Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-01-21
THE CREDIT MOBILIER INVEST.
CATION.


among members of Congress resumed its session
at 10 O'Clock this morning.
THOMAS G. pURANr WAS RECALLED,
and testified that he had copies OF all the books
OF credit mobilier; among them a copy Of the
stock transfer book. All transfers OF stock
made by him appeared on that book; did not
think that any person to whom he transferred
held It for the benefit of any member of Con-
sons to whom he had transferred stock. The
name Of j. B. Alley for go shares appeared on
it, and witness said he sold it to him for sIeO,
and produced Mr.. Alleys receipt. The seventy
five shares in the name of II. c. Crane were
held by him in trust for the benefit OF witness
and not for any member OF Congress. The only
member OF Congress ON the list produced were
STATEMENT OF REPRESENTATIVES, BROOKS
Hon. James Brooks was then sworn, and made
the following statement:
MIR. McComb having sworn IN the early part
OF this investigation that was the only mem
Der of Congress with his knowledge to whom
mad been given credit mobiler stock to infn-
had been thus given me without consideration,
/, naturally enough when thus outraged, felt
indignant and denounced him as perturer.
one word of truth in this part of AIr. McComb's
fabrication, and this having been confirmed by
MI. Ames' testimony, l ought, perhaps, to let
for persistent efforts here to impair the testi-
mony Of both. The following letter from the
Acting Secretary of the Interior shows my first
official relations with that road
>, WasHINGroS, Jan. 20, 1873
Hen. I: p. Poland, Chairman, &c, Honse O, Reps
mssioned government director Of the Union Pacific
railroad for the term of year from the 81 day OF
this department was taken March ., 1855
r. b. CowEN, Acting Secretary.
II will thus be seen that for nearly months
declined to take the oath of office. My hesita-
ton arose mainly from the fact that there was
discord in the board, and while that existed ]
did not want to be in IT. When this discord was
over, in compliance with a promise had made
TO act, took my seat in the board, TO the appa-
rent satisfaction of all the hitherto discordant
parties. The sacrifice was something TO me, fol
in this official position could not be "A stock
holder in the Union Pacific road, and ii 1
became stakeholder in the credit mobilier,
though another corporation, i'm another
state, 1 subjected myself to misconstruction.
Hence L was compelled to renounce a right
TO purchase at par from L. G. Durant, two hum
dred shares of the credit mobiier, right be-
longing to me, as testified by him, in 1866, or
early IN ls6., before ,ods member Of Congress.
and which did not become valuable until De-
cember, lsG.. | said, therefore, to Mr.. Durant,
As he has already testified, that as a government
director could not, and would not, exercise
my right to purchase the two hundred shares.
c. IL. Nelson, my son-in-law, to whom, as a
stock operator, the right would be valuable.
Mr.. Durant made no objection save a.
to the number OF shares to be trans
on that by selling to Mr.. Nelson one
hundred shares, with five Union Pacific bon l.
I'D auultlOn. ana q certain number OF shares
Union Pacific stock which were immediately
entered upon the books, a. seen by the record.
in Mr.. Nelson's own name. did not then re-
celve, and have never since received, one cent
OF profit from the transaction in nv own or in
any other name. Ihave never receipted for OF
had any dividend or allotment in any form from
any shares entered on the books in Mr.. Nelson's
name. either directly or indirectly. / did not
give Mr.. Nelson the money to purchase the
stock, deeming il wiser to make him paw me
than to give it to him; advanced the purchase
money as loan; as he testities, and only
loan, and hold him responsible for paying il
back as soon as he could. Hence probably a.
Mr. Crane testihes, although 1 have entirely
forgotten the transaction, acted for Mr.. Nell
son IN paying MIR. Durant, in part three thou
sand dollars by draft to be deducted from a
loan due me January %, by Mr.. Durant, and in
part seven thousand dollars by check. Ii
there be any error OF wrong in so public and
natural an act 1 am incapable of seeing il. III
had been plotting for cOncealment as insnu-
sted, certainly should not have given my right
to purchase to son-in-iaw, but to some dun
N.Y." to some John Doe or Richard Roe"
whose connection hr marriage could not be traced
70 me IN All the books OF great national corpora
ton The fifty additional shares purchased by
Mr. Nelson or or about February %, 1865, wer.
necessarily sold to him by virtue of nv agree
ment with Mt Durant, and upon statement OF
Ine TACT 10 the company It was conceded that the
hfty shares belonged To him upon his paying for
them the par value, with interest from july l.
1861. never spoke to Mr.. Alley nor he to me
upon t2is subject. as sworn to by Mr.. McConb.
Our relations were never confidential. and he
never gave me these fifty. any other shares
WIN or without consideration either for myself
or tc influence or bride democratic members of
congress. Vow i'm setting forth ths
statement Of facts, 1 do not wish
declined the ownership OF credit mobiiier
stocks because was member OF Congress. for
II L had never been named government di-
rector L should probably have been the owner
"a large amount of that stock up to tlli, ,ay
have as much right to own paper stock as live
Nock-as sheep, or spindles, or lead, iron
mines, or barley, or timber, or steam engines,
or loundries, with two or three thousand fairfield
articles largely endowed by congressional legis-
iatlOn; and no constitutional forum ca N ever he
got In either House OF Congress. if members are
TO own no species of stock, alive or dead-agri-
cultural, manufacturing Characterization
these interests are to be le,slated upon From
April 6, 1866. to March 1, s61 Il was not in Con-
gress, and during that time, as private citizen
whenever had leisure, exerted all the ,niu-
ence tongue or pen could give me to interest
capitalists in the building of the Pacific road
borrowing money for it. and lOanng il money
at great risks toO-which led then. when | wis
not member Of Congress. as Mr.. Durant shows
10 his promising me the right TO purck ase
some Of his shares in the credit mobiiier
Ana what he states, 1 here reiterate
that the transactions between US were in no way
10 nnuence Congress or legislation. but were
the natural business transactions between nan
and man. Now, have only to add that nave
never been asked to give or have given a vote i'm
congress thar was unjust TO the government or
Tor the pront Of the Union Pacific road. nor
have as charged by Mr.. McComb, asked DEM
ocratic members OF Congress to vote for The
road, and L do not remember ever to have
spoken to any democratic member upon any
legislation relating to the road. All l have
done was, when not a member of Congress 10
accept an OFFER Mr.. Durant made to sell mn AT
par certain shares of credit mobier stock and
when not a government director of the road. 10
transfer to Mr.. Nelson the offer made to me-
when not a Congressman. II this be a wrong
moral. social, political or constitutional. il is
not within any code II have ever read or heard of
IN ANSWER TO QUESTIONS oF JUDGE POLAND
Mr. Brooks testified that he was removed a.
government director Of the L. p. X. r. i'm july,
1869. He purchased stock in the road i'm order to
become government director. Prior to that
did not hold stock in the road. He could have
had any number OF shares prior to December,
1851. In the conversation with DHrant wjtnes,
told him as government director In the Union
Pacific he would not hold credit mob;lier stock
as he did not want to subject himself to miscon
struction, although he had legal right TO hold
the stock. If he had not been q government
director would probably nave held q large
amount of credit nObilier stock. The benefit OF
the contract between witness and Durant was a
gut to Nelson by witness, but at the time he
had no idea Of ITS value At that time credit
mobilier was worth $50, and then went m
rapidly. Never had any conversation with
Ames or Alley on the subject, because thev
were not his political or personal friends he
felt angry towards both of them as both HAD
voted 10 turn him (witness) out of Conoress
49,