New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-18
CREDIT MOBILIER AGAIN.
THE GOVERNMENT SUIT AGAINST THE UNION
PACIFIC RAILROAD.

RAuRoAD-THE CONTRACTS WITH THE WYOMING
COAL AND MINING COMPANY AND THE ATLANTIC
AND PACIFIC TELEGRAPH CoMPANY-INsoLvENcY
or THE RAILRoAD-THE CREDIT MoBnIER-THE
HoxIE. OAKEs AMEs AND DAVIS CONTRACTS
THE PRAYER OF THE coMPLAINANTs.
IrRoM TuE SPECIAL CORRESPONDENT THE TRBuSE.l
HARTFORD. Sept. 1.-THE suit against the Union
Pacific Railroad, which was adjourned Tuesday on
account Of the illness of Mr.. Curtis will without
doubt be actually commenced Thursday morning
The issue involved at this time is simply this: Is
the special act which passed allowing the suit
to be brought before circuit court constitutional
Attorney General Williams and the Hon. Aaron f.
Perry will appear for the Government while tine
defendants will be represented by the Hon. BenJa-
min r. Curtis, the Hon. William NJ. Evarts, and the
Hon. Sidney Bartlett. Judge Woodruff is unaVolua-
bly, absent so that the point will be argued before
Justice Hunt and Judge Shipman OF the DISTRICT
Court If the plea in demurrer is sustained the sut
will be taken from this Court and brought before
the Supreme Court at Washington.
The opinion seems to be very strong here that the
plea will be sustained, although MIR. Perry Will
doubtless make a strong fight. The bill in equity
is brought before the Circuit Court OF Connectcut
by the United States of America, in the name OF
George II. Williams, their attorney, against the
Irnion Pacific Railroad Company and others.
Numerous corporations and some 200 individuals,
are named as defendants. Aaron f. Perry, Thomas
A. Jenckes. and j. Hubley Ashton solicitors and
counsel for the United States. The following is
condensation Of the 20 pages of the bill in equity
MI The Union Pacific Railroad Company was
incorporated under act OF Congress approved July
1862 entitled AN act 80 aid In the construction OF rail-
road aud telegraph line from the Missouri River TO the
Pacific Ocean, and TO secure TO the Government the use
of the same postal military and other purposes
and also several amendatory acts passed subse-
auently The United States granted TO the Com
pany for the purpose OF aiding IN the construction OF
said railroad and telegraph ne and to secure the safe
and speedy transportation OF the mails troops, NUM-
ton Of war and public stores thereon every alternate
section public land 10 the amount OF 10 alternate sec
tons per mile within the limit OF 20 miles each side OF
the said railroad The United States also undertook to
issue the Company for the purpose bonds OF the
United States 81 each bearing six cent inter
est to amount o l6 Of said bonds for each mile OF
road east Of the base OF the Rocky Mountains
for each mile OF $50 miles OF said road westwary from
1e eastern base Of the Rocky Mountains, eastwardy
from the western the Sierra Nevada an amount
4 AZ bonds to each mile, and between the two sections
fI5O miles each last mentioned, amount OF 50 bonds
each mile. kThese bonds were issued from time TO
time TO Company. and declared tDso Jdoto 10
constitute first mortgage the whole line of the Com
pany's railroad and telegraph rolling stock, fixtures,
and property OF every kind and description which mort
gage as lien was 10 subOrdnaed only to the first
mortgage bonds authorized to be issued by the Com
psny.
sEc q The Company was organized IN October 1885,
aud tho road was working order before the middle OF
July 1869 but, according to Section 8, a committee
anpoined by the President reported oct. 81 1863, nu
merous deficiencies in the construction requiring fur
Their expenditures Of sl5S6OO, and only provisional
acceptance Of the road was made.
SEQ l. At the time Of this provisional acceptance, the
United States had issued bonds to the full extent per
uASf 10 he
fourth the number of sections to which the Company
would be entitled II the road and telegraph had been
satisfactorily and equipped On July IA, s7Ohere
had been issued by the United States to the Company
bonds aggregate amount OF S22S6,5l2, which hau
been sold by the Company, and are outstanding. On
these bonds the Company failed and refused to pay
the interest which accrued and is accrung and the
Hum has been pad by the United States For this inter
eat the aggregate liability OF the Company, Jan l. 1873
% the Government was $39,435221 II.
SEC g. On Noy.1 1865 the Company issued bonds Sc
rred by first mortgage the road to the amount Of
t72TOOO
SIC G. On April &c. 1867, the Company entered into
adeed of indenture with c. II. Mccormick and John
Du trustees 10 the payment OF bonds issued 10
the amount OF $1O4OOOOO secured by mortgage on the
lands granted by the Government Down to JAN J. 1875
the Company lands covered by said deed to the
tent OF 65 1913 OO the receipts from the sales
amounting 2s57554 90 part of this sum has been
applied to the redemption Of the bonds issued but there
still remains these bonds unpaid $5Sl0O0 The Com
pany intends 20 90 selling lands and applying the
proceeds TO the redemption of said land grant bonds,
exhaustng the security Of the United States for the re-
payment of their bonds.
SEC T. On the LIST Of September, 1862 the Company is
sued income bonds 10 the Of SOOOOOO providing
for the appropriation Of the net income OF the Company
90 pay these bonds after paying interest
on the first mortgage bonds and land grant bonds before
mentioned.
SIC g. The Company issued bonds to the amount Of
b2OOOOO known bridge bonds, secured by mortgage
On the bridge over the Missouri River, between Omaha
and Council Bluffs bearing eight per centnterest pay
able semisnnually. Revenue for the payment OF the
Interest said bonds and for final redemption is to
be derived from tolls levied all property and pas
engers transported the road ain case the tolls fall
short Of the required the Company shall pay to the
trustees for the time being such shall be needed
10 make up deficiency. The amount OF such bonds
outstanding is S2,l6sCO0.
SEC o. on Dec l2 1872 preamble and resolution
adopted by the Board of Directors rectng that the
Company will require siOOO,OOO for the payment Of
coupons and obligations maturing or before April l.
1873 and that bonds amounting to $40 0O0o
will mature In 1874 and ordering mortgage the land
grants rOadbed, appurtenaDces, and property OF the
Company 20 be made the payment Of the bonds
Of the Company for s6O000OO These bonds not yet
issued but will be put upon the market by the
Company unless enjoned by this Court.
SEC The Company has floating debt OF % 00O
Stock certificates have been issued TO the amount OF at
$50 and i'll the hands OF persons who de-
msDd to take part in the management OF the Company
In proportion 10 the amount Of certificates held.
SIC H. The contract with the Wyoming Coal and
Mining Company is an agreement between the Union
Pacific Railroad Company and the Wyoming Coal and
Mining Company, giving the Wyoming Coal and Mining
Company the monopoly Of all coal and other mines
the Of the roadbed for considerations totally made
uuate for this immense grant "The said contract and
Assignment thereof were made advantages and