The Wichita daily eagle., 1894-03-15

WASHINGTON, Marck 14-One of the
most important propositions yet submitted
to congress will be presented TO the house
tomorrow by Representative Boatner ol
Louisiana. The proposition will recIte
numerous defaults of the Union Pacific
railroad and contiguous lines to meet the
debt due the United States. 1t will charge
tbe present and past directors of the road
with violation of their trust, and i'm
proper absorption of outside lines and the
voting of dividends contrary to law and
against the interests OF the United States.
It will direct, IN the form of joint reso-
luton, that the president shall appoint
special counsel to institute suit against
the present and past directors, their heirs
and legal representatives, to collect S35, :
COZ, 900 and interest due the United States.
With interest, the amount Of litigation
would exceed $40, 100000. 1t would be the
largest law suit ever instituted i'll this
country, if not the largest in any country.
BY the terms of the resolution the depar-
ment of justice would be relieved from
further action in the Union Pacific cases,
and the suit would be prosecuted by
special counsel as a special case. The
joint resolution places 100000 at the dis
posal of the president for the employment
of council. 1t is provided that the counsel
shall not be in any way connected in
present or past service with the Union Pa
sific road, or with any of the directors.
The Boatner resolution has been drawn
with great care and after consultation
among the legal authorities of the house,
who It is declared are not entirely dis
satisfied with the manner in which the
governments interests have thus far been
protected and prosecuted.
The resolution then rectes that the
board of directors iu controvention of the
law of March g. 1873, attempted consol-
idation with the Kansas Pacific railroad
and the Denver Pacific railroad, and issu-
ed stock of the Union Pacific on this con-
solidation for $4,000. 600. It is charged
that afterward further stock amounting
20 $40, 000. 900 was issued for the purpose
of making repairs, ETC., that the purchase
of the two railroads by the Union Pacific
was made by the directors, who were
themselves stockholders of the Kansas
Pacific and the Denver Pacific, while the
president of the Union Pacific was at the
time president of the Kansas Pacific.
That dividends have been voted in viola
tion of acts of 1873 and 1878, not out Of
Bctual earnings. and while the Union Pa
cific was still in default to the United
Dtdbco uCSC pd9 hCntS iroii 1910 W 1OCf
are stated d to have been ST. 0O0,0O
Another specification recites that the
directors paid the interest on the first
mortgage bonds OF the Oregon Short Line
Rrilroad company, amounting to $4,060,-
600; that the directors in violation of law
and their official duties paid subsidies to
tha Pacific Mail Steamship company
amounting to about 81 .O00, 900.
Then follows a general arraignment Of
the company and directors for a division of
funds In fraud of the United States.
Concerning the directors the resolution
recites that 'fn law and equity the direct
ors who misappropriated and misap2lied
the said property and said funds are liable
for and bound to restore the same, with
interest, to the said Union Pacific COM
pany in order that the same may be ap-
piled to the discharge of its debts.
Section 3 of the resolutions confers
special authority on United States circuit
courts to hear and advance the cases.
The resolution will De referred to the
Judiciary committee OF which Mr.. Boat
ner is member.