Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-01-14
THE CREDIT M0BllIER INVESTIGATION.
Of the Committee To-day

sentatives. OF which Judge Poland is chairman
TO inquire into the credit mobier charges re-
sumed its sessions this morning.
Judge Poland said the request made by Mr..
Brooks yesterday 10 have certain records of the
War department produced for the purpose OF
showing
could not be granted. Those transactions had
nothing to do with the credit mObilier, and
Therefore would not be competent testimony.
The committee must follow the legal rules. and
il had been settled i'm courts of justice that the
outside transactions Of men could not be inquired
into.
Mr.. Brooks said the allegation Of Mr.. McComb
was that Mr.. Alley gave him 80 shares of credit
mObilier stock to influence democratic members
of Congress. Mr.. Alley has denied that. and
the question is whether Mr.. McComb or Mr..
Alley is to be believed.
Judge Poland.-We so understand it, but the
testimony is not admissible legally.
FURTHER TESTIMONY OF Mr. CHARLES II.
NELSON.
Mr. Charles H. Nelson was then recalled, and
in answer to questions of Mr.. Smithers. of coun-
sci for McComb, testified that he borrowed five
thousand two hundred and some odd dollars
from Mr.. Dillon; knew Mr.. ID. some six months
prior to that time; was introduced to him by Mr..
Brooks; had casual interviews with him during
the six months don't remember how many times,
had no business transactions with Dillon prior
to that time; gave Mr.. Dillon security for the
loan in the ordinary way at the time he received
the money from him: the security consisted of
stock of the Union Pacific Railroad Company
and first mortgage bonds. The stock was trans
ferred to witness on February 18th, and the in
formation that he was entitled to 80 shares of
credit mObiier shares additional came from
Mr.. Brooks.
Hon. James A. Garfield was sworn and made
the following statement.
STATEMENT OF REPRESENTATIVE J. A. GAR
FIELD.
The first ever heard of The credit mobilier
was sometime in 1866 or 1861, cannot fix the
date, when George Francis Train called on mt
and said he was organizing a COMPANY to be
known as the credit mObilier Of America, Ia be
formed on the model of the credit mobilier ct
France; that the object of the company was 10
purchase lands and build houses along the line
of the Pacific railroad, at points where cities
and villages were likely to spring up; that he
had no doubt that money thus invested would
double or triple itself each year. that subscrip-
tons were limited TO one thousand dollars each;
and he wished me to subscribe. He showed
me a long list of subscribers. among them
MIR. Oakes Ames, to whom he referred me foi
further information concerning the enterprise.
/ answered that had not the money TO spare,
and if L had 1 would not subscribe without
knowing more about the proposed organization.
MI. Train left me, saving he would hold place
open for me, and hoped would vet conclude t.
subscribe: The same day L asked Mr.. Ames
what he thought Of the enterprise He expressed
the opinion that the investment would be safe
and profitable. i heard nothing further the
subject for year or more, and it was almost
forgotten when some time, should say during
the long session of 1868, Mr.. Ames fpoke of il
again; said the company had organized, was
doing well, and he thought would soon pay large
been left, or was to be left, i'm his hands to sell
and could take the amount which Mr.. Train
had offered me by paying the thousand dollars
to pay for il then he would hold il for me till
could pay or until some of the dividends were
| payable. / told him would consider the matter.
knew from an examination Of the charter, and
the conditions of the subscription the extent 70
which / should become pecuniarily liable. He
said he was not sure, but thought stockhO,ler
wOuld an i
stock; that he had not the stock and papers with
him, but would have them after while. From
taken the stock if had been satisfied i'm regard
| to the extent Of pecuniary liability. Thus the
matter rested for some time, think, until the
following year. During that time L understood
that there were dividends due amounting IL
nearly three times the par value OF the stock
But in the meantime had heard that the com
pany was involved in some controversy with the
Pacific railroad, and that Mr.. Ames' right TO
sell the stock was denied. When next saw Mr..
Ames / told him had concluded not to take
the stock. There the matter ended so far as was
concerned, and had no further knowledge Of the
OF the company's operations until the subject
began to be discussed in the newspapers last
fall Nothing was ever said to me by Mr.. Train
or Mr.. Ames to indicate or imply that the credit
mObilier was or could be in any way connected
with the legislation of Congress for the Pacific
railroad, or for any other purpose. Mr.. Ames
other valuable thing as gift. once asked and
obtained from him, and afterward repaid to him
loan Of 500. That amount is the only valu-
able thing / ever received from or delivered to
him. L never owned, received, or agreed to re-
ceiye any stock of the credit mObiier or of the
Union Pacific railroad, nor any dividend or
profits arising from either of them. Mr.. Ame-
never said the first word TO witness to influence
his legislative action.
BY Judge Merrick:-Has no knowledge of an,
other member of Congress having credit mobi-
lier stock; never saw a share of it until Mr.
Brooks exhibited one in the House a few day.
ago; supposed Mr.. Ames was largely interested
in the Union Pacific railroad.
In answer to questions OF Judge Poland. Mr..
Garfield said he had no knowledge of any deal
ings of MIR. Ames with any gentlemen i'm Con
gress in reference e1 to credit mobiier stock.
not have any stock where controversy existe.;.
Derived his original opinion and knowledge vi
credit mobilier from Mr.. Train.
TESTIMONY OF SECRETARY HAM.
BsnJd4nin +. Ham, swOrn.-Resdes i'm New
York. Has been auditor of the Union Pacific
railroad, from January, 1861, till October 1870,
credit mobier corporation. Holds the latter
position now, and has the custody of the books
OF that company: Had ordered them to be de
Of the books were in Philadelphia, but had been cen
sent on here; the other portion witness brough.
witness brought with him from New York. Had
met Chas. ii. Nelson, OF New York. His nam.
appears as one of the shareholders of the com
pany, to the extent of $50 shares; supposes the
shares belong to him. Has no personal knowl-
edge of Mr.. James Brooks having any interes;
in those shares. Has no personal recollection OF
Mr.. Brooks having had anything to do with the
shares; the dividends were paid to Mr.. Nelson.
WITNESS here produced the stock ledger five
certificate books, and the letter book of the
credit mobilier, and exhibited on the stock led
ger the name of Charles II. Nelson as the owner
of $50 shares also, the receipt for the certificate
transferred to him by Thomas G. Durant.l Mr..
Nelson was entitled to 90 shares additional, i'm
consequence Of owning 100 shares. The new
stock was made in February, 1851. Interest on
the new stock commenced July 1st 1867 The
amount paid by Mr.. Nelson over 5000 for the
additional shares was interest. The first 100
shares which stood in the name Of Durant had
been paid for by Durant
THERE WAS NOTHING TO SHOW
whether Mr.. Nelson or some one else paid for
the stock. Witness then exhibited the account Of
Mr.. Durant, and pointed out where the 100
shares had been transferred to that gentlemen
Some Of the stock app0rtioned to Mr.. Durant
had been issued to II. C. Crane. Witness ex-
hibited entries showing that Is shares had been
transferred to B. n. Boyer in trust for Mrs
Boyer; 10 shares to H. j. Gilbert of Boston
Did not know If any Of the stock standing in the
name Of Mr.. AAes. as trustee, had been sold by
him, or ii he had contracted to sell any
Dividends had been declared upon the stock
standing in the name Of Mr.. Ames, as trustee
and paid to him.
MR.. Ants PAID THE COMPANY
for all the stock standing In his name rs trustee
The credit mobilier only made one dividend.
and It was paid by witness. The dividend was