The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1873-01-20
The Pacific. Mobilier Investigation
Proceedings before the Wilson
Committee

w AofticNION, cdu lC.-hI. w liSOh 1880
tigating committee met this morning.
Oliver III. Barnes, Secretary of the Credit MO
blier from 1868 to 1870, testified, giving the MS
tory of the Credit Moblier, by which It appears
that the charter was originally sold in Phlladel-
phia to George Francis Train for about $5O,OOO,
and that he (Barnes) signed transfer papers
Not over % or three per cent. had peeh pau Id
of the original shares. ..e.s - A.
the franchise laws os the sioux oiiy branci VI
the ITn;on Pacific railroad. On being asked
whether he knew of any money being paid to
anv nersons to have certain objects accomplish
ed he replied that he thought Oa6es Ames and
John B. Alley had large interests in it, He
heard Ames say that he had to pay others for
their interest and that he paid $4,000 apiece for
two Iowa members of Congress, TO get control
of the franchise. The members were j. i.
Wilson and VIM. B. Allison, but the wtness
was not positive as to Allison.
The committee this evening examined j. NJ.
s. Williams of Cambridge, who was Treasurer
OF the U. + X. r., from 1869 to 1871, and is
Secretary of railroad bureau connected with
the management of said road, and who made
a proposal in 1867 to the Secretary of the rail-
road to build 267 miles of the road at $4,000
per mile He believed a portion of the road
proposed for was already built; and the reason
for including that portion was to secure control
OF IL from the hands of Durant, in whom his
friends had no confidence, consequent upon
DurantS extravagant management. The ia
ttIoStS VI y mon Idcluc anu OTeulJ MOUlIlGr
were identical, hey being virtually one concern.
During the examination Mr. Hoar asked
whether the witness was acting in good faith
with the government to return, as part of the
cost of the road, ten or twelve millions of dol
lars divided among the stockholders.
The witness answered they did not consider
that there was anv breach of good faith. They
should look at the matter from the standpoint
Of the 37th and 3Sth Congresses, and not from
the Add Congress. They understood that the
government would never call on the company
for the interest on the bonds or five per cent of
the net earnings, but retain only one-half of
the amount for government transportation.
Mr.. Hoar also asked whether the first mort
gage bonds, and also the stock of the Union
Pacific railroad had not been divided among
those who received division of the profits
from the control.
Witness replied: Some of them The
witness did not know the precise cost of the
railroad to the persons who built it.
The chairman-You said you considered the
Credit Mobilier and the Union Pacific the same
thing?
A.-So nearly identical that there was no d.
versity of interest
Q.-Was the cost of the road larger to the
Union Pacific railroad than to the Credit Mo-
bilier?
A.-You have to consider that this is a q ues-
ton as to whether there was more money in
one pocket that the other but all belongs to
the same parties.
The chairman wished to know how the Union
Pacific Railroad Company and the Credit Mo-
bilier were the same thing.
The witness made some calculations to show
how the affairs between them were made even,
but the chairman thought the calculation prov
ed their inequality.
The chairman asked the witness whether he
knew of any money having been paid by the
Union Pacific Railroad Company or Credit Mo-
bilier, or by any persons connected with them
at any time to influence or procure the election
Of any Senator or Representative in Congress?
Witness said he had always contributed for gem
eral political purposes only.
Witness said in answer to question that B.
F. Butler, member of Congress, was paid $4,000
by the Union Pac fic Railroad Company. 1t
was reported that Butler received $4,000, but
witness could testify to $4,000 having been paid.
He had seen it on the treasurer's books. This
was i'll the fall of 1867 or spring of 1868. Mr..
Butler gave advice as to Cakes Alnes' contract
and helped the company at a meeting of the
election of officers. John 3. Alley brought
Butler to New York as his attorney, but the
company took his advice and paid him for it.
Mr.. Alley, who was present, asked how wit
ness understood he brought Gen. Butler with
him to New York as his lawyer? Had witness
any ground for the statement?
Witness replied that was the general under
standing and report
Mr. Alley rejoined that he had nothing more
to do with Gen. Buffers going to New York
=
of the company sent on for Butler.
Joseph B. Stewart testified that he is prac-
titioner of law in the city of Washington. Hav-
ing been asked whether he had rendered any
service for the Pacific r. R. Co. or the Credit
Mobilier and if so when, the witness said he
had been an earnest and consistent advocate of
all the Pacific Il. r. projects for many years,
and OF internal Improvements generally. He
had urged these measures on members of Con-
gress as any citizen has right to do He tried
IN ipdupQ CnnOrncc tn in o,,d e.,
persons who had invested their property and
fortune in building roads
The Chairman-Were you engaged in what
is commonly known as lobbying schemes? Ans.
Idlsclam the performance OF such service on
any occasion; for the last twehty-seven years I
have had much to do with getting business
through Congress and have addressed myself to
Congress through its Committees and showed
why the laws should be passed for the relief OF
my clients 7 acted earnestly in the matter
having pressed the Union Pacific r. r. bill OF
1854 The service was not gratuitous ON my
part was paid for the service by the com
| pany or those representing it.
Q.-What amount?
| Aust was paid a fee of $50 900 on account
Of the railroad for my individual services by
Durant & Haet; another fee of $4,000 was
| paid to me by Z. d. Huntington in stock of
| Central Pacific Railroad in 1861 A great deal
more money came into my hands. l received
it in order to discharge my duty as attorney in
mediator and negotiator and compromiser Of
conflicting interests. My business had no ref
| erence to any Senator or Representative. l re-
| ceived for this purpose $250,000, part of this
sum in Union Pacific Railroad bonds. The
| witness declined to state to whom he paid the
bonds but they were not paid to any member OF
| Congress. He repeated that most of the money
was paid to settle dispute with the Leaven
worth, Pawnee & Western Railroad Company
| He considered himself the agent of all the rail
| III la yyaC ,n1nx 70 fro, r
proposition acceptable to Congress to aid anG
| strengthen the financial conditions of the com.
| pany, and he was the author of the 10th sec
ton of the Union Pacific Railroad act of 1864
The committee adjourned near midnight til
| Monday morning at 10 o'clock.
Treasury Balance.
| Balance in the Treasury to-day: currency
50, 784, 507; special deposit of legal tenders fol
| redemption of certificates of deposit, S2S.
655,00O, coin, 1854, 23S, 051; including coin certi
ficatcs, $25, 152, 500
The Goat Island hob.
A special meeting of the Senate Committe,
on Military Affairs had this evening, at whlcl
hon; Leland Stamford, President of the Cen
trai Paclhc Railroad, presented the argument
o.. the corporation in support of bill which
proposes to rclinquish part of the Goat Island
| In San Francisco harbOr, to the company fol
railroad purposes. Hon. d. C. McRuer Of Sal
fraNclsco, made an argument in reply, oppos
Senator Casserly and Cole and Representa-
tive Sargent of California, and Senator Stewar
OF Nevada, were also present and took part il
the general informal discussion of the question
The committee took no action at this meeting
merely preliminary to a fuller examination Q
the subject
The Delarge.Bowcn Election Case.
WASHINGTON, Jan. 1S-The House Commit
tee on Elections will report that the frauds an
irregularities were SO great at the election il
the second Congressional district of Soutl
Carolina, that it is impossible to determn
whether Delarge or Bowen had majority o
the legal votes, and they unanimously of til
opinion that neither are entitled to the seat, t.
which effect they recommend the adoption Of
resolution.
| Frozen to Death.
Andrew NJ. Jacobs, clerk in the Treasury DE
partment, who was subject TO occasional al
beration of mind, but of a temperate character
was frozen to death ON the grounds of til
Smithsonian Institute, last night
.... XLIID CONGRESS.