The daily gazette., 1876-05-13
HUNTINGTON'S RING.
CENTRAL PACIFIC "MOBILlEK."
A RICH FIELD FOR CONGRESSIONAL IN-
vRsTIaATi ioN-ENORNOUs PROFITS
OF THE RING.


RICH FIELD FOR CONGRESSIONAL In-
vRsTIaATl TloN-ENoRHoUs PROFITS
OF THE RING.
Special despatch to the Phila. Times.
WASHINGTON, May 11.-Senators and
Representatives have received copies |
of a petition asking for Investigation
into affairs OF the Central Pacific Rail
road. in which alleg atoms susceptible
of proof, as the memorialists assert)
are made showing the existence Of
Credit Mobilier far greater in magni-
tude than that of the Union Pacific,
exposed by the Congressional investi-
cations OF 1871-72. on account of
which Oakes Ames and other persons
were put in disgrace, Among the as.
sertions made by the petitioners are
the following; That the capital stock
Of the Central Pacific Railroad Com.
pany, of California was named in the
articles of corporation at 50, 500. 900,
divided into 81, 900 shares at 800 each
that the various gifts and subsidies of
money, bonds and lands made to said
corporation by the United States, the
States Of California ard Nevada, and
various counties and cities in tneState
of California, have exceeded in value
the sum OF S125, 100000, and that
there have been issued bonds, secured
by mortgages on said road, to the
amount Of $37, 900, 600; that, instead of
building said railroad in as economical
a manner as was possible and for the
best interests of the stockhold ers of
said company, the managers or direc.
tors Iceland Sandford, Mark Hopkins.
C.P. Huntington and Chas. Crocker),
in order and for the purpose of cheat
ing and defrauding ysur petitioners
and other stockholders, and depriving
them of their just share in the profits
. of the enterprise, and to make Congress
= and certain officers of the Executive
!. Department of the government, and
. more especially the Secretary of the
- Treasury and the Secretary OF the In
terror, believe that the said road had
!, cost much larger sum than it really
: did, aud to obtain from Congress more
IS favorable legislation on behalf of said
7 railroad, the said managers formed a
! certain firm, known as Chas, CroCkel
s. Co., and of which all of said mana
:, gers were members, to which they let
:. contracts for building said road al
prices greatly in advance of the value
v of the work to be done, the profits
G whereof were divided among sale
+ managers for their own use; that II
d 1867 the said managers procured three
il clerk or employees of said managers tt
form certain corporation known a
the Contract or Finance Company ;tha
although said clerks (Wm. Il. Brown
Theodore ]. Milliken and Benjamin II
Crocker) appear as the corporator
y thereof. yet the real parties in interes
N were the said managers, and that tn
in said managers, acting as directors o
le said railroad company, contracted witt
IN themselves in the name of said Con
=. tract and Finance Co., under the pre-
IN tense of building and equiping the salt
ie railroad, at prices greatly in excess o
~ ~ the work to be done or material to b.
g. furnished, whereby all the funds, asset
t, and property of said railroad compan.
u, other than its road bed and rollinl
= stock, were transferred to the salt
s. Contract and Finance Company, TO
"a the use of said managers, in fraud o
ar er your petitioners and other stockhelder
I'd of said railroad company, and of tn
Z; Government of the United States; tina
u if the said road should be examined
ID oy competent engineers it will b
found that the whole line OF road bull
by said Central Pacific Company ca
= be completed, according to the mannc
in which it was built, for sum no
I exceeding $35. .000, 600; that most of til
Il delay and stoppage of business on sal
~ road during the past winter was cause
by the inferior character of the roa
bed, rails and lies thereon, the same NO
4 hai nT q tiaI of n n
weight of snow plows necessary to b
z used in removing snow from the track
that to put said road in good order anC
to bring it up to our standard of a frs
class road, so that passenger train
could pass over it with safety at tn
ordinary rate of speed at which sucl
trains are moved on main roads in New
NJ York, Pennsy lvania or Massachusetts
= would require an Immediate expendi
ture of about s., ,5uO, 1000, and the pc
ltitionerS further aver aud represe.i
that since the competition of said Cen
trail Pacific Railroad, tho manager
thereof, from and with the money
and assets acquired by them in tn
building of said road in the dishones
T. and wicked manner before shown, ant
u from the earnings thereof have con
structed the California and Oregon
Railroad, the San joaquin Valley Ran
OK Road. large part of the Western Pa
cific Railroad, the San Francisco Ba..
, Railroad Gail within the State of Cali
fornia), also, large part Of the Ches
:, apeake and Ohio Railroad, in tn
to to- States of Virginia and West Virginia
yer and from the said moneys and assets
so as aforesaid acquired by said man
ayers, they have purchased those Gel
= tain reads known as thu California Pa
cific, the San Francisco and Oakland
the San Francisco and Alameda, th
g Los Angeles and San Pedro, the Sa
Francisco and San Jose, and also
nG m large number of steamboats, runnin
the on tne lnlanu waters VI Caiiiorhi'
fus that,all of the aforesaid railroads, eA
md centInp the California Pacific. the LII
IAk