The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-02-13

TO nearly $l6, 0OO, 600.
Now il we could find out how much the
firm of Croker & Co. paid for the actual
work of building the road. We could
subtract this actual cost from the above
total which they received, and the re-
malnder would be the amount taken from
the treasury of the road and paid by the
-Four, as directors, into their own pockets
as contractors. But Crocker Il Co. de-
stroyed their books Later it will be seen
that in spite of this dishonest trick a
reasonably close estimate has been
reached OF this missing amount OF actual
cost But all that the Pacific Railway
Commission could decide when they had
got to this point was that the rates paid
were largely in excess of the rates fixed
by witnesses as the usual rates at the
time of construction.
The contracting firm of G. Crocker d
Co. was now dissolved, and by move
like the turn of a kaleidoscope the -Four
organized into a new firm as the Con-
tract and Finance Company. In Deem
Der, 1867, Mr.. Stanford, in behalf of this
new concern, offered to himself and his
three co-trinitarians as directors of the
road, a form of contract to build and
equip the road for the rest OF the distance
to the junction with the Union Pacific,
being 525 miles. The Four accepted the
terms thus offered to themselves, and
built the road for the whole distance.
mile, half cash and half stock, in all
S47, 472, 600 What the Contract and FL
nance Company paid for the actual con-
struction and building of the road is not
known.
The Contract and Finance Company de-
stroyed their books. The amount paid by
the Four to themselves for building and
equipping the whole road from Sacra-
mento to Promontory Point, where it
joined the Union Pacific road, was $751;
100, 724.73.
The commission, of course, could not
find the missing books, and they speak in
their report with decision, though with
grave and gingerly reserve, upon the ma
ture of the disappearance OF them. They
say, after stating the evidence on the sub
ject:
1T is impossible to avoid the conclu-
sion that the suppression of these books
has been, intentional and willful.' And
they add that this suppression 'raises
:. the very strongest, presump-
if produced, would testify against the
party suppressing the same" 1t would
have been shorter and palmer and Just as
true to say that the suppression of the
books was. the contrvance of thieves to
hide the evidence of their theft, One of
the Four, Charles Crocker, had the impu-
dence, when examined on the subject, to
intimate to the commission that it was
none of their business what became of
the books.
The commission, however, having made
long and careful investigation, say with
confidence that the whole actual cost of
the road from Sacramento to Promontory
Point did not exceed S36, 100000. If,
therefore, we deduct this sum from the
sum of over $61 ,000 900, paid as above to
the -Four as contractors, the difference
will be the amount voted by themselves
into their own pockets. This difference
stands thus:
Actual cost of the road not over 36O00,O 10000
Difference going into the peck
cts OF the Four. ,5 129, 724.73
Or for each of them, one-fourth
OIL ACKNOWLEDGEMENTS. o,Soz, 45l. 10
A handsome payment for seven years
work, being at the rate of nearly $500, 900
a year for each man-besides their sal
aries, which were about $1,000 Il month
each.
But this $25, 900, 900 and over, does not
show the extent of the acquisitions of the
Four up to May, 1869. when the Central
Pacific Joined the Union Pacific. 1t only
shows what they acquired out of the one
sum of $61, 000 900 and over which they
paid to themselves on the construction
contracts from Sacramento to Ogden.
They had received great deal more than
that. Their whole receipts sum up some
what as follows.
Advanced by the Tn ted States
second mortgage bonds. .%27 S85, 20. 90
pany, to same amount ..... 1855, 12o. 90
Aid from State, counties, etc.. 5000 10000
Public land grant worth not
Absolute net earnings OF the
road, is63-69, cash ... 2,427,53a so
Stock, out of SOS. y ~, 900 issued $4,000 10000
Total S,A7 Gao 35a an
Note that the government lands actually
sold brought more than $6 per acre, SO
that if the whole were worth as much the
total value of this item would have to be
more than $72, 900 instead of $19,
600, 600.
Add the value of the right of way 400
feet wide, lands for stations, ETC., all the
timber, stone coal iron and other ma
terials which they might choose to take
from the public lands, and it is a moder-
ate estimate which has put the value of
all the receipts of the -Four up to May
1869, at $1S5, 000 900. To find therefore
how much the Four had in their hands
at the completion of the road in May
1869, we must deduct the $685. 900, 900
which the road cost, not from the $751;
600, 600 and over which was paid for it,
but from the $1S5, 900, 600 which had up to
that time been trusted in the hands of
the Four. This sum stands thus:
Total values intrusted to the .yL
Four NEUTRALITY-SUSPICIOUS.. $1s5, 900, 900
road to May, 1862 ........... 3600O,00O
Leaving in their possession at
That date, ACKNOWLEDGEMENTS. $l49,OOO.OOO
besides the road fully equipped.
Now, what was it the duty of the Four
to do with this sum? Plainly, to invest
for the company an amount sufficient to
pay interest on the two issues of bonds.
together with sos, TO, 240 to pay off the
bonds at maturity, beginning in 1895; to
pay annual interest on the stock of the
company of which they owned pretty
much alD and if there was anything left,
to pass it to the credit of the company.
Was any of the money used for either of
these purposes? Not one cent. Where did
the money go to? Into the pockets of the
Four
Each of them got in stock ...$13, 500, 900
In other values. ................... 23725,O 600
Each mans total share. . 1897 225, 600
Upon the duty of the Four to invest
was concerned), the commission uses the
following plain language (Report ETC.,
p. 72):
1.-The agreement of the company when
it received the munificent aid extended
by the United States was to repay the
loan wiz. the second mortgage bonds,
amounting to $27, 1856, 1907 ''and so much
of the interest as had not been repaid by
transportation or percentages of net earn
ings at the expiration Of thirty years.
The course pursued by Stanford, Hunt
ington Hopkins and Crocker was neces-
sarily absolutely destructive of any pos