New-York tribune., 1873-01-15
PROGRESS OF THE INVESTIGATION.
STATEMENT OF THE HON. JAMES A. GARFIELD
TESTIMONY OF BENJAMIN L. HAM, II. c. CRANE,
AND THOMAS C. DURANT.
GENERAL PRESS DIsPATcH.l

GENERAL PRESS DlsPATCH.l
WASHINGTON, Jan. 14.-Judge Polands
Special Committee TO inquire into the distribution OF
Credit Mobilier stock among members OF Congress re-
sumed its session this morning The Chairman an
nounced that the request of Mr. Brooks made yesterday
to have certain records the War Department rejecting
upon Mr. MeComb in other transactions produced, could
not be granted as these records had nothing TO do with
the Credit Mober investigation, and would not be COM
petent testimony. The rules of evidence must be fol-
lowed, and it not competent to inquire into other
transactions OF Mr.. McComb.
Mr. Brooks said the allegation had been made by Mr..
McComb that Mr. Alley had given him tBrooks 30 shares
Of Credit Mobiier stock 10 influence Democratic mem
bers of Congress- Mr. Alley had denied that statement.
and the question was whether Mr.. Alley Mr. MoComb
should be credited.
Judge Poland-We so understand, but the testimony is
not admissible legally.
Mr. Charles H. Nelson then recalled, and, in
swer TO question of Mr. smthers counsel for Mr. Nc
Comb, testified that lie borrowed five thousand, two
hundred and some odd dollars from Mr. Dillon; knew
that gentleman about six months before the transaction
having been introduced TO him by Mr.. Brooks; had
casual interviews with him during that tme but did not
remember how many had no business transactions with
him prior 10 borrowing the money gave Dillon security
for the in the ordinary way at the time he received
the money! the security consisted Of stock Of the Union
Pacific Railroad Company and first mortgage bonds Of
the road the stock transferred TO witness on Feb
% the information that he was entitled TO 90 shares
Credit Mobilier additional came from Mr. Brooks.
The Hon. James A. Garfield was sworn and made the
following statement:
CONGRESSMAN GARFIELD's STATEMENT.
The first ever heard Of the Credit MoDier was some
time in 1866 1861 cannot tx the date, when George
Francis Train called on me and said lie organizing
company TO be known the Credit Mobilier of Amer
ca TO be formed the model Of the Credit Mobler Of
Frances that the object Of the company was to purchase
lands and build houses along the line OF the Pacific Rail-
road points where cities and villages were likely to
spriDg up; that he had doubt that money thus n-
vested would doubel treble itself each year; that
subscriptions were limited to 81 each and wished
me 10 subscribe; he showed long list of subscribers,
among them Mr. Qakes Ames. 10 whom he referred me
for further information concerning the enterprise.
1 answered that 1 mad not the money TO spare,
and If had / would not subscribe without knowing
more about the proposed organization. Mr. Train left
me- saying he would hold place epen for hoped
would yet conclude TO subscribe. The day asked
Mr.. Ames what he thought OF the enterprise. He ex-
pressed the opinion that the investment would be safe
and profitable. heard nothing further on the subject
for year more and it was almost forgotten, when
some time should say during the long session Of 1868,
Mr Ames spoke Of it again. He said the Company had
organized was doing well, and he thought would
pay large dividends He said that some Of the stock
had been left or was to left in his hands SELL and
I could take the amount which Mr. Train had offered
me by paying the 1900 and accrued interest.
He said II was not able pay for it then he would
hold it for until could pay until Of the
dividends were payable. / told him 1 would consider
the matter but would not agree take any stock until
knew from examination Of the charter and the con-
dtons OF the subscription, the extent to which should
become pecuniariy liable He said he not sure, but
he thought stockhoder would be liable only for the
par value of STOCK that he had not the stock and
papers with him, but would have them after while.
From the case as presented, probably should have
taken the stock If had been satisfied in regard to the
extent of pecuniary liability Thus the matter rested
for some time. think until the following During
that time understood that there dividends due,
amounting TO nearly three times the par value of the
stock; but in the meantime had heard that the Com
pany involved in some controversy with the Pacific
Railroad; that Mr.. Amess right TO sell the
stock was denied. When next Mr. Ames told
him had concluded not TO take the stock Then the
matter ended so far as was concerned, and had no
further knowledge of the companys operations until the
subject began to be discussed in the ewspapers last
Fall Nothing was ever said TO by Mr. Train or Mr..
Ames to indicate imply that the Credit Mobler
or could be in any way connected with the legislation OF
Congress for the Pacific Railroad for any other pur
pose. Mr.. Ames gave nor offered to me any stock
or other valuable thing a gift once asked and OBJ
tanned from him loan OF $780, That amount is the only
valuable thing received from delivered to him.
IN meyer would receive agree 10 receive any stock Of
any dividend profits arising from either Of them.
In answer to questions Of Judge Poland Mr.. Garfield
said he had no knowledge OF any dealing Of Mr. Ames
with any gentleman in Congress in reference 10 Credit
Mober stock.
To Judge Black-Told Mr. Ames he would not have
any stock where controversy existed; he derived his
original opinion and knowledge OF Credit Mober from
Mr. Train Mr. Ames said the first word TO witness
to influence his legislative action.
To Judge Merrick-Has knowledge Of any other
member Of Congress having Credit Mobiier stock
never saw share Of it until Mr. Brooks exhibited in
the House few days ago; supposed Mr.. Ames was
largely interested in the Union Pacific Railroad.
TESTIMONY OF BENZ. +. HAM.
Benjamin F. Ham was sworn Resides in New-York
was Auditor of Union Pacific Railroad from January,
1861 until October, 1870 and Assistant Secretary and
Treasurer of the Credit Mober corporation holds the
position now and has the custody Of the books OF
that company and had ordered them 10 be delivered
by the express company; portion of the books
in Philadelphia. but had been sent on here; the
other portion witness brought with him from New-York
had met Charles H. Nelson Of New-York; his name
appears Of the shareholders OF tho Company to
the extent OF shares and suppOses the shares belong
TO him has personal knowledge OF Mr. James Brooks
having any interest in those shares; has personal
recollection Of Mr.. Brooks having had anything TO do
with the shares the dividends paid Mr. Nelson.
Witness here produced the stock ledger five certificate
books and the letterbook of the Credit Mo
bller, and exhibited on the stoekledger the
name OF Charles II. Nelson the Of l5o shares
also the receipt for the certificate transferred TO him by
ihos c. Dnrantl. Mr. Nelson entitled TO so shares
addiional IN consequsuce OF owning 100 shares the
new STOCK was made In February 1867 interest on the
new stock commenced July 1867 the amount paid by
Mr. Nelson over $500 for the additional shares
Interests the frat 100 shares which stood in the Of
Durant had been paid for by Duran there was nothing
10 show whether Mr. Nelson or some one else paid
the stock fbe witness thea exhibited the account Of