The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1894-03-15
union PACIFIC LAPSES.
They Will Probably Be ACTED
Upon by Congress.
A MONSTER LAWSUIT PROBABLE

Representative Boatner, of Louisiana, In
PRODUCES . Resolution Charging the
Directors with Irregularities and Pro-
viding for Legal Contest.
WASHINGTON, March 15.-One of the
most important propositions yet submit
ted to congress was presented to the house
today by Representative Boatner, of Lou
isiana, a leading member Of the commit
tee on the judiciary. The proposition, as
Representative Boatner has drafted it, re-
cites with explicit detail numerous de-
faults of the Union Pacific railroad and
contiguous lines to meet the debt due the
United States. 1t charges the present di-
rectors Of the road and those in past
boards of directors with a violation of
their trust, an improper absorption of out
side lines and the voting of dividends con-
trary to law and against the interests Of
the United States.
In conclusion 1t directs, in the form of
q Joint resolution, that the president shall
appoint special counsel to institute suit
against the present and past directors,
their heirs and legal representatives, to
collect t35, 000,00 and interest due the
! United States. With interest the amount
of litigation would exceed s40,000,000. II
would be the largest lawsuit ever insti-
tuted in this country, If not the largest in
any country. BY the terms of the resolu-
| ton the department of justice would be
| relieved from further action in the Union
1 Pacific cases, and the suit would be prose
cuted by special counsel as a special case,
The joint resolution places 100000 at thu!
disposal Of the president for the employ
ment of counsel. 1t is provided that the
counsel shall not be in any way connected
in present or past service with the Union
| Pacific 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 salts
fled with the manner in which the gov
ernment's interests have thus far been
/ protected and prosecuted. The resolution
contains many type written pages, and its
preliminary features, contained in nu-
merous whereases, severely arraign the
Union Pacific management and its boards
of directors.
The acts of congress granting aid to the
| Union Pacific are cited in the resolution,
including Section of the act approved
March 3, 1878, providing that thereafter no
dividends shall thereafter be paid by tho
| Union Pacific except from earnings, and
that no stock shall be issued or mortgage
or pledge made on the property or future
| earnings without the leave of congress,
except for the purpose of funding or re-
newing the debt of the United States.
| The resolution then recites that the
board of directors in contravention of the
| foregoing laws attempted consolidation
with the Kansas Pacific railway on this
consolidation for 1000, 900. 1t is charged
! that afterward further stock amounting
to Sl0,0OO000 was issued for the alleged
| purpose of making repairs, etc.
! The resolution goes on to say that the
purchase of the two railroads by the
Union Pacific was made by the directors,
who were themselves stockholders of the
Kansas Pacific, while the president of the
Union Pacific was at the time president Of
the Kansas Pacific.
| 1t Is further specified that dividends
have been voted in violation OF tine acts of
1 1873 and 1873, not out of actual earnings,
and while the Union Pacific was still in
! default to the United States. These pay
ments from 1873 to 1884 are stated to have
been $27, 10000
Another specification recites that the
directors paid the interest on the first
mortgage bonds of the Oregon Short Line
I, Railroad company, amounting to "a, 0OO,-
600. Another specification is that the di-
rectors, in violation of law and their of
| fetal duties, paid subsidies to the Pacific
Mail Steamship company, amounting to
about VI $1,000
| Then follows a general arraignment of
the company and directors for diversion
of funds in fraud Of the United States.