Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-01-15

AhoNts-ANb7 Sill ! uiu liOA.
Witness further testified that he neve
kept blotter; and, in answer to a ques
ton of Judge Poland, said he supposed
somebody had signed a paper AUTHORIZING
the issue Of fifty shares additional t
4 Nelson by Alley. At the time the in,
crease in the capital stock was made
many of the stockholders declined tC
take ii. He did not remember of any o.
the stockholders being refused TO see the
books of the company. The books were
taken away on account of the Fisk suit
and not to keep the books away from the
stockholders.
= In answer to a question by Mr.. PO-
land, he said that he had no informa-
ton or belief as to where the missing
books are; can give no clue as to where
they may be; did not remember seeing
Alleys name on the paper authorizing
the issue of fifty shares additional TO
Nelson by Judge Black; did not re-
member what was said. In answer to
the sum of the produce books in the
Pennsylvania suit, he said the books
were for daily use.
Mr.. H. Crane, Assistant Treasurer of
the Credit MObilier and Pacific railroad,
testified that James Brooks, on Decem-
Der "a, 1867, paid him ten thousand dol
lars, for which he transferred to G. H.
Nelson, at Brooks's request, one hun
dred shares of Credit Mobilier and two
hundred shares Of Pacific railroad stock,
and the same day delivered him five
lrst-mortgage bonds of the Pacific rail-
road. 1 know nothing about the nego-
tiauons for it. 1t was Durant'3 stock,
not the cOmpany's. Did not know the
amount of profit realized by Brooks. but
] ITnOnOhf q do
were several dividends on the Credit
Mobilier stock. Durant loaned him
twenty-five thousand dollars on October
! l9, 1887, and on January 3Oth loaned
him forty thousand dollars, both at ten
| per cent, all of which was paid in 1869.
Two hundred and fifty shares of Credit
Mobilier were sold to Alley at one dollar
and sixty cents when it was worth two
dollars. Witness swore that Brooks's
ten thousand dollars was paid for Credit
Mobilier stock, and not on account of
the loan, Durant having made the en-
tries himself.
Question-Were the five bonds part
of the delivery for the ten thousand dol !
lars?
Answer-Yes, sir, / took a copy from
my book and | will read it to YOU, If |
you want to hear it.
Senator POland-Suppose YOU produce |
that memorandum.
Witness did so and read it as follows:
" December "a, 1867. Stock account
Credit MObillier of America. Trans
ferred to Jas. Erooks's son-in-law one
hundred shares of stock at par, with
the five bonds of the Union Pacific
Company and two hundred shares Of
Union Pacific stock, seven thousand
dollars cash, draft due twenty-second
of January for three thousand dollars,
ten thousand dollars, a check book, de-
posted December "A, 1867, in the Ourth
National Bank, James Brooks seven
thousand dollars, January 20, 1868, in
stOck-book Fourth National Bank bills
payable to James Brooks account. note
due this day for three thousand dollars.'
A recess was then taken, of fifteen
minutes.
After the recess Mr.. Ham was re-
called. Witness referred to the name [
OF Charles II. Nelson on the book, /;
showing transfer of fifty shares to !
Nelson, whose name had been written |
after an error was made, and testified {
that II was in his handwriting, and an 5
had been made before the word {
millions" was written; but he did not
remember what was erased. He had no '
memory at all in reference to the era {
sure The erasure was in the place
where the name should be. (Bv Mr.. {
Brooks. Never received any instruc- /
lion from Brooks to elase his name. 1t Z
might have been probable that Brooks's /
name was written instead of Nelson's. 5
)n account of the intimate connection {
Of Nelson with Brooks. If Brooks's {
name was written there first, it was a 0
q
Mr.. Thomas c. Durant testified that a
ne was Director of the Union Pacific
railroad till lS69-was President of the L
Credlt Mobilier Company, and one of p
he trustees to whom the Ames contract i
was assigned, has certified copies OF the e
books, signed paper to distribute some p
'tOck ON hand. The stock was transferred g
% witness to enable him TO fulfill prior t
He did not know
o whom Ames was to transfer q
ne STOCK. Ames said he had b
Engagement to deliver some to a
Joltax; he thinks other Congressman t
we're also mentioned, and il made an b
impression on him, as he believed Ames /:
ave the names and intended keepiup o
he stock to himself; conversed with "
Nelson; had business transaction with "
Brooks, cut had no reference to Brooks z
5 Congressman; Brooks desired some o
tock, and witness arranged to let \
Crooks have one hundred shares Credit n
loollier, with twenty thousand dol II
ars' worth of Union Pacific stock, p
lso number of first-mortgage bonds: n
lr. Brooks, being Government Direc- p
Or, did not want TO hold stock, and il
therefore, had it transferred to Mr.. Neil Il
on knew nothing about fifty shares tC
ddiuonal stock received by Mr.. Neil W
)n; the stock increased in value sud Il
enlyi when Mr.. Brooks purchased the g;
-ock he was entitled to the dividend to
,hich had first been declared; the Credit la
lobilier Company took the contract at b5
fly thousand dollars per mile, and was le
ollged to take in part payment Union Ii,
acific railroad stock; the first stock G.,
as taken from the road at fifty per pc
ent. and sold to stockholders at 70
syenty-one per cent; witness felt under az
ollgatlons to Brooks, having agreed W
18th him that he should have the stock; re
ad borrowed money from Brooks, but ar
ID not let him have the stock in con- hi
deratlon OF being under any money WI
)ligatiOn to him. vo
Without finishing the examination of 70
urant, the committee adjourned until nj
'-mOrrow. ne
IsToRH OF TILE CREDIT MOBILIER. as
The following is a summary of an ma
'tlcle that appeared in the Boston di'
rdUetyer on January 9TH: The early his OF
ry of the Union Pacific railroad is ro'
ell known. 1t had land grants of ten u
uare miles for every mile of the road, Tn
start at the one hundredth meridian
Id go west to the Rocky Mountains, or ag
rnn ha n q
grant OF six per cent bonds for sixteen OF
Ousand dollars per mile for about two
inbred miles; then thirty-two thou
nd dollars per mile for six hundred
lies, and then, through the Rocky Ne
forty-eight thousand dollars th'
r mile. The stock was subscribed for urt
about ten million dollars, and, nav. mC
g only five per cent on this, the sub ble
ribers took all the assets and gave cal
em to the Credit MObilier to build the Law
ad, well knowing that no further paw pre-
ent from them would be needed. The OF
ObllleT stockholders We're identical pre-
tn those of the Union Pacific. But as eve
E first two hundred miles proved to OIL
an expensive place in which to build oaC
abroad, the idea occurred to the on flee
Itors that they could put a second
)Ttgage on the road of the same
lount per mile as that held by I
Government, and give the bonds cisC
the Mobilier to build the road, mig
then, they could get Con- Sta
IS TO give this mortgage the Mis-
'cedence over that of the Govern bril
nt-whlch would doubtless be enough the
build the road-their own mortgage Isls
uld be clear gain, to be divided Mis-
ong themselves: Indeed, though the The
lded mortgage debt exceeds seventy vot'
millions of dollars, the road cost but
,nty-nine millions TO build. 1t was 7,