The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1873-01-16
THE PACIFIC RAILROAD AND
CREDIT MOBILIER.
investigation No. 2.
History Of the Transactions.

The Wilson special committee resumed bus
mess at half past eleven o'clock.
| IL. L. Crane was sworn. He was assistant
treasurer of the Credit Mobilier until May,
| 1868; was now stakeholder. A document ail-
! thenticated by an affidavit was shown the wit
ness. 1t contained the names of those holding
stock in the Union Pacific Railroad Company
and Credit Mobilier at the same time, together
| with dividends. Witness testified as to the
| correctness of the record. Had no books or
! papers showing dividends ard allotments of
| the action taken by the Credit Mobilier endors-
! ing and ratifying the Ames contract Durant
has copies. He was made assistant treasurer
| and secretary of the Ames trustees in October,
1867. AT meeting of the trustees resolution
was passed to purchase first mortgage bonds of
the Unioo Pacific railroad, which the trustees
paid Tor at whatever price was authorized. The
books of the trustees of the Ames contract
would show what they bought, where they OBJ
tanned money, and all about the transactions
Witness showed that the dividends on the Ames
contract aggregated 545 per cent.
In order to allow members an opportunity to
participate in the business of the House. the
! lmmittee took recess until two o'clock this
afternoon.
At the afternoon session of the Wilson Credit
MObller committee, the examination of Mr.,
Crane was continued.
On the 18th of January, 1867, the capital
stock of the Credit Mobilier was increased fifty
per cent, the increase being distributed to par
ties already interested. The dividend of II per
SOIo, iol WV yCdis was utCldTeu OGC. 70, 1ODS,
and this dividend was on the increased capital
of $3,750,000.
@. by Mr.. Swan-What pressing necessity
was there for the increase of stock? Ans.-To
raise money to construct the road, and not to
declare dividends. He did not know for whom
Cakes Ames held in trust 343 shares of Credit
Mobilier stock. Par and six months interest
was paid for them. The stock was transferred
. to Ames by Dillon, who received it from Durant
Ihes transfers were made on the 9Th and Goth
of January, 1863
Cornelius S. Bushnell, of New Haven, being
sworn. gave an account of his connection with
the Union Pacific Railroad, having procured
the first $2,000,000 for building the road; and
mencement to its completion by the company.
He said Il expect such an increase of business
this year as to enable it to meet all legal obi
cations 4
In answer to question by the chairman, the
witness said the Northern and Southern Pacific
railroads would interfere with the business of
the Union Pacific, but the last named would
make up in mineral and other developments of
the county what it would lose by competing
roads. Had never heard of any money being
used to influence members of Congress. He
had a recollection of where member of Con-
gress came to give counsel, but it ives not at
the instance ST either of the Pacific railroad
companies or the Credit Mobilier; nor did he
know chat any such member received fee. -
His impression was that in the year 1867 Mr..
Alley brought in a member of Congress as his
counsel. Mr.. McComb at the same time brot'
in Judge Black. The counsel of Mr. Alley was
now in Congress-Gen. Butler-but the witness
thought that this was a year before Gen. But
Ter was elected to the House of Representa-
tives. Witness did not know of any money be-
ing given directly or indirectly, or of any land
grants or acceptances to Senator Harlan.
Dr. Durant informed witness that he was
going to assist Senator Harlan in being elected
Senator by sustaining one or two Iowa news
papers IL his interest. This was prior to 1870.
My impression was that Harlan was at that
time Secretary of the Interior.
Witness was asked whether any Senator or
Representative had been elected with the aid
OF funds from the Union Pacific or Credit Mo-
blller Companies, to which he replied: As to
himself he had always literally subscribed to
general political purposes, and his impression
was that in one instance he contributed $4,000
to Senator Thayer, which money was drawn by
draft on him. He thought this was in the
Nebraska State election of 1870 when Thayer
was friend of witness, and in giving the mon
ey he thought it might aid in securing his
(Thayer 81 reelection. Witness did not remem
Der of ever having made any other contribution
for anybody for similar case: did not think he
had made such large contribution before. He
generally gave $1,000 or $500 for electioneering
purposes just as he would pay taxes; every man
must do something to save the country. laugh
teri. Witness never heard of any of the trus-
tees having given money or bonds to influence
the election OF members of Congress If this
had been SO he was in position to know the
fact. He signed a paper authorizing Cakes
Ames to deliver 1000 and odd shares Of Credit
Mobilier stock to certain members of Con-
gress, and Mr.. Ames informed him he had dis
posed of that amount of sock and the mem
bers expected him to fulfil his engagements.
He never heard Ames say he would place
the stock where it would be of the most good
but that it wonld be bad policy to break his en-
gagements, and witness also thought so. Wit
ness was surprised that while gentlemen should
be willing to take stock at 81 they had not the
moral courage to say that they did so, when it
The committee at o'clock adjourned until
7-30 p. IN.
Ereaing Session.-Thomas C. Durant was
sworn and Intercepted regarding matters con-
nected with the construction of the Union Pa
c'fc railroad. The examination was elaborate
and minute, witness answering many questions
after reference to the books of the UHion Pa
c6e and Credit Mobilier