National Republican., 1873-02-01
CREDIT MOBILIER.
WORK or BOTH COMMITTEES.

Testimony OF Charles n. Neil.on-IIis
transactions with Broohs-Duraups
Statements In Reply to AiIey-IIornco
y. CLARK Examined by the Wilson Com
mittce.
Judge rolands special committee 70 inquire
into the distribution Of credit mObIller stock
among members Of Congress resumed Ia ses-
sion yesterday morning, and
cIlAs. n. NELSON Was RkCALIED.
lie testified that he kept no formal account Of
the money transactions between himself and
Mr. Brooks. Witness generally paid money TO
| Mr. Brooks by check. lie gave Mr.. Brooks a
check for 5000 on account OF a loan. The
money advanced to Mr.. Brooks was $1,000. No
note was given for II. Gave him collateral Sc
Curtty, consisting Of Union Pacific nrst mortgage
| bonds, which he received nj the time he (witness)
got the 100 shares Of credit moblller. Also re-
| ceIyed 2tO shares Of stock. Received the cash
dividend On the credit mobiler Of 5000 on the
| 18th Of June, 1861. Paid that dividend over to
Mt. BROOKS as part payment OF the loan. Did
not owe Mr.. Brooks any other money at that
| time, unless II was small amounts hundred
dollars or So. Paid the money 70 Mr.. BrootS
cashier, and took receipt Al the time. Witness
here produced the receipt, and Mr.. Brooks sub
mtted his check-bOOk, showing that the amount
was deposited TO his credit on the same day.l Had
man still held the collateral security, Witness
| owes Mr.. Brooks now about tl6OOO for
money edyssncsd; Mr; Dillon advanced the
lateral security four nrst mortgage bonds and
| nfty shares Union Pacific stock. Did not remem-
Seen pa bv tSe sse Of he Sheb ne nSS ~
| had perfect right to sell. Mr.. Dillon had as
sured witness recently that the loan had been
paid.
q. Have you ever had any settlement with Mr..
Dlon7 A. No, sir.
Judge Poland. Well, II would be a little re-
markable II the sale Of the bonds exactly paid
! the loan.
The witness. / have right now to 20 to
Mr. Dillon with my check for the amount
OF the loan aud Interest, and demand my
securities again. Witness supposed the se-
curities Just about covered the loan; thought
they were worth about eighty.
shows Mt. Ames sold the bonds At nlnety-seven.
price. Never had any such offer. Witness
madt II custom never TO take up loan unless
called upon 10 do 80. Did not think Eve year
an unusual time TO let loan stand; had FIRE.
qucntly known them TO stand that long.
by Mr.. Niblack. Mr.. Brooks still holds the L.
| U: bonds as collateral security on another loan.
The bonds draw interest, aud portion Of that
Interest has been paid 20 witness BY Mr.. Brooks.
by Mr.. McCrary. Borrowed the tI4, 900 from
Mr.. Brooks some time last summer. Resided In
the same house with Mr.. Brooks, aud used the
by Mr. Merricki Witness business Is not that
Of stock operator. Is In the insurance busl-
ness, and Keeps regular books OF that Deals In
stocks very frequently, but keeps no account.
They are kept by the broker. Mr.. Brooks now
holds tlB,OOJ as collateral security. Witness has
had the interest on 5000, and Mr.. Brooks had
that on iii 900. Had frequently received a check
from Mr.. Brooks for 500 on account.
Y; Did those checks generally come about
Christmas or New Year A. No, str; did not
know what amount he had received BY check
from Mr.. Brooks. Witness thought he had re-
ceived about $500 In the aggregate from Mr..
Brooks, including interest on the bonds and the
, $500 check.
BY Nj. Brooks: want Mr.. Nelson TO show
from his memorandum all the
TRANSACTIONS uE HAS HAD WIN Mr.. HAN.
A. cannot show all; but here are some.
Witness here produced two notices from b. y.
Ham, assistant secretary Of credit mObler, III.
rected to him, (Neilson) dated March ., 1858, and
March Z, 1865 announcing that there were divi.
dends due him on the credit mober stock, and
Notifying hm TO call and get them. Mr.. Brooks
/ said he offered this TO show the stock belonged
TO MI. Nelson. Witness testified that the notice
OF March 8 was for dividends due on the IOt
shares. On that day he bought the - shares al
, tlltonal, and the notice OF March was for dyi
donds due on the additional shares. Witness lei
the loan rest with Mr.. Dillon because It was
satisfactory one TO both parties, The busines,
between Mr. Brooks and witness eau be easily
settled by their check books. Had dealt In uniOl
Pacific stock frequently, and nearly all othei
i stocks on the list. II Il common practice n
Wall street 70 sell out collateral securities. Mr.
Dillon would have naturally done 30 upon learn
Ing that Oakea Ames was about to fail. His nrs
impulse would have been TO sell out and tax,
! care OF himself. The bonds were permitted q
lie In the house Of Mr.. Brooks as a place O
security. Witness could have got them at AMI
) time by paying the o., 900 balance due.
DuRAST RErLIEs TO ALLEY.
D DR.. Thomas g. DurAnt appeared before thu
5 committee, and submitted a lengthy statement
2 IN writing In reply TO the testimony OF John d
Alley before the committee on the Ith Of Janu
!: airy. DIR. Dufant commenced by saying thu
. statements Of Mr.. Alley were so at variance
with the actual facts as TO the two corporations
. and SO untrue and unjust TO individuals, botl
$ living amt deceased that he deemed Il necessary
: to reply. that Alleys rush statements should no
I 20 out to the world without the refutatlOn which
the record Of the Union Pacific railroad abun
Q dainty furnished. MF. Dnrant then quoted eN
tenslvely from the record as to the organization
i OF the railroad company, the IoSe contract, ant
the dlncultles under ~ then the organization o.
v the credit mOOllIer and Its work. Mr.. Ames
s Mr.. Alley, ard their friends were not oTIgina
subscribers IN the Union Pacific road the
only Interest IN the said company being acquired
Z by them as contractors or rs stockholders In tb,
q credit mObier. lie next referred to the injunc
i tlons which he obtained against Ames A Co. q
Q prevent the settlement with the credit mobilize
at tSOOOD per mile for nfty-elght miles. II,
9 deemed II his duty, rs an Oflicer Of the UnloT
u Pacific, 10 do all In his power TO protect the In
terests Of those Of the stockholders who were no
= stockholders In the credit mobilleT lis oOursI
Q was not approved by Alley and his friends, who
seemed TO consider all sums saved 10 the UnioI
Pacific as robbed from them as stockholders II
i tue credit mobiller. Mr.. Alley, In his statement
c had with unparalleled impudence attributed 4
Mr., Ames and his party the views and policy o
y thelr opponents. The protests aud complaint
n OF witness before the courts to protect the In
teTcsts Of stockholders were the best evidence o
n what his Views aud actions were at the time
= After Amcs Co. had acquired voice In tn
direction uf the road they developed seyera
s plans which Increased the cost OF construction
c to the raii.Oad cpullaHy. one OF these plans wa
}. the payment Of large commissions TO them
u selves Tor loans TO the company or procuring TO
. II snch loans. Locomotives which had beef
,. purchased ~ Government sale Of cOndemne,
i property and belng repaired were forced upol
II the company hy OaNcS Ames. They well knew
that lbO miles Uf the road next west Of .hc lOOt
meridian was being built for about twenty thou
+ sand dollars per mite, exclusive Of 81 iipmen
o and station hOusGs. This fact appears 'Um III
n Boomer contract and witness submitted cop
OF II. He further stated that Alley and com
; pany Improperly charged him with many item
IS and neglected TO credit him with others, anl
o thus placed him In false position In order /
: influence the election Of the board Of director
oi the Union Paclnc ltailroal Company, In SUP
l. port OF this Mr.. Durant read afiidayits from sid
l. ney Dillon, Henry q. Crane aud others. As b
;. the Fisk suit the witness stated that Mr.. Ames
Il then acting president OF credit mobller, gave d
n rectons 10 the treasurer 10 receive no snbscrip
tlOn Tor stock except when AcrOmpael with pay
v meht OF tue full par value thereof. There
e upon Mr., Alley and his friends proceeded to sui
Is scribe for stock On the nrst Subscription ben
made, a parcel Uf grccnbacks was produced b
e me party max NJ subscription, stating TO th
cnn. eSsGts, n n, snat u w tender Si ni;aye Pc
n scfiptiOn, which was, OF course, refused by N
r. treasurer, as the party well knew II would he
a The amount thus pretended to be rendered wa
i not as witness understands, ever counted by th
treasurer, but was retained by the party 30 Offer
ing to Subscribe, to be used the next minute o.
another subscription. Among the subscription
'e made In such way at this time are three In tn
u name Of John u. Alley and John u. Alley, trus
u tee, amounting In the aggregate TO t2s boo OOl
y This fArclcal subscription and tender Thereof
y was continued for the period OF about ten min
y utes In time, and reached In amount the sum O
4 about toOOO0,OOO. Not a dollar Of this none
y passed into the hands Of the company nor was
= Intended Il should 80 pass. All this took plac
y about nye days before the election Of direction
e The bylaws OF the company provided that n
a stock could be voted on which had not stood O
y the books Of the company, In the name Of tn
person Offering TO vote thereon, for ten days pre-
YlOus to the election. On the day OF the elecio
U Mr., Alley and his friends, with Gen. u. y. Butle
70 present h their counsel In the stOckholders meet
e Ing, passed resolution amending these bylaw
y to suit their desire, appointed new Inspectors
y and opened the polls, the duly appointed Inspect
Urs having previously opened the polls and con
:, menced receiving votes. All parties were en-
y Joined from voting upon subscriptions for stOc
on which no money has been paid At this election
'e but witness understands Gen. Butler In some wa
. succeeded In getting one OF the Injunction
" modified, the election being carried on in tw
y polls, with two sets Of inspectors In the sam
roOm-one ticket representing the old boar
and the other that OF Mr. Alley and his friend
n Each board Of Inspectors declared their ticke
Is elected. An Injunction, restraining Mr. Alley
10 bogus board from acting, was at once procure
q and served on them, to which thoy GRACEFUL