New-York tribune., 1875-03-06
A NrU CREDIT MOHIrI-p


NEW CREDIT MOBILI,R
MINORITY REPORT OF COMMITTEE or IyvEsuGA-
T1ON on THE CENTRAL PACIFIC RAILROAD
GRAVE SUSPICION OF THE CALTFoRNIANs THAT
EuTu TIE GOVERNMENT AND THE STOCKHOLM
ERs HAVE BEEN DEFRAUDED BY TIE MANAGERS
-MCMBERs OF CONGRESS- INVOLVED.
WASHINGTON March 5.-The following was pre-
pared last Spring by the Hon. L. d. Standeford.
member of Congress from Kentucky, TO be presented
10 the House of Representatives the views of
the minority" OF the Pacific Railroad Committee on
Nil Luttrelis resolution calling for an investigation
of the affairs of the Central Pacific Railroad and the
COntrat and Finance Company. AS the majesty
Of the Committee have never yet made any repSt
to the House on this subject, Mr.. Standeford has,
course been debarred all opportunity to present his
views The termination Of the Congress, however,
leaves hIm at liberty TO give them publicity, and
they will be found of interest. One or two other
members of the Committee agreed to his conclusion,
but would have adopted somewhat different mode
of reaching IL.
A. one Of the Committee the Pacific Railroad. TO
which on the IZfh OF January 1878, referred the pre-
amclo resolution a-ting iOr the appointment OF
OF tno Central Pacific Railroad, Offer the following as
"a minority report of said Committee and say am
compelled dicr with the majority OF this Commlttee
to the necessity and praetieaby OF the invesnga,
believe that the investigation asked for IS proper and
imncrauyey dcnanueI 10 tne necessity oi ihe case:
THIS road j. creature o, subsidies ana donations
granted 20 ~ hy the United States; in land amounting
10 many million acres and III bones lent 10 the amount
OF S27S9l2J. upon which has already been paid more
lhIn SoOg8 0G ly tu's Government. Besides tins mi-
Iidceut rendered 10y the ULllcI Stdt vac Stac OF
Cai.orna herself aud the various corporations Within
her territory have granted ANA donated large sums III
money land 70 aid IN It's construction; ana II Is as.
sered that the STATE oi Nevada anu inc territory OF
Utah have Increased tie amount by valuable grants
The United states mas certainly me nSht which JUS
to IL taxpayers demand should De stIcty ana u-
rOmpIOmlsng.y exercised. to see .dat tle Immense
sums contributed 10y II have been properly used ana
only for the objects INTENDED 10 DC accopHsneu. LUIS
AZ II our duty done, not only III tAe case OF tnl5
road but IN the case ~ every Other entePrsc 10 Won
the Um;ed States has cn' or may IN the future chu ls
aid .ud gid accountability Ougnt 10 DC demanded Oi
those VINO tue 0Cst0dians OF the Nations bounty
Tue uuGs 3utod ac> connected with he construction
Of inns road ar: FIRST II mas Uecn practically completed
since 1862 aud IN running oder since that time averaging
IN gross carulUgs neaiv 100000 yCar-lncreaslng
from $jC70S2 n 1869 TO $l3 9SSS9 IN s5 me net earn
ings fOr latter year were over $SoWJoW second
pe handling OF these vast sums OF money, together
with the dies AID donations TO the road, has been
Leland Stanford. Charles Crocktr, {. T. Huntington
l. b. Crocker, Marx A9pkins, and Charles hafsh CON-
ben paid any dividend up To Juy /. 1873. Fourth: The
United States mas not been pald any interest," upon the
At Is alleged thai the moneys ard credits coming into
p:opr.ated aud irduduently misappied by the afOre
rand directors, who compose The majority OF the board
Itis aso ascd MAJ th'se uaSg0r; M nave eShspired
ana tbe United States out OF cue money which they
yona e entitcG to receive from the earnings of the
road. L. further alleged that these directors have
comDined tOg s.hcr t. award al, contracts to a com
rapy Known az The Contract and Finance Company
~ SwhicG HnnrngtHn. Hopkins Leland. Stanford
G. CrocAer ami L. l.. CrocGer, directors as aforesaid
are aeulbcrs aud that ali contracts for TIC construc
ton of the road. and furnishing the matellas rolling
stock sc, were actually made WIN this Company by
tnc Board Directors az cost far above what should
have been paid for which the work and material
could have bCen obtained. thus giving the amount
aud above wh1t the road shooo nave cost 10 the per
,oDs composing the Contract and Finance Company
10 the great injury of the stockholders ana creditors OF
II tncse allegations are trueof which, from the test
mouy before there ls more than grave suspcion-
these drectors who the trustees oi the COmpanys
urcperty " 10 earnings iOr the benehi ot the United
rCfuGd the amounts so raudulenty obtained; ana 1t
wall amount in al probability to many millions OF dol
are n these charges sustained And H. AS has been
charged. they have consplred together 10 form
Contract and Finance Company, OF winch they tlem
road let an contracts that Company at large prce
whatever piOft was made by auy OF TIE individual
directors belonging 20 SAID Contract anu FINANCE Com
many bcOngs justly 10 tho UniIed States ana the other
creditors o road aud should be applied TO the pay
ueut Of interest and.Oiher debts:
m iscuarged ihatiuemDcrs Of Congress were united
,u tins fraudulent combination 70 Ceraud tile creditors
tnNt AS a member OF TINS Congress was able from his
Oh position 10 sell his stock IN .he road az u times
,s mar value when other stockholders able to
Yraze 70 per Oufthe face OF their stock and that
shc Contract and Fcauce Company aforesaid, able
sell hs stock AZ 4 t,ines itS ,ace sd ya1Ge; in h,
ton win OtueTs have cOnspred aud are attempting 10
obtain alsoue control ana potes.ion OF e road WITH
eut payug it, debts or liabilities. These charges
Sgatt thc Inanag are uade by the soveregns OF
tIe state O. California, through her Lecisature and
eo,ae 10 ne thr ugh Of her representatives, IN Con-
ress: and whether accompanied 10y proof suihclent to
saDlsh taeir ruth not, ought to receive serious
ensdeTatlou from as aud. II not shown 70 be without
tundatlon the investigation should DC granted As II
- sude the charges have not been denied except by
tne paid attorney Of the road. - -,
tc circumstances connected with these charges that
mo dyideucs have been paid. and THAI large sums oi
have been Gsed. The methods OF usiug wulch does
moi nnar are certainly II not proof positive OF faun
~ ie INC foundation for grave suspicion VI dlshoheSl
asnmoempnt There has been q growing feeling that
, Central Pacific Railroad has been dishonesty man
ged fbe specific enarges before us aud come from
- sonrce the respcctabl;ty OF which We eanDot
dsnv. and the opportunity ought 70 DC SlVeh
i,o ihe directors 20 show THAT they are innocent
liz on The other hand, the charges are sustained sIs
TEN of fraud aud pecustion will be developed nstons
tns ia ne IN these days OF gigantic eu
h.,.Ie,neit Justice 10 the whole couDtry demands
.sai We should order this investigation: Taxing INTO
the and evidence adducecs
80 slso ne fsss ssss ~ Acsasassess |" 0s'A''Ss