Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-01-19

lie W SCJ Vi LAO PL3OON 0SS~AAt
making a profit Of 800 per cent, 1.-THE tele-
graph has it 3,000.l Wilson remarks that
when this Oakes Ames contract was being
fulfilled "ths whole country resounded with
praises of the energy manifested BY the
contractors of the Union Pacific" He al
ways was railroad man. Favored the
Pacific road because his constituency were
unit for it, aud because 1t would develop
projected railroads in Iowa. As Govern
ment director of the Union Pacific Railroad,
he desired TO enter his protest now against
the reports going round the country that
the Government would lose It's investment
in that road: He had no doubt. the road
would be able to pay back every dollar.
In answer to q question by Mr. Nc
| Creery, witness said he was in Grimes room
when Oskes Ames asked Senator Grimes TO
take $4,000 worth Of stock in the Credit
Mobilier. Ames said to Grimes, awe
must raiss money. If yoa will take the
stock will guarantee you 10 per cent. on
your money, providing you will divide all
the profits over 10 per cent. with me-"
Grimes replied, "Well l am satisfied with
10 per cent. on my money" and agreed to
invest:
Geo. w. Kennedy, book-keefer of Ames,
testified that although the books OF the
company showed that he owned thirty
shares of the stock he had 10 information
ofthst fact. Several shares of Union Pa
cific were transferred to him and re-trans-
ferred back to Ames without consideration.
Adjourned to Monday.
Only 5 Per Cent. of Original Stock
Paid Up.
The Wilson Investigating Committee met
this morning. Oliver W. Barnes, Secretary
Of the Credit Mobilier from 1869 to 1870,
testified. The charter was originally sold
| in Philadelphia to Geo. Francis Train for
about thirty thousand dollars, and he
| (Barnes) signed the transfer paper. Not
| over % or per cent. had been paid in OF
! the original shares. The capital of the
Credit Mobilier was derived from the Union
| Pacific Railroad Co.
Durant was recalled. He had heard
Ames say he had TO pay others for their in.
| terest in the Sioux City Branch of the Union
| Pacific Road, and that he paid S., 900 apiece
| to two of the Iowa members of Congress to
| get control Of the franchise. The members
were j. f. Wilson and William B. Allison,
but witness was not positive as to Allison.
Adjourned to $50 o'clock.
Night Session.
At the evening session they examined j.
| M. S. Williams, Of Cambridge, Mass, who
was Treasurer of the Union Pacific Kali
road from 1869 to 1871. He made pro-
posal in 1867 to build two hundred and sixty
seven miles of the road at $4,000 mile.
he believed portion OF the road proposed
for, was already built and the reason for in
Guiding that portion was to secure control
of it from the hands of Dursnt, in whom
he and his friends had no confidence, con-
sequent upon DurRnt's extravagsnt man
agement, and give the management to Dill
lion s. Duff. The interest OF the Union
Pacific aud Credit M0bilier were identical
and virtually one concern.
Mr.. HoSr asked whether witness was act
ing in good faith with the government to
return as part of the cost Of the railroad ten
or twelve million dollars to be divided
among the stockholders. Witness answer
ed that they did not consider there was any
breach of good faith. The should look at
the matter from the standpoint of the 9th
and 38th Congress, not the 42nd Congress.
They understood the government would
never call on the company for interest on
the bonds or five per cent. of the net earn
ings, but retain only one half of the amount
for government transportation.
MIR. Hoar also asked whether the frs.
mortgage bonds, also stock Of the Union
Pacific Railroad, had nos been divided
among those who had received division Of
the profits Of the contract. Witness re-
Piled, "Some of them" In reply to q
question whether witness knew Of the pay
meut of any money to aid the election o.
Representatives or Senators, he replied thai
he (witness) had always contributed fol
general political purposes.
Benz. F. Butler, member of Congress
was paid $1,000 by the Union Pacific Rail
road. twas reported that Butler received
1000, but witness could testify to 5000
having been paid. Had seen it on th'
Treasurer's books.
The Story of q Lobbyist.
Joseph B. Stewart, a lawyer of Washing
ton, testified he had been an earnest ant
consistent advocate of all Pacific Railroad
projects for many years and of naiona
improvement generally. He had urge(
these measures on members of Congress.
Chairman-Were you engaged in wha
are commonly known as lobbying schemes
Answer disclaim the performance o
such service on any occasion. Was paii
for his services by the company or thos
representing it.
QuestiOn.-What amount?
AnsWer.-I was paid fee of $4,000 OF
account Of railroads for individual serVice
by Mes.rs. Durant & Hallett. Another fet
of $4,000 was paid to me by G. T. Hunt
ipgton in stock of the Union Pacific Rail
road in 1864. a great deal more money cam
into my hands. l received it in order tt
discharge my duty as Attorney in cases
where the railroads were concerned as {
mediator, negotiator, compromiser of con
| fiicting interests. My business had no refer
ence to any Senator or Representative,
received for these purposes $4,000. Par
Of this sum was in Union Pacific Raj
road bonds. Witness declines {
state TOP whom be paid the bonds
but they we're [not?l paid to an
; members of Congress. He repeated tia
most of the money was paid to settle dis
, putes with the Leavenworth, Pawnee an
= Western Railroad Company. He cOnSid
, cred himself the agent of all railroad con
, panies. He was employed 10 frame pr0po
, sitions acceptable to Congress 10 aid sn
strengthen the financial condition Of th
+ companies. He was author Of the lot
? section of the Pacific Railroad act Of 1866
The committee, at nearly midnight,
{ journed until Monday at 10 O'Clock.
s The Latest Pacific Railroad Grab.
The Senate Military Committee tn
evening heard President Stanford Of tt
Central Pacific railroad in favor of the bi
j. relinquishiDg part of Cost Island to Il
company ana d. q. McRuer Of San FraI
cisco in o position. Senators Cole, Ca
sely ana stewart and Representative Sa
gent participated in the discussion.
4 Amusementsi
| The Districs Attorney Of the Distrit
will probably proceed against Susan
, Anthony, President of the Woman Su
= frage Association, for giving an exhibitiC
without license; the Suffrage Associatio
3 meeting being so considered.
} The Congressional Temperance Societ
will celebrate its anniversary to-morro
! evening.
= More Syndicsfes.
9 NEW York, Jan. lS.-A W&shingtc
1 dispatch ttis afternoon says thai two di
tinct syndicates comprising two leadir
New FORK banking houses and two lesdiI
houses of London have submitted to Secrt
D tary Boutwell, propositions to fund the IT
naming new five per cents on terms sim
lar to those of the syndicate of last year.
The San Domingo Credit EFObiIier.
A great deal of eDeculstiOa ia rife in In