The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-11

The IIoxie and Williams
Contracts.
Ames' and Alleys Connection
with the Union Pacific.
THE NELSON SHAPES.

with that olicer Of the Union Pacific Railroad, on
the subject OF the relations OF the Credit Moblier
OF America to the former corporation. The result
OF the conversation, while it exhibits great
caution on the part OF DR.. Durant In answering our
representatives questions, furnished an inside
view OF the struggle under which the Union Pacific
Company labored in prosecuting their work. WHILE
OF course, 1t must be accepted only as q
representation OF the transactions and relations
OF the two corporations from Dr. Durant's stand
point, which, in view Of the present attitude Of the
two corporations before Congress and the country,
and hts pecuniary and official relations to both, is
as much as could be expected from him to the
public. Without further introduction the inter.
view will speak Tor itself as follows:-
THE INTERVIEW.
REPoRTER-Dr. Durant, have called 10 make
some inquiries relative to suit which you brought
against the Union Pacific Railroad Company In
1857, some OF the court records OF which have re.
Gently appeared In the HERALD. There are several
matters merely referred to not explained in the
records which 1 do not fully understand. You will
oblige me by a brief explanation.
DR.. DURANT-The object for which this suit was
brought having been accomplished long since, l do
not see what interest you others can have in the
matter.
REPoRTER-Public attention Is just now called to
pany by reason Of the extraordinary developments
made In the McComb suit pending in Pennsylva-
MIA, and the more recent action OF the United
States House of Representatives ON the subject 1t
Is natural that the public should express nxiety
on such q subject. AS o journalist l call
upon you, first, as matter of courtesy,
because you have been vice president and general
executive officer Of the road and have since been
PRESIDENT or the company, and held that position,
II mistake not, at the time the important legisla-
ton IN ala OF the corporation took place. and about
which the inquiry is now being had at Washington;
secondly, you, being the plaintiff in the suit re-
ferred to, deemed it proper that should consult
you. The connection, Doctor. of the Credit Mobier
with the Union Pacific Railroad Company Is ex-
citing not only the attention of the National
Legislature but Of the entire business community.
The suit brought by you has important bearing
upon some OF the transactions between the two
corporations and individuals, and the purpose Of
my interview with you at this time is to obtain, il
possible, all the facts from the beginning relating
to the operations Of the two corporations. The
HERALD wants facts.
DIR. DURANT-Without admitting your right to
inquire into the affairs OF corporation in which
you are not pecuniarily interested VIII say that
have no objection to satisfy your curiosity, SO far
as may be proper but to go into details would re-
uuire more time than wish 10 devote to the sub
ject and more than the HERALD would be willing
to give to ii; SO make your questions as few as
convenient.
REPORTER-Thank you, Doctor. Then to bust
ness and will be brief and begin at the begin
ming. When and how was the Union Pacific Com
pany organzedf
DR.. DURANT-The commissioners appointed un-
der the act Incorporating the Union Pacific Rail-
amount OF subscriptions. called q meeting OF the
stockholders for organization and the election of
directors on the 29th day OF October, 1853. The
amount of stock subscribed ST. 1877 OOo ON which
there had been paid an instalment OF ten per cent
amounting to s2ls.7o0. The books Of subscription
had been open from November s, 1862, to Septem-
Der rs, 1868. The Board OF Directors elected by
the stockholders consisted OF thirty members, and
two were appointed by the President OF the United
RgPoRrER-when was the work commenced by
DR.. DuEASr-work was commenced as soon as
possible, and ground was formally broken at
Omaha on the 2d OF December, 1853, not with any
sons of the charter as n then existed but TO show
that they were in earnest In Undertaking II. They
applied to Congress Tor aid, and obtained, by the
act OF July 2, 1864, such additional legislation
thereby as was deemed necessary In order to in
sure the success oil the company, although ut the
time the friends OF the enterprise, In and out OF
Congress, mad little faith that the work could be
prosecuted to It's completion without fur Their aid
from the government.
Ames and John b. Alley original subscribers to the
rOadp
DR.. DuRANT-No, sir neither OF them
.REPoRTER-W hen did they come into the direction
OF the roadY
DR.. DURANT-Mr. Oliver Anes became director
in 1866, after 800 miles Of the road had been COM
pictei cakes Ames and John Il. Alley became
directors sometime subsequent.
REroRTER--was the road being constructed at
ina nd nd INT
DR.. DURANT--The company were doing all they
could, without any general contract, under the
do so NTH they had exhausted all their funds and
were largely In debt and 1t was found impossible
to let small sections Of the work to responsible
contractors without some guarantee ether than
the obligations Of the company for payment.
REPORTER-It was at this time, was II not that
the Credit MoDilier came In with the Hoxie con-
tract, about which so much has been said; and is
IL not fact that the Credit M0bilier, Of which be-
lieve you were one OF the incorporators, was or.
Dr. DURANT-No. the connection OF the credit
Of the Union Pacific Railroad was purely W acct.
dental, and was brought about by force of circum-
stances which rendered 1t absolutely necessary to
call TO aid In the prosecution OF the work some
such organization or TO abandon the enterprise,
anu inns was not done until leng afterwards, As
yon WIN see upon looking at the schedules In the
SUIT OF 1857, already referred to-.
=, KEroRrER-Have you any objection, Doctor, to
STATE wnat circumstances you refer TO or in what
nected with aud held the Union Pacific Railroad
Company 30 completely under Its control during
the construction OF the road or is that delicate
questlonf believe you were President OF the cor
porauon during most Of the time that the road was
DR.. DUKASr-You are the first reporter l have
seen who would hesitate about asking any
question. ! was President Of that corporation
from the time II assumed the Hoxie contract until
irs compile tion-in fact, during the whole t,yne the
Credit Mobilier had any voice in or con.
troll OF the construction Of any norton
OF the Union Pacific Railroad, and win saw To
you distinctly that during the whole time there
was not n transaction that the Corporation need
be ashamed or or which its managers are not per
fectly willing should be made public. IL had no
contract west OF the one hnndredth meridian, AT
which point the "Ames Contract commenced, that
being managed by seven trustees, as appears fully
In the copy OF contract and assignment already
led 10 the use of the Credit Mobiiier In the con-
struction OF the road are think, SET forth In the
Court records. which you have; lf not, 4 Will eX-