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

tlOn tnat your company pay as soon as practicable
one hundredth meridian, but which time shall not
extend beyond the time OF the several payments
further Condition that the present Contract for
which this company is the agent shall be extended
30 70 ncmSe 100 mss from the
The said 100 miles to be completed to the &C.
ceptance OF the government Commissioners for tho
The same quantity and kind Of material to be
used and the work to be OF the same general cha
one hundredtn meridian with the same guaranty as
TO cost OF Iron and price for burnettzing timber or
ties.
made adequate for the present business OF the
company s, as now proposed Dy me engineer IN
S
The hotel ut North Platte station to be COM
pleted according to the plans and specifications
Turn-tab'e, engine house with ten stalls, black
smith and repair shop with stationary engine
suitable FOR the purpose two lathes and other tools
sary for the immediate requirements of the CON-
pany; water tanks at points heretofore designated
by the engineer in charge; also two locomotives
The running OF trains on the road to be under the
control OF the contractors superintendent. The
contractors to pay the cost OF transporting material
used In construction.
Payments to be made on the monthly estimate OF
a af in the Contract to assume
ali labiiities ncI. red by the company on account
Of the construction of sa..a Ivy Miies.
- 0'N'' BENJAMIN F. BUNKER, ~
Assistant Secretary OF the
Credit Mobiier Of America.
Tnat the facts in relation to the proposed con.
tract were foll0ws:-A meeting of the parties
Avenue Hotel, at which q majority OF the stock of
the company ana majority OF the stock
%ncs we're the e directors Of the
6. Ii. Mccormick, e. s. Bushnell, John Dun and
affairs 81 the company the means Of Raising larSe
amounts OF money for 1t with the best economy
were discussed, and plan was concluded upon
than three-fOurths OF the stock Of the company;
which plan included the giving OF a contract to
which was then completed, and other provisions Of
great value to the company. That in pursuance OF
said plan and In order to save time the Board not
being in session, contract was drawn up and was
approved by the executive committee. That
there were present at the meeting of the
er If the sdn eSD @S n saa nsn s. Bes
nell, and both agreed to the contract;
that one object of said contract was to secure
(about six million doars) at q time when 1t was
against the interests OF the company to offer them
on the market That at the next meeting OF the
Board thereafter the Executive Committee reported
their proceedings thereon, and the same were con-
sdered by the Board but in the discussion thereof
this deponent took no part On motion OF Mr.. Nc
Comb portion OF the proceedings OF the commit
tee was approved and another portion was disap-
proved. Mr.. McComb stated in the discussion that
his reasons were not that he disapproved Of the
provisions of the contract, but was unwilling to
have 1t go upon the records that the Board allowed
contract made by the Executive Committee
without authority delegated for the purpose That
afterwards, at the same meeting the resolution
was passed which Is contained IN the complaint IN
Williams for 267 miles OF the road including one
hundred miles covered by the plan reported by the
Deponent further says that the large price per
mile of 100 miles given by the contract reported
by the committee, in connection with the other
stipulationS therein, was extended by said resOu-
ton over an additional 1877 miles without any smi
consideration; that the liabilities or the Union
Pacific Railroad Company at that time for money
borrowed on its notes were about 81, 4OO, 600, and
also to contractors east OF the one hundredth me.
S5,243 that to NEE. such debt the company held
$4,sS0,000 Of its own lrst mortgage bonds, and
$a,OOo,oOo OF land grant bonds the former being for
that afterwards, when the securities Of the COM
pany became marketable IN large amounts, the
same became easily available to provide for said
debt.
Deponent further says that he never objected
to or insisted that the price per mile for construc-
ton mentioned in the contract with Williams
was too low. or should be larger. That as to
the statement in said affidavit that the
price for construction in said Williams contract
was never alleged by dcpOnent to be excessive,
this deponent denies the same, and states that he
has uniformly shown to the directors that the &C.
tual cost Of construction was greatly less than said
price, and had In one instance prevented like
WaSGeful operation Dy preventing inc extension OF
the HOXe contract.
Deponent further says that he Is informed and
believes that the reservation Of $1,000 per mile to
provide for equipment in the resolution accepting
Williams last proposition Is not and was not in
tended to be positive deduction Of that sum from
the price, but reservation thereof until the equip
acceptance of the road, and In case the equipment
should cost less than 81, 500 per mile only the actual
cost thereof should finally be deducted; that In
fact the equipment on the portion OF the road sub
sequently and hitherto occupied by the government
Deponent further says tnat Immediately after the
acceptance of said Williams last proposition by
the company, at meeting regularly called OF the
stockholders Of the Credit Mober. 1t was resolved
that the work of construction and equipment
under the Williams contract might be let as q
whole by the committee. at price not exceeding
$4,000 per mile for the construction and compile.
ton Of the road, the furnishing OF equipment to
$4,000 per mile, the completion Of the telegraph
line to $4,000 per mile, OF which said resolution
a ap copy Is "ersun'0 annexed marked schs0ui'
At stockholders meeting Of the Credit Mobler
held March q, 1897, present-Dillon, Oliver Ames,
Hazsrd Dun, Bushnell, mccormick, Lambard,
Gray, Williams, McComb and Cakes Ames,
Resolved That the contract proposed made by
NJ S williams with the Union Pacific Railroad Company
meridian and by said company agreed TO-
by the Credit Mober and that this company accept
S. Williams as soon the same can be prepared
On motion off. M. S. Williams, duly seconded 1t
That the Executive Committee be authorized to sub let
the building The road under the contract made between
the Union Pacific Railroad Company and j. NJ. !. Will
ams and by him to be ASSIGNED to the Credit Mober
q whole exceeding $4,000 per mile. The subcon
tractors to furnish under such price, equipment the
amount of $500 mile and also with the understand
ing they shall allow freight equal TO $5UD mile
the part now built beyond the one hundredeth me-
rdian and 5000 per mile beyond the 3D5 miles now
completed Said contract 70 embrace railroad and ele
graph line TO the satisfaction Of government commits
sioners with the further understanding that the sub
contractor shall assume all the contracts and materials
engaged provided and all payments said accounts
At said meeting oliver Ames, G. s. Bushnell and
s. Dillon deponents In said afdavit, were present
and joined In said RESOLUTION.
Deponent further says that previous to the nc.
ceptance Of said Williams last proposition, and
with view thereto, II was proposed among tne
tract should be procured from the Union Pacific
Railroad Company by or for the Credit Moblier, the
same should be sub-let as whole to the committee
as sub-cOntractors at $4,000 to 5000 per mile
and the profits which the committee should make
out OF such sum should be divided among them In
lieu OF salary. That said Dillon, as q member Of
the committee, favored the same and that O. 8.
Bushnell, not q member OF the committee, but as
a member OF the Railway Bureau of the Credit