEMENT"
nv wi ich only the contracting parties berehtod as,
at TIE completion OF the wwk-charged At the rate
of SJ0OO, but vad Tor at the rate OF 1900 per mile
the funds OF tho Company mere exhausted, the Sc
curltics disposed OF, and a debt OF sl40oo.ooO re-
NAMED 10 be iiluidated.
lie charges that under tbi. same agreement, as
soon as stocxhoders in the Union Pacific Railroad
Company assented to the otkca Amcs contract,
divisi m WAS made to s,ockhnlders OF the Creht
MORTGAGE oouds, and n like amount In the stock OF
the Companyi and that In the aggregate the divi-
bends amounted to
TWO HUNDRED AND rfrrY PER CENT
ofthe amount inve.teii For exs@pls; oakcs Ames
,sSiodo, and took DOT ssil,SOS, while i. 6SrOnt,
ceved OF the fuuds OF the Company no less tnan
si,060,s75. The seven Others wIo had paid in
respoudiugiy enriched by tie questionable specuia
ton.
now THE THING WENT.
On the 81 of July 1869 a circular WI. issued 70
tie Trustees calling upon each OF them to pay the
full amount Of tne par value Of the bonds he had
ceiyed, In order TO enable the Compiny to complete
ponded, and thus the Company LEFT wit ont
the means Of paying its oebts. Mr. Davis holds trat
under cover OF sPennsy /, ana corporation the Trus.
tees absorbed all the assets OF the Company
SERIOUS CHARGES.
He makes many otter charges against them.
among which are, that they obtained land grant
which they disposed OF At par. without making any
| returns 10 the Company; that c. =. Bushnell OBJ,
tanned $3.50 900 Of FIRST mortgage bonds, paving
nothing there or thnt the Trustees defrsuded the
| Government, by making fa-e contracts, ana appro.
priated tue product; and that they purchased coal
| OF the Wyoming Coal COMPANY at e. per ton more
| than was charged by other companies. The sloek Of
| this Company il held by Anes Duran,, and other
| trustees OF the Union Pacific Railroad Company.
DRrBlSo THE COMMISSIONERS
| Among the questions which the petitioner de.
mands To have asked OF tie Trustees Is one personal
| to Mr. Thomas Durant, and IL neither more nor
| less than tits: Did not tho said Durant some me
ia 1859, in railroad ear OF tie Union Pacific Ril
road pay 70 two of the L. 5. Commissioners SIS 90
| ca h TO secure q favorable report TO Congress con.
'eI In s lin S conplan Mr Dv. p aS TO to have
| many other interesting and Important questions
| snsW cred toueiins the operation OF this gigantic
fraud, and c'oscs by pelitionlns or the oprontmcnt
OF receiver 10 take chaiFe OF the Lompanys asseIs
TROUBLE AHEAD.
Pending the settlement OF the question now before
the Count Of equity th, cAr'telneht Lcte among IN
creditors ol TIE Cumpnry l. in,cnsc, and nt's IN,
Directors do not maze some effort 10 hqullato q,
least a orion Of the claims against them tiorc +
| little doubt that tine running of trains on the roat
| will he stoppe' by force. Tue local creditors Al,
about 500 nnuuber-.ll hard-workins trcnnersmeu,
VITO snow 40 iaN but thyt of nCccs nv and whO ur,
| suffering or the want Of their Just dues
II the Court should rot grant me prayer of th'
| compi inant IN the case in question: 40 not duuh
that the busross oi the road win lie eaectualN
wound IN md, inIeel many Nd ucONle nre iict
ttat the road itself will be damaged by indis
| mob, among wnOm, perhlls, ma, be counted, when
| the hour Tor action comes, mum ier o Omaha mer
Giants, to wnom Inc Company is Indebted at leas
| 100000.
Col. Tisdatr's Treasure on staten Island