New-York tribune., 1873-01-08

Col McComb says that he will put this in evidence
tomorrow.
TESTIMONY OF president CoLFAX - HE
CONTRACTS FOR STOCK, But wTHDRAWS
BEFORE 1T ls PAID FoR-sTATEMENTs BY
JOHN Il. ALLEY.
GENERAL PRESS DIsPATCH.l
WASHINGTON, Jan. THE Credit Mobilier Com
mittee resumed their investigation this morning.
There were present, among Others Speaker Blaine,
0akes Ames. and McComb, in addition to Nice-Pres-
ident Colfax. Mr. Colfax, after brief preliminary
statement, was sworn, aud gave his testimony III
written form as follows:
vICE-PREsIDENT COLFAX's TESTIMONY.
had expected. after the Speaker had testified,
would be the next one invited before this Committee
on Dec 16 to be allowed to testify. and that my es
timony might be made public. l state explicitly
that no one ever gave or offered to give any shares
of stock in the Credit Mobiler or the Union Pacific
Railroad have never received nor had rendered
to me any dividends in cash, stock or bonds accru-
ing upon any stock in either of said organizations
and neither Mr.. Ames nor any other person con-
nected with either of said organizations ever
asked me to vote for or against any
measures affecting the interests OF either dl-
Tectly remotely. or to use any personal or 9TH
cial influence in their favor. i DESIRES however
to state all the circumstances through which proba
/
organization Five years ago. about the time of the
holiday recess was conyersing on the floor OF the
House with Mr. Ames in regard to the Pacific Rail
road. in favor of the building of which had previ-
ously made hundreds of public addresses. In the
course of this conversation he asked me ii / would
not like to purchase some stock in the Credit Mo-
biher. Up to that time knew nothing of its capi
tai or profits; and inquired of him as to its objects
and the value of its stock. As near as / can recall
this conversation after the lapse of many years
l was informed by him that it was legally
incorporated company, composed of the prin-
cipal stockholders of the Union Pacific
Railroad who themselves building
the road, instead of letting it out to
contractors who always expected ilarge profits for
their 1isk and tler advances of money for supplies
told him after his explanation, that it looked likea
good and safe investment for one of limited means
and would be willing to purchase % or 30 shares at
a fair prize, if had the money; but, added
frankly, that could not pay for them until two or
three months afterwards, az my housekeeping ex-
penses in the opening months Of the session were
much larger than the average. He replied that he
would contract to sell me 20 shares at par if would
in addition agree to pay interest until final pay
ment l inquired what pericent it would pay, and
he replied that there had been large dividends but
as the road was pushed farther into the interior the
profits might not be large, though they would be
very surely remuneratiye
The Union Pacific Railroad had no legislation that
knew of pending before Congress at that 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
priority of the Government lien had been enacted
in 1854 over three years before this conversations
inferring that any questions arising under their
charter would be judically settled Supposing. at
any rate that had the right to purchase this
stock as to buy stock in national bank chartered
by Congress OF in mandatory, told him would
agreo to purchase 20 shares at par and interest to
be paid for as soon as had the money Some weeks
or months afterward, at the same session. paid Mr.
Ames about $500 in cash on this contract OF pur-
chase, being all the money had but received no
dividend nor certificate Of stock in whole or in part
My impression is that he told me that or two
dividends had been earned but that they were 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.
MIR. CoIFAx RECEDEs FROM HIS CONTRACT.
few weeks or months after this heard a rumor
that unpleasant controversies existed among the
largest stockholders, which were certain TO involve
the organization in prolonged litigation The very
day / heard this rumOr | told Mr., Ames that no
profits present prospective could induce Inc to
buy into lawsuit; that had never been during
all my life plaintiff defendant in court of JUS
tce; that must therefore Tecede entirely from the
transaction between US. did not want stock of
any kind on any terms that would make me
party to litigation. He assented TO this and
nothing was said as to the money paid, my anxiety
being not to get into lawsuit. All these things
Cured at the same session of Congress, five years
ago. which closed in the Summer Of 1853 The next
year. or the year after Mr. Ames suspended pay
| ment in consequence. as was said of financial in
Movements connected with the Pacific Railroad and
his creditors gave him extension on his liabilities
But regTettng his failure and its cause, told him
to dismiss from his mind the small amount of money
betweenus / suppose but for this he would have
repaid the money had paid him. / may repeat
therefore that neither stock bonds given to
me- offered to be given to me- that neverreceved
dollar in bonds stock or money as dividends that
did contract to purchase 20 shares of stock IN the
company at par and interest but that after'a par
tal payment withdrew entirely from what re-
garded as an incomplete contract, from repugnance
to being involved in litigation, and that instead of
being enriched by itIS1,OOO S9O,OOO, as has been
charged am voluntarily out of pocket $500, and
have been for nearly five years.
Mr. Cofax remarked he might add 800 more
Mr. Ames never paid him the value of a dollar on
any account whatever
The Chairman asked whether the witness had
knowledge of ownership of stock by any
member of Congress, to which he replied he had
no such personal knowledge. Witness bad for years
been regarded as in favor of building the Pacific
Railroad he had made speeches and written in
favor of it, and thought the Government ought to
build it if capitalists could not be interested for that
purpose.
TESTIMONY OF JOHN B. ALLEY.
The Hon. John b. Alley said, before resuming his
testimony. that he should like to make few OBJ