Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-01-31
THE CREDIT M0BILIER IyVNTI.
CATION.
Proceedings Of the Special Commit.
tees To-d0y.

THE CREDIT M0RILIER INvNTI.
CATION.
Proceedings Of the special Commit.
tees To-day.
Judge Poland's special committee 70 inquire
into the distribution Of credit mobilier stock
among members OF Congress resumed It's ses-
sion this morning, and
CHARLES II. NELSON WAS RECALLED.
He testified that he kept no formal account OF
the money transactions between himself and
Nr. Brooks. Witness generally paid money to
check for nine thousand dollars on account Of a
loan. The money advanced by Mr.. Brooks was
| ten thousand dollars. No note was given for It
Gave him collateral security, consisting OF
Union Pacific first mortgage bonds, which he
received at the time he fwitness) got the Ice
| shares of credit mobilier. Also received 30G
shares Of stock. Received the cash dividend
| on the credit mobilier of 5000 on the 18th OF
June, 1868. Paid that dividend over to Mr..
Brooks as part payment of the loan. Did not
| owe Mr.. Brooks any other money at that time,
| unless il was small amount-a hundred dollars
or 80. Paid the money to Mr.. Brooks cashier.
and took receipt at the time. Witness here
| produced the receipt, and Mr.. Brooks submitted
his check-book, showing that the amount was
| deposited TO his credit on the same day.l Had
| not paid Mr. Brooks the balance, as that gen.
| tleman still held the collateral security. Wit
ness owes Mr.. Brooks now about $4,000 for
| money advanced. Dir. Dillon advanced the
| money for the fifty shares. and received as col
| lateral security four first mortgage bonds and
| fifty shares u. p. stock. Did not remember OF
having paid Mr.. Dillon. Supposed he had been
paid by the sale of the securities, which he had
| perfect right to sell. Ar. Dillon had assured
| witness recently that the loan had been paid.
"a LITTLE REHARKABLE.-
| Q. Have you ever had any settlement with
| Mr.. Dillon?
Judge Poland.-wel il would be a little re-
| markable il the sale of the bonds exactly paid
| the loan.
| The witness--I have right now to 60 to Nj
| Dillon with lay check for the amount of the
| loan and interett, and demand my securities
again. Witness supposed the securities Just
! about covered the loan; thought they were worth
Judge Poiand.-well the evidence before Us
| shows Nh. Ames sold the bonds at ninety
A. Well, 1 never sold any Of mine at thai
price. Never had any such offer. Witness made
il a custom never to take up a loan until called
| upon TO do So Did not think five years an un-
usual time to let loan stand; had frequently
| known them TO stand that long.
BY Mr.. Niblack:-Mr. Brooks still holds the
I. p. bonds as collateral security on another
loan. The bonds draw interest, and a portion
of that interest has been paid to witness by Mr..
Brooks. Expects to pay Mr.. Brooks interest on
the loan.
BY MIR. McCreary:-Borrowed the sl4 OOo
from MIR. Brooks some time last summer. Re
sided in the same house with Mr.. Brooks, and
used the same safe with him.
By Nr. Observation-Disclosures business is not that
Of a stock operator. Is in the insurance bust
neSs, and keeps regular books of that. Deals in
stocks very frequently, but keeps account
They are kept by the broker. Mr.. Brooks now
Witness
had the interest on 5000, and Mr.. Books had
that on Sll eco. Had frequently received a
check from Mr.. Brooks for SEQ on account.
q: Did those checks generally come about
Christmas or New Year?
A. No, sir; did not know what amount he had
received by check from Mr.. Brooks. Witness
thought he had received about s3 so in the ag-
gregate from Mr.. Brooks, including interest on
the bonds and the $500 check.
BY Mr.. Brooks want MIR. Nelson to show
from his memorandum all the
A. cannot show all; but here are some Wit
ness here produced two notices from b. F.
Ham, assistant secretary Of credit m0bilier,
directed to him, tNcilson.) dated March 3, 1868
and March 4, 1858, announcing that there were
dividends due him on the credit mobilier stock
and notifying him to call and get them. Mr.
Brooks said he offered this TO show the stock be-
longed to Mr.. Nelson. Witness testified that
the notice of March was for dividends due on
the 100 shares On that day he bought the 30
shares additional, and the notice of March I
was for dividends due on the additional shares
Witness let the loan rest with Mr.. Dillon be
cause it was satisfactory one to both parties
can be easily settled by their check books. Hal
dealt in Union Pacific stock frequently, AM
nearly all other stocks on the list 1t is
COMMON PRACTICE IN WALL STREET
TO sell out collateral securities. Air. Dillon
would have naturally done 80 upon learning
that Cakes Ames was about to fail. His frs
impulse would have been to sell out and take
care Of himself. The bonds were permitted 10
lie i'm the house of Mr.. Brooks as place OF
security. witness could have got them al any
time by paying the 81 900 balance due.
DURANT REPLIES TO ALLEY.
Dr. Thomas C. Durant appeared before the
committee ami submitted a lengthy statement
in writing in reply to the testimony of John Il.
Alley before the committee on the eth Of Janu-
airy. DR.. Durant commenced by saying the
statements Of Mr.. Alley were SO at variance
with the actual facts as to the two corporations
and 50 untrue and unjust to individuals both
living and deceased, that he deemed 1t necessa-
ry to reply. that Alleys rash statements should
not go out to the world without the refutation
which the record Of the L. p. X. II. abundantly
furnished. Dir. Durant then quoted extensively
from the record as to the organization Of the
railroad company, the Hoxie contract, and the
difficulties under il; then the organization OF
the credit m0biier and its work. Mr.. Ames
Mr.. Alley, and their friends were not original
subscribers in the Union Pacific road-theiI
only interest i'll the said company being acquired
by them a. contractors or as stockholders Ia the
credit mObiler. He next referred to the injun..-
tons which he obtained against Ames & Co. TO
prevent the settlement with the credit mobilier
at S5O,C0O per mile for fifty-eght miles. H.
deemed il his duty, As an officer of the Union
Pacific, to do all i'm his power to protect the in
terests Of those of the stockholders who were not
stockholders in the credit mobiier. His course
was not approved by Alley and his friends who
seemed to consider all sums saved to the Union
Pacific as robbed from them as stockholders in
the credit mobiier. MIR. Alley. in his statement
had with unparalleled impudence attributed to
Mr. Ames and his party the views and policy OF
their opponents. The protests and complaints
OF witness before the courts to protect the in
terests of stockholders, were the best evidence
OF what his views and actions were at the time
After AInes & Co. had acquired a voice in the
direction of the road they developed several
plans which increased the cost of construction
to the railroad company. One of these plans
was the payment of large commissions to them
selves for loans TO the company or procuring for
it such loans. Locomotives which had bee
purchased at government sale of cOndemne
property and being repaired were forced upo
the company by Cakes Ames. They well knew
that $50 miles of the road next west of the IO0tl
meridian was being built for about twenty thou
sand dollars per mile, exclusive of equipment
and station houses This fact appears from tn
Boomer contract, and witness submitted a copy
Of il. He further stated that Alley and com
pany improperly charged him with MANY items
and neglected TO credit him with others. and
thus placed him in a false position in order to in
fiuence the election of the board of directors OF
the L MON Pacific Railroad Company. n sup
port Of this Mr.. Durant read afidaviS from Sid
ney Dillon. Henry c. Crane and Others. As to
the Fisk suit the witness stated that Mr. Ames
then acting president Of credit mobilier, gave
directions to the treasurer to receive no subscrp-
ton for stock except when accompanied With
payment Of the full par value thereof There
upon Mr.. Alley and hisffiends proceeded TO sub
scribe for stock. On the first Subscription BEING
made, parcel Of greenbacks was produced bs
the party making subscription, stating 10 the
treasurer that II was tender Of hfty-Hve per