Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-01-20
Credit Mobilier Investigation.

Washington, Is. At the session of the
Wilson committee to-day Mr.. Durant was re-
called and testified as to the franchise laws of
the Souix City branch of the Union Pacific
railroad.
On being asked whether he knew of any
money being paid to any persons to have GER
tain objects accomplished, witness replied he
thought Cakes Ames and John B. Alley had
large interests involved. He heard Ames
say he had to pay others for their interest
and that he paid $50, 900 apiece to two Iowa
members of congress to get control of the
franchise. The members were j. F. Wilson
and VIM. B. Allison, but witness was not
positive as to Allison.
In the evening the committee examined J.
NJ. S. Williams of Cambridge, who was
treasurer of the Union Pacific road from go
to II and was secretary of railroad COM
pany connected with the management of said
road and made proposal in 67 to the secre-
tary of the railroad to build SCI miles of road
at $50, 900 mile.
He believed that a portion of the road pro-
posed for was already built and his reason for
including that portion was to secure the con-
tract of it from the hands of Durant, in whom
his friends had NO confidence. Consequently
upon Dnrants extravagant management the
interests of the Union Pacific railroad and
Credit Mobilier are identical, they being vir-
tually one corporation.
During the examination Mr.. Hoar asked
whether the witness thought it was acting in
good faith with the government to return as
part Of the cost of the railroad ten or twelve
millions of dollars divided among the stock
holders.
The witness answered that they did not
consider that there was any breach of good
faith. They should look at the matter from
the standpoint of the 37th and 38th Con-
crosses and not from the 42d congress. They
understood that the government would never
call upon the company for the interest, bonds
or five per cent of the net earnings, but re-
tain only one half of the amount for govern
ment transportation.
Mr.. Hoar asked whether the first mortgage
bonds and also the stock of the Union Pacific
railroad had not been divided among those
who received division Of the profits from
the contracts.
Answer. Some of them. Do not know
the present cost of the railroad to the per-
sons who built it.
The chairman. You said you considered
the Credit Mobiler and the Union Pacific
railroad the same thing. so nearly identical
that there was no diversity of interest
Question. Was the cost of the road larger
to the Union Pacific railroad than the credit
mcDillerI
Answer. You have to consider ,ha, this is
question 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 ami the credit mobiier
were the same thing.
The witness made some calculations to
show how the affairs between them were
made even, but the chairman thought the cal-
culations proved their inequality.
The chairman asked the witness whether
he knew of any money being paid by the
Union Pacific railroad or Credit Mobilier or
by any persons connected with them at any
time to inf uence or to procure the election Of
any senator or representative in Congress-
The witness said that he had always con-
tributed for general political purposes only
Witness said in answer to question, that
Ben Butler, member of Congress, was paid
1000 by the Union Pacific Railroad Compa-
ny. 1t was reported 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 in the fall of 1867, or spring of 1865;
Butler gave advice as to Oaks Ame's contract
and helped the Company at the meeting of
election of officers. Mr.. John 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 that he brought Mr.. Butler
with him to New York as his lawyer; had
witness any ground for statement? witness
replied that was the general understanding
and report. Mr.. Alley rejoined that he ha
nothing more to do with Gen. Buffers going
to New York than the witness himself. The
President of the Company sent on for Butler
Joseph B. Stewart testified that he was
practitioner of law in the city of Washington :;
having been asked whether he had rendered
any service for the Pacific Railroad Compa-
ny or Credit Mobiler, and if so, whether the
witness said he had been an earnest and con-
sistent advocate Of all the Pacific Railroads
projects for many years, and of internal i'm
provements generally; he had urged these
measures on members of Congress as any
citizen had right to do; he tried to induce
Congress to foster, sustain and favor persons
who had invested their property and fortune
in building roads.
Question by the Chairman-Where you en-
gagged in what are commonly known as lobby
ing schemes?
Answer disclaim the performance of
such service on any occasion. For the last
u years / have had much to do with getting
business through Congress.
l have addressed myself TO Congress
through It's committees and showed why the
laws should be passed for the relief OF my
Giants. | acted in the matter of having
passed the Union Pacific Railroad bill of "a.
The service was not gratuitous on my part,
was paid for the service by the company, or
those representing it. A great deal of money
came into my hands. | received it in order to
discharge my duty as attorney in cases where
railroads were concerned. l received for this
purpose S250,000, part of this sum in Union
Pacific Railroad bonds. The witness declin-
ed to state to whom he paid the bonds, but
they were not paid to any member of Con-
gress. He repeated that most of the money
was paid to settle dispute with the Leaven-
worth, Pawnee & Western Railroad Com
pany. lie considered himself the agent of
all the railroad companies. He was employ
ed to frame proposition acceptable to Con-
gress to aid and strengthen the financial con-
dition of the companies, and he was the au-
thor Of tho 10th Spptiop nf tho | pinu Dapitio