Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-02-13
Credit mobilier investigation.

The following are the proceedings be
fore the Credit Mobilier Investigating
Committee, (Judge Poland, chairman
Thursday:
James Brooks submitted letter from
O. n. Browning, eX-ScCTetarY of the In
terror, dated March q, 1868, transmit
ting to him q commission from the Pres
ident as Government Director in the
Union Pacific railroad. Witness also
stated that it was on the 27th of Decem-
Der, 1867, that Nelson got his shares
from Durant prior to the time witness
acted as director.
Horace F. Clarke. President of the
Union Pacific road, was then examined
by Mr.. Brooks. He testified that he
never had any kind of interest in Credit
Mobilier. He regarded it as construc-
ton company; was invited 90 take an
interest in it in 1866 but declined. deem
ing it too hazardous ; part Of the work
men had to be armed to guard others
while at work, and he regarded il as pre-
pOsterOus to build a road under snch cir
cumstances. Witness did not regard 100
per cent. as a large profit on construct
inc railroads. New York capitalists
would never 90 into railroads in unset
W
fits were guaranteed did not think CAPT
tai would be raised now to build Union
Pacific road-not if it was guaranteed
that the profits should be ten millions of
dollars next year.
Judge Poland inquired the use of this
testimony
Mr. Brooks replied that it was to show
that the government directors were JUS
-, oil
build
Gen Banks-If there was any irrcgu-
larity in the proceedings of the Credit
Mobilier, upon whom has injury fallen
Answer pom the stockholders of the
Union Pacific railroad
Question-Rather than the govern
ment of the United States
Answer-The position Of the govern
ment is that of second mortgage bond
holder
Question-How have you regarded the
transactions of the Credit MObiler as
business men yourselves?
Answer-We have taken no action on
the subject; it is only recently that de-
velOpments have been made as to the
whole truth of the concern, and we have
awaited developments which might es-
tabiish claims. My own opinion is that
some time or other there must be an ac-
count, and | think the Court Of Equity
will have to look at tine question as TO
whether the profits of the Credit Mobi
ier have been reasonable or unreason-
bic.
Horace F. Clark testified that he con-
sidered Cakes Ames thoroughly honest,
not always accurate, and lacking per
haps that peculiar culture which some
men acquire. There were about twenty
thousand shares out of 5000 of Union
Pacific road not represented in Credit
MObilier. With friendly relations and
not otherwise between government and
the Union Pacific railroad, the govern
ment would be sure as to Indebtedness
from the road. Mr.. Clark considered
Congressman holding stock as disquali-
fed from voting on measures favorable
to the road.
Augustus Schell testified that Brooks
called on him in 1867 or 1868 to inter
est him in Pacific stock. but he declined.
j. b. Beck testified that Brooks never
tried to influence him in relation to the
Pacific road.
d. w. VOORHEES, testified that Brooks
never spoke to him about the Pacific
road.
WASHINGTON, Feb. u.
Poland's Credit Mobilier committee
met this morning. Ames appearing, the
chairman asked Colfax if he was willing /
TO make any statement, but his counsel
declined on the ground that it would be
unjust until Ames was present. About
Ii o'clock Mr.. Ames arrived, but said he "
left his memorandum book with a legal .
friend, he saying he understood evidence !
his evidence was to be put
n by ColfaX, and the book should not
De produced till that evidence was given.
The chairman asked Ames to send for
he book, saying the committee was not
o be governed by outsiders. Ames stated
hat Horace f. Clark had the book, and
messenger was sent for it. While
awaiting the return of the messenger,
Ames produced another memorandum
book, showing that on May 4th he sold
me hundred shares of Credit Mobilier to
}. Bradford at par, less discount of five
Der cent also that Senator Patterson
,aid for his three hundred shares of
credit Mobilier August Dist, 1867, as
Ames previously testified The memo
andun shows Patterson paid three
thousand dollars. After testifying he
lad some stock in the Iowa Falls road,
S trustee, for no one in particular, and
hat he let Jno. NJ. Beebe, Henry J.
Iardner, Aaron Hooper and Mr.. Bing-
an have some OF the latter stock, the
ommittee took recess