The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1873-02-01
The Credit Mubilier Inquiry.

Credit Mobilier and Union Pacific stock
As TO the loan oi Dillon's, witness though
1t was paid by Dillon selling the collatera
security given by witness; Dillon said tht
loan had been paid; Brooks has collatera
security from witness on a loan; owe
Brooks $4,000 on one loan; witness live
In the same house with Brooks; witnes!
Is IN insurance man, and sometimes Opsr
ates instocks; received about 81, 500 iron
Brooks as interest on bonds; witness pro
duced notices from Mr.. Ham, Assistan
Secretary of the. Credit Mobilier, an
nouncing that there were dividends duo
him on the Credit Mobilier stock; Brook!
said this would show that the stock be
lopged to Nelson; witness testified tc
these dividends on the 100 shares, anC
the fifty additional shares he had dealt il
Union Pacific stock; there was other
stocks Dillon would have naturally sold
callateral security for, especially on learn
ing that Oakes Ames was about 10 fail.
Dr.. T. G. Durant appeared and submit
ted a reply to John B. Alleys testimony
Of JanuRry'7th, saying Alleys statements
were at variance as to facts concerning
two corporations, and untrue and untu.t
Is to persons living and deceased. Du-
rant then quoted from the records of the
railroad company the Hoxie Contract
and the organization Of the Credit Mo.
bilIer. Ames, Alley aud their friends
were not original subscribers in the Union
Pacific Road, their only interest having
arisen from being stockholders in the
Credit Mobilier. Alley and his friends
seemed TO consider all sums saved to the
Union Pacific as robbed from them as
stockholders OF Credit Mobilier. Alley
had with unparalleled impudence attrib-
utcd to Ames and his party the views
and policy Of their opponents. Ames q
Co. developed several plans which had
increased the cost Of construction to the
r. r. Co. One of these was the payment
large commissions to themselves Tor loans
10 the Company, or procuring for it such
loans. Locomotives which had been pur-
chased at government sales OF condemn
ed properly, and being repaired, were
forced upon the Company by OAkes Ames.
They well knew that one hundred and
fifty miles Of the road next TO the Tooth
meridian was being built for twenty thou.
sand dollars per mile, exclusive OF equip
ment and station houses This fact ap-
pears from the Bone contract, and the
witness submitted cory of it. he turth-
-er said that Alley & Co., improperly
charged him with many items, and ne'
elected to credit him with stock, and thus
placed him in false position, in order to
influence the election Ol the Board Of Di'
rectors Of the Union Pacific railroad. as
to the Fisk suit, witness stated that Ames,
then acting as President OF the Credit Mo
bilier, gave directions to the Treasurer TO
receive no subscriptions Tor stock except
accompanied with payment Of the par
value thereof. Thereupon Alley and his
friends proceeded to subscribe for stock.
On the first subscription being made o
parcel of greenbacks were produced by
the party making the subscription stating
to the Treasurer that 1t wasa tender OF %
per cent of the amount of the par value of
his subscription, which was, ol course, re.
fused by the Treasurer, as the party well
knew It would be. The amount Of this
pretended to be rendered was not, as l
understood, ever counted by the Treasur-
er, but was retained by the party so offer
ing to subscribe, to be used the next
minute by another subscription. Among
the number OF subscriptions made
In such way at this time there are three
in the name OF John B. Alley and John
B, Alley, trustee, amounting in the aggre.
gate to $29, 100000. This farcial subsCrip-
ton and tender thereon was continued for
about ten minutes and reached in amount
the sum of sixty millions; not dollar OF
this money passed into the hands OF the
company, nor was 1t intended It should
pass. All this took place about five days
before the election Of directors. BY the
laws Of the company it was provided
that no stock could be voted which had
not stood on the books Of the company In
the name OF tho person Offering to vote
thereon for ten days previous to the cleo.
ton. On the day Of election Alley
and his friends, with Gen. B. F. But
Ter, present as their counsel in
the stockholders meeting, passed reso'
luton amending these bylaws TO suit
their desire, appointed new inspectors,
opened the polls, duly appointed sec
retary, and commenced receiving votes.
All parties were enjoined from voting
upon subscriptions for stock on which no
money had been paid, at this election, but
/ understood Gen. Butler, in the same
way, succeeded in getting one Of the in
functions modified. The election being
carried on at two polls, with two sets OF
inspectors, one ticket representing the old
Board, and the other that Of Alley and his
friends Each Board Of Inspectors do
clsred their ticket elected. An injunC-
ton restraining Alleys bogus board from
acting, was at once procured and served
on them, to which they submitted. Wit
ness cited certain resolutions adopted by
the Board of Trustees for which Alley
voted, declaring dividends under the
Ames contract. Witness had thus to con.
tradlct the statement Of Alley that he
(Alley) was opposed to the distribution Of
profits under the Ames contract. Witness
sad Alleys claims Of patriotic and un-
selfish course in connection with this en-
terprise, were as baseless as many OF his
other statements. The other trustees were
so disguised with Alleys transactions that
his resignation was insisted upon. He
next cited Oakes Ames' contract TO build
887 miles OF tho road at the following
price: First 100 miles, $42 600 per mile;
second 1917 miles, $45, 900; third 100 miles,
500, 600; fourth 100 miles, $4,000; fifth
loo miles, 100000; sixth 100 miles, $9G,.
900. On the 10Th Of October Ames as.
signed the contract to seven trustees, A
full release from all the disabilities under
the contract was duly executed by the
officers of the Company, and Ames' re.
sponsibillty was completely wiped out
Witness next referred to the fact that
Gen, Dodge, Chief Engineer Of the Road,
under salary Of $4,000 per annum, was
also member Of Congress in Washing.
ton. instead Of being on the road. When
Witness demonstrated against this, he was
informed that Dodge could do more good
IN Washington. where he had great