Eaton weekly Democrat. [volume] (Eaton, Ohio) 1866-1875, 1873-01-30
The Credit MobiIier.

A Washington dispatch of the 18th says
The Wilson committe on the Credit Mobilier
had o DECIDEDLY sensational session to-day. MIR.
Durant was asked in regard to the large sums
allowed him by the Union Pacific for expenses
in Washington in 1854, and the committee,
after some examination, obtained the state
ment that these accounts in gross, extending
from August, 1864, to May, 1866, amounted to
$435, 600. As to their character, Mr.. Durant
testified that they were known as preliminary
expenses" that were to compromise claims of
other roads, Sc and for other other purposes
including services of attorneys; that he brought
one attorney with him from New York, and
upon introduction to j. E. Stewart and Alex
ander Hay here, he employed them as attor-
neys, though he had no previous acquaintance;
that he put into the hands of Stewart about
$780, 900 and into the hands of Hay about
$780, 600, and that he took no vouchers for
what was received by them from the third par
ties they dealt with. This caused a great sem
sation, since both Stewart and Hay have long
been noted lobbyists here. All these accounts
were allowed by one Board of Directors of the
road. They we're suspended by q succeeding
Board, and thus their character developed.
The ommitte instructed Durant to produce
all the vouchers of any kind taken by him in
thist transaction. He was also directed to pro-
duce the checks he gave Mr. Harlan in 1865.
The testimony also developed the fact that
Cakes Ames' contract covered 247 miles of
road already completed, and that the Ames
contract for the construction of this section
was greater than the original cost of building
it. This gave about So, 600, 600 profit to d-
vide among the stockholders of the Credit
Mobilier the moment the contract was signed.
The evidence before the Credit Mobilier in
vestigation on the 18th was in the main cor
roborative of what has gone before. Exon
gresham Boyer, of Pennsylvania, appeared,
and admitted that he had received 100 shares
of the stock, for which he had paid, and saw
no harm in the transaction, never having been
called to vote on the railroad. ~EX-Congress-
man James r. Wilson, of Iowa, made a state
ment that he was offered and refused the
stock, but afterward bought some for invest
mnnt- AmaS' hOnE-Eaanar ayyOra that AmaR
had a List of Congressman to whom he sold
stock in a book.
The testimony taken before the Credit Mo-
bilier investigation on the Goth was rather
cumulative than new. Mr.. Dillon, the Presi-
dent of the Credit Mobilier, testified that Cakes
Ames had said that he was under obligations
to members of Congress, but he could not re-
member that Ames had mentioned any names
to him, and was not positive as to the extent
of these obligations. He testified that Brooks
came to him one day, and told him that he
had received 100 shares of stock from Durant,
and under the rule authorizing the increase he
was entitled to the so shares additional. He
promised to consult the directors, did SO,
and they agreed to let him have them.
Brooks then said he had transferred his inter
est in the shares to Nelson, who came to get
the shares. At the same time he borrowed
from Dillon $5, 600 to pay for the stock. Mr..
Durant paid for the stock transferred to him
by the company. He declared that Brooks had
nothing to do with the loan made to Nelson,
and to the best of his recollection the latter
paid par and interest for his stock. He could
not ~recollect whether Brooks name had been
erased from the books and Nelson's inserted
or not. The investigation in the second COM
mittee is about to turn on the deposition made
byJ. E. Stewart, of the immense sums paid him
to influence legislation on the Pacific rail-
roads.
Senator Patterson, of New Hamphire,
voluntarily appeared before the committee
again, on the 21st, and insisted that what he
had heretofore stated was correct, which was
that he gave Ames money for investment in
TInI0n Pacific rQIIrnQ6 stock and hnn69 and
was not aware that the latter had applied it
to the purchase of Credit Mobilier stock. In
proof of this he said that Ames had
written him two letters last fall, relieving
him of the charge made in the Senatorial
campaign in New Hampshire that he Patter-
sony had owned this stock, which letters were
produced and read by the latter. Cakes Ames
looked up with considerable astonishment, and
at his request was at once placed on the stand.
He said it was true that he had written these
letters, but had been SO importuned to save
Patterson that he could not well get rid of
writing them that while they were true on
their face, that Patterson's name did not ap-
pear on the books as an owner of the Moblher
stock, they were not true in spirit, as Ames
had bought and carried the stock with Patter-
sons money, and he paid Patterton dividends
on the same. 1t is understood that Ames has
found his memorandum book and his memory,
and is prepared now to o%verturn most of the
evidence which Congressman have given in
their own behalf. Startling revelations are
promised. Congressman James Brooks, of
Q 1Olh AAdNO a III LIZ OEA .
half. which created a favorable impression
upon the committee. He showed that his in
terest was acquired when he was not a MEM
Der of Congress, and before he became a Gov
eminent Director, and that, when appointed
he transferred his stock to his SON.
in-law, rather than sell it and incur a sus-
Picion of profit. He knew nothing of the divi-
dends.
Ames' testimony ON the 22d, fortified as it
was by transcripts from his books, created
more sensation than any incident of Congress
i nCagfIDatI0n for TnanU Uoqra II left |
Mr.. Colfax in the same position as Senator
Patterson, except that there was no final
settlement. Both Garfield and Kelley took
the shares, and Ames carried them, and let
the dividends pay for the investment. Both
received first dividends in bonds, which Ames
sold, and applied on their purchase, and both
the balance due from the second
cash dividend, 1929, in a check on the Ser
geant-at-Arms. He never had any talk with
about the transaction being one of Dor
rowed money until since he Investigation be-
gan. Garfield called on him and requested
him to consider it as borrowed. Ames testi-
that he deposited $4,000 with the Ser
geant-at-Arms, which he had drawn as divi-
dends on the stock he was carrying !