Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-01-09
THE CREDIT NOBTLTER INTESTE
CATION.
TESTIMONY OF MIR. CoLF4X.

The Credit Alobilier committee resumed
their investigation Tuesday morning. There
were present among others Speaker Blaine,
Cakes Ames and McComb. in addition to Vice
President Colfax.
Mr. Cotax, after a brief preliminary state
ment was sworn, and gave his testimony in
written form as follows: / had expected
that after the Speaker testified l would be the
next one invited before the committee Dec.
l6, to be allowed to testify, and that my
testimony might be made public. I state ex-
plicltly that no one ever gave or offered me
any shares of stock in the Credit Mobieir or
Union Pacific railroad. l have never re-
ceiyed any dividend in cash, stock or bonds
accruing upon any stock in either of said or
CARNATIONS, and neither Ames nor any other
person connected with either of said organi-
cations ever asked me to vote for or against
any measure affecting the interest of either,
directly or remotely, or to use any personal
or official influence in their favor. l desire,
however, to state that these circumstances
through which my name probably came to be
associated with this organization. Five years
ago, about the time of holding recess l was
converting Oh the floor Of the House with
Mr.. Ames, in regard to the Pacific Railroad,
in favor of building of which l had previous
~ made hundreds of public speeches. In
the course of this conversation he asked me
the Credit Moblier. Up to that time l knew
nothing of its capital or profits, and l in
CURED of him as to its objects and the value
of its stock. AS near as | can recall this
conversation after the lapse Of so May years
was informed by him that it was a legally
organized company, composed of the prnc-
cal stockholders OF the Union Pacific rail-
road, who were themselves building the road,
instead of letting it out to contractors. who
always experienced large profits for their
risk and their advances Of money for sup
plies. l told him after this explanation that
il looked like good and safe investment for
one of limited means, and would be willing
to purchase twenty or thirty shares at fair
price if had the money, but added frankly
that could not pay for them till two or
three months afterwards, as my housekeep-
| ing 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 would in addition
agree to pay interest till final payment. l
inquired what per cent. it would pay and he
replied there had been large dividends, but
as the road was pushed into the interior the
profits might not be large though they would
be very surely remunerative. The Union
| Pacific railroad had no legislation that l
knew Of pending before Congress at the time
nor did suppose there could be any in the
| future, as the last amendment to their char
| ter authorizing the issue of first mortgage
| bonds which should have the priority Of the
| government lien had been enacted in 1864,
over three years before this conversation,
inferring that any question arising under
their charter would be judicially settled arni
supposing at any rate that | had the same
right to purchase this stock as TO buy stocks
in national bank chartered by Congress or
a mandatory.
told him would agree to purchase 20
shares at par, and the interest TO be paid as
soon as l had the money. Some weeks or
months afterwards, at the same session, |
paid Ames $500 in cash on this contract of
purchase, being all the money had, but re-
ceived no dividend nor certificate of stock
in whole or in part. My impression is that
he told me one or two dividends had been
earned but they were not in cash and we're as
yet unadjusted. l certainly did not receive
any, and was not offered any in cash, bonds
or stock then or since.
A few weeks or months after this heard
rumor that unpleasant controversies existed
amongst the largest stockholders, which were
sure to involve the organization in prolonged
litigation. The very day / heard this rumor
told Mr.. Ames that no profits, present or
prospective, could induce me to buy into
lawsuit-that had never in my life been q
81 q
that must therefore recede entirely from the
transaction. | did not want stock of any
kind on any terms that would make me
party to litigation. He assented to this and
nothing was said as to the money paid, my
anxiety being not to get into law suit. All
these things occurred at the same session of
Congress, five years ago, which closed in the
summer of 1868. The next year or the year
after, Ames suspended payment in conse-
.a.l 80 Il
ments connected with the Pacific railroad,
and his creditors gave him an extension on
his liabilities, but regrettng his failure and
its cause, / told him to dismiss from his
mi md the small amount Of money between us.
suppose but for this he would have repaid
the money had paid him. ! may repeat
therefore that neither stocks nor bonds were
given to me nor offered to be given to me,
that | never received dollar in bonds, stock
or money as dividends. That / did continue
to purchase 20 shares of stock in the COM
papy at par, and in trust, but after payment
withdrew entirely from what regarded as an
incomplete contract, from repugnance to
being involved in litigation and that instead
of being enriched by it $40 900, as has been
charged. am voluntarily out of pocket $500
and have been five years.
The Chairman asked whether witness had
knowledge of the ownership of stock by any
member OF Congress, to which he replied, he
had no such personal knowledge. Witness
had for years been regarded as in favor of
building the Pacific Railroad. He had made
speeches and written in favor of it, and
thought the government ouget to build it if
capitalists could not be interested for that
purpose.
Hon. John B. Alley, said before resumng
his testimony, he should like to make few
observations.
He hoped the committee would allow the
fullest investigation into all matters which
would have tendency to throw light on all
questions connected with the charges before
the committee. 1t seems hard for men de-
serving no censure but praise to have their
names inscribed in the records of the country
charged with acts, which, if true, ought to
consign them to eternal infamy, but every
act and circumstance in his judjment estab-
lished their innocence. The record would
show that Ames was honest, and that the cry
of "stop thief was raised by the thieves
themselves.
Mr.. Alley then read a long paper giving