Page:The Wizard of Wall Street and his Wealth.djvu/157

 substantially, only that of ex-Gov. Pattison was more severe in its conclusions.

In the majority report, by Messrs. Anderson and Littler, the purchase of a controlling interest by Jay Gould in 1873, the subsequent increase in the capital stock to 200,000 shares, the inauguration of the policy of constructing branch lines in 1877 and the commencement of the action by the United States against the directors of the Union Pacific for misappropriating the assets of the company were detailed and the report went on to say: "It appears from the minutes of the company that while this litigation was pending certain proceedings were taken by the directors, whereby by their own acts and votes they undertook to release themselves from any obligations or liabilities to the company." The Kansas Pacific's financial operations from 1864 to 1880 were also taken up and the circumstances leading up to its consolidation in the Union Pacific system were detailed at great length. The acquisition by Jay Gould in 1877, at nominal figures, of several millions of securities of the Kansas Pacific was spoken of, and the reorganization of that company under the control of Gould was detailed and the methods severely condemned. The effect of the consolidation was to increase the stock of the Union Pacific from $38,000,000 to $50,000,000, and the bonded indebtedness from $88,000,000 to $126,000,000, and the other indebtedness from $4,000,000 to nearly $10,000,000. It was declared that "the three years following the consolidation were years of great busi