, 1879-03-29

ltS llchhlitEls Ill Eliltilto lt!Ht tA'S
rote, which Is now held By tic Crc.ltt Mnbilscr:
was executed without d ynte Of thn Roard Of
Directors, ur Of The Executive Committee, nut
TINT 1t wRs executed under All Increment bc-
lie Credit Mobii!er, ~ we'll rs Director. md
inembrFs ut the Executive Cummistcu Of the
Union Pacific Railroad Cnn,nanr, asnl TINT tGere-
fore 1t was md now Is void q agatnss M lhc eoh
Credit Mohltcr claims upwnrl. Of s2osoO o.
legged to havo beer ordered to be paid at a meet
luz Of thu Directors Oh the &tll of scntetn9er,
1SG9, for work done under NC conttact. ine
additional amount mentioned Is 1nstly due Or
pnyahle, both because no surt suns were Justly
tlnc for wurk Or materials under tho contract,
Exc sSss,'e On fts0ts 81 s G"oa = P s
a, Ms1F'I% had a1aS a1Waays besn t' stockhoider. t. % ia
,llc Credit Mobi'cr, md the .proa,a
of thc contract were distributed anlong them. T.,
tcrcstcd IN the eatd fraudulent md unlawful
scheme from The beginning, md continued liz
tcrcslcs1 therein throughout. AtcComh's share
IN the 50 ooo COG Of unlawful profits is estimated
at orer $t34, 600, md the Company now prAvs
That he be made to pay back such sums With in'
tercst.
In connection with the history Of this part Of
the subject It should be added here that bcfure
tho lloxto contract was concluded, Fctcr A.
Dcy, then Chief Eng1ncer OK tho Company.
sunvErHn AND ESTIMATED THE COST
Of the frat 100 miles, which lie nut at $50 400 per
mile. Aftcrvarsl. howerer. lio snSs that Slr.
Reed, IN agent nnl Director Of the Company,
directed him to make larcer estimate, putting
cmbankmenss Where noee e., msre n95 necae a1a
swellis,E the estimate 10 $Al, l,0oo per inllewtEc
price agree1 10 IN the Hoxfe contrnrt. When
tlis contract & was saonittca t 70 mn ao onlceten
b. s1eeutsa he resigned Ills 1t, position
for SO doing that ho did not .1eslru 10 hayc
his nnlne SO connected with the railroad that be
% to ave tns 10
lila formal resrnntton. Mr. Dey said: II jiecl
mt ernat,atu lnon she SINCERITY Of nv course
when you reflect ripor, tie fnct t',at have re-
signed the best position in nv profession this
pou . erronn rAusR m ACTION
foh - oLeuNn oNo'n ot "soH
aEn!nst Mcoop, ue Gn,a'nt ~ tpes ,p un ~ sn1m NV
iial, I'm, attcr uc cun'p!eiu" @ =! ie & sona ~ M .tc
luoth fnceidlhll, unaeF llls Ao11o eonlIaet, tne
sano psoceSv ,ur npo%' " oo ,hn yeas
IN the constr1setlo',& & ntili eanpnse9. s o. t.n TONI
sa.teI ~" az pa. avaraqo cnst d rnt 'v"oont
my M cuhttaet, ~ u" ".o.nss ost ~. sAeceu.ts t
SIt'oov pcf tnl!e; e., A.tef"Iut however. ~ ute
~ Q. uc1oper. too', tus g9nio .'4ttts as.nG n
tae naslo IT. 9neu ~ e!S m umou ,in .mes nasnaa
Colnpan5 n'a .. LII Ic Stett Monss, @ Ut, sshs,eu
.o % ", WIZ H., o1xs rs,i, Mn,,iinr ',i a''a W."
come memoel o. .'e GIeu,t Muplier a,au nn1
UIi miles OF road west from the !ooth Mer'atan'
at price Grcatav III excess Q, the ae1na, cost
ulSumE sns ioo ai.i.s m.tcau3 JUL ~ tnGn III.
aeiVsH "1thout my Gout1uet' hhu plpslu'tE tIat
the Company sh9aaa nay seeono Ia s,ne loe the
construction OF t1ose laS n,es ~ pfleo greatly
e1GeeuanH tnc scat egsL ,si o. .nc su.ue; ,
~ tno Terms o. En!s eohtFacs tho tompany
aRreec 10 pag as ioi'oWs:
For 1rst 100 m'lca q? coo p9r MILES, geo, 600
For next lns miles Sa6. o00 cr mile. big, oo0
ror next 19o m.ies Sy0' 0n uer mi,o.. 0oo wy
@ ne1 i TX i S' Sf Go ~ os % nU1 Ky
For n.xt 100 miles 40G 600 per mlte.. o. 100, 600
M, nro. .-..---- S.- mr. ma
According % to agreement beforo md nt tbe tbe
time 9f thc execution Of tas contrast @ It was u.s.
signed to rhumns T. Dnrant, Oliver Amea
! (prcsident Of tho Company mud orosher Of Oakcs
s. BUSHNELL Bcnjaruin E. Bates, atltl the defend
ant, Henry s. McCoInb, no Trustees Tor t.c
benefit 81 in thcnsg'yss ad suell stoskhosrs Of
1nc nt'1I mIsi.e 1sa''tn. , Ionpaaf "'!u - tna
eIeuit Mo1.1ca ~, aa snouio r'! rSo'ap!y Win tne
dftton1 OF tic trust were that tile profits
| to nriae from thu construction OF the
road under tho contract were to bo dlgidetl
WHO beirts stockholdera in tic Wnon Pocidc
Rai;1on,' Eonnony. ss,ol,1a arnc,,to tn thc Trns.
!ees ~ HIevoeaole power O. nttoTnoy eha9lll,E3;
tue trustees t2 vote upon alx-tentns ot ail
shares q ~ Union Pacific Railroad Company
ali shares OF lie Union PacliIe Railroad Com.
pn.1y that might thereafter bu allotted Il, them
tn ni,rsuatmu of rho tlstributn If liz r,rofi,a nj
II H. M contract. Ticss terms wsre asecnted' md
cnat,rn tie Trustcns ~ havc commlcte cnntroi t.,
O. ite uilloh iaeluc naliloNu company: to clcGt
| Hs DIRECTORS, ana TO cluse IT. affairs to oa I'D
Mnlstcrcd IN The Interest Of the Trustees them
/ selves, who were concerned In tile contract aa
contractors for The building aud cauipnlcns oi
the rnjIroau. Tho lny following The nssivnment
| tnxo.1 tnt" "-- ~ s' ~''0 'e 1''1-9 ~
'e'eo in'o
4 rR1pARTITE AoRREMEfY,
! .xbt,b u,. oa t,dtnwa.
when Was Us iol,o"s'
Memorandum, q agraement made ihts 10th day
ot October, 1ao!, netWeen Ihonns =. Dnrant,
Oliver Ames. 'loMh u. Al!ey. sidney Dillon, Cor
| nGliuN j. BushHelt Henry 3. MeCpnb. hnl Ugnla-
min Il. uhtcB. wltneseeth III tollGWs:
i.o nndcts1sEcu Doing tho ownGfa OF aharca
ana h1lless VI c1Fta! proxies Of the shareholders
Os tho Union racine ltailfoad tompany. aII1 or
pecsans hcfeAlftf 20 noh othet sharcs and proxies
l0r othos Bharra thcfesl fnr tlh protection Of DnE
% ~, aev "u ,at"a, y ee o. hnr cona!.
hnr' a. c"rrv ay"c, ~ n3sa, Wiz ~ ~ ~
Union Fscao itailToad Company 10 vote mno,, y. th t
shares Of stock then s1andinp il cur own nar,ess
respectively, and upon such shares W wo hola Of
may htrcafteE hold proxies therefor, for fncI per-
als ~ Directors ot Thu said Unton Eaciac IaitEDail