Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-02-15

" ClOcA, sss ". L. huilLlugJOu, WibuoSs, udu
not appeared. John j. Cisco, Of New
, York, has been summoned, and If 1t is re-
! ported faVorably by the sub committee
} moned. Gen. G.. M. Dodge has not yet
appeared, and It is feared he is evsding
summons. HL-
The Central Faciiic-Another Credit
M0bilier.
q. P. Huntington, Vice President of the
Central Pacific Railroad Company, was ex-
amined before the Wilson Credit Mobiler
Committee this afternoon with reference to
the constructing of his road. He detailed
the formation of Contract and Finance
Company to build the road, somewhat SINH
lar to the Credit Mobler Company, but
claimed that they made no money on it.
By Mr.. Shellabarger-Suppos the Gov
ernlhent should require the payment Of the
whole semi annual interest on the Govern
ment subsidy except what you pay in the
way of Transportation, would you be able
punctually to meet the INTEREST,"
Answer---1 have no doubt that the G. P.
r. r. can meet all legal obligations.
Could you in the case stated pay interest
In Government subsidy, and also on your
bonds as they fall due?
AnsweI-I have no doubt the Company
could.
Witness, on further examination, said
the gross earnings of the road were $12,-
100000, and that the running expenses
were alittle over 40 per cent, and no divi-
dends had been paid to stockholders.
Witness was subsequently induced by
leading questions to confess that his firm
had perhaps made S500,000 profit on the
| road.
Shellabarger asked what is the aggregate
amount of profits divided among the mem
bers of the construction committee for that
company.
Witness replied he didn't know; nor were
| any of the gentlemen who could answer
the question now in this part of the country.
| The books too were in California. 81
Alleged Corruption I'm Connection
with che Repeal of Tax ON Borrowed
Capital.
Special to the Cincinnati Commercial
WASHINGTON, Feb. 12.-It seems as If
there was to be no end of the development
OF questionable transactions in connection
with Congress. The Credit Mobilier busi-
ness is not yet finished; the charges against
Pomeroy and Caldwell are still pending, and
now comes another charge of the use of
money to influence legislation. At the last
session one Clinton Colgate made his ap.
pearance here as the representative of the |
New York Stock Exchange. His avowed |
object was to have the tax on borrowed |
capital, which appears weighed most hesvi- |
ly on the New York brokers, repealed. Mr.. |
Colgate put up at one Of the fashionable |
hotels, appeared to have plenty of money,
and was rather lavish in bis style. He |
msde known his business to Mr.. Dawes
and other members Of the Ways and Means
Committee, but did not succeed in having
his meas ure meet their approval. The In
ternal Revenue bill was reported to the
House without having anything in it re-
pealing the tax on borrowed capital. 1t |
passed in this shape and went over to the
Senate. Mir. Colgate and his friends laid
siege to the Senate Finance Committee, and
finally succeeded in gettiug them to insert,
as an amendment, few lines repeating the
tax In question. With this amendment the
bill came back to the House and was
passed, after going through conference
committee.
A few days ago Mr.. Dawes receive a
letter from New York, inclosiDg a news
paper paragraph Commenting on the report
made by Mr.. Colgate to his employers of
the New York Stock Exchange, calling at
tention to bis rather large bill of expenses,
and intimating that some or the money
was used about the committee rooms of
Ways and Means and Finance, and proba-
bly, in Congress. Upon receiving this Mr..
Dawes at once sent for Mr.. Colgate, who is
low here, and this morning that successful T.
gentleman appeared before the Committee
OF Ways and Means.
Mr.. Dawes called his attention to the
newspaper statement, and then proceeded
to question him as 10 his use of money to
secure the legislation. At first Colgate de-
MED having used any money, either direct
ly or indirectly, the usual form of denial,
but upon being closely pressed he finally
confessed to ten thousand dollars having
been paid Judge Charles Sherman, rother
Of Senator Sherman. He stated that Judge
Sherman wrote letter inclosing bill for
this amount, which he alleged was for ma
king brief and argument before the Sen
ate Finance Committee, aud for securing ,
the services of his brother, Senator Sher-
man, to put the bill through the Senate,
and of Gen. Garfield to put it through the
House.
The committee asked him to produce this
letter from Judge Sherman, but he said he /
did not have it with him. He promised, {
however, to hand it to Mr.. Dawes to-mor- '
row. The committee also asked him to
bring the report which he made to the New
York Stock Exchange. This also he prom /
ised to do. ]
The report, which was addressed to Mr.. :
Denny, President of the Stock Exchange, :
contains another statement which Mr.. Col :
gate did not make to the committee to-day,
hrlt WI VVil mi To Il a. |
10 the effect that Mr.. George Bassett, clerk r
Of the Committee on Ways and Means, :
made proposition to Mr.. Colgate that if be
would pay him two hundred and fifty dol I
ars per month, cash, and five thousand dol
ars when the bill became law, Bassett :
would aid Colgate in securing the repeal of '
he tax. :
Judge Sherman is United States District ,
Judge for the Northern District of Ohio, to +
which position he was appointed by Presi- c
lent johnson. Gen. Garfield denies having \
1ad anything to do with the matter. Mr.. i
Colgate did not accept the proposition of
Mr.. Bassett. He presented it to Mr.. Den o
ny, President of the Stock Exchange, who :
'efused to accede TO it. MIR. Colgate will 3
De before the Committee on WAYS and :
Means again tomorrow. Every effort has a
oeen made to keep the matter quiet. '
To the Associated Press. b
WASHINGTON, Feb. 14-Charles G. Col
,ate, who had charge of The tax and claim r
business of the Stock Exchange, testified a
before the Committee on Ways and Means a
o-day, concerning the passage by Congress q
If an amendment modifying the rule re- =
Iuiring money employed in carrying stocks, |,
gold bonds, ETC., to be returned and pay tax .
Is capital at the rate of 1-24 of / per cent a r
month. Some persons, he said, put in !;
,laims for services rendered the Stock Ex- u
;hange for securing the passage Of this c
adding that no money was paid 9
o any person connected with the Internal q
Revenue Department or Congress. Other
witnesses are summoned for tomorrow.
Witness a'so said that the Stock Exchange I
lad received letters from Judge Sherman Y
# Ohio, which enclosed bill for $4,000.
This amount was claimed on the ground p
hat he had prepared an argument for Col v
ate and had used bis iufluerce with his e
'rother Senator Sherman and Gen. Gar z
cld.
lTEAI5 ;,