The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1873-01-08
WASHINGTON.
CREDIT MOBILIER.
Interesting Session Of the Com
mittee.
Testimony of Vice President COlfax.
UnpieaSantness Between MeSsrS.
Alley and McCOmb,
The New Syndicate.

statement of Mr. Patterson, banker of Phia.
delphia, and Mr.. Duncan, of Duncan, Sherman
& Co., of New York. in relation to the Syndi
cate and new funded loans.
The Credit Moblier committee resumed theil
investigation this morning. There were pres
ent among others Speaker Blaine, Cakes Ames
and McComb in addition to Vice President Col
fax.
Mr.. Colfax, after a brief preliminary state
ment was sworn, and gave his testimony in a
written form as follows: had expected that
after the Speaker testified would be the next
one invited before this committee Dec. 10th, to
be allowed to testify, and that my testimony
might be made public. l state explicitly that
| no one ever gave or offered to give me any
shares of stock in the Credit Mobilier or Union
| Pacific Railroad. / have never received nor had
| rendered to me sny dividend in cash. stock or
bonds accruing upon any stock in either of said
! organizations, and neither An.es nor any other
person connected with either of said organiza-
| tions has ever asked me to vote for or against
any measure affecting the interest of either,
directly or remotely, or to use my personal or
o1hclal influence in their favor. / desire. how
| ever, to state that all the circumstances through
Wnlch probably my name came to be associated
| with this organization. Five years ago, about
| the time of holding recess, / was conversing on
the floor of the House with Mr.. Ames in re-
| gard to the Pacific Railroad, in favor of build
| ing OF which had previously made hundreds
| OF public addresses In the course of this con-
versation he asked me if 1 would not like to
purchase some stock in the Credit Mobier.
| Up to that time l knew nothing of its capital
or profits, and inquired of him as to its OBJ
| Jects and the value of its stock. As near as 1
| can recall this conversation after the lapse of
| so many years, was informed by him it was
| legally Incorporated company, composed of
| the principal stockholders of the Union Pacific
| Railroad who were themselves building the
| road instead of letting it out to contractors
who always expected large profits for their risk
and their advances OF money for supplies. /
told him after his explanation that it looked
| like good and safe investment for one of lin
tied means, and would be willing to purchase
twenty or thirty shares at fair price if had
the money, but L added frankly that L could
| not pay for them till two or three months after
wards as my housekeeping expenses in the
opening months of the session were much larg-
er than the average.
He replied that he would contract to sell me
twenty shares at par if I would in addition
agree to pay interest till final payment in
CURED what per cent. it would pay, and he re-
piled there had been large dividends, but as the
road was pushed further into the interior the
profits might not be large though they would
be very surely remuneratve. The Union Pa
clfic Railroad had no legislation that knew of
pending before Congress at the time, nor did
suppose there could be any in the future, as the
last amendment to their charter authorizing
the issue of first mortgage bonds which should
have the priority of the government lien had
been enacted in 1864, over three years before
ohio COu'tlSdGiOu, GudU any question {
arising under their charter would be judicially
settled, and surprising at auy rate that had
che same right to purchase this stock as to buy
stock in a national bank chartered by Congress
or in mandatory.
/ told him would agree to purchase twenty
shares at par and the interest to be paid as
soon as had the money Some weeks or some
months afterwards, at the same session, paid
AmeS $500 in cash on this contract of purchase
being all the money / had, but received
HIVJ1and n iaat Of CT nv rbnIa
In part My impression is that he told me one
or two dividends had been earned but they
We're not in cash and were as yet unadjusted.
certainly did not receive any, and was not
offered any in cash, or bonds or stock, then or
SINCE
A few weeks or months after this I heard a
rumor that unpleasant controversies existed
amongst the largest stockholders, which were
certain to involve the organization in pre-
longed litigation. The very day L heard this
rumor told Mr. Ames no profits present or
prospective could induce me to buy into law
suit-that had never been during all my life
plaintiff or defendent in court of justice, til. t
l must therefore recede entirely from the tran
saction. l did not want STOCK of any kind on
any terms that would make me party to liti-
CATION. He assented to this and nothing was
said as to the money paid, my anxiety being
not to get into law suit. All these things Oc-
CURED at the same session of Congress five
years ago, which closed in the summer of 1878.
The next year or year after, Ames SUSPENDED
payment in consequence, as Was said, OF tnan-
cal inducements connected with the Pacific
railroad, and his creditors gave him an extern
sion on his liabilities, but regrettng his failure
and its cause l told him to dismiss from his
mind the small amount of money between us.
[ suppose but for this he would have repaid the
money had paid him. L may repeat therefore
that neither stocks nor bonds were given to me
nor offered to be given to me, that L never re-
ceived dollar in bonds, stock or money as div
idends. That did continue to purchase 20
shares of stock in the company at par, and in
trust, but after partial payment | withdrew en-
trely from what regarded as an incomplete
contract from repugnance to being involved in
litigation, and that instead of being enriched
by it $500 or $4,000 as has been charged am
voluntarily out of pocket $500, and have been
for nearly five years.
The Chairman asked whether witness had
knowledge of the ownership of stock by any
member OF Congress, to which he replied, he
had no such personal knowledge. Witness had
for wears been regarded as in favor of building
the Pacific Railroad. He had made speeches
and written in favor of it, and thought the gov
eminent ought to build if capitalists could
not be interested for that purpose.
Hon. John B. Alley, said before resuming
his testimony, he should like to make a few OBJ
servatiOns
He hoped the committee would allow the full
est Investigate n into all matters which would
have tendency to throw light on all questions
connected with the charges before the commit
sure but praise to have their names inscribed in
| the records OF the country, charged with acts,
| which, If true, ought to consgn them to eternal
lnfalny, but every act and circumstance in his
| Judgment established their innocence. The
record would show that Ames was honest, and
that the cry of stop thief was raised by the
| thieves themselves.
Mr.. Alley then read long paper giving the
history OF the building of the railroad, and the
| conduct of the company saving that from all
|
| but should have monument to commemorate
| his great services to the country The state
ment also referred to McComb and the suit in
| stltuted by him and indicated Ames as an
honest man in that connection.
During the reading of that part of the paper
| referring to the charge of black mailing suit
by McCemb, and that he had robbed the SOL
diers, &c, member of the committee raised a
question as to the revelancy OF repeating what
had been said by Others
McComb remarked LET Mr. Alley spread
all the dirt he CAM
Mr.. Alley resumed, saying Ames had perilled
fortune, and took upon himself the responsible
lty OF 47, 100000, in order to secure the build
ing OF the road. Not another man could have
been found to do the same. His profits were
less than million dollars, and his brother Oil
yer Ames, President of the Company, told him
(Alley) after the road was opened that owing to
the pecuniary embarrassments of the company
and its doubtful success, he would give Alley a
half million dollars if he would relieve him (Ol-
liver Ames) from all loss.
Mr.. Alley was then cross examined as to the
capital of the Railroad Company, the value of
dividends, &c.
| Mr.. McComb wished to produce few facts
in reply to the Interpretation of Alley. He said
he had been in business twenty years, under
five consecutive administrations, and had never
had voucher or contract suspended or held up
for action. He had received letter from a
Boston man, VIM McKeine brother-in-law OF
A. H. Rice, formerly distinguished member
of Congress from Massachusetts, which he de-
sired to have read.
The Chairman informed him that he should
hereafter have an opportunity.
Mr.. ALLEY remarked, that all he said against
McComb was susceptible of the clearest proof.
+ McComb-Will you call for the books of the
Credit Mobiier? They will answer many Of
the charges of the distinguished vituperatol
from Massachusetts, John B. Alley.
The chairman said he had sent a subpoena
to the secretary of the company to bring the
books showing the holders of stock or who have
received dividends. The committee then ad
journed.
Alleys eross-examination will be resumed to-
morrow.
Disclaimer of ex-COng essman Allison Of
Iowa.
The following telegram was received to-day
Breoor House, Neao York, Jan. 7.-George
w. McCreary, House of Representatives, Wash
ngton: Please say to your committee that