Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-02-03
THE Credit M0BTILER INvESTI.
CATION. q
PROCEEDINGS q the Wtlsan Speeiml
Committee To dav.


Proceedings Of the wilsaa Speeinl
Committee To day.
The Wilson committee to inquire into
the debtcdness q the Union Pacific road
to the government Of the United States, met
this morning at ten O'Clock, and BENJAMIN W
urer of the Union Pacific railroad company
was recalled, an produced the original memo
randum, referred 70 i'm HIS former testimony,
containing the amount of checks issued TO va
Tious parties for the SIG GOO heretofore referred
HOW THE sI96 900 WAS DISPOSED OF.
OF which. he testified that a check Of si9 900
Gen. 6. M. Dodge. witness was positive that
nell. ....
Gen. Slocum-wen, Mr.. Bushnell has 50 tes-
tined before the committee.
Witness did not know IL il passed into Mr..
BushnelPs hands, but was sure lie gave it to Mr.
Wilson.
C. g. BUSHNELL WAS RECALLED
and testified as follows: Was az a meeting Of the
board of directors of the L. Z. X. X. i'm Boston
in March, ISL, when an item OF Sl26, 900 was
investigated. No vouchers for the expenditure
were given, 1t was passed On statement of my
own. In December, 1910, after the action OF the
Secretary Of the Treasury our securities went
down almost out of sight, and we had not the
money to pay the interest on our first mortgage
hundred thousand dollars on the Omaha bridge.
and some of the directors were of the opinion
that we could not raise the money to pay thu
interest. had an immense lot of stock in the
road and could not afford to lose it. One
or two Of the directors were anxious to
let the coupons on these first mortgage bonds 90
by default, but a majority Of the directors were
opposed to such action. IL was finally agreed 10
raise the money to pay the interest by giving the
notes Of the company, putting up as collateral
security certain bridge bonds at 30 cents on the
dollar. l endorsed the bonds myself, and
went to New York and raised the money to pay
the interest. After paying the interest I went
to work to dispose OF the bridge and land grant
bonds to meet those notes when they should ma
and went to Philadelphia. There saw Col
Scott and Edgar Thompson. They promised IA
advance money to put the company out Of debt,
and then figured up the price of the land grant
and bridge bonds, and found after selling them
We would still be over one million dollars in
debt. / returned to Boston and made propo-
siti0n to the company to purchase their land
cents and accrued interest. This proposition
was accepted. i then went TO Philadelphia
saw Col. Scott, and made an arrangement with
him by which 1 got several hundred thousand
make the drafts good in New York, started
Tor Washington, and came here mainly almost
entirely to secure the Legislation OF Congress
whereby the Union Pacific railroad company
should be authorized to place a mortgage on the
bridge over the Missouri, TO make our securities
better. i came here and met the Iowa Repre-
sentatives. They were not kind to the project
ferred with Gen. Dodge. 1 telegraphed imme-
diately for Gen. Dodge TO come on and would
pay his expenses. He did so and We had a con-
ference, when he told me he had lost all his
stock. He said
THE DAMNED BOUTWELL, RAID
on the road had ruined him; that he had to sell
all his bonds, &C.; 1 said to him You go to work
now and help me carry this bill through, and
will give Won all Won lost. He went To work and
in less than 10 or IS DAYS we had the bin through
exactly as We wanted it. That was my princi-
ton. General Dodge figured up his losses and
gave him S24 500. Colonel Scott also wanted
payment on account of nineteen on twenty thou
sand dollars took the lower figure and gave
him S19 600. The balance of the &136.OO0 /
handed over to the secretary for bonds, having
first paid a small amount to Mr.. Rollins which
borrowed of him while here.
Q; For what consideration did You pay Gen.
Dodge?
A. For his services and expenses in aiding me
to secure the passage of that bill to enable us to
mortgage the bridge over the Missouri river.
Witness explained at some length as to how he
bought the bonds AMI securities with the money
borrowed from Col. Scott. and how the company
made over half million Of dollars by such ac-
ton.
By Mr.. Hoar:-Q. BY what Authority did you
take that sl26,oee and charge il to special legal
expenses?
A. By the same authority that gave them
half a million more for securities when bought
them.
Q. Who authorized the payment of the
A. The board of directors.
TAKING CARE OF NUMBER ONE.
Witness further testified that he received the
check Of S2i 500 To pay Gen. Dodge, and that
for $4,000 for Col. Scott. The checks were
handed TO witness by Mr.. Spence, but he did not
remember who was present at the time. Gin al
this transaction was working for the company
and Bushnell too, for never lose sight of my
self i'm working for other people" [Laughter.l
The committee, at half past u O'Clock, took
recess until O'Clock, when the examination Of
Mr.. Bushnell was resumed.
CHAIRMAN WILSON GOING NORTH FOR EvI-
DENCE.
Hon. Jeremiah NJ. Wilson, chairman of the
committee, will leave Washington for Boston
direct tonight, to obtain facts from the books OF
the Union Pacific railroad company, including
data to the cost 'of the road, sc. Returning
he will stop several hours in New York for an
interview with Horace F. Clark, the president of
the Union Pacific road On Thursday or Friday
he win be in in Philadelphia to exame the check
for S19, 900 paid at the Girard bank, which check
Benjamin w. Spence, formerly cashier and
assistant treasurer OF the Union Pacific railroad
company, witness before the committee, said
he gave to JAMES F. Wilson, a government
director, while i'm Boston. 1t will be recollected
that Mr.. Wilson denied before the committee all
knowledge of such transaction. The chairman
expects to return to Washington by next Satur-
day. In the meantime the comAttee will remain
in session here.
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