Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-05-27
CREDIT MOBILIER.
Papers in the Government Suit Filed
at Hartford.
Novel Features of Fraud Developed,
The Atlantic and Pacific Telegraph
Sued.

The Atlantic and Pacific Telegraph
Sued.
Boston, May 26.-A special from Wash
ington to the Boston 1rGueler gives the
names of the Credit Mobilier suit papers
filed to-day at Hartford, Conn.
The United States of America, by Geo.
Henry Williams, their attorney brings this
their complaint against the Union Pacific
Railroad Company, which is located in
Boston, President, Horace +. Clark, Of
New York; the Credit Mobiler of Ameri-
ca, President, Sydney Dillon, of New York,
the Wyoming Coal Company; the Atlantic
and Pacific Telegraph Company, Preside At,
John Duff, of Boston; the Pullman Palace
Car Company, President, Geo. M. Pull
man, of Chicago; the Omaha Bridge Trans
fer Company, and q list of individuals
which would fill q column, among which we
note the executors of Oakes Ames, James
Brooks and Jas. w. Grimes, of Iowa, as
well as Chas. Nelson, son-in-law of Brooks,
and the irrepressible Geo. F. Train. We
do not identify any living Congressman in
the list as SENT
The bill claims that the lease of compa-
ny's coal is illegal; that the arrangement
between the railroad and The Atlantic and
Pacific Telegraph Companies is fraud1-
eut device to make money for the mana
gers and deprive the United States of its
| lawful security and advantage from said
telegraph. The bill also claims that the ar
! r.ngement with the Pullman Palace Car
| Company is an arrangement by which the
| car company obtains privileges and profits.
from the said railroad company not for the
interest of the company to give, and Dy
! which the managers and stockholders OF fsaid
railroad company or some of them fraudu-
lently obtained for themselves profits for
the use of the road in equity belong to the
railroad compsny;that the arrangement. with
| the bridge transfer is fraudule 1t. The bill
also claims thai the Union Pacific is in
| solvent. The cost of the railroad and tele-
graph lines was considerably less than one
half the sum represented by the aggregate
of the stock and the other pretended lia6il-
tiles of the company outstanding; that
the larser part of the sto *
and bonds of the companies before men
toned was issued in the name of company
by its managers, not in the interest of the
company, but to enrich themselves In
manner and for purposes unauthorized by
law; a large majority of the stock now ha-
bitually voted on as of right in electing Of
ficers of the company, is stock issued in a
manner not authorized by law, which
was never paid for in cash
or anything of an equivalent
value to the company. A large part of its
income is used habitualy in paying its
managers high interest on the bonds is
sued unnecessarily and without lawful
motive or adequate consideration. The
earnings have not been sufficient to pay the
accruing interest on its floating debt and
the several classes of bonds issued by the
company.
It's also claimed that upwards of mil
lion dollars was wrongfully appropriated ID
procuring legislation and influencing public
officers, and that the condiioDiof the road is
such that it may be sold under deed OF
trust and mortgage indefinitely, ,and exhaust
the security of the United States.
The bill finally prays that the financial con
dition of said company may be dscreed to
be reformed so that the actual cost and a
fair price of the construction and equip
ment over and above the amount Of pro
ceeds of the United States bonds issued tC
saih company shall be represented only by
the stock fully paid, or if this cannot be
done that any excess of est and fair price
F over the price of United States bonds and
of uncalled fully paid stock shall be repre-
sented by the first mortgage bonds of sait
company, and 81 excess of stock of tht
first mortgage bonds shall be cancelled, anc
ali income bonds and land grant bonds
and mortgages and traps made by the
1r,io- Pacific Railroad Company, with re
fornnce mrOn 70 ga "a land grant bonds and in
come bonds be decree " 10 :ehIeheu
In the meantime an ipjunctiou pA"y 0N
forbidding the officers OF the company from
disposing of its assets.