Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-01-17
WASHINGTON.
- y = .--I-- p
The Progress Of Investigation.
Refunding the Cotton Tax,


Refunding the Cotton Tax.
WASHINGTON, Jan. l6.-The Committee
on Ways and Means on next Tuesday will
consider the subject of refunding the cotto
tax.
schOGeId Testifes.
| WASHINGTON, Jan. 16---At ,the sittings
of the Credit Mobiier Committee to day
Representative Schofeld made the follow
ing statement: Has been in the habit OF
investing in bonds or stocks. In 1866
bought of Ames some bonds of the Cedar
Rapids Railroad. In December of next
year wanted more. Ames suggested that
1 be take Credit Mobilier stock, he (Ames)
saying the company was incorporated in
| Pennsylvania and he would take some
| Pennsylvanians in it. He offered the stock at
par and interest from some former period, or
be would guarantee eight per cent, If he
| (Schofield) gave to Ames half it earned.
Told him that he (SchoHeld) would take
81, 900 Of it. Subsequently when witness
spoke to Ames about giving him the mon
ey, Ames said he thought all the stock was
gone, but if witness gave him the money he
would try and get the stock. Witness gave
him the money in January and Ames said
he would get the stock. Witness told Ames,
however, that he now concluded not to take
the stock, but finally agreed to take some
of his railroad securities instead. Some
balance was settled in money. Witness
knew nothing of Ames desiring Congress
sional aid. Witness voted against the act
OF 1864 giving the company's mortgage pri-
orily, Nothing was said about legisla-
tion. Did not receive any dividend.
In answer to question by Poland SEQ
! field said he thought no dividends were de-
clared by the company during the time.
Did not receive any dividends. If there
were any they were allowed in the final
settlement. Witness had no idea that the
stock was then worth two or three times
its par value.
Senator Patterson.
Senator Patterson was sworn. He
stated that although he had no transactions
with Ames or the Pacific railroad which
called for investigation, or which any res
pectabie business man would criticise, still
he would state sll the facts in which he
was concerned. he was not in Congress
until after the Pacific railroad subsidies
we're passed. He voted for the act Of 1864
aud never regretted it. Never owned a
penny's worth of Credit Mobilier, although
he would have done so at one time if he
had the money. Subsequently he purchas-
ed Of Ames both bonds and stocks of the
Union Pacific road which he afEerward sold
in New York, making fair profit. He re-
gretted that his investment was not larger
as the transaction was honorable and honest.
Never received, nor purchased any proper
ty which, directly or indirectly was con-
nected with his vote.
In answer to questions of Mr.. Poland,
Mr.. Patterson testified that his first pur-
chase was in 1869 and the other in 1870.
Pig Iron Kelley.
William D. Kelley testified that he agreed
with Ames to take some Credit Mobilier
stock as an investment only, but the matter
| was dropped and he never received any
| dividends or profits from the Credit Mo-
bilier. Had never seen any Credit Mobilier
stock. Had borrowed money from Ames
on one or two occasions, but had not had
an offer from Ames of Credit Mobilier
stock to influence legislation. If witness
had been able to purchase the stock he
would have done so. Saw no more impro-
priety in a member of Congress buying that
stock than in buying flock of sheep and
then voting upon the tariff on wool or
wooden goods. He borrowed $1,000 from
Ames at one time, but there was nothing
in connection with that which referred to
the Credit Mobilier.
The VIce-PresIdent Elect.
Hon. Henry Wilson was then sworn and
testified that his wife had been presented
with $500 on the anniversary of their sil
yer wedding, a portion of which was in
vested in Credit Mobilier bonds, which
were purchased for her benefit at the sug-
| gestion of Oskes Ames. Witness knew
nothing of the organization. Ames said be
would guarantee it to pay 10 per cent, and
advised witness to take it. Witness asked
Ames at the time if it was not likely that
the road would be coming to Congress for
legislation, as he had made il rule neVe'.
to have dollars worth of stock in nv
road wanting legislation. Ames r. .pliad
the road wanted no legislation and e-,pected
none. Witness told Anes that if the road
ever should apply for lsgi Station, he
would want his money b0 ok and give
the bonds up. subsequently witness learned
that there were soma ditfir dl5 es about the
concern, and he spoke tc, Alley, Ames and
Others about it, saying that he wanted to
gel out of it. Ames laughed at the anxiety
OF witness to get out, but said he would
return him the money and cancel the bar
gain. Witness never received a dollar div
ideDd, but backed out of the bargain, and
If $4,000 were due him from it he would
not touch cent Of il, His wife got her
money back and witness never derived any
benefits from it. The only speculation he
had ever entered into since coming to Con-
gCess was little lot Of land in his own ma
tive town, and he would sell all he had to
day, exclusive Of bis house, for 50, 800. He
had done nothing he did not feel he had 3
right to do, ami he felt outraged at this at
tack made upon him. He thought great
wrong had been perpetrated.
Bingham.
John A. Bingham was then sworn, and
testified that he placed great confidence in
the financial Judgment of Ames, and upon
his advice invested two thousand dollars in
The Hubbard Silver Mining Company, a
corporation organized under the laws of
Massachusetts, but which had no connection
with the Credit Mobiler or Union Pacific
railroad. LII December, 1867, he was al
yised by Ames 10 invest in the Credit Mo-
bilier, and did invest two Thousand dollars,
giving Ames the money in Febru ary, 1868,
for which Ame5 then gave him written
agreement to account to him for the divi-
dends and proceeds Of 20 shares of Credit
Mobilier stock. Subsequently witness
agreed to take 81 ,0G0 stock in the Iowa
Falls and Sioux City Construction Com
pany, paying Ames $3.50 for which Ames
gave re an agreement, similar to the one
mentioned. Witness never received nor
held any stock in the Credit Mobilier, the
Iowa Construction Company, or Union Pa
cific railroad from ATes, nor any one else.
Ames was the only person he knew in the
contracts, SuI he had perfect faith in him,
and witness believes he had a lawful right
TO make these Investments. In 1868 wit
ness received from Ames two Pacific rail-
road bonds, each for $1,000, in pursuance
of the agreement. All subsequent di7i-
dends were in money or Union Pacific
stock. The Credit Mobiier contract was
closed in December, 1870, as witness then
wanted the money, and he re-
ceived from Ames $l,650, since
which time he has had no
interest direct or indirect in the Credit
MobiIier or Union Pacific railroad. The
| bonds which be received from Ames as
| dividends he sold in 1869 at SSt cents on
| the dollar. The Iowa construction contract
was settled in the spring of 1872, and wit
ness received 5000 thereon, since which