, 1873-09-16
The Great lawsuit at Hart
ford.
Answers OF Defendants to the Bill OF
Complaint Filed by the
United States.
Observations Of Thomas A. Scott, Corno-
llns Bushnell, Antlrow Carnegie,
Charles II. Nelson,
anl Others.

oFfEtHt correspondence ~ 1Hd ChdcHHo 3T114Hts
I1AnrronD, Conn.,, Sept. 10, 1879.
There Ia nothing which Ia likoly to exotic 40
general attention In tho country at lhrgo az tho
proceedings Of tho Government against tho stu-
pentous frauds which have boon porposrasetl
under covor Of tint mystic organization, tho
Credit Mohior of America. Tho caso IL Of in
tercst Oh account Of the yaat amount OF money
involved the questions OF law, and tho number
md distinction Of mon, both as dofondantB and
counsel.
Tho lion. Ward Hunt, of Utica, N. Y, Judge
Of tho United States Supreme Court, md tho
Hon. Nathaniel Shipman, Of this oity' Judge Of
tho District Court, will constitute the Court for
tho trial. Thoro is already perceptible stir in
Tho 1natter. Judge Shipman has arranged his
ofllco With moro than usual care an occasional
lottor comes for Judge Hunt, which indicates
that he is not far away; while tho Hon. Aaron
F. Porry, Honior counsel for tho Government,
has boon in town mo1o or loss for two weeks
past.
Tho usual amount Of Judicial sparring Incident
to Huch trials will bo gone through with; alt
manner Of legal rubbish will be 1ugged in to hin
der tho prosecution; for 30 it Hoemoth good in
the sight OF tho common law.
That tho defense will be thoroughly reproaont-
cd, 1t is enough to say that Benjamin Il. Curtis
Ia retained upon that eldo.
There arc sovonty-six motions to dismias gem
orally upon tho ground Of non-jurisdiction,
which shows how tho Court is looked upon by
counsel employed by tho defonao. According to
tho Clerks book, thero aro flftoon who have
failed to appear, among whom aro George N. Pull
man, President, and tue Pullman Palace Car
Company. Thirty demnr to tho bill US being in.
Bafl}clent for not specifying charges, and being
altogether multifarious.
Tho greatcst interest is centred in
THE ANSWERS,
and two or three Of these are indeed Interesting.
Tracy l. 0lmstcd, Of New York, Bend in six,
Which aro noar}y identical In their construction
they represent Edward G. Moore; Fl. O. Crano,
Trustee for W. D. Train; q. q. Crane,
Trustee; John r. Dillon, executor; William T.
Durant, and John P. Morgan. With tho oxcop-
ton Of tho last namod they refer TO contracts
for building, which they say were duly executed
by tho Union Pacific Railroad Company, and
cannot be avoided. As to tho corroctnosa Of tho
statements in tho bill, they have nothing to say,
but worry coolly invite proof thereof Each Of
tho above ansWe1s goea on to take exception to
the bill in three points: that tho bill shows no
necessity for o resort to equity; that tho bill
wrongfully joins thoir names with others that
the bill docs not show any cause Of action
against the defendant III favor of tho United
States! MIR. Morgan varies the 1nonot-
ony Of the contract-soug by denying
that he WAS financial agent Of tho Com
pany, and also TINT he shared with Cornelius
4. bushnell in my profit realized by snid Bush
nell " Ill tho halo Of the supposed bridge-bondB
mentioned in said bill Of complaint; aud this
defendant denies that le is in anyw8e account
able to said Company for any amount what
aoevor."
SAMUEL T. DANA,
Of Boston. makos long answer, in which he de-
or Hoxio contracts, and denioH any fraudulent
management Of the affairs Of tho Company.
Ihoro is one thing, however, which nlr. Dana
admits lie says TINT, on the 25th Of nIaY, 1867,
est for sixty days. that said Amos gave him
therefor bis promissory note, that said Amee,
aB security for enid note, and to induce this dc.
fendant to make said loan, pledged to this
defendant l0o aharos Of tho stock Of the Credit
Mobilier Of America, transferring said stock to
the defondant with tue tight to take said stock
In payment Of said loan at o95 per share at
any time before the maturity OF said lonn.
Tho answer further states that tho note
vas renewed for sixty days, and, boforo
it came due a second time, Sir. Dana
took tho stock nnd surrendered Anaear note.
Mr. Dana afterwards sold tho stock to Josiah
farewell. Of Boston, for 81, 500, and hold it as
that all diyidonds which were declared on tho
stock wont other to Mr.. DarlweIl or Mr, Anee,
ANDREW cARNEa1E
hegs leave to deny tlAt, while acting as Dircc-
tor, he assisted C. g. Bushnell in negotiating 500
q 900 bridge bonds. Mr. Carnegie Bays tlint Mr
Bushnell employed him On his own bohalf. md
not on account Of the Union Pacific Railroad
Company to negotiate the sale Of said bridge
eonus II Europe, which tho said Carnegie did
TOT hia regular per cent commission. He aaya
there was no fraud aud, "a it was private mat
Ter between himself and Mr.. Bushnell, ho thinks
the Government has no just cause OF action
against lin.
brokers, sav they have handled $4,000, 900 to
x3 Ivy, ,000 OF the different securities Of tho
raelno tailroad Company, but all in tho regular
mapoi nng ., tnslt It .pus'noss and on very small
tslng them, and arc not knowing to any fsnudu-
lent action in tho matter. This firm alan snv
ty they pa1a ono narton u. JouKs $500 and Corue-
lus y. Bushnell 1000, for tho "priyilego" OF
buylng tho different bonds at IS per cont.
ANSWER OF THOMAS A. SCOTT.
No1t comes tho great railroad-maguato of
A1norlca,, 1honlas A. Scott. He pretonds to
answer tho bill, but in reality he answers moth
be hard to conceive. Evidently Mr. Scott in not
much scared as yet. Flo put Lis anawor undor
avo headings:
First-says no waa President Of the Union
to March 6, 1879. '
Second-Tlat, previous to the time when this
dafendant became President al aforesaid, tie naid
Union Pacific Railroad Company, as this defendant
y informed, sold to @. 8: Bushnell, also ono Ut
the defendants herein. S2,500,O00 Of itH bonds,
to provide for constructing railroad-bridgo for
said Company ACROSS tho Missouri River st Oma.
ha.
Tho Third section rofera to tho act Of Congress
under which the bonds were issued.
Fourfh-After this defendant became itB pres-
idcnt, the said Company concluded to roduco
the interest to DO paid on bonds required to con-
struct said bridge, from 10 por cent to per cent,
payable i'll gold. This was done, and per cont
bonds were delivered to said G. 8. Bushnell, in
lieu Of tho said 10 per cent bonds, to the oxtent
OF 81, 900, tho price of such per cent bonds
being, however, tho ahmo rs said Bushnell
agreed to pay for such 10 per cent bonds. Tho
amount which said Company roalized from said
bonds was, as th'a defendant bolieyes, ample to
provide tho means nocessnry for tho construction
Of tho BRIDGE which iB now in successful opera
tlon.
Mr. Scott omlts to toll az to the rolatiyc
amountB which woro realized by the Company
and TIM Hn}l Hru11rn11 1'hfa .ro,,11 f,avn f,aa,,