The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-11


for 100 miles. but up to August they had received
no proposition. l was not member Of that COM
mttee In the month OF August Mr.. Hoxie made
copy OF which has appeared in che HERALD. No
member OF the committee had any knowledge that
the Board except myself know it. to my knowledge.
After II was made Mr.. H0xie was disposed to with
draw the same but knowing the importance tan o OF
pany to keep ut work urged Mr.. Hoxie to let u
remain, and offered TO guarantee him against loss
tractors would jsin him. which, with others who
then proposed to join, would bring money or credit
section OF the road on which the company could
| obtain the government bonds and issue the!r Own.
The proposition was made on inc on oaJ y. august.
some particulars. and, as Mr. Hoxie was
obliged e. eas a. san FOR ss the West
with power to act for him. This contract was sub
sequently extended to the Tooth meridian,
that contractors had faith being able to carry
the work under all the adverse circumstances
procured an agreement from Mr.. Hoxie to assign
the contract to me, or any parties might direct
who would furnish the necessary funds to carry
has also appeared in the HERALD. On the 7tH Of
October subscription was started to raise
and the parties thereto being interested in the
contract to the amount Of money they put into the
in Mondays Herald. It was ' not, think until
December that the required amount was made up
and notice gwen to Mr. noxs In the meantime
tractor had been obliged to raise funds for the
by assigning his interest in the contract subject to
Payments of the first instalment were made, and
the work pushed on but when calls were made for
terested refused to respond. The prospects OF
their ever receiving their money back were SO
v ,as looked % enlist e esSsS
and the reason given by those who
were already aeclining to Pay up was that the
money in were simply general copartners and
were liable for all they were worth in case of
twenty or hundred thousand dollars as the case
might be- in q venture Of this kind, ordinary pru-
dence would dictate the wise course Of stopping
the work rather tnan go on as general cOpartners.
1t was then that the parties interested sought
some way whereby the risk Of having an interest
amount of money subscribed, and finding the
credit Mobllier corporation already organized
ee OF II as e means OF
cept for the amount Of stock subscribed. The CAPT.
tai was made 100000, all cash, and subsequently
increased The whole plan was to allow each SUBJ
scrber to restrict his liabilities and to carry out
contract the results OF which were so doubtful at
more than limited risk in the same. The agree
ment with the Credit Mobilier was not made until
Vas not the price PAID for the con-
struction of the road under the Hoxie contract
eXcessiveP
DR.. DURANT-Not by any means. I doubt whether
1t would have been taken by any other parties In
the United States upon The same terms. The work
of construction of the part of the road embraced in
this contract was heavier and more expensive than
upon the 1907 miles next west thereof The excavation
alone on one section ofthrty miles was greater than
upon the 100 miles next west OF the Tooth
meridian. Gold at the time was worth las. The
country was involved In costly civil war. Iron
communication through Iowa. The currency bonds
TO be issued to the company by the government
were unsaieabie and u general belief prevailed
throughout the country that the time was not far
distant NV, when the road would De 9nished II at AL
Tooth meridian was limited, else the company for
feited the right to subsidies beyond that point.
REPoRTER-You say, Doctor, that the Credit
operate within ana control the affairs Of the Union
whether the former corporation ever did any bust
ness outside of the Union Pacific Company
Dr. DURANT-I never did.
REPoRTER-If 1t is a fair question, Doctor, was it
not the policy OF the Credit MObtiier to rely more
upon the credit of the Union Pacific Railroad Com
pany than upon its own resources; and II So was
not the Credit Mobiler as operated by the Ames
Alley, Bushnell, Williams ring, constant absorb
ant OF the government subsidy bestowed upon the
Union Pacific, and which constituted its chief
capitaIs
stance used her capital; afterwards the securities
OF the Union Pacific Railroad Company became
available.
REPoRrER-was it the usual practice for GER
tain number o. gentlemen who were stockholders
and directors in both companies to vote all profit
able contracts, like that OF Williams and Cakes
Ames, into the Jap OF the Credit Mobiller Ring9
DIR. DURANr-No such resolution was carried out
TO my knowledge.
REPoRTEI-I 90 not refer to any resolution in
particular, but to the action taken In meeting OF
the Union Pacific Railroad directors with reference
to the Williams contract and how 1t was obtained.
should be glad Doctor to learn your opinion or
the alleged Congressional bribery expose con-
tanned in the memorandum given to Colonel
McComb by Cakes Ames subject now under con-
slderation before committee Of the United States
House of Representatives.
DR.. DURANT-The testimony OF Mr.. AmeS before
the committee Will probably settle that question.
RErORTER-You speak with positiveness. Pray
ssa s sSs tell me you know what Mr. Ames 'eS'i
DR.. DuRANr-I base my Judgment upon the sup
position that Mr.. Ames has sworn TO the truth.
REPORTER-Is 1t a fact that Mr.. Amcs al
lowed to dispose OF the stock OF the Credit M0bier
without accounting for 1t fullyS
DIR. BURANT-Mr Ames had some OF the stock to
distribute among his friends at par, think.
REPoRrER-Is It fact, DR.. Durant, that Cakes
to Congressman and others, which stock is still
charged to him, ana which he has never satisfac-
tOrily accounted for to the cOmpanyr
DR.. DURANT-Most OF the stock referred to has
remained on the books i'll the name Of "oakes
Ames trustee"
REPoRTER--Doctor, in the list recently published
In the HERALD OF the stockholders OF the Union
Pacific Railroad Company and Credit Mobilier of
twice-once as the holder OF fifty shares, and again
as the holder OF 100 shares OF Credit Mobilier. Do
they refer to one and the same man, and is he the
gentleman referred to by Congressman Brooks as
DR.. DURANT-The 100 ana the fifty shares referred
to stand In the name OF the same party.
REPoRTER-Will you let me ask you, Doctor II
the large marginal profits which followed the deliv-
cry Of this stock to Mr. Brooks, or his son-in-law
was understood to be a consideration for services
rendered or expected, and, If either or bOth were
they Congressional or journalistic services 2
DIR. DuRANT-That is not proper question for
you to ask.
REPoRrER-Have you any doubt Doctor. that
Cakes Ames gave Colonel McComb the list OF
names OF congressman alleged to have received
stock In Credit Mobiller which was pubisheds
Dr. DURANT-I presume such list was given.
no mn y nf dnaQ Dnk
Ames assert that he distributed to the lobby, In
Congress or out
Dr. DURANT-I do not know.
REPORTER.-Doct0r, do you believe that all the
parties in washington to whom 1t has been re-
ported that stock given for purposes OF bribery
by Ames Alley h Co. ever got any OF 1t
DR.. DURANT-You ought to interview "the par
ties In Washington" on that subject. They can