The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-03-21

of dividends contrary TO law and against
the interests of the United States. 1t
Will direct, in the foTU Of a joint resolu-
ton, that the president shall appoint
special counsel TO institute suit against
the present and past directors. their heirs
and legal representatives. to collect $780,
100000 interest due the United States.
with interest; the amount of litigation
would exceed $40, 0OO, 900. 1t would be the
largest law suit ever instituted i'm this
country, if not the largest in any coun-
try
BY terms of the resolution the depart
ment of justice would be relieved from
further action in the Union Pacific cases,
and the suit would be prosecuted by spe-
cial counsel as "A special case. The joint
resolution places 100000 at the disposal
Of the president for the employment Of
counsel. IT 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. 1t is declared, are not en-
tirely satisfied with the manner in
which the governments interests have
thus far been protected and prosecuted.
me resolution then TeciteS that the
board of directors, i'm contravention of
the law Of March 3. 1873 attempted a
consolidation with the Kansas Pacific
railroad and the Denver Pacific railroad
and issued stock of the Union Pacific
on this consolidation for 1000, 600. It
is charged that a great reward for their
stock, amounting to $4,000. 900. was is
sued for the alleged purpose of making
repairs, etc; that the purchase of the
two railroads by the Union Pacific was
made by the directors, who were them
selves stockholders of the Kansas Pa
cific and the Denver Pacific. while the
president of the Union Pacific was at
the time president of the Kansas Pacific
The resolution also declares that divi-
dendS have been voted in violation OF
the acts of 1873 and 1878 not out of
actual earnings, and while the Union
Pacific was still in default to the United
states. These payments from 1873 to
1884 are stated to have been S27.000,000
Another specification recites that the
directors paid the interest on the first
mortgage bonds of the Oregon Short
Line railroad company. amounting TO
$4,000. 600; that the directors. in viola
ton of law and their official duties. paid
subsidies TO the Pacific Mail steamship
company amounting to about 81 400. 600.
Then follows a general arraigument
Of the company and directors for a
diversion Of funds i'm fraud of the
United States. Concerning the directors.
the resolution recites that I'm law and
equity the directors who misappropTi-
ated and misapplied the said property
and said funds are liable for and bound
TO restore the same. with interest, To the
said Union Pacific. in order that the same
may be applied to the discharge Of its
debts
Sec. , Of the resolution confers special
authority on United States circuit courts
TO hear and advance the cases. The res
oution will he referred to the judiciary
committee, Of which Mr. Boatner is a
member.
To PopuInrize the senate.
The house committee on election Of
president and vice-president has agreed
to the joint resolution of the chairman.
Mr.. Tucker of Virginia for an amend
ment To the constitution providing that
United States senators shall hereafter he
elected by direct vote Of the people in
stead of by state legislatures.