The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-03-06
RAILROAD SUBSIDY FRAUDS.

THE CHARGES AGAINST THE DIRECTORS OF THE
CENTRAL PACIFIC NEUTRALITY-SUSPICIOUS.
Observation-Disclosures REPORT OF THE CON-
GREssIoNAL COMMITTEE.
WASHINGTON. March s. 1875
The following was prepared last spring by the
Hon. E. ID. Standeford, member of Congress from
Kentucky to be presented to the House OF Repre-
sentatives as the "views OF the minority" OF the
Pacific Railroad Committee on Mr.. Luttrell's reso-
luton calling for investigation OF the affairs OF
the Central Pacific Railroad, and the Contract ana
Finance Company. AS the majority of the CON-
mittee have never vet made any report to the
House on this subject Mr.. Standeford has, OF
course, been debarred all opportunity to present
his views. The termination OF the Congress- how.
ever leaves him at liberty to give them publicity,
and they will be found OF interest One or two
other members OF the committee agreed 10 his
conclusion, but would have adopted a some what
different mode OF reaching It,
AS one Of the committee the Pacific Railroad, to
preamble and resolution asking for the appointment of
OF the Central Pacific Railroad offer the following us
am compelled to differ with the m aiority of this
mites as to inn The nh, and Of the
road and believe that the inyestigauon asked for is
the This creature Of subsidies and coma.
Sns tee to IT BY the lifted md ia land
to the amount OF s2iS'y 10 upon which have ready
ss as G Ss ssve rs e
and donaea large sums IN money and land 10 aid in its
The Territory Of Utah increased the amount Dv
Grants s Hss a the be
strictly and uncompromsngly exercised to that the
used Tor the objects U o be
cd sh % auy e see Of aone not the
priss which Tie United or may in the
RIGID ACCOUNTABILITY
@ sTs tf s o
neSed WITH the construction Of this road are ,o,o
and running order time. averaging. IN
to ns snFn r1%
for the at ts. year Sn , over ss'ot0,oool
gelhcr with the subsidies and donations the road
inson croSss Marx HOPKINS HOPKINS and Charles de
Thra-The stoe Nnoides have been paid any divi-
fourhThe United states has not been paid any inter
est upon ,hs s0na; s,psa BY Il
an, ALLEGED mat the moneys and credits coming into
spprcpated and raaaaeniy mlsappcd by the ssn ore
s,d who the majority Of the Board
ssthc oT the purpose Of deiraudin the st9csholders
Would entitled receive rom the earnings Of the
tH' 'sss anS
known as the Contract and Finance Company, OF which
ne%ber and ana
na ar e 2r s s * he were
actually made this company by the Board of Di
at cost far above what should have been paid
and for which the work and material could have been
the road should have the composing the
Contract ana FINANCE Company, to the great injury of
the stockholders and creditors OF the road.
CHARGES AGAINST CONGRESSMAN.
IT these allegations are truc. OF which from the tes
mony before us there is than grave suspicion.
these dir ectos VINO are the trustees OF the companys
States and the stockholders should be compelled to re-
fund the amounts so frauiulenty obtained anu
II Will amount in all probability, to many mil
lions OF dollars II these charges sustained.
And. II as has been charged, they have conspircd
together 70 form contract and finance company
OF which they themselves torn a majority, and then
directors OF the road let all contracts to
individual directors belonging to said Contract and
Finance Company belong Justly to the United states and
the other creditors OF the road and should be applied to
the payment OF interest and other debts.
1t is charged That members Congress united In
this fraudulent combination TO derauI creditors
the Central Pacific Railroad OF their dues. and
as member OF thus Congress was able from his Official
position TO sell his stock tie road and half
times ITS par vaae when other stockholders not
able TO realize seventy OF the their
and that another member of Congress, also
member OF the Contract and finance Company atore-
said able TO sell his stock at and halt times
its value.
Its charged that the directors aforesaid combina
ton with others, have conspired and are attempting
Obtain absolute control ana possession " the road with
paying It's debts liabilities These charges against
the management are made by the sovercigns of the
state OF California, through her Legislature, ana
TO through OF her representatives in Congress;
sh their truth or not ought to receive serious consd
GRAFTON and If shown be without founda.
ton, the investigation should be granted
As 1t stands the charges have not been denied ex
cept by the paid ATTORNEY of the road