Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-01-25
What He Knows and Don't Know
About Credit M0bilier.
How He LOADED and "Uml0asled.',
His Search for a Man without COny ie-
iiOnS.
Rich, Rare. and Raey.

The meager and tame abstract that has ap-
peared of the graphic testimony OF Col. VIM. b.
Shaw, the weil-knOwn correspondent, before
the credit mobilier committee, was 70 unsatis-
factory that the following full report will be
read with interest:
VIM. b. Saae sworn an examined by the chair
man:
q. Where do you reside? A. In Washington
q. How long have you been residing here? A.
q. What is your occupation? A. Newspaper
Q. How long have you been engaged in
that businessP A. Ever since L came TO Wash
ington.
when the legislation was pending with reference
to the u. p. Il. X. Co? A. Yes, sir.
.. Do You recOllcct the circumstance of the
Secretary of the Treasury having taken some
steps looking to the Withholding from the L. z.
X. X. Co. certain moneys on account of trans
PortatiOn? A. Yes, was aware of that fact
before anybody else. (SensatIon.l
Q. How did you ascertain that fact? A.
From the Secretary himself. l went up to see
Sec. Boutwell,, and while there. saw lying on
his table a statement OF the public debt, and 1
saw n statement particularly in reference to the
Pacific railroads, showing an Indebtedness of
between six and seven millions of dollars. He
from that that he had his mind made up about
that interest question, and inasmuch as was i'll
terested in 1t, ] asked him
WHAT HE WAS GOING TO DO ABOUT 1T.
" Dir. Secretary said I, al am going TO be
frank with you. have some of the bonds and
stock, and If you are going to take any steps tn
collect this interest from the roads, / would like
to know it, so that can unload and get out
He laughed and said, "Well, you are very
frank about it." LL,aughter.l THAT is my
only idea" said; >. do not want to publish
it," Said he, 81 do not know what might
do" Said 1, "Do you claim that you have
the right under existing law to collect this ac-
crued interest from the roads and compel them
tsy SaiI h, fhar atuu,
law already existing Said ]. Z" do not think
YOU have" Well" said he, 81 have written
to the several railroad companies, notifying
them OF the fact OF this accrued interest that
they owe, and only in one instance have l re-
ceiyed a reply, and l am inclined to let them
understand that am going to take hold OF this
talked to one of my friends about it. Said I,
- Boutwell, means mischief in regard to this
matter. think we had better
Said he -" He cannot do It; he dares not 10
it, he has no right TO do it." SAID |, Suppose
he docs it?" Weil.' said he, q he would not
do with it, but suppose he does it, what then?'
Said he, -. 1t would be very disastrous" /
waited a couple Of days, and then went up to
the question, and l discovered that MI. Don't
well had issued an order 70 the warrant officer
not to pay any more of this fifty per cent. ac
egraphed that to my papers ct Boston and New
York. The next day or two after chat
TIE STOCK BEGAN To TUMBLE.
went MP to see the Secretary again. ana he
told nc that he had referred the subject to the
Attorney General, and that until he had de-
cision he would pay no more Of their warrants.
followed the thing all along, keeping watch OF
it all through, and trying 70 ascertain what the
Attorney General was going to do. Finally the
Attorney General rendered his decision con-
trming the construction of the Secretary of the
Treasury. Then the question came up in Con-
gIess.
q. In the meantime had you unloa,,ed? A.
q. Had you unloaded before you tclegraphed
alwaysdo these things ocrone , s'a as.i -.
Q. How far did it tumble. What was it
worth when you unloaded3 A. think it was
worth about from 80 to 81, l am not positive
about it. 1t went down to nine You could not
sell the income bonds at any price. They were
quoted in Boston. where they were most held, at
%, 50, IS, 10, and such figures. They were
.--.s-l OSCILLATING In THAT WAY.
Q. What Kind of securities was it that Won
were loaded with? A. 1t was the stock | had.
O. 1t was the stock that went down to-nine??
@. Then the question came in Congress? A.
Then the question came up in Congress had
bought some OF the stock under the impression
that Congress would not confirm the action OF
the Secretary of the Treasury, which I regarded
as being in direct violation of the agreement
between the railroad companies and the govern
ment.
z. What induced you TO come to the conclu-
sion that Congress would not confirm the action
"A. l.
seen several lawyers and talked with them on
the subject, and think had also talked with
good many Senators and Members of Con-
what they thought Of Boutwe!l's decision: ami
they generally thought that lie was not war
ranted entirely in doing it. I followed it NJ
very closely, and went to the Judiciary commit
tee of both houses and inquired wherever
found anybody who knew anything about ii.
The question was also before the committee on
q. After your many iutervews with members
Of Congress you came to the conclusion that
Congress was going 10 disagree with the Secre-
tary of the Treasury? A. At first I did not
think they would, because there was an impress
sion prevalent that these companies had made
large amount OF money, and that Congress
wa. not going to help them out of the scrape,
TAKE CARE OF THEMSELVES.
l afterwards changed my mind.
A. From the general impression that the Sec
retary's opinion was wrong, and that Mr.. Ack
erman was a mere tool and did not know any
thing about law. They regarded him "a rebel,
who was acting against the interests OF the PEG
pie of Massachusetts, who held this stock.
Y. Did these interviews that you had Will,
to the conclusion that Congress was going to
disagree with the Secretary? A. was looking
about for news, and had two purposes to serve
in getting all the news that | could. | told
members whom L spoke to tiIat / wanted TO
know it as a matter of news, bat really wanted
to know because had an interest III it. l had
when the stock was down. l.a@glter.1
q. Had you loaded up before sOu had pretty
strong assurance that the legislation of Isl vas
to be carried? A. No, did not. That was my.
Judgment. -fv .
q. You satisfied yourself, in other words tn at
that legislation would be enacted? A. 1 did
not know what Congress woald do, but thought
it woald relve the COMPANY, As the enterprise
had ruined all those gentlemen who wers in it,
and i thought that Congress would probably
step in and relieve tAan. t..
=. Dtd you make aug arrangement looking to
the prevention OF sending out from this city in
formation 20 the different newspapers Of the.
country az to what was likely to be done In Con
Rress with reference 70 that legislation? A.
No. sir; not a particle. gave my information
after had used it, to any one who wanted il.
q. Did You pay any money to any Newspaper
correspondent or any person connected with
any newspaper for the purpose OF inducing him
not to SEM cut news in relation to what Was
transpiring here in regard to that legislation?
A. No, mot particularly for that - l.ris
z. Whist was " fort. A. had an interest in
this thing, and - ~
DID not WANT ANY ADVERSE CRITICISM.
A gentleman came to me and wanted me to loan
him some money. He told me that he was hard
mp. think he said that Senator Pomeroy OWED
him some money. He asked mo II would not
loan him some, and he kept az me till fnd1ly
gave him q couple Of hundred dollars. O. |
Q. For what purpose? A. To aid me In my