New-York tribune., 1873-02-21

OF it's capital as dividends, and that a court OF
equity will interfere 10 prevent IT, Ihere can De sui
less Justification for using the proceeds OF money Dor
rowed either Of the Government on the hfst mort
gage bonds for the purpose OF dividend The Commit
do 10 70 be their duty tO express or 10
form an opinion as TO the degree Of moral blame that At
aches to the persons engaged in these transactions cA
cept may righttly affect the exercise Of the
discretion OF Congress in dealing with their franchise
Congress accept the general intentions Of per-
sons combined for deliberate violation OF
its laws If it expects them be obeyed or respected
hereafter But we do not. the Committee say, Like to
close our narrative Of this and pronounce judg-
ment upon these Illegal transactions without observing
that there many persons connected with the Credit
Mobilier who held their stock openly and without con
ceament from the beginning, and who seem 10 nave had
share in its management and no knowledge Of the
wrongful Of its the funds OF the railroad
me Of these persons are OF eminent character holding
high public positions, and It is difficult to believe that
they had consciousness that they doing wrong
the OF proceedings in the light in which the
Committee state L.
wITSEssEs WHO COULD NOT ATTEND
After further remarks the Committee say the division
Of the substance OF the corporation has weakened
make its control by capitalists and powerful rail
road corporations, In the manner above described easy
IL is now helpless and dependent. In making the nges
tgaton the Committee say they have labored under
great disadvantages. The books containing the records
L
The estimates OF engineers made before the letting OF
the various contracts cannot found. The presence
as a witness OF Gen. Granville NJ Dodge, the chief
engineer under whose supervision the principal part
Of the work was done, could not be procured,
although dlligent efforts made 10 that end
Mr. John j. Cisco, who Treasurer Of the Union Pa
cfc Railroad Company, unable TO attend by reason
Of illness; Gov. John A. Dix, who President Of
the Union Pacific Railroad Company, could not be
present by OF his executive duties Governor
OF the State OF New-YOrk Many Of the incidents In
these transactions been Investigated thor
oughy desired for want OF time. II Is proper 70
that nothing has been disclosed in the evidence
indicating any msapDroprauions OF the moneys OF the
Company by the present management OF the Union Pa
cdc Railroad. The Committee think the facts shown
would grounds for Judgment OF forfeiture OF all
the franchises Of the Corporation but t would be harsh
and unjust forfeit the rights OF the present stockhod
ers "a large majority have bought their stock
10 good faith the markell for the wrong doing Of
their predecessors The report concludes follows:
BAD FAITH OF THE CORPORATION.
We have the OF corporation which Is trustee
in the management Of persons who have divided the
trust funds among themselves; who have promised 70
pay for It's capital stock cash. which promise they
have not kept and on which they still liable, aud
which the corporation neg0cts TO enOrce and who have
contracts with themselves IN reference TO the trust
fund, the profits which contracts they ought, in
equity account FOR TO the trust fund. Upon the most
simple principle or equity SUIT Gun DC Dy
any ceSi qe trust compel the collection of these
assets and that trustee shall mold them hereafter
part Of the trust property II will be to this
statement TO say that the ultimate security OF the United
true and in fact were true, the United States have
a right to have the security which they stipulated for
even If t DC more than Is necessary II we are wrong IN
this opinion, there B no remedy except by resOng %
the extreme power OF repeating the act
Those questions are judicial questions. As We
nave saIa we & PT0pESe p one Of secTrtSe Nc so Tar A.
ryae fha m m 4fraf
sn m ror 1cctcd win tbe Greut Mobier holding sIch
bonds contemplated by the order OF the House
They holders OF the good faith and Tor
value but did procure the same Illegally. We do not
recommend that the United States refuse to pay these
bonds therinteres without first ascertainng the facts
bonds OF the Union Pacific Railroad in good faith, ana
for value, that the said mortgage ought not 10 be set
organization known as the Credit Iobil.er.
The Committee then refer to the testimony taken be-
fore the Poland Committee, and submit the accom-
panying bill aud recommend its passage
Tile report is signed by Messrs. j. VI. Wilson. Samuel
ShellabaIger, George +. Hoar, and II. w. SlOcum.
A MINORITY REPORT.
The Hon. Thomas Swami submitted the following as
minority report:
"Iconcur in the facts and figures presented this
report far the could be ascerained through
the testimony OF those who have been connected with
the Union Pacific and Credit Mobller Companies and
the legal remedies recommended by the Committees but
object TO the adoption OF the report as incomplete
under the resolution submitted to the Committee jan g.
1919 until recommendation Is embodied IN the same
|
had transactions with the Hon. Oakes Ames, Will be
found detailed in the report OF the Hon Luke r Poland
as Chairman, Ne believing that the same should be
promptly considered and disposed OF without further
loss OF time. THOMAS SWAMI
THE BILL RECOMMENDED.
The following is the bill reported by the Committee:
an ACT to amend an act aid the construction
railroad and telegraph line from the Missouri River 10 TIE Pac-c
T"s,ai ns2v and other purposes, to
the United States ana OF l people IN ne C3oI FaS..e HAfoa1
equity be instituted in the name or the United states
against the Union Pacific Railroad Company and against
al persons who may their own names or through any
agents have subscribed for received capital stock In
said road which stock has not been paid for in fun IN
money who have received as dividends or other
wise portions OF the capital stock OF said road the
proceeds ayails thereof, or other property
eauity' or who may have received as profits
or proceeds OF contracts for construction or equipments
OF said road or other contact terewtn money OF 9hE
property which ought in equity belong TO such railroad
corporaon or who may under pretense OF having com
Piled with the acts TO when TINS is an ADDITION nave
wrongfuly and unlawfnly received from the United
states bonds moneys lands which ought in equity be
accounted for and paid 70 the said railroad company or
10 the United States, and 10 compel payment for said
and the restoration or such property orl value either
10 railroad corporation or TO the United States
whichever shall in equity be held entitled thereto
SEC q Said suit may be brought in the Circuit Court
in circuit and all said parties may made defend
ants In one suit; and decrees may be entered and
forced against any one OF more parties DEFENDANT Win
awaiting the na determination or the case against
the other parties. The court when said cause Is pend
ing may make such order and deerees and issue such
process shall deem 20 bring in par
carry into effect the purposes Of this On fling the
bi writs OF capias and attachments may be issued by
said court against any parties defendants which writs
shall run into any district and shall be served other
like process by the marshal OF such district on which
property real personal be attached to abide the
event OF the suit Ike property may be attached Oh
issuing from the Circuit Court In such district
SIC g. The books, records, correspondence. and all
other documents Of the Union Pacific Railroad Company
shall at all times be open TO Inspection by the Secretary
of the Treasury such person as he may delegate for
' Fd a The laws Of the United States providing for
I'm De 10 10