Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-01-15
Messrs. Nelson, Garfield, Ham
and Durant Examined-A Nice
Dish Of Testimony.
The Case Of James Brooks MOnOp-
OliZeS Attention Witnesses
For and Against Him.
History Of the COmpany-HOw
and Why it was FOrmed-Its
Leaders and Its Gains.
AmeS, McCOmb, DuranU, James
Brooks, Treasurer Boutwell,
and Speaker Dawes.

and Speaker Dawes.
: WASHINGTON, January l4.-In tn,
o. Credit MObilieT Committee, to-day
Chairman Pollard decided that the re
, cords Of the War Department asked fol
e by Mr.. Brooks, to show the character
e Of McComb, were foreign to the subject
under investigation.
Mr.. Nelson, BrOOks's sOn-in-law, tes.
tilted that he borrowed five thousand
= dollars of Dillon after six months ac.
- quaintance, and without any previous
business transaction, giving Dillon
Union Pacific stock as security. He
was told by Brooks that he was entitled
TO fifty additional shares Of Credit Mo-
bilier.
James Garfield was sworn, and
made a lengthy statement
In answer TO a question by Judge Po-
land, Mr.. Garfield said he had no knowl-
edge of any dealings between Ames
and any Congressman; told Ames he
would not have any stock where a con-
troversy existed; derived his knowledge
of the Credit MObilier from Mr.. Train
Ames never tried to influence his legis-
lative action; never saw a share of the
Credit MObilieT until shown him few
days since by Mr.. Brooks: did not hear
OF the Credit MObilier for a year from
the time he first had the conversation
on the subject with G. F. Train, when
he talked with Ames about the liabili-
ties Of stockholders, but did not decide
to take any stock; sometime afterward
/ heard Of the litigation, and that Ames
/ had no right to dispose of stock; told
Ames he could not take any; this was
I the end of the matter until recently:
once borrowed three hundred dollars of
Ames but returned il; the first time |
heard Of the Credit MObilier was in 1866
or 1867, l cannot fix the date, when
George Francis Train called on me and
said he was organizing a company to be
known as the Credit Mobilier, to be
formed on the model of the Credit Mo-
bilier Of France; that the object of the
company was to purchase lands and
build houses along the line of the Pacific
railroad, at points where cities and vii |
lages were likely to spring up; that he |
had no doubt that t'money thus invested |
would double and treble itself each
year; that subscriptions were limited |
70 one thousand dollars each, and |
he wished me to subscribe; he showed |
me a long list of subscribers, among |
them Oakes Ames, to whom be referred |
me for further information concerning
the enterprise; / answered that had no |
money to spare, and i'll had would not |
subscribe without knowing more about |
the proposed organization. Train left me, |
said he would leave the place open for |
me, and hoped / would yet conclude to |
subscribe; the same day l asked Ames
what ne thought of the enterprise, and |
he was of opinion the investment would |
be safe and profitable. / heard nothing |
further on the subject for a year |
or more, and it was almost forgotten,
when some time, | should say during
the long session of 1866, Ames spoke Of
II again. He said the company had or
ganlzed and was doing well, and he
thought it would soon paw large diyi-
dends. He said that some of the stock
had been left, or was to be left, in his
hands to sell, and / could take the
amount which Train had offered me by
paying one thousand dollars and ac-
crued interest. He said if was not able
to pay for il he would hold il for me un-
1l l could pay, or until some of the div
ldends were payable. / told him that l
would consider the matter, but would
not agree TO take any stock un-
tu l knew from an examination
Of the charter and condition of the
the extent to which /
should become pecuniarily liable. He !
said he was not sure, but thought a !
5tOckhOlder would be liable only for /:
The par value of his stock, that he had {
not his stock and papers with him, but /
would have them after a while. From '
he case as presented j probably should
nave taken stock if / had been satisfied
N regard 10 the extent of the pecuniary {
liabilities. Thus the matter rested for
some time. / think on the following '
year, during that time, | understood {
here Were dividends due, amounting to S
leaIiy three times the par value of the c
tOck, but IN the meantime | heard the '
company was involved in some contro-
'ersy with the Pacific railroad; that tbe Z
light of Ames to sell the stock was de- S
ned; when / next saw Ames told him q
had concluded not to take stock: there
he matter ended so far as | was CON |
eIned, and ] had no further knowledge I
1 the cOmpauy's operations until the ,
uglect began to be discussed in the New
.ork papers last fall; nothing was ever a
AID 10 me by Train or Ames To indicate Z
r imply that the Credit Mobilier was or 4
ouid be in any way connected with v
,gislatlon in Congress for the Pacific s
abroad or for any other purpose; Ames 4
ever gave nor offered TO me any stock a
other valuable thing as a gift; l once II
sked and obtained from him, and after a
and repaid to him, a loan of three hun ii
red dollars, and that amount is the only h
aluaDle thing 1 ever received from or 8,
eiiVered to him; never owned, or re- n
elvedI or agreed to receive any stock of \
be Credit MObiieT, nor of the Union pa n
ific railroad, nor any dividend or profits q
rising from them. !,
benjamin +. Ham, Treasurer of the ~
redit MObilier, was sworn, and under n
'ent long examination. He testified NJ
nat Mr.. Nelson's name appeared ON ~
he books as the holder of one hundred N
I'D ffty shares; did not know of Mr. "
rocks having anything 10 do with N
iaTes- Mr. Ham produced several b,
)Oks OF the company, and said the rest a
ad been sent here by express. He er
)lnted outsln the books where Mr.. Du- n,
Mt had transferred one hundred shares an
Mr.. Nelson; Mr.. Ames paid for all m
Ock ia his name, as trustee; only one To
yidend OF siXty-siX per cent. was ever ar
i'd by the Credit Mobilier; the letter or or
ok of the Credit MObilier showed 5r
'ither the names of Mr.. Dawes. m
r. rGarfield, Mr.. Schofield or Mr.. Kelly. 10
r. Ham couldn't explain how the ",
Dck appeared in Mr. Nelson's name an
fore he had paid for it; his books bo
owed the names of Congressman on
muel Hooper Boyer, of Pennsyl- tW
MIA, lGaines aud Alley as original ae
bscribers; he said the Credit Mobi- de
+ stock was rushed around the coun- se,
2 to keep it cut of the hauds of Jim do
sk; he knew nothing of shares set Co
art to be used among Congressman: GA
e Credit MObilier bought the bonds de
lich they gave as dividends from the Ar
non Pacific Railroad Company at pr,
'hty-five cents, and paid for them out tw
money which they received up
m new subscriptions. No officer 81,
The company has a right to put up ms
stock Of the company for sale; wit ths
IS might have received special in we
1ciions from the officers of the COM sto
lyi part Of the books Of the company 90
re travelling 10 prevent people seeing mi,
IN who had no interest In them. but sch
y are not travelling now, a. Jim Fisk siol
lead. Ham denied that the public the