The New York herald., 1869-04-06

tract was made with Cakes Ames ian unconditional
contract 50 far as being made with him soieiyb and
as have said before the Credit Mobilier proposed
10 make some large advances, and TO guarantee the
faithful fuihlment OF the contract for which they
were TO receive tine commission l have before
spoken Of and be subsequently concluded and those
who expected TO be associated with HIM concluded
to transfer thetcontract to seven trustees provided
II was satisfactory 10 the Union Pacific Rail
road Company, and 1t being made satlsfac.
tory to all the stockholders Of said company
except Brigham Young land l have no
knowledge of his Dissatisfaction It was so assigned;
the fulfilling OF mas been carried ON the as
any contract, suppose; have no particular know
ledge OF the nOduS opeyundi for some time past
but my general knowledge OF the matter leads me
TO belleve tha II mas been satisfactorily iuhed as
such contracts usually are.
O. DO you believe that the Credit Mobilier guar
anteed all the contracts for the entire ROAD? A.
think 1t guaranteed the fulflment OF none but this
@ Was that the contract for the road this side OF
the one hundredth meridian or the other sides A.
Beyond II.
q. Did not the Credit Mobnier also guarantee or
assume the contract for the construction and equip
ment OF the road this side Of the l00tn merdian a.
Those contracts were made previous TO my having
any connection with the company; but IL Is my
derslandlng OF 1t that they did; the road was cou
struced and equipped up to the Tooth meridian
before became connected with 1t.
q. Did you come INTO the Union Pacific Railroad
Company and TO the Credit Mobler Company at the
same timer A. did not; l came into the latter
company In May, 1867, five months before that
think; own In the Credit Mober 300 shares; $50
shares of that l acquired about a year ago,
ana Tor winch. thlnk, 1 paid nlnety-hve dollars
Snare Is all the Credit MODlller;
IN the Union Pacific Railroad Company Zoo shares
OF this acquired 1000 shares by purchase at differ
ent Tunes, and received recently at various times,
under the allotment as st0ckhoder, as before aud-
ed to, about ll00 shares; my interest III the Union
Pacific Railroad Co. as a stockhOder Is to receive
whatever OF profits shall be made-if any be made,
which Is very doubtful now-accOrling to my pro
rata share; that Is, provided comply with all the
conditions OF the contracts and then a stakeholder
IN the Credit MObllier should receive my pro rata
share OF whatever should be paid to them by way OF
commissions for guarantee or advances; but do not
expect that the Credit Mobiller OF America will
ceive anything on that account, inasmucn as IL was
unable to make the required advances.
z. Then the stock i'll the Union Pacific Railroad
Company for which you paid amounts 10 1000
shares or thereabouts, and the other 200 shares
are alotments on dividends, are shey2 A. Yes; but
for which paid indirectly good deal in the shape
OF loans advanced and SO forth; mean by this that
received these shares from the parties 10 whom this
contract was assigned, In consideration of being
stOcknoder In the Union Pacific Railroad Company
and stockholder in the Credit Mobier, and having
agreed 10 this contract and also agreeing to do other
things, such as rendering aid and assistance.
q. To whom was the contract assigned? A. Seven
trustees-Ohver Ames Thomas G. Durant, sidney
Dilon, C.. ). Bushnell. Benjamin Il. Bates H. 5. Nc
Comb and John Dun.
@. How did they get the 100 or 200 shares which
they gave your A. They bought them and paid the
company for them supposed they paid for them
partly from their profits on the contract.
@. Where did they get the other portion OF the
money fromS A. suppose from the stockholders,
myself and Others; loaned them considerable. and
think upon final settlement, they Will find that the
profits Will not be near as much as they have at times
SuppOSCu; L lcut iHClH ktTustccSJ u great uedl Oh
money from first and last. and suppose they bought
stock with some of it; lent money to the trustees
with the understanding II was to be repaid with ill.,
terest: have not been repaid within very large
amount.
@. How muchsdo they now owe your A. I do not
know exactly, but | should think that the trustees
and the company together owe me Sl00, ,0o0; how it
is divided between them do not know.
q. Have you security for THIS ioan9 A. | have
for part OF 1t; about twOthirds of 1t; the secured
part IS against both the trustees and the company
O. Do you consider the 400 1900 shares OF
lfn IN of
loan A. No; besides these l. 100 shares have re-
celved two dividends from the Credit Mobier of six
from the contractors subject to a recall IN case
il Is needed of think $4,000 or $4,000 IN bonds and
q. flow were you informed that an allotment
was madeg A. by some OF the trustees to
the contract; received the allotment from
the trustees directly; Benjamin E. Bates was
the treasurer Of the trustees, and he paid me
gave a receipt for 1t, promising at the same time
to pay 1t back should 1t be needed to complete the
road; that was about twenty per cent interest on
my stock IN the Union Pacific Railroad Company,
the 200 shares the allotment was made at different
times, but all within sixteen months.
z. When the last allotment was made had the
Ames contract been fulnlledf A. 1t had not.
tract was about SAT, 600; for how many miles Of
road was thatf A. think for 667 miles, Including
$50 miles through the Rocky Mountains
q. Was the $47 900, 600 thus agreed upon intended
TO cover all the subsidy from the government, and
also the first mortgage bonds OF the companyf 4.
II understand your question should say yes that
is they were TO have 1000 900 for the whole work,
and that included equippng rolling stock and every
thing complete, think.
q. What was the amount OF the subsidy from the
government for these 667 mess A. All this side or
the Rocky Mountains was $4,000 mile for about
400 miles, and about 150 miles at $4,000 mile, and
about l07 miles at S32 900 mile. making about
sl7oooOoo we received from The government in their
bonds for the 661 miles.
Q. And you received grants OF land to about how
much A. We have received none as yet.
q. Your irst mortgage bonds have been issued to
what amountf A. To the whole amount on the
subsdy-about $17, 900, 900.
q. What has been the actual expenditure Of the
trustees IN constructing and equpping the 667 miles
on the Oakes Ames contractf A. Up to this time
we have spent on that portion or the road under the
Ames contract all that mas been received from mort
gage bonds and from the government bonds and
think about 81 100000 besides.
q. Have you received from the government all the
bonds receivable tor the 661 mllesi A, No; they
have kept back, should think, between $l,ooo,oOo
and s2,OO0,0O0.
q. Have tney not also required you to deposit
with them portion OF the hrst mortgage bonds
a. We volunteered TO deposit with them s3,0O0,OOO
Of first mortgage bonds, and were required TO put
up in addition all the lands a. a guarantee for the
completion and equipment TO the satisfaction Of the
government.
o. Then, when you speak of the expenditure upon
the 667 miles you mean thar you have expended
Sl7,O000O0 OF government bonds, less between one
and two millions retained, aud the sl7ooo,oOo first
with the government A. We have not de-
posted the s3O00,0O0 IA yet; they require
deposit of a certain percentage as they issued;
do not know what are the expenditures on this
section Of the road; Mr.. Ham the auditor OF the
company, but ain not sure whether he has any
thing to do with these accounts; under the contract
thlnk the payments ON the contracts are made In
money.
q How many miles OF your road are there beyond
the 6G1 miles constructed under the Ames contractY
A. LOO not know: when the contract was made Jesse
L. Williams government director, refused to give his
assent TO the contract unless Mr. Ames would agree
that he would take In about loo miles beyond at
the same price per mile that he had taken
the rest OF the contract for; Mr. Amcs assented To
that, but 1t requiring the assent OF all the stock
holders Of the Union Pacific Railroad Company such
consent mas not yet been obtained: contract IL
alleged TO have been made with Thomas NJ. DAVIS
by Mr. Durant but II has not been approved by the
board.
q. Where are the contracts with Hoxie, Ames and
Davis A. don't know; the contract with IIoxie
presume Is somewhere about; II ought TO be among
tie BOOKS OF the company; the Ames and DAVIS con-
tracts presume are IN the hands OF Mr.. Bates.
q. Look at those words and res:-'september
ln Mr Ea.lnX lnr nnlallr nlhnIs NM