Wilmington journal., 1873-08-01
ANorrEE:Is CasEDsT r,ossrLrEIs.

Ii the charges made by the Super
visors of Placer county, California, in
their bill recently filed against the
Central Pacific Railroad Company be
true, the Credit Mobilier affair in
which Messrs.A Cakes Ames and James
Brooks OF the House Of Representa-
tives and Vice-Presidents Colfax and
Wilson became so unpleasantly promi-
nent, will sink into utterinsigniticancc.
TIL, Central Pacific Railroad extends
from the city OF San Francisco to
Echo City i'll Utah Territory, dis
tance of SSl miles. That portion OF it
between San Francisco and Sacramen
TO was formerly known as the Western
Pacific but IN 1870 it w.lss consoli-
dated with the Central Pacific Eail-
road of California under The namc and
style of the Central Pacific Railroad.
The Central Pacific Railroad OF Cali
fornia was organized OF: or abont the
27th of July, 1861, under the laws of
the State of California, and received
from the Federal Government under
acts of Congress Tie same aid as the
Union Pacific did, as we'll us mimi
ficent grants from the State of Cali
fornia and municipal corporations
along the line.
The charges made are to the effect
following: That at the organization
Of the company, in 1862, its capital
was nominally s:S, 800, 0jO. only n part
of which was paid up. That when the
capital was increased To SO 600, ,000
in 1864, less than 81 500, 600 was paid
in, the debt was more than 81 800, 900.
and somewhere about 81, 300, 900 had
been expended. IN 1867 the capital
was increased t. S10l, 600, 900, less
than One-fourth of which had been
paid III. The expense OF construction
showed on paper M unsteady and
enormous increase year by year, and
the last year, 1869, the sum of $50,
00O,O00 was charged to that account.
The total expense of construction was
set down nj over &l20, 100000. This
had used up the subsidies and the
capital, and created debt of more
than S75, 900, 900. The whole business
was managed by Il clique of five di1ec-
tors, who contracted with themselves
to build the road, in manncr essen
TALLY the same as the mode OF the
Credit Nobi'ier, and it Is said grew
immensely RICH. They virtually owned
Snd controlled the road, with which,
IN short time after its completion,
seven or eight otEer roads, comprising
practically the whole railroad system
OF California, were consolidated.
But the other stockholders We're not
SO fortunate in their investment. They
did not receive even dividends on THEN
shares, and some OF them became slIs-
picious Finally 4 combination OF
them determined to bring suit against
| the prosperous ones, and ;tctin& by nd-
vice of counsel were prepared to par
chase at par the stock owed by Placer
and Sacramento counties. But tn,
| managers got wind of the scheme and
anticipated their enemies by pUrchas
ing tie stock themselves. However
| the discontcntcl ones had in their pos
session Il matter OF 42T shares anG
| filed fhcir bill to recover tiIc profit,
| thereon. The company did not per
NIT the case to come to trial, but com
| IL ~ pay -''',o'V, ~ Illtfi
was at the rate oi 81 Isl 4 share. Wnel
| the supervisors OF Placer county who
| had sold the company >, 300 shares o
stock at 500 Il Siiar~ learned thi;
| they were in " It state OF mind. They
nave filed bill IN equity to rccovcl
the profits on The shares they sold, OF
! the ground that the profits previuusI
accrued had not been surrendered b,
thc sale. In this bill il is clInrgedt tha
thc five directors did not pay for th'
coo shares thcy originally subscribe,
for, and fraudu!entIy got q majority o
the capital stock into their possession
that they manage the road not as
! trust, but as a pi'pr,r rty and for thci
own profit; that by Fraudulent repre-
Scntati,,ns; OF ihr cost ii construction
| and operations and ly other device
they have app"nrrlatrd {" their privat
accounts oycr :. 2nO, 0nu, 900: that the,
have stolen dividends that might hav
been raid to the shareholders; an'
that they lave secured Legislation Il
Their favor 10y bribery and collrrup
tion Therefore they pray for IN i'll
junction against the further manage
| ment of the live and for the appoint