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

equlpment OF any part Or lts road, and that the |
Credit Mobilier had no interest in said Hoxe con-
tract at the time Of the making Of said contract or
1t the time Of the said extension thereof nor at
any time afterwards, until the execution OF said
AQbilier. r -'
Deponent further says that while the work was
IN progress under the said HOxie contract this de-
company and President Of the Credit Mobilier the
Contracts for the construction was carried on
under the supervision Of deponent that portion Of
nnndreth MERIDIAN being lor account Of the Credit
GobIileF, under The assignment Of the Hox.e con-
tract and that portion OF the Work west of the
one hundredth meridian being for the &C
count or the railway company, the officers and
managers OF both said institutions entrusting the
That some time before the road was constructed
TO the one hundredth meridian 1t was ascertained
and well known by the President and Directors OF
and would make out Of said H0xie contract an ex-
tremely large and very unusual profit. And the
ment directors and other directors objected that any
contract for any part of the road west Of the one
hundredth meridian should be given to the credit
That the government directors had made it SUBJ
ect OF complaint 10 their report TO the
Isutenant cconei H. Simpson to the Secretary
Of the Interior, published November, 1865, OF which
extracts are herewith submitted, viz
sur the d duties Of ouF
September previous contract had been arranged and
the s C IN
5sas IS
re ea Of s the opa From the
@ Price s @ ns to 9f e vef e oI
and materials advance the value Of the
S se I the Is ssr IS f the
p1sSs S
n @
% ssq% a si ike this so
sa and the entire compilation OF Which to the
Profits therefore So probe maticsi Without large mar
gin in the contract Again; the Summer of 1854 was
and the Sanc ianrs Of the nation upon which
The undersigned have not in the past could they
% s O. IKE e s IF s e
SS e. s SS1a sa $
soS syf s ih e.
contracts those who actually perform the work under
S Sss
y ne GS n snT Is
S and wh s Ing to h % "a Of
such plan Is mpossi5s We tfasi. ho%sSsf !Sat more
moderate profits and Tree competition will be the rule in
M nave IN pIl he Wo and to
q good road. 80 national in crest seems to us more
now greatly hndered In tedious and expensive mode
he viii
vantages
That Mr.. Springer Il,rbaugh, one Of the govern
ment directors, in his report to the Secretary or
the Interior, relels to the subject as follows:-
My colleagues in their report have fully explained
TO the tor construction and equippng the first
% @ has een up to to the
ent time feel atsed that the contractors have pressed
raoad short Of and at time
chansable expensive river scarcity Labor
srs high Prize Of @ and e %
had to contend with during necessarily
three hundred miles Of road BE- built a small cost
That the work of construction OF the company's
road from the Tooth meridian westward was COM
OF deponent behalf Of said company, and
that the operations so carried on were well
known to the president and the then directors
of the company; and that in the manner last afore-
said q very large extent OF the railroad was con-
for the n m paa of ~ aY H
States, and made the basis OF United States bonds
given to the company and mortgage bonds issued
That while the construction was proceeding as
above described, in part under verbal contracts
sub-contracors and laborers, no contract having
been made OF price agreed upon between the rail-
road company and the assignees OF the HOxie con-
tract, and to save delay and preserve the organ
ization oil the force OF men employed, this de-
Contract with one L. NJ. Boomer for the con-
struction Of the said railroad from the one hum
dredtn meridian r at $4,000 per mile with
toned contract that Boomer should assume
all contracts then outstanding with SUBJ
contractors for any part OF the work; said con-
tract being taken in the name OF the deponent, as
agent, with the design that it should be assumed
by any more general contractor in case one should
THAT from the time Of the making Of the contract
with Boomer the said Gesner was made the agent
proceeded
great rapidity and was carried on under the SUPER
this action, and from thence has been carried
by employing and using sub-contractors and en-
pl0yers.
lions under the HOxie contract, the service and
assistance OF the Credit Mobilier have not been
rendered 10y conducting and managing the work
by furnishing means or otherwise); that during
greater part of the means furnished and used in
the construction was raised by the Union Pacific
Railroad Company upon It's own securities, namely,
bonds OF the United states and mortgage bonds Of
the company.
That the company now is in good credit, and
abundantly able to carry on the work OF construc-
ton with economy and despatch, and has no occa-
sion for any aid or assistance whatsoever from the
Deponent further says, that $50 miles OF said rail-
road and telegraph next west of the hundredth
paid Tor by the company, and the cost thereof to
the company has not exceeded $4,000 per
mile, being the price mentioned In the Boomer
Oousi nv, uhu CVuiPhicue suSiCoi hds pceA
nished, which equipment upon the road at the
time OF It's acceptance by the government did not
exceed four thousand dollars per mile and that
ead entire 100 miles, being part OF that portion of
the road which, by the resolution mentioned in the
complaint, It is proposed to contract for at
$4,000 and $4,000 per mile, has been actu-
ally completed for the company at O cost not ex-
ceeding s25,O0O per mile; and the directors had
been informed and well knew the same and that
the constructing proposed by said resolution
would make loss 10 the company OF $2,750,O00.
Deponent further says that he has an int-
mate knowledge OF the cost OF construction OF all
parts Of the railroad hitherto and OF the necessary
cost or the construction OF the residue thereof TO
grow creek Crossing, at the base OF the Rocky
Mouhtalnsi and that the same can be constructed
amu completed at an expense not exceeding
S2o,ovo per mile necessary equipment included;
ana tnat deponent Is ready and willing TO become
personally responsible Tor its completion at that
price by responsible parties.
DePonens further says that there are certain
stockholuers Of the said, Union Pacific Railroad