Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-05-30
THE CREDIT INOBILIER.
May ], 1873.

THE CREDIT NOBLLIER.
The Credit Mobilier is to have an airing
in court The government has filed bill
in equity which has the following specifica-
tons. The loans of the credit of the gov
ernmen, and the gifts of the public land,
were in the nature of trust for the pur-
pose of building the Pacific Road in the best
and most economical manner; that the Sc
curity for the performance of this trust
lay in the property Of the road. including
the land granted, and in the value of its
franchises, which was in proportion to the
good faith and good management of the
company that the security has been ex-
hausted, and the Government upon the
road has been endangered by the conduct
of the company in mortgaging, selling,
and giving away its property, in fraudu'
lent manner, for the profit of individual
shareholders, and not for the building up
establishing the road itself. The bill
enumerates at great length the various
transactions of fraudulent nature which
have impaired the security of the Govern
ment in the interest of the managers. 1t
points out the liens upon the road, in the
shape of bonds, and obligations in the
shape of notes and shares of stock, have
been issued TO the extent of more than
800, OO0, 900 over and above the lien OF
the Government, which is 1888 100000
While the Government lien represents OBJ
legations of the Government from pro
ceeds of taxation, the other obligations Of
the company represent in part only an in
complete consideration, and in still great
er part no consideration at all. These OBJ
legations have, in fact, been distributed as
dividends, in series of fraudulent schemes
for the profit of the managers of the road.
They are, in reality, stolen goods, part OF
which have been turned into money, and
part of which are still in the HANDS of the
original receivers.
The bill of the Government asks that, as
far as possible, these stolen effects shall be
gathered again into the treasury of the
company, and there held as security for
the fulflment of the Governments honest
and binding claims. Most of the distribu-
lions of plumber have been to managers of
the company under the title, and in the
assumed character of trustees. The Gov
eminent asks that these trustees shall be
decreed personally responsible for the
funds and other valuable things distributed
to them, and by the members of the Credit
Mobilier and other rings. A portion Of
the dividends have been in stock, on which
little or nothing has been paid in. The
Government asks that the holders of this
stock shall be required to return to the
treasury of the company the difference be-
tween the amount actually paid in and the
par value of the stock. Still another por-
ton of the fraudulent dividends has been
in the form of bonds, for which defec-
tive equivalent, or no equivalent at all,
has been received by the company. The
Government asks that the payment of
these bonds, except where they are in the
hands OF innocent purchasers, without no.
tice, if any such there be, shall be en-
joined. Finally, the Government, repre-
senting that the company, in the face Of
these numerous obligations, fraudulently
issued, is insolvent, and neglects and re-
fuses to pay the interest on the United
States bonds loaned to it. asks that de-
cree may be issued for the reform of the
financial condition of the company, so that
the actual cost and fair price of the con-
struction and equipment of the road over
and above the amount Of the proceeds of
the United States bonds issued to the COM
pany. shall be represented only by stock
fully paid; or if this cannot be done, that
any excess of the cost and fair price over
the proceeds of the United States bonds.
and Of uncanceled, fully-paid stock, shall
be represented by the first mortgage bonds.
The New England Association of Superin
tendents Of Public Schools recently held its
semi annual meeting in Boston. A paper
was read advising the furniship1 of tout hooks