New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-01-28
Fisk who promised withdraw the suit but ala ho' uo
It; he went back on them. The witness was suoeo'o
TO long examination to the building OF tne roa w
the mode in which payments were MADE "neD TIC ''"'
mttee adjourned until o'clock


TO long examination to the building OF the ROAD
the mode in which payments we're made wnep TIC "'"
mittee adjourned until o'clock.
AFTERNOON SESSION.
The Committee reassembed at 2:3o o'clock, when tne
examination OF Mr. John b. Alley was resumeu' anu
from which II appeared that by the Cakes Aines con-
tract the parties participating In the divdenus anu
avals signed rrevocabe prore 10 vote sxenths OF
the stock Of the Union Pacific Railroad, until the com
petion OF the contract By the trustees OF the Cred
Mober the trustees thus having control OF the Com
pany The witness was Intercepted as TO how u was
that portion OF the road already completed was III
cuded In Cakes Ames contract, which ne eApaihed
by saying the Credit Mobier had spent money IN
building the road and felt it was entitled to consdera
ton which demanded, and the matter was COM
promised; out Of which the dividends were
made were derived from profits under the Cakes Ames
contract.
Ry Mr. shellabarger-Suppose instead Of making such
division OF bonds stock and cash. the assets donated by
the Government 10 secure great solvent corporation
for all time had been invested properly, and preserved
as property OF the Railroad Company, what would have
been the effect such investment on the value OF the
stocki A. The stock would have been enhanced in
value.
O. Did you ever know Of dividends to stockholders
greatly In excess OF the earnings OF the roadf A.
As far dividends stock concerned, none nave
ever been made properly except on the earnings OF the
road but in the case Of the Credit Mober 1t was sup
posed profit the road which it was thought proper TO
divide.
In the course OF further examination the witness said
the road never could been built without contract
with some INCORPORATED company like the Credit MObier
The profits cakes Ames contract were 100000 or
9OOOO or 16 or per cent which was moderate, con-
siderng the risk taken and the amount expended and
the time employed In reply to question by Mr. Hoar'
the witness said the Union Pacific Railroad Company
stands better In public estimation from the fact that
gentlemen OF immense means ready 20 assist the
Company in any temporary emergency. The ROAD Is IN
better pecunary condition now than hereto1ore WIN
the prospect value; he had doubt OF ts
sovency that it valuable property 10 sockhoder
ana would ultimately be able to pay the Government IN
debtedness. :,
In answer to q question whether the Company could
now nav its Indebtedness the Government and YET
remain solvent without the aid OF outside parties the
witness replied IL could not in three or four years now
ever could easily discharge its obligations, but not
now the enforcement Of the Government claims would
cause serious embarrassment to the Company.
BY Mr.. Swann-Might drive IL into bankruptcy A
do not say that but il certainly would be an imp0ltc
thing to force the company TO immediate payments the
effect produced its stock by this investigation is
merely temporary; but he had no DOUBT OF the ultimate
ability OF the road TO meet all its obligations.
Mr.. Alley made explanation OF the former part or
his testimony. He did 10 convey the impress
money among newspaper reporters in Washington, out
that he had spent the money with the press generally III
advertising and popularlzing loans, &c - ,
recalled, and SAID that or tne
Suspense Account Of the Union Pacific Railroad was ex
pended at Wizards Hotel but he did not know for what
purposes.
The Committee adjourned until tomorrow morning at
10 o'clock.