Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-01-08

any of the stock, and never had any,
thing to do with it. Alleys testimony
also shows that Schofeld pursued sim
/ liar course to Boutwell,. This concluded
Alleys testimony. The committee theI
adjourned until the seventh of January
John B. Alley said before resuming
the testimony he should like to make !
few observations. He hoped the com.
mittee would allow the fullest investiga.
ton into all matters which would have
a tendency to throw light on all the
questions connected with the charges
before the committee. 1t seemed hard
for men deserving no censure, but rather
praise, TO have their names inscribed on
the records of the country, charged with
acts which, if true, ought to consign
them to eternal infamy; but in his
judgment every act and circumstance
established their innocence. The re-
cords would show that Ames was honest
and that the cry of ..Stop thief p' was
raised by the thieves themselves.
Alley then read long paper, giving a
history of the building OF the railroad
and the conduct of the company. Alley
was cross-examined as to the capital OF
the railroad company, value of divi-
dends, etc. The Chairman said he had
sent subpoena to the Secretary of the
/ company to bring the books showing
! the holders of stock, or who have re-
ceived dividends. The committee then
adjourned. Alleys cross-examinatiOn
will be resumed tomorrow.
WASHINGTON, January THE Cred
! it MObilier Committee resumed their
! investigation this morning.
Vice. President Colfax, after a brief
/ 4
| gave his testimony in written form, as
! follows: ~ had expected after the
! Speaker had testified that ] would be
next invited before this committee on
| December 18th to be allowed to testify.
and that my testimony might be made
public. / state explicitly that no one
ever gave or offered to give me any
shares of stock in the Credit MObilier or
/ Union Pacific railroads. | have never
received, nor had rendered to me, any
dividends in cash, stock or bonds accru-
/ ing upon any stock in either
of the said organizations, and neither
/ Mr.. Ames nor any other person
connected with either of said organiza-
tions ever asked me TO vote for or
/ against any measures affecting the in
| terests of either, directly or remotely, or
to use any personal or official influence
| in their favor. desire, however, to
state all the circumstances through
which, probably, my name came to be
associated with this organization. Five
years ago, about the time of the holiday
! recess, was conversing on the floor of
! the House with Mr.. Ames in regard to
the Pacific railroad, in favor of the build
( ing of which / had previous made hun
dreds of public addresses. In the course
Of this conversation he asked me if 1
would not like to purchase some stock
4 in Credit MObilier. Up to that time /
/ knew nothing of its capital or profits,
and inquired of him as to its objects
and the value of its stock. As near
as can now recall this conversation,
after the lapse of so many years l was
/ informed by him that it was a legally
I incorporated company, composed of the
principal stockholders of the Union Pa
cific railroad, who were themselves
| building a road, instead of letting il out
! to contractors, who always expected
/ large profits for their risk and their ad-
vances of money for supplies. l told
| him, after his explanation, that it looked
| like a good and safe investment for one
of limited means, and / would be will
| ing to purchase twenty or thirty shares
at a fair price, if had money, but /
added frankly that | could not pay for
| them until two or three months after
ward, as my household expenses in the
opening months of the session were much
larger than the average. He replied
| that he would contract to sell me twenty
shares at par if l would in addition agree
to pay interest until final payment
inquired what per cent. 1t would
pay, and be replied that there had been
large dividends, but as the road was
pushed farther into the interior the prof
its might not be large, though they
would be very surely remunerative. The
Union Pacific railroad had no legisla-
ton that know of pending before Cen
gress at that time, nor did | suppose
there could be any in the future, as the
last amendment to their charter author
izing the issue of first mortgage bonds,
which should have priority of govern
ment lein, had been enacted in 1864,
over three years before this conversa-
ton. Inferring that any question
arising under their charter would
be judicially settled, and suppos-
ing, at any rate, tnat ] had the same
right to purchase this stock as any stock
in National Bank, chartered by Con-
Il
| would agree to purchase twenty shares
at par, and the interest to be paid for as
soon as l had the money. Some weeks
or months afterward, at the same ses-
sion, l paid Ames about five hundred
dollars in cash on this contract of pur-
chase, being all the meney ! had, but
received no dividend nor certificate of
stock in whole or in part. My impress
sion is that he told me one or two divi-
dends had been earned, but 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. A few months or
weeks after, / heard q rumor that un-
pleasant controversies existed amongst
the largest stockholders, which were
certain to involve the organization in a
prolonged litigation. The very day 1
heard this rumor, told Ames that no
profits present or prospective could in
duce me to go into a law suit; that l
had never been during all my life
plaintiff or a defendant in a court of
Justice, and that / must therefore recede
from the transaction between us; /
did not want stock of any kind that
would make me a party to litigation.
He assented to this, and nothing was
said as to the money paid, my anxiety
being not to get in law suit. All these
things occurred at the same session
of Congress, five years ago, which closed
in the summer of 1865. The next year
or the year after Ames suspended pay
ment, in consequence, as was stated, of
mineral involvements connected with
the Pacific railroad, and his creditors
gave him an extension on his liabilities;
but regretting his failure and its cause,
| told him to dismiss from his mind the
small amount of money between us. l
suppose but for this he would have re-
paid the money bad paid him. may
repeat, therefore, that neither stock nor
bonds were given me, or offered to be
given me; that / never received dol
lar in bonds, stock or money, as divi-
deHds; that / did contract to purchase
twenty shares of stock in the company,
at par and interest, and after partial
payment / withdrew entirely from what
/ regarded as an incomplete contract,
from repugnance TO being involved in
litigation; and that instead of being en-
riched by it one thousand dollars, or
twenty thousand as has been charged,
] am voluntarily out Of pocket five hum
dred dollars, and have been for nearly
five years. Colfax remarked that he
might add one hundred dollars more.
Ames never paid bim the value of dol
lar on any account whatever. The
Chairman asked whether the witness
had knowledge Of the ownership of
stock by any member of Congress, TO
which hereplied hehad no such personal
knowledge. The witness had been for