Crawford avalanche. (Grayling, Mich.) 1879-19??, 1888-01-19
THE PACIFIC RAILROADS.
A Story Of Jobbery and Robbery
Not Fully Revealed by the Of
fetal Investigations.
How the Schemers Lined Their Pockets
at the Expense of the Gov
ernment.
A Plot to Defraud the Government o.
It's Dues-POlicy OF Charles Fran
els Adams.
From the Chicago Tribune. !


Pacific Railroad Commissioners, startling
as they are in their arraigment of the men
that have mismanaged and wrecked these
corporations, fall far short of revealing the
actual condition of affairs. The history
OF both the Central and Union Pacific
Companies is full of rottenness from the
start. 1t may almost be said that they
"were conceived in sin and born in iniqui-
ty." The original idea of building a rail-
road across the western half of the con-
tinent, from the Missouri River to the
Pacific Ocean, was grand one, but if it
had been left to the honest men that pro-
jected it, to accomplish the result, it would
have been deferred many years. AS orig
inally chartered and surveyed, the Pacific
Road was divided into two sections-the
first, the Union Pacific, to run direct from
Omaha to Ogden; the second, the Central
Pacific, from Ogden to San Francisco.
The enterprise was too heavy and costly
and the results too uncertain to attract
private capital 10 any extent, and Congress,
to insure construction, voted aid at an av-
erage of $4,000 a mile. The sharpers
soon ascertained that this would amount to
more than the actual cost of building, and
began to flock in, yulture like, to feast on
the financial vitals of the corporations.
The history of the Union Pacific from
this point is peculiarly interesting, and a
fair reflex of the operations of both Sec
tions during the construction period. The
Bonus, had embarked in the work siSdifff. and viri
tually seized control of the company began
to figure on a plan for securing all the
plunder possible. They had little, if any,
hope In the future of the road, and were
in for what could be made out Of the con-
struction of it on the addition, division,
and silence" scheme. Prominent among
these men were DR.. Durant, Vice Presi-
dent and General Manager of the company;
the brainy but erratic George Francis
Train, James Davis, and others more or
less known to fame. Congress had wisely
provided that the subsidy should be paid in
installments only on the completion and
acceptance of the road In fifty-mile Sec
tlons. Durant and his associates were un-
able and unwilling to stand the cost of
building the first section themselves, and
the whole affair threatened to "die a-born-
1n'. AT this juncture, George Francis
Train, then the boss schemer and brains of
the gang, came to the front with his Credit
Mobilier, and showed his pals low to not
only build the road without going down
into their own pockets, but to shave
was under Trains inspiration that the road,
instead of being built direct from Omaha
to Ogden, distance as the crow flies of
about nine hundred miles, was twisted in
and out like an ox-bow, until an
extra one hundred were covered
AMI on which the government subsidy was
dema1ded and paid. Every conceivable
plan for the diversion of money from the
treasury of the government and pockets of
innocent stockholders into the Golfers of
the construction ring was put on foot.
Honest men, disheartened at the outlook,
either retired voluntarily from active par
ticipation in the councils of the company,
or were rudely showed aside by the man
ayers. When the condition of affairs had
become SO notorious rs to call for Congress
sional action the ring seemed to have a
death grasp on the morals as we'll as the
finances of the country. Men in high
places-Senators, Representatives, Judges
on the bench-obeyed its behests with a
readiness that caused surprise, even to their
masters who issued the command. Dissen-
sion followed dissension in the ranks of the
ring, and change after change was made in
the directory aud management of the COM
pany proper, but through it all the old idea
OF plunder survived, and the new comers
were quickly introduced and initiated into
the devious ways of their predecessors.
And this ring was not always particular
as to its methods of doing business. Dur
ing the Durant dynasty, and when the road
was getting well to the west of Cheyenne,
one of the inside construction concerns,
known as Davis and Associates" had a
contract for furnishing all the ties, bridge
timbers, and lumber needed, from Chey-
enne west to Promontory Point, the real
terminus OF the road. This frm consisted
of James Davis, M. B. Sprague, George
Francis Train, and, as might be supposed,
DR.. Durant. The latter's share was in the
name of his brother Frank, and Trains
was in the name OF his beautiful wife,
whose affections Durant is accused of hav-
ing by that time alienated and transferred
to himself,as we'll as the largest part of her
husbands property. This firm had sublet
their contract to other parties at figures
which insured an enormous profit to "Davis
and Associates" but, not contented with
that, began to scheme for an additional
dollar. When the work was about finished
the Union Pacific was owing Davis and
Associates" $750,0O0, and the latter were
indebted to the sub-contractors to the
amount of $210,000. The laborers had
been clamoring for their pay for some time,
and the sub-contrnctors had made repeated
demands on "Davis and Associates" for
their money, but without result. Durant,
as manager of the Union Pacific, claimed
the company was bankrupt and unable to
pay Durant, as head of the contracting
hrm, over 10 per cent of the $3.50, 600,
and the latter in turn asked the sub-con
tractors to settle on that basis, hoping in
this way to turn about $4,000 into the
ring treasury. The cashier for "Davis |
and Associates" at that time was a nervy |
chap named Christopher, character we'll !
known to Western and Southern railway |
men. Christopher, on becoming acquaint- |
ed with the nature Of the proposed steal, |
went to the sub contractors and advised |
them not 70 settle, as he had q plan for |
getting their money in full. IL was about |
time for the directors of the road 10 make
on inspection, and Christopher arranged
with telegraph operator named Hilliken,
then stationed at Echo City, to advise him
as 10 the arrival Of their train. This was
done, and Christopher, gathering the SUBJ
contractors and their men, went to a sid
ing six miles west of Piedmont, which was
then the headquarters of "Davis and Asso-
ciates." When the train came along
about sunrise II was stopped and switched
of on the side-track. Christopher went
into the car and explained the situation to
Durant and his party, telling them plainly
that the men thought they were trying
to rob them, and that they could
not proceed until the $4,000 was paid In
full. Durant made all sorts of prom
ises, but IL was of no use. After forty
eight hours parleying Durunt sent out
$50, 900 which he had In safe in the car.
and wired 10 Omaha for 100000 more,
= htnl. -. Ans~.sa-A Wh.a a.. ~ IA ~