For some time past rumors have been hurtling in the air that the Pacific Railway would soon develop one of those great swindles which occasionally startle the community. A very curious lawsuit now going on in this city, between James Fisk, Jr., on the aggressive side, and the Union Pacific Railroad on the defensive, is operating to reveal some curious facts concerning an intermediate agency called the " Credit Mobi lier," named after a similar financial vehicle in Paris, which went to smash about a year since. In the progress of the suit it was deemed important to get access to certain books of the " Credit Mobilier," but the key of the safe could not be found some one holding it had gone to New Jersey, and it was uncertain when he would return. Here was a dilemma, which Justice Barnard, of the Supreme Court, solved at once by ordering a receiver to open the safe. This functionary, in company with several ingenious iron-workers, broke open the safe, got the books out, and bore them in triumph into the presence of the learned judge. With the a;d of these, it is expected that some important revelations will be brought to light; but we apprehend that the real meaning of this seemingly inexplicable litigation will show itself as the plot unfolds, and respecting which we are beginning to get our first knowledge from certain proceedings in the Senate instituted ostensibly to protect the rights of stockholders. Senator Stewart, of Nevada, in some remarks on the subject, said it was alleged that the " Credit Mobilier " had made enormous dividends by using the Pacific Railroad. This the members of the " Credit Mobilier" admitted. The senator also said that they were encumbering the road with contracts ahead for their own benefit. Other senators, who pretended t o know something about the Union Pacific Company, had said that the company was liable to become insolvent any day, and if that should come to pass, the result would be that the first mortgage bonds would be foreclosed, and the Government lien would be cut off, and this Congress would be held respon sible for it. The importance of Senator Stewart's foreshadowing is made apparent by the fact that the Government has already issued $56,852,320 in bonds to the Pacific Kailroad, upon which the company assumes to pay the interest; but if the first mortgage is suffered to be foreclosed, of course the people must be taxed to pay the interest on the whole of the above issue of bonds.
This article was originally published with the title "The Pacific Railway Imbroglio"