Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-02-06
THE CREDIT MORlLlER INvESTI-
Il CATION.
Proceedings Of the Special Commit
tees TO-DAY


into the distribution OF credit mobilier stock
among membersof Congress resumed its session
this morning, and --.....
REPREsESTArrvR JAMES BROOKS
submitted letter from o. II. Browning, Secre-
tary of the Interior, dated March 2fst, 1885,
President as government director in the Union
Pacific railroad, and also stated that II was on
the 9Th OF December, 1867, that Mr. Nelson
got his shares from Mr.. Darant. prior TO the
time witness acted as director i'm the road.
TIVE BUILDING OF THE U. p. RAILROAD.
Horace =. CLARK, president OF the Union Pa
Mr.. Brooks He testified that he never had any
kind OF interest in the credit mobi6er. He re-
garded the credit mobilier as q construction
ft in 1855, but declined 20 as 10, deerhnAg NJ .Se
armed to guard the others while al work, and
he regarded it as prepOsterons to build road
under such circumstances. The witness was
examined at some length as to the cost of con-
structing railroads, manner in which they are
built, &c; but his testimony developed no new
facts. He did not regard 100 per cent. as large
capitalists would never 60 into railroads in nm
profits be guaranteed Did not think capital
could be raised now to build the Union Pacific
road if it was guaranteed that the profits
would be ten millions Of dollars next year. IN
Judge Poland inquired the use OF this testi-
nony, and MIR. Brooks replied that it was to show
THE GOVERNMENT DIRECTORS WERE Jusrr-
rIED L. .
in allowing the credit mobilier to build the
Question by General Banks:-Ir there was
any irreguarity i'm the proceedings of the credit
A. Upon the stockholders of the Union Pacific
railroad "a
O. Rather than the government of the United
A. The positionot the government is that OF a
second mortgage bond holder. -.-
.. How have Won regarded the transactions
Of the credit moblier as business men your
A. We have taken no action on the subject
1t is only recently that Developments have
been made as to the whole history OF the con-
Germ, and We have awaited Development of
facts which might establish claims. Nv own
opinion is that some time or other there must be
an account rendered, and, think a court of
equity will have to look at the question as to
whether the profits OF the credit mobilier have
been reasonable or unreasonable.
NR. CLARKE'S OPINION OF CAKES ANEs.
Q, Since your connection with the company.
have You known Cakes Ames in connection
with the affairs OF the company as a business
A. know Cakes Ames very well. ! first met
him in 1872, and have had business relations
with him. He always att-nted the meetings OF
the board and always exhibited deep interest in
the affairs of the company.
Q. Are You permitted TO state your views of
his action i'm connection with the company in
regard TO its interests?
A. have no secrets i'm regard to that.
Q: What Is your idea OF. his character as
BUSINESS Wan?
A. Mr.. Ames is peculiar man. He has i'm
accuracy, and without perhaps, that peculiar
culture which some men have acquired.
Q. ask you for his general character as a
A. think very well of Mr.. Amos. should
not call him an accurate man, but regard him,
sir, as a thoroughly honest man.
Witness further testified that great many of
the stockhoiders i'm the Union Pacific road we're
also sf"cLhniders in the creS1;t mohiIier or the
had NOT an onnoTtnnitT IN become stool bo,ders
in the latter :, that IL An exorhitant mice was
paid for the construction of the road il went 70
O. Inv ,Judoe Poland Have Won examined 50
as TO be able to give ms any opinion as to the
quantity Of Union Pacific stock not represented
A. About twenty thousand shares out of three
hundred and sixty thousand. Witness never
had any knowledge of the stockholders in credit
mobiler until after they were published in tie
newspapers.
In answer to questions of Gen. Banks, Mr..
Clarke testified that with friendly relations be
tween the government and the Union acific
road, and not otherwise,
THE GOVERNMENT WOULD BE SECURE
as to the indie btedness due from the road. 1t
this great enterprise. Assuming the realization
OF the present expectancy as to lands-and par
ticularly coal lands-and assuming that the
not FAN off, he thought the s1f woa
be secure unless some special calamity should
overtake the enterprise. He was firm in the
opinion that the second mortgage debt due the
government was good with friendly relations,
but not other wise. He Thought that member
OF Congress, by holding credit mobilier or Union
racine stock. disq uauhed hhiseu from voting
wheh the interest," OF the READ was drectiy con-
cerned; so that MI; Ames, by holding TINS stock,
might nave aisqualined hmselI from SUSTAINING
'he roao oy nis Vooe An Loneress.
nhAr M, bho osHis y ~,
10 nauoa Trn. " ny 'a a M, W. -
IT, ue pcis a;isE n,r;tta "a h dosire y,
~ sho ny M Trhnas haf NC Rroor,
me,ar ~ "a hoyora th.t norr,,tA 20 49,
SsS. oeiv Iy . i SsiS a. 49,, " ~ ~
I sy e siso uesse " ~ a. -. III
$500 o t as ne I1e, VI .ue oon
to show tSst 5e never s ss to him To inanencs
ms ac.oh on ina. saoseS, ne SoGaa ea iortg
thesS two Vim nccnnie.i nrominent nns;t;,%s 1""
-. - AUGUSTUS scHELL
was the next witness he testified that in ls.a
1a 90; Sa: bf9ohs eat,ea Upon MN IN New f0Ik
scribe To It's stocL. witness exsminesi info IL
lint DEFINED to take anv stock. as the enter
prise MAS too hazardous.
NIP RrcK,s TrsTrMoSy
Representative James r. Reck. of Kentucky
sworn and EXAMINED hy Mr.. Brooks: witness
was y member of the couference commistee in
relation n the interest, o,,esfan Hasi,een S.rr