The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-06

sent to such . contract as e proposed only upoi
pany. THOMAS @. DURANT.
OF September, Is67-WILLIAN SUrPHEN N0tarJ
Public, New YORK city and county.
Complaint OF Thomas c. Durant Agains.
the Contract OF j. NJ. 8. Williams-In-
junction Ora nted-A Victory for the
| Union Pacific Over Credit Mobilier.
SUPREME COURT, NEW YORK CITY AND COUNTY. -
Thomas q. Durank Plaintiff, vs. The Union Pacific
Railroad Company, Defendant Summons for Re-
| Lief To the above named defendant:-
You are hereby summoned and required to
answer the complaint In this action, OF which .
copy OF yoar answer to the said complaint on the
subscriber, at his ONCE, No. 20 Nassau street, in
the CITY Of New York within twenty days after the
service hereof, exclusive OF the day OF such SER
vice and II you fail to answer the said complaint
within the time Aforesaid the plaintiff this action
WIN Apply TO the Court for the relief demanded In
| the complaint.
MAY, q, 1867. '' "A -'''''A'''
SUPREME Court, CITY AND COUNTY OF NEW
YoRkIrhomas g Durant, plaintiff, VS.. The Union
Pacific Railroad Company, defendant
The plaintln complains Of the defendant, and al.
That the defendant is body corporate, created
oy an ms act o. Congress passed July I, 1862, chap
explanatory thereof and thatits Board OF Direct
org consists Of twenty members, fifteen of whom
company, and five of whom are appointed by the
President OF the United states.
and is director thereof and is also Vice President
That at q meeting Of the directors of said com.
pany, held March l. 1857, and while Oliver Ames.
! chair, presiding at said meeting, resolution was
offered aAa saop!ee 9! wncn the following is
10 ION motion Of H. s. Mccomb, the proposition Of
Mr.. Williams was adopted, with the following pro-
visions, to wit: THAT ST. 500 per mile be reserved
isfactory to the government commissioners"
That the proposition Of Mr.. Williams was as fol-
lows:-
To THE DREcroRs OF THE UNION PACIFIC RAILROAD Cox-
GENrs-I would submit the following proposition to
build road from the nd Of 100 degrees meridian
Of longitude to the base of the Rocky Mountains, Grow
the first one hundred miles the rate Of So 900
For The balance qs7 5oO miles, at the of $4,000
government Commits oneTs and your board .... :. -.
asre Of IS subscriptions for stock to the
The Union Pacific Railroad Company shall transport
pieed and used by the company at rates to be agreed
Payments to made monthly estimates the work
progresses Yours, respectfully, =, @ wu,1.us
That said "provso" was accepted by Mr.. Will
That at the same meeting the following resolu-
ton was offered and adopted:-
On motion Of Mr.. McComb IL was resolved
ten hs s %ss % to haSs Mi
with his written proposal accepted by the Board this
day, and that recorded iall upon the min
That the following directors were present and
constituted said meeting, VIZ oliver Ames q. A.
J. J. Cisco Charles futile ana r e. Durant, being
directors elected by the stockholders, and George
Ashman, Springer Harbaugh and T. J: Carter d.,
rectors appointed by the President Of the United
States.
THAT upon taking the votes upon the said reso-
lutions the plaintiff and two more Of the said di-
rectors voted against the said resolution.
! That the said J. M. s. Williams in making and
submitting said proposition, III fact, and acted
M0bilier OF America, and made said proposition on
and hna sgre to w the
! said construction contract to the said Credit
Mobilier OF America when obtained.
That the said Credit MObllier OF America s body
corporate, and that said Dillon: Dun, McComb,
Lambard and Ames were then stockholders to large
tract % made N the name q the said
or majority OF them, the said proposition was car
| ried.
Tnas pISr % By the Wa%R PSe
| struction Of the railroad OF the defendant upon
that portion Of Its line covered by said proposition
thereof had been completed and accepted by the
Commissioners of the government, and had been
That large portion more OF the said road had
been graded, and . large quantity of iron and ma
teras for the residue of the line covered by said
proposition had been purchased and delivered to
the company by the defendant.
That thirty miles thereof IN addition to said
| nfty-eght miles, are now completed, and are now
ready for the acceptance Of the government Com.
That all OF the said work has been done by con-
| tractors and laborers, with materials under the
direction Of the plaintiff and the defendants CON-
| pany has from time to time paid large amounts on
| account thereof.
That the said lightweight miles, so completed,
| tad and
less than $4,000 per mile. and that the residue Of
said line is now being constructed ut the rate Of
peted at cost much ' less than 600 per @e
| and that the whole cost to the defendants COM
OF ana Sas tue eighty
at least 100000 less than the price named there
for in said proposition Of said Williams AMI that
| the residue OF the line can be completed, and Is
now in process Of construction at a total cost OF
| construction to said company at much less cost
| to wit not less than the sum Of $25O,OO0.
That the effect Of the said resolution, II carried
s paa TO the Of
more than s75o,ooo In excess Of the actual cost
| thereof
| the line included in said proposition has been done
by said Williams under his said proposition, and
| II said resolutions are carried into effect said
Credit Mobilier, said j. M, $. Williams on its be-
half, would be able to pay and reimburse the whole
actual cost Thereon ana retain , more man seven
panys money without any actual consideration
Whatever, and to divide the same among the stock
holders of said Credit MOber and that all OF said
directors who voted Tor said resolution had been
informed and then well knew that the said fifty
| eight miles OF the said railroad had been con-
structed and that the residue OF the line included
| In said proposition was then constructing for
much less tnan the prices named In said propO-
sition and that the completion of the whole thereof
| would be at q cost to the company of over seven
| hundred and fifty thousand dollars less than the
price named In said proposition OF the said Will
| Iiams.
That this plaintiff is o stockholder to a large
amount In said credit Mobilier.
That this plaintiff at the next meeting of the
Board OF Directors duly protested by q written pro-
test communicated to the said Board of Directors,
| against the said resolutions, and against making
any contract Hereunder, for the reasons afore-
| said.
| That the stockholders OF the Union Pacific Rail-
| road Company are very numerous, and 1t Is I'm
| practicable to bring them all before this Court and
plaintiff brings this action for the benefit OF the
| 1.f,,fdo