The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-06-28
TROUBLE IN THE CAMP.
Meeting Of the Credit Mosiiicr tocithoiders
jay GouIfs Tneties.

jay GouIfs Tneties.
II 10 likely that the matters ut Issue be-
tween the Credit Mobilier and the Union Pacific
Railroad will receive q most thorough ventila-
ton by the courts unless some compromise lie
agreed upon In a short time between the con-
tending factions. The stockholders Of the
Credit Mobiher ut the time of its organization
and successful operation were directors of the
Union Pacific Railroad, and very wealthy men.
Now, by reason OF their speculations In wall
street, they are mostly Impoverished, and eager
to obtain a settlement with the Union Pacific
which will again put them In comfortable cir
cumstances. or course, they are anxious to
have the note for f2,0o00o0, which the Credit
Mobilier holds against the Union Pacific Rail-
road, paid 10 fun and there 10 no doubt but that
1t would have peen liqudated long ago had
Gould not bought into the control Of the cor
poration.
Gould claims that the Credit Nobiiier con-
tracts were Illegal, and that much OF the money
which was disbursed for construction ought TO
be refunded, and to that end has begun several
suits against the organization TO recover sums
paid out In this way he obtained ABOUT one
third Of the Credit Mobiller stock. the owners
surrendering II to avoid litigation. or course
immunity was guaranteed them In the event OF
sure nc ering their stock. tue question OF their
liability to prosecution was not raised oy Gould
until after he h nd made proviston for the paw
ment Of the t2UO,0O note. by setting apart e.
100000 Of the t16,00Q,0oo issue Of sinking fund
bonds. The Credit Moblier "a therefore put On
the defensive. ~ well rs obliged TO sue TO OBJ
tain payment OF Its note.
On Saturday an adjourned meeting u the
Credit Mobilier Stockholders was held IN Pbiia-
delphta, which was alton ed by various parties
from New York and Boston. The Union Pacific
proxies. which Gould obtained by threatening
suits against the holders OF the stock, we're rep
resented. The meeting IL said to have been
quite notable In exhibitions Of WIRE pulling on
the part OF could and the opposing party. The
object Of GOULD, II was plain, was 70 obtain the
re uy wo' en- me ed
Company IN confederation OF the final suspen-
sion Of all legal proceedings against the Credit
was also given to Offer a small sum Of money In
order TO bring about complete settlement.
some stockhoiders bought over, held majority
In the meeting IT was not deemed expedient at
the time to vote for such bold move. go
resolution was introduced that 81 per share on
the capital stock OF the Credit hobiier be paid
inio the treasury TO defend the suit brought
against " by the Union Pacific for the caucsl-
lation Of the note. the money to be In the
ch1 rye OF the directors, and the suit Of the
Union pae,ac to De- G re,''ssd ~ them re
friends, and under his control, IL ~ easy TO see
what such action would amount to.
The minority OF the Credit Mohilier meeting
voted against any sucn aseessm ent, unless a
COMMITTEES Of the stockholders were appointed
~ W.. IF no un1 ,y, AID he ps.os,on
was passed that the parties TO defend the SUIT
brought by Could should be the directors OF tho
Credit Mobilier, VINO are also plaintiffs In the
same suit on the part OF the Union Paci1c.
The stockholders who voted against the reso-
luton are very angry. They intend to bring
suit on their own responsibility TO compel
settlement OF their Interest In the t2OU,OOO
note. They characterize GouId's action as en-
trely illegal. and are confident that tue Cuion
Pacific can be beaten In the courts.
They say that one reason why Gould and his
friends are 40 eager TO break up any suit by ths
Credit Mobiner. and to keep It's affairs quiet. Is
because the ofcefs cannot account for money
and stock which the treasury q the otsanila.
lion at one time contained They clam that
sl25.OlO In money ana 1000 shares OF Uuion
Pacific stock. which the Credit Mobilier owned.
have never been divided among the stocKhold-
ers. but are snid To- have been used for expenses.
No accounting has taken place, but move is now
divided up outside VI tho s2,U0OOo note. They
also say inst the intent y l. TO cneat them out
that Gould may gobble the t2.5c0O OF shaking
fund bonds set apart to take care Of the oOiaa-
tion. lhey also say that these bonds ore miss
ing; that thev have been diverted from their
original purpose. and are not In the ppsscssi m
Of the Union Pacific Railroad. They saw that
Gould has been a LAT We seller Of the sinking fund
bonds for many months. and that the indie ltions
are that he nas had something to do with the
ln all quarters the action OF the Union Pacinc
officials with reference TO the sinking fund bonds
made to smother action OF the Credit Nonilier
stockholders at their meeting In Pniladephia
viii not tend 10 nllay public suspicion. II these
g. $4,000 Of sinking fIud bonds nave boon d.
vefted from their purpose aud sold to pay divi-
dends to Gould and few OF MI ffi-nus VINO
hal pen 20 he .addled with nine tenths Of the
capital stock Il Union Pacific, tue ficts ought
to tie made public. The PRECEDENT Of the com
paDy ought not TO rem IN quiet undsT the
charge. II IL has become necessary. owing 10
the exiRencies of the stock market. To hypoth-
ecate these bonds as margins on Union Il ciuc
stock. 10y any Of the Aoguls connected with toe
corporation, the truth should be brought to
light
some time ago several hundred bonds disap-
peued while the Ofices of t.e company We q
being removed from New YORK TO Boston, md
their WHEREABOUTS Is a. Yet a matter Of mystery.
IL viii not - nave too many Affairs Of this
Kind unexplained.