Savannah morning news. [volume] (Savannah) 1868-1887, 1886-02-02
BIG LAWSUITS IN VIEW.
The Government to Punish Pacific ROads
Frauds,
From the Ne,O York Times.

From the NeaO York Times.
WASHINGTON, Jan. 2S.-Interesting
rumors of lawsuits TO be begun by the
government against the Pacific Railroads
have been circulated with a new avidty
within the last week or two, though for
tle most part all the current reports have
been of nature too vague TO build upon.
But tonight from aul horitatIve sources it
is learned that the abundant stOr es have
not been without some substantial fOun-
dation. 1t has not been known outside
" government circles that aggressive
plans were recently mapped out to secure
TO the government full and reliable infOr-
nation as to certain matters intimately
connected with the management of the
raciflc Roads; that TACT, however, will
soon be made known officially, aud that
too, 1t Is promised, in a way that will
have keen relish in it for certain folks
prominent in the stock Specializing house,
hold OF Jay Gould and company. In short
If information from an odicia source is
worth anything-lawsuIJs are to be begun
very soon, aud pressed energetically,t to re-
cover moneys OF which The government
mas been practically deirauded by Pacific
Road magnates.
Several weeks ago a nu nber of trusted
agents of the government were dispatched
from Washington t. make cert in Investi-
cations and present full reports for official
action, covering the disposition OF vast
sums of money which it has been repre-
scented to the government have been
diverted from their proper channel. IL is
known that within the past fortnight the
offices of the Union Pacific and Cenua
Pacific Companies in YORK and B's-
ton have been invaded by the govern
menCs representatives, authorized u
examine fully tue account books, Vouch-
ers. and a the clues 10 expenditures
which those companies have in their pos
session. 1t is upon the report which has
been made though, II is said, not yet OT1-
cialiy 6ied } that actions at law are likely
To be based.
Not only have the Investigations been
pursued at the Offices OF the cOmpani, SHUT
under Instructions the Cove nmt n's
agents have VIsite those banking insti-
tutions in New Y rk. Boston, and else
where where the com p" MES have been
borrowers OF money, and careful in
quiry ha- been ma lie into every financial
transaction OF that sort, minutes being
made of all the cjrcum stances attending
such financial arrangements, and col
lateral on deposit has been closely eXa-
mined. What bearing this searching in
uuiry in this direction may have on the
relations of the railroad companies to the
government does not vet appear, but the
assurance is given that it mas not been
done merely for forms sake.
1t is not improbable that more than one
class OF lawsuits Will be begun against
the companies. That when seems Ger
tain-which Is declared by responsible.
government officials to b. certain-reldles
t. subsidies paid by he Union Pac tic ahd
Central Pacific TO the Pacific Mail Steam
snip Company.
Under the provisions of the Thurman
act the government is entitled 70 a GER
Ia n percentage OF the net earnings o. the
Pacfc roads, after provision IS made tor
interest on certain DO DIS nd for oiher
1Xed charges. Ignoring that prOVis on, t
IL alleged, the railroad uaVes been paying
large sums out OF their net revenues TO
he Pacific Mail, practically for the be re-
bit Of their managers who are engaged IN
Wall street sPecu atlOns. In cOus dera-
ton oil the payment OF This subsidy the
Pacific Mail has contracted tO ma ain a
certain schedule of carrying rates, 80
practically relieving the railroads from
q niger OF water Competition. A one time
this subsidy was $lOl,000 a month. now il
is quoted at $4,000 mouth. Since it be.
gan II aas ged over $ 100000 year,
anu in the aggregate II Is estimated thai
the money so expended would have reach
ed, with its interest account, by this time
10 an amount SOM where between $lO,-
900 600 and SIS 600, 600.
The payment Of this subsidy. it Is claim
ed, has been an Illegal diversion OF the
revenue OF tire Pacific RJHds, and the
government, il The action said now ~ be
in serious contemplation Is taken. viii
sue the companies TO make good tie
wrongly expended millions, and forth
with transfer the equitable dues oil the
government to the sinking fund, which
IL is charged has been practically rob-
bed.
Though few people outside Of official
circles know Of the declared purpose OF
the government 10 bring tue Pacific Road
people TO strict account BY means OF
earnestly pressed lawsuits 20 recover
this raudu emily diverted revenue, those
who have Information Of the mat er say
they are convinced that tue Information
upon which the suits Will be- based is rel
able and supported ~ sweeping and con-
elusive evldenc Official nJtce Of tue
governments Intentions, it IS said, may
be expected Soon.