The Portland daily press., 1873-05-29
The Suit against the Union Pacific and
Credit MObilier.
SYNOPSIS OF THF BILL FILED AT HARTFoR

Aspecial despatch to the Boston Traveller
from Washington, gives an abstract OF papers
in the Credit Mobilier suit filed at Hartford.
The bill recites that the United States of
America, by George Henry Williams, their
Attorney General, bring this bill Of complaint
against the Union Pacific Railroad Company,
which is located in Boston President Horace
F. Clark, of New York. The Credi; Mobilier
of America, President Sydney Dillon, OF New
York the Wyoming Coal and Mining Co.;
the Atlantic and Pacific Telegraph Co., Presi
dent, John Duff, of Boston; the Pullman
Palace Car Co., President, Geo. NJ. Pullman,
of Chicago; the Omaha Bridge Transfer Co.,
and against John B. Alley, Of Lynn, Mass,
Oakes Angler Ames and Oliver Ames, End,
executors of the last will and testament of
Oakes Ames deceased, of North Easton, and
Oakes Angler Ames ard Oliver Ames I'd exec
utors aforesaid, representing said Oakes Ames
as trustee for other DE rsons, Oliver Ames, sur
wing PARTNER Of the late firm doing business
under the name of Oliver Ames & Sons, at
Boston, Oliver Ames of North Easten. and
! many others, trustees under the income bond
mortgage. The bill then states the provis
ions of the act of Congress authorizing the
suit, and the different acts creating these cor
porations, the rganization of the company
and construction of the road, &c. ;claims that
the conditions and stipulations for making ID
works more complete, in conformity with
said acts of Congres have not been conform
ed and complied with to the satisfaction of
the United States; that the comp my has fail
ed and refused to pay the interest which has
accrued and is accruing on the currency
b. ds issued by the United States, and the
same has been paid by the United States as
it fell due, to the amount of SO, SO. 800, while
not a dollar of the bonds themselves, upwards
of $26, ,000, 900, has been redeemed, while the
whole amount of fist mortgage bond. S27,-
600, 600 more, is also still outstanding, the
interest alone thereon having been paid; that
land grant bonds bave been issued by the
company to the amount of SIC, 1000, of
which SS 81, 900 are still unpaid, hile it in
tends to 60 on selling said lands and claims
the right to s II them and apply the pro
ceeds to the redemption Of the land grant
bonds, to that extent exhausting the Sc
curity of the United States for the repay
ment of their bonds; that one million of in
come bonds are issued and outstanding:
that bridge bonds amounting to S2,46S 900
are also outstanding; that there is floating
debt of S2,000,000 and stock to the amount
Of S36, ,7S2, 800; that the coal contracts and
leases are illegal; that the arrangement with
the Alta tic Pacific Telegraph Company is a
fraudulent device to make for the managers
iuOiC piOuh tudH lucy CUulu EWiuHN lUdke,
and to depriv the United States of its law
full security and advantage from said tele-
graph that the arrangement with the Pull
man Palace ,ar Company is one BY which
the car company obtains privileges and profits
| fiom the railroad company not for the inter-
| est of the company to give, aud by which the
| managers and stockholders of the railroad
] company, or some of them, Trauduently ob
| tain Tor themselves profits for the use OF tur
road, which in equity, belonged 10 tne r,i-
( road company; that the agre ment VIVID lhe
| Or,b, Rr;dGe Transfer Compa IS fraudu-
-. that the Union Pacific Railroad Com
nany is insolvent; that the cost Of the rail-
rroaj and telegraph lines was considerably less
than one-haf the sum represented by the ag-
gregate OF the stock and other pretended liza
bihties of the company outstanding; that the
larger part OF the stock and bonds of the
company, before mentioned, was issued in
the name OF the company by its managers
not in the interest of the company, but to en-
rich themselves in a manner and for purposes
authorized by law; large majority of the
stock now habitually voted upon as OF right,
in electing officers and controlling tn affairs
of the company, is stock issued in manner
not authorize ba law, which was never paid
for in cash, or in any other thing of an equiv
alent value to the company; large part of
its income is used habitually in paying its
managers high interest on the bonds issued
unnecessarily, without lawful motion or ade-
quate consideration; the earnings have not
been sufficient to pay accru,ng interest on its
floating debt, or the So veral classes of bonds
issued by the company; 100000 900 of its in
come bonds, so far called, will be due in Sem
tenber. 1874, but no funds have been provid-
ed, or are accommodating for either new ties
ana rails, or the payment OF the said income
bonds. The interest on the bonds issued to
the Company is allowed to accumulate with
out payment. As before stated, the !Compa-