The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1890-06-24
c. H. McKibben, Of the Union Pa
cific Charged With Defraud-
ing the Company.
As Purchasing Agent He Stood In
With Various Contractors
for Supplies.
Sudden Imitation Of His Dignity when
Appointed-A Hilarious Trip-Other
Suits to Follow.

O1rAHA, Juno 2s.-[Special.] IAN immense
oenaation was created in railroad circles
here to-day when it became known that suit
had been begun by the Union Pacific against
@. H. McKibben, lato general purchasing
agent of the road. for the recovery Of $780,
600, Of which he Is said to have defrauded
the company. The petition was hlod last
Saturday night but the affair was not made
public until to-day. In January, 1889, Nc
Kibben became purchasing agent Of the
company. The petition alleges that as
such agent McKibben wilfully and corruptly
contracted for material at prices 33H per
cent greater than its market value. The
suit is brought ON a contract with Barnes d
Co., lumber dealers, of st. Louis. Tho Pc
tition contains an itemized statement of Nc
Kibben's dealings with this Arm. in which it is
shown that from January, 1889, to Jure l, /,
1880, Barnes b Co. sold the Union Pacific
lumber and presented bills in the sum OF
$220, ,1S4O4, which it is alleged. is e5S, ,133. .15
more than lumber of this quality could
have been purchased for by the company.
The petition further alleges that as re-
suit of this corrupt agreement the excess in
price:was divided between the contractor and
the purchasing agent. Other suits, it is
stated on good authority, will follow on
similar contracts, by which the Union Pa
ciiic has lost over $2OO,O 900.
McKibben srrived in Omaha about six
years ago, graduate from West Point.
where he was charged with being implicated
in the cutting off of Cadet Whittaker's ears.
He went to work as clerk in the storehouse
and office of engineer of tests, where he
displayed 80 much cleverness that he was
soon promoted to the position of store
keeper. In the interval between the retire
ment of General Purchasing Agent Byrnes
and the appointment of G. 8. Mellen, Nc
Kibben filled the position and gave such
satisfaction that Mellen retained him as
his assistant. When Mellen became general
traffic manager in March, 1885, MoKibben
succeeded him. Up to this time McKibben
had lived modestly and moderately, but he
now began dealing in fine horses, and be-
gan building himself house at Fortieth
and Farnam streets, It's cost wRa between
thirty and forty Thousand dollars, although
he already had fine home in Coun-
Gil Bluffs, across the river. The first
trip he took over the road as purchasing
agent he stocked his special car with wines
before leaving Omaha, but became 80 con-
vivial en- route that at North Platte he Or
dered new supply. A company of con-
genial companions went along, and, in pas
sing through Wyoming, their conduct be-
came so boisterous that the conductor
threatened to sidetrack the car and leave it.
Vice President Holcomb asked Mcyxibben
for his resignation, but McKibben went to
Boston, saw President Adams and had him
self reinstated. His conduct became 80
aagrant, however, that when President
Adams was here on his recent visit, the
question was made an issue and McKibben
was again forced to resign. President
Adams was brought from Boston and in
stalled in the Office, with instructions to in
vestigate matters and these startling dis
coveries are the result.