The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1873-02-01

the contract. Witness was aske,
whether it was in accordance with soun,
and strict business principles to give tn
assets OF company for the construc
tion ofa railroad. The witness reptile,
that in many respects it was unprece
dented, and in some it was not. In tn
early history Of railroads, going bacl
forty years, the usual course was to OBJ
tain subscription to the capital stock, O
obtain money on . loan on the bonds o
the railroad, and spend it on account o
the stockholders. He thought thi
was the custom OF all roads up to fifteer
years ago. The result was that iu mos
instances, or az q general rule. tn,
stockholders lost all their money. o
late the plan O. forming Construction
Companies and take to themselves al
the stock and securities aad build the
road has been resorted to and has moi
been regarded as violative Of sound
business principles. The great distin
gushing features of the present case
was, the gentlemen who formed the
Construction Company were the Direc
tors OF the Company with which they
dealt. This was the first case he ever
knew where The parties were Identical.
Construction Companies as q general
rule were composed Of parties who dealt
at arms length with the Company
1t had not been uncommon with Con-
struction Com paBies to take all the
securities OF every description OF stocks
and bonds aud turn over the road fin
ished according to contract as soon
as the company should be advised OF
all the facts, asd ascertain that it was
not debarred in the law from seeking TO
recover, it would look for its property
which has been lost. He could not
bring himself to assume that every
thing stated was necessarily true.
In answer to a question by Mr.. Hoar,
the witness spoke of the great adVan-
tages the general government had de-
rived from the Union Pacific railroad.
Among them, the services Of portion
cf the army have been dispensed with,
large portion OF the country settled,
ard the saving in mail transportation
alone OF more than the whole interest
on the Government loan. The witness
said that he was the representative
OF Sl00,000,000 OF capital, and epoke
OF the injury which had been inflicted
on the company. The Government
lent its bonds, the bonds became the
basis OF banking operations, when sud-
denly, without an act OF Congress and
without any responsibility, the Treasury
Department refused to have them so
used and threw discredit on the bonds
What next? The Treasury Depart
ment does not count these as a part OF
the public debt, but as the debt OF the
Union Pacific railroad, although not
payable bv the company until thirty
six years hence.
The Attorney General
to-day received the following dispatch
from a special Deputy Marshall, dated
Fort Clarke, Texas, January q, 1872
al have in custody McWeber and
five of the raiders upon Villa
Nuevs, Mexico. Requisitious are
awaiting me in San Antonio. Shall
I obey them or hold the men by mill
tsry force ant present them be'or the
United States Commissioner at Antonio,
in compliance with the process in my
hands
To which the Attorney General re-
piled instructing the Deputy Msrt hal
to hold the men against the habeas
corpus or other process OF the State
courts and apply to the United States
District ATTORNEY for advice and assist
ance.