Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1873-03-13
Report of the Senate Credit-M0pllier
Committee.
w.u,poroN Tahruary 81.

WASHINGTON, February 81
Having examined the testimony taken before tne
House of Representatives and heard the statements
of Senators in relation thereto, and taken snch tG
tmony as was acceptable tending to sned ngn.
upon the subject matter. and having attenIlsey
Considered the same the Committee In the nrst IN
stance present the facts as ascertaineo, toucIlng
each member of the Senate. In The list OF members
of the Senate supposed to be affected by the ev.
Sance taken by the Committee of the House OF
Representatives is the name OF JOnn n. Logan. n
December, 1867, Logan made an arrangement Win
Ames to purchase ten shares OF STOCK commonly
known as shares of the Credit-Mobiiier OF Amer
lea upon recommendation of Ames that the STOCK
was valuable, and payment coud DC iIlaue IA .on
sideraton of agreement at any time, ana the STOCK
was never delivered. In June following, hmes
showed Logan an account In which ne creolted MN
with dividends arising on the s,ock snnse,
&, 600, the price Of the stock, a. gave Logan "a a
check on the sergeant-at-Arms o, the House Tor
10th of July following Having become doubtful
whether it was good stock, or whether there
would not be difficulty about 1t, Logan repaid
Ames the amount of money received on Tue eneck
and interest thereon stating to him that he had
concluded not to take the stock, when Ames con
sented and here the transaction ended, Logan
having no further interest in it. Logan and Ames
were members of the House of Representatives al
the date of tie transaction.
The testimony does not affect Logan in any
se ase which would call for action OF the Senate, II
it possess Jurisdiction over acts happening beiore
his election to the Senate, question on WHICH,
under the finding OF the committee, IL Is unneces-
sary to express an Spln1on. .
In the record from the House Of Representatives
is the name of Roscoe COnkllng, member OF the
Senate. Conkling does not appear 70 nave Deeh
Mobilier or Of the Union Pacific Railroad Com
pany, and, consequently is in no way affected
On or about December 5, 1877, Senator Wilson,
on behalf of his wife, at the instance OF Ames, ana
upon the advice Of friends, contracted for twenty
cash 81 600 which belonged to his wife, Ames Civ
ing a receipt for the same, and guarantee OF ten
per cent. interest thereon. Wilson became dissat,
isfied with the transaction, from what ne had
learned of the differences in the manage
ment the Credit-Mobilier and Union Pacific
Companies, and concluded to regard the transac-
ton as incomplete. He so stated TO Ames, who
consented to 80 regard it, and an adjustment
was therefore made. II was by contract by her
husband, and Mr.. Wilson had no right OF In
terest therein, except such as grew out OF those
facts. Whether the action is or is not in law to
be regarded as that of his or that OF his wife
is not deemed material It Is certain 5nao Inc Inc
wife, that he treated 1t as belonging to her, con-
siderng the investment for her benefit from it, and
the money was finally repaid to and disposed Of
by her Mr. Wilson does not appear to have been
well informed as to the character of the Credit
Mobilier, does ii appear that he was aware or
had reason to suspect that Ames had any object
in commencing the investment, other than that of
friendship. The Committee do not believe Sena-
tor Wilson is affected by the transaction with
Ames but they feel constrained to advert in this
connection to the fact that on the 18th Of Septem
Der last, Wilson authorized to be sent to the pub
is regarded unqualified denial that he had
ever obtained from Cakes Ames, any other
person, the slightest interest in the Credit Mo-
bilier, and to remark that the dispatch cal
cuated to convey to the public an erroneous i'm
preston.
a transaction in 1865, while he Secretary of
the Interior Department The transaction not
in its nature continuous, and does not appear
have Influenced his actions Senator since his
election, that it was so intended, and however
strongly the Committee would deprecate the use
of money, for the purpose for which, in this case,
it was contributed and used, and, with whatever
judgment they would resist any and all attempts,
by the free use of money, to control popular ex-
preston, they do not, however, refrain to remark
upon the fact that Durant, Vice president Of the
Union Pacific Railroad Company, corporate Gre
alton of Congress, which would probably be again
subject to legislation contributed $4,000 with the
avowed purpose of its being used in securing the
election of Harlan to the Senate of the United
States he being, at the time Of its receipt Secre
tary of the Interior. This discloses an evil upon
which the committee cannot TOO severely animal
vert. The use OF large sums OF money to intiu-
either popular or legislative elections strikes
directly at the fundamental principle OF republic
can government 1t undermines public and pri-
vate virtue, upon which alone republican institu-
tions can stand. 1t cannon be concealed that it is
one of the threatening dangers to the permanence
of our Government While this receipt and use of
money is open to censure, the evidence adduced
to prove that Senator Harlan was Influenced by the
gift thus made to him failed to establish any such
results.
In relation to Senator Patterson, the Committee
say there is little doubt that Patterson the pur
chaser of thirty shares of Credit Mober stock in
1867 and that he received dividends arising thereon
as stated and It only Ienafns If Be fs facts had he
such knowledge of the relations of the Credit
Mobilier to the Union Pacific Railroad Company,
and of the interests of Ames in connection with
this Company and in the disposition of the stock,
should have caused him to hesitate to enter into
this transaction, or to retire from it when once
entered upon. Assuming, at the date of purchase,
in August, 1867, that he not well advised of
the nature of the Investment he was making, did
not the same rumors which came to others who had
embarked in the same enterprise of the differences
and difficulties that had arisen between the COM
panies and which, at q late date, led to pubic de-
bate in both Houses of Congress, come to him, he
retaining the stock and receiving his dividends:
Is 1t, then. unreasonable to presume that he had
acquainted himself with the character of the cor
we to account for the concerted efforts of both
parties to conceal from the public the transactions
when questioned, except from consciousness
that it was something more and other than an ordi-
nary business affair between private Individuals
The Committee further find that at date subse-
quent to that of the purchase of the stock in the
Credit Mobiiier, and at period when the charac-
ter of this Credit Mober and relations existing
between it and the Union Pacific Railroad Com
pany had become matter Of public notoriety and
must become familiar to Patterson, and while he
was in receipt OF dividends from his purchase of
Credit Mobiiier stock he still dealing with
Anes in stock ana bonds of the Union Pacific
Railroad Company, and disposing of the same in
the stock markets in New York through his bank
ers there. The Committee find. on the statement
of Patterson before the Committee of the House
OF Representatives, as before this Committee a
contradictory relation of transactions between
himself and Ames, the suppression of material
facts, and denials of other facts which must have
been known TO him when first called before that
Committee. They cannot escape the conclusion
that Patterson, being Senator of the United
States in 1867, contracted with Cakes Ames, then
and still a member of the House of Representa-
tives, for the purchase of thirty shares in the
stock of the Credit-Mobilier Of America at rates
greatly below its esteemed value, and sub
IF fhp
same; that he received dividends
which from time to time were declared thereon;
that he subsequently, in the year 1867 dealt with
Ames to large amount in stock and bonds of the
Union Pacific for the purpose of profit and disposed
of some stocks in the markets of New York with
the knowledge of the character of the Credit Mo-
biier and its relations to and it's connections with
said Union Pacific Railroad Company; and further
that he had the knowledge of the interest of Ames
and his connection with said Company; also, that
the object of Ames in this dealing with him was
to secure his friendly recog milton Of the interests
OF the said Companies, and his own interests
therein, and to influence his action as Senator in
the matter OF legislation affecting the same; and
II ho:n rod Of tn