The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-06-22
TWO MILLIONS or BONDS MISSING.
q Controversy between the Credit MobiIier
ana Union Pacific Company.

To THE EDITOR OF THE SuN-Si,t The
greatest interest Is manifested BY parties, who
keep track Of the affairs Of the Union Pacific
Railroad, In the meeting which is TO be held IN
Philadelphia on Saturday by the stockholders
OF tho organization known a. the Credit Mo
biller. The purposes and operations OF that
company, which acted as n fungus on the Union
Pacific Railroad, were fully exposed BY THE
Sun years ago. It WINS simply combination
formed to construct the Union Pacific Railroad
The profits Of the contract were enormous.
When the construction was about completed
the Union Pacific gave its note for t2,0o0,0o0 70
the Credit Mobiher.
This note has not been paid, and the stock
holders OF the Credit Mobiier have frequently
tried to get their money, but without success.
Mr.. McComb of Wilmington has been one OF
the most jealous In attempting to collect the
amount from the Union Pacific Railroad. 1t Is
likely that Il would finally have been paid were
IL not for the accession Of Jay Gould to the
control.
Last week the Credit Mobiier stockholders
met In Philad elpbis. and Mr.. boOomb proposed
TO Assess each stockholder a certain sum to de-
fray legal expenses In the prosecution OF tho
suit against the Union Pacific Railroad. IL was
found that In some mysterious manner all the
funds OF the Credit MobiIIer had disappeared.
IL was claimed ON the part Of the majority Of
the TREASURY OF the Credit Mobiller and several
thousand shares OF Union Pacific stock had
mysterously disappeared. Nobody could be
found to account for the funds and the stock
holders were indisposed to subscribe anything
until the officers Of the organization made
bear the expense involved In the suit out Of his
own pocket II he received authorization on the
part Of majority OF the stockholders and wgs
guaranteed reimbursement In the event OF his
success.
haN VIII nj nf hA at hnIf Rra w ha
taken as to the prosecution OF the sutt on the
s2.00O,000 note. In the mean time, Gould and
DILLON are actively engaged In working to secure
a majority OF the Credit Mobilier stock, so that
McComb may be outvoted at the meeting. The
| already owns ope-third of the capital stock q
1900 shares, but IL Is necessary to control still
more In order to break up the contemplated
both Union Pacific and the Credit Mobiiier. and,
Of course, is interested In getting the t2,OOOOOO
note returned TO the railroad company.
Parties VINO are opposed to the Vaccinations
OF Gould and Dillon make very grave charges
on this subject. 7 hey say that the money and
Union Pacific stock In the Credit Mobllier treas
| ury have been wronRfully appropriated, and
that the stockholders have been defrsuded in a
shameful way. That there was money and
stock In the Credit Mobiler treasury IL admit
ted by Mr.. Ham, the secretary, who says that II
was used up for "expeDscs." What expenses
the Credit Mober could have had except In the
way Of paying dividends to its stockh olders Is.
however. very dinicult OF solution. The fund
which accumulated was not 30 divided, and no
expense account has yet been submitted by the
| proper ofhcials to all Of the stockholders.
When the Union Pacific Railroad passed into
Goud'e hands in 1874 " 10 alleged that, In or1er
| to provide for the floating debt. for the redemp-
ton OF the income bonds, and to liquidate tho
credit Mobier's note, he brought about the
issue OF $l6,00O0OO Of sinking fund bonds.
Twelve millions OF these were required to take
! up the income bonds, they being EXCHANGED six
sinking fund bonds for Ave incomes. The In
| come bonds amounted to l0D0O,OoO. Then 2.21O
sinking fund bonds are said To have been set
apart TO take up the $2,00)000 Credit Mobilier
note.
These bonds, II Is alleged, are missing. Where
| they have gone or what has been done with them
| Is not stated. That they are missing from the
Union Pacific treasury Is said to be beyond dis
pute.
The Union Pacific offcials deny the statement,
| but not In the energetic manner when might he
expected upon mention Of such a startling re-
| port.
At the meeting In Philadelphia on Saturday
| the bottom facts In this singular business u
| be brought To light. Whether they can be ex
| plained away by the Union Pacific Director
| STIRAB BOUT.