The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-06
STATEMENT OF VICE PRESIDENT DURANT
How the Credit Mobilier Ring De.
frauded the Union Pacific.
A WHEEL WITHIN A WHEEL
A Clear Expose of Fraud Made
in Open Court.
CONTRACTS FOR WORK ALREADY DONE.
Mr.. Durant'S Affidavits and the Injunctiens
Granted in 1867.

Mr.. Durants Affidavits and the Injunctions
Granted in 1867
The documents presented below are now for the
first time given to the public. They are not the
product Of Imagination or malicious rumors, but
the legal papers Of the Court where the originals
were fled on the Goth day OF September, 1867.
Omitting the superabundance Of legal verbiage In
some OF the afndavits, summ0nses and schedules
plain transcript Of the state OF facts Is presented.
1t is an inside view OF the extraordinary manner in
which portion Of the stockholders OF the Union
Pacific Railroad Company-a corporation entrusted
largely with the confidence and credit OF the ma
tiOn-by the organization Of the Credit Moblier q
corporation embracing only members of the former
company, wheel within wheel-contrived to
control the entire working machinery and absorb
the profits accruing Of the entire Union Pacific
Railroad Company. 1t Is history sworn to by the
highest Oflcial Of the Union Pacific Company, at
the time the action alluded to was deemed heces
sary. Although stockholder In Credit Mobilier
he had an eye to the economy of the Union Pacifc
regarded the high obligation which that corpora
ton was under to the national government. and
resisted the attempt Of the directors OF the inner
circle to infringe upon his interests and rights as
protector, builder and principal officer Of the
Union Pacific. The facts presented will assist the
committee now Investigating the Credit M0bilier
at Washington not only to better understand the
motives for the bribery and corruption of mem
bers OF Congress ana the sources from which were
derived the funds to pay the debauched men,
beers such enormous dividends, but will enable
them also to take Q larger and broader
view of the real character and management OF the
great corporation which the government clothed
to review the original compact, and to ascer.
tain whether 1t has been violated and
whether the people who relied upon
Congress to invest their money eco
nomlcally have been robbed by Q combination
between corrupt congressman and wicked corpo
rators some OF whom were directors In both cor
porations and Congressman at the same time.
The committee Of investigation Of the House Of
Representatives, 1t Is popularity believed, have no
right to close their doors against the people. The
impression Is firmly fixed in the public mind that
the same willy influences which have been inge-
niously manipulating and specializing upon the
credit Of the Union Pacific Railroad Company,
leeching Its very existence, compelled the CON-
mittee to exclude the press and close its doors, In
order that the scoundrels who have occupied the
seats and infested the Hobbies of Congress Tor
years. and, by their votes and agencies, have
their awless tracks and escape. 1t Is the delibe-
rate purpose Of vigilant press and the earnest
wish Of the tax-burdened people that they shall
not, and the committee should iced such intma-
ton. The only honorable course for the committee
to pursue composed as 1t is of gentlemen Of ability
and honorable repute is to relieve themselves of
the heavy and questionable responsibility which
they have assumed and open their doors. Then let
the House OF Representatives enlarge the commit
tees powers and examine the honest men scat
tered over the country as witnesses who will tell
what they know. In the meantime let DR.. Thomas
@. Durant be heard. At the time he took the
action referred to below ne was director and
large stakeholder of the Union Pacific Railroad
Company, afterwards Vice President and execu.
tive officer and subsequently President, and now
large owner and director in that corporation.
SUPREME COURT, CITY AND COUNTY OF NEW
YORK-Thomas q. Durant vs.. The Union Pacific
Railroad Company.
City ana COUNTY of Ne,c YorE, ss:-Thomas G.
Durant plaintiff in the above entitled actcl, being
duly sworn, deposes and says that he is the plain
tifY in this action, and has copy of the ai-
davit OF Oliver Ames, Sidney Dillon and Cornelius
s. Bushnell, sworn to June 20, 1867.
Dsponent further says c that no arrangements are
and the Union Pacific Railroad Company for the
construction OF the road Of said company, except
agreements OF any kind or manner was ever made
between these companies, except these herein set
That In reference to the allegation in said anlda-
Wit that deponent assented to the J. NJ $. Williams
contract deponent protested against the said
contract In the Board etings and outside the
meetings OF the Board, as is well known to the
Board, including Messrs. Dillon, Ames and Bush
nell. That the facts regarding the relations OF the
Credit Mobilier to the Pacific Railroad Company
and the proposed Williams contract are as herein
That prior to the execution of this con-
tract, and before the election OF October,
1865, at which Messrs.. Ames and Dillon
during the Summer and Fall Of 1906 the work west.
ward OF the Tooth meridian had been pushed for
ward o ons and
under verbal understandings and agreements, as
before stated. That the execution or the written
contract had been delayed for some months, until
the policy OF the company should be decided about
putting the whole or large portion OF the road
desired that any arrangement should Interfere
Deponent further says:--In reference to the In
PRODUCTION by deponent of his protest. dated 27th
Of March, 1867, to the Board Of Directors that the
facts were as follows:-
That in March, 1857, during the next meeting of
there being no quorum the board adjourned until
three p. NJ That 1T the three O'Clock meeting OF
the same day the board again met and proceeded
That deponent handed the protest to the Board,
UNION PAcIrIo RAILROAD COMPANY.
PRESIDENTS OFFICE, 20 NASSAU STREET,
NEW York, March q, 1867
To THE DIRECTORS OF THE UNION PACIFIC RAIL-
GENrLEMEN-I protest against the resolution Of
the Board Of Directors, passed at your last meet
road OF this company, commencing at the one
hundred degrees meridian OF longitude, for the
reason that section Of road already accepted is
Included In the contracti and IT does not appear
that this company derives any benefit adequate to
the price paid over the cost OF construction, by
the purchase of securities or otherwise, and does
not In the future require an essential point In
the contract the completion Of the road within the
shortest possible time, and for other reasons
named In previous protest relative to the extern
sion OF the "Hoxie contract at the rate Of $50 900
per mile for thet portion OF the road completed
and accepted by the government commissioners.
1 beg TO call Your attention again TO the fact
that part OF this work has been done for months
and contracts made and materials delivered Tor
nearly one hundred and fifty miles of road which
the company have paid for, as Will be shown by
the books. Respectfully, H. c. DURANT.
other business being In order, the Board ad-
journed to the next day. and, on meeting the