The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-05-27

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THE BILL OPENS
by recing the various acts and provisions of Con.
gress providing for the creation OF the Union Pa
cifc Railroad Company. its franchises and opliga-
tons and the original issues OF government bonds
as provided for by Congressional enactment, the
latter showing that at different dates, beginning
on January "a, 1865. and ending on July IA, 1870,
the United States issued to said company currency
bonds, due In thirty years. with interest payable
semiannually, In all respects as provided for in the
acts OF Congress before referred to, to an aggre-
gate amount OF $27, 1885, 6l2, which bonds were sold
by said company and are outstanding On these
bonds the company has failed and refused pay the
IL,
has been paid by the United States as 1t fell
due. After deducting from the amount Of interest
so paid by the United States the amount for gov
eminent transportation allowed by law to be de-
Quoted an aggregate liability Of said company to
the United States on said interest &C.
count remained on the 1st OF January,
1873 amounting to $6,1ss,7O II, making
an aggregate liability Of the company
at that date on United States bonds issued to
the company, principal and interest secured by
lien under the acts OF Congress the property of
the company, of s8s,4s5,221 n. The balance so ex-
listing by reason OF the nonpayment Of interest by
the company Is rapidly accommodating.
The complaint next sets forth that en- or about
November 1, 1865, in pursuance OF
A DEED EXECUTED
between the company and Edwin D. Morgan and
Cakes Ames the company issued first mortgage
bonds, having thirty years to run, at six per cent
to the amount Of s27 2s7 900; that In pursuance OF
deed of mortgage, entered into on April 10. 1867,
ana Cyrus H.. Mccormick and John Dufr
the company issued land grant bonds ana
70 sss ss Unpaid
$751; 900; that on september |, 1862 the company
with John A. Duh, Benjamin T. Bates and r Cor Cor,
don Dexter, upon which were issued $10,G000 900 OF
income bonds but TINS deed was not SO executed
that subsequently, bonds were issued by the com.
pany, known "brfdge bOndS,O upon
MORTGAGE OF THE BRIDGE
over the Missouri River at Omaha, to the amount
OF 81 600, OF which sum 81, 600 are yet out
the company passed preamble and resolutions
authorizing the issue Of "snking fund mort
viii require about four millions Of dollars
for the payment Of coupons and obligations matur-
bonds Of the company amounting to ten millions Of
dollars, mature in 1874, aud ordering o mortgage
upon the land, land grants, read bed, appurten-
M II hQ
made to secure the payment OF the bonds
OF the company fer sixteen millions OF dollars
lion two hundred thousand pounds in British
sterling with interest at the rate OF eight per cent
mum British sterling; which bonds were expressed
to be for the redemption OF saId income bonds.
and each to be called 20 sinking fund mortgage
bond.n
PLATES ARE BEING ENGRAVED
BY which the bonds contemplated by this resolu.
ton are to be printed, and, unless enjoned by this
court, said railroad company will soon issue and
put said bonds on the market. The complaint far
OF 1000 0OO and has issued certificates OF Its stock
to the amount at least OF $50 1872 300 all OF which
ts now rg ~ sna 70 o claiming lain
them to participate ~ the management Of the COM
pany; that the company Is bankrupt; that the cost
considerably less than half OF the sum repre-
sented by the aggregate Of stock certificates
and pretended liabilities issued by the company;
that large part OF these bonds and certin-
Gates OF LIABILITY were issued unlawfully; that
THE COMPANIES EARNINGS
are not sufficient to pay the accruing interest on
the noating debt and on the various classes OF
BOMBS issued, after deducting the running expenses
and cost OF repairs; that new ties and rails Will be
necessary for nearly the entire length OF the road
within two or three years, and that So 900 will
be required to pay interest income and other
bonds which viii! be due in SEPTEMBER, 1874, but
that the Company has no money to meet either
Of these csming emergencies; That the company
has entered into various agreements with the
Pullman Palace Car Company, the wyoming Coal
and Mining Company, the Omaha Bridge transfer
fraudulent and disadvantageous to the interests
OF the stockholders OF the Union Pacific Railroad
Company ana In violation OF their rights that in
the furtherance OF designs Of becoming possessed
Of all the stock and franchises OF the Union Pacific
Railroad Company, to use, manage and dispose OF
the same for their private benefit, on the
21st day Of November 1854, certain persons named