Thank you for visiting SNEWPapers!
Sign up free
Story
April 28, 1874
Wilmington Daily Gazette
Wilmington, New Castle County, Delaware
What is this article about?
In Washington on April 26, Mr. Luttrell argues before the House Committee for investigating the Central Pacific Railroad and its Contract and Finance Company for fraud, comparing it to the Credit Mobilier scandal and citing high construction costs as evidence of dishonesty.
Clipping
OCR Quality
95%
Excellent
Full Text
Worse than Credit Mobilier.
DEMANDING AN INVESTIGATION INTO THE OPERATIONS OF THE CENTRAL PACIFIC'S CONTRACT AND FINANCE COMPANY.
WASHINGTON, April 26—Mr. Luttrell made an argument yesterday before the House Committee on Pacific Railroads in support of his resolution calling for an investigation of the Central Pacific Railroad and the Contract and Finance Company. Mr. Luttrell reminded the committee that the proposed investigation by the terms of his resolution was to be directed to ascertaining whether the Government was not absolved from their obligation to pay either the interest or principal of the bonds issued by the railroad company (it is alleged fraudulently) for the benefit of the Contract and Finance Company. He adverted to the demand made by the California Legislature and press for this investigation, quoted from the sworn statement of Samuel Brannan in his suit against the directors of the Central Pacific Railroad Company, and showed from Poore's Railway Manual that the average cost of the construction and equipment of railroads in the United States is less than $50,000 per mile, and that the Baltimore and Ohio Railroad, with the heaviest grades, bridges and tunnels in the country, cost only $40,000 per mile, while the Central Pacific directors claim that the mere construction of their road, without any expenditures for right of way, stone, timbers, &c., cost $112,000 per mile.
He insisted that the Contract and Finance Co. was more than the Credit Mobilier which had made $43,000,000 in fraudulent contracts for building the Union Pacific road, and argued that the directors of the Central Pacific had practically confessed the truth of Bannan's statements by settlement with him. He urged the necessity for an investigation which should lead to compelling the Central Pacific directors to disgorge the tens of millions of dollars which they had dishonestly acquired, to the vast detriment of the Government's security for repayment of enormous interests, advances, and for its liabilities as endorser of the railroad bonds.
DEMANDING AN INVESTIGATION INTO THE OPERATIONS OF THE CENTRAL PACIFIC'S CONTRACT AND FINANCE COMPANY.
WASHINGTON, April 26—Mr. Luttrell made an argument yesterday before the House Committee on Pacific Railroads in support of his resolution calling for an investigation of the Central Pacific Railroad and the Contract and Finance Company. Mr. Luttrell reminded the committee that the proposed investigation by the terms of his resolution was to be directed to ascertaining whether the Government was not absolved from their obligation to pay either the interest or principal of the bonds issued by the railroad company (it is alleged fraudulently) for the benefit of the Contract and Finance Company. He adverted to the demand made by the California Legislature and press for this investigation, quoted from the sworn statement of Samuel Brannan in his suit against the directors of the Central Pacific Railroad Company, and showed from Poore's Railway Manual that the average cost of the construction and equipment of railroads in the United States is less than $50,000 per mile, and that the Baltimore and Ohio Railroad, with the heaviest grades, bridges and tunnels in the country, cost only $40,000 per mile, while the Central Pacific directors claim that the mere construction of their road, without any expenditures for right of way, stone, timbers, &c., cost $112,000 per mile.
He insisted that the Contract and Finance Co. was more than the Credit Mobilier which had made $43,000,000 in fraudulent contracts for building the Union Pacific road, and argued that the directors of the Central Pacific had practically confessed the truth of Bannan's statements by settlement with him. He urged the necessity for an investigation which should lead to compelling the Central Pacific directors to disgorge the tens of millions of dollars which they had dishonestly acquired, to the vast detriment of the Government's security for repayment of enormous interests, advances, and for its liabilities as endorser of the railroad bonds.
What sub-type of article is it?
Deception Fraud
Crime Story
What themes does it cover?
Deception
Crime Punishment
Justice
What keywords are associated?
Central Pacific Railroad
Contract And Finance Company
Fraud Investigation
Credit Mobilier
Railroad Bonds
What entities or persons were involved?
Mr. Luttrell
Samuel Brannan
Central Pacific Directors
Where did it happen?
Washington
Story Details
Key Persons
Mr. Luttrell
Samuel Brannan
Central Pacific Directors
Location
Washington
Event Date
April 26
Story Details
Mr. Luttrell argues for investigation into fraudulent practices of Central Pacific Railroad and Contract and Finance Company, highlighting inflated construction costs and comparing to Credit Mobilier scandal to protect government interests.