Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-01-16
The Credit Mobilier Question

Washington, 10. AT the afternoon session
of the Wilson Credit Moblier committee, the
examination Of Mr.. Crane was continued.
On the Goth of January G7, the capital stock
of the Credit Mobilier was increased fifty per
cent, the increase being distributed to parties
already interested. The dividends of IL per
cent. for Two years was declared Dec. %,
1868, and this dividend was on the increas G
capital of $4,000 600.
Question by Mr.. Swan-What pressing ne
cessity was there for the increase of stock.
Answer-To raise money to construct the
road, and not to declare dividends. He did
| not know for whom Cakes Ames held in trust
343 shares of Credit Mobiier stock. Par and
| six months interest were paid for them. The
stock was transferred to Ames by Dillon, who
received it from Durant. The transfer was
made ON the Sth and goth of January, 1868.
Cornelius S. Bushnell of New Haven, be-
ing sworn, gave an account of his connectio n
with the Union Pacific Railroad, having
procured the first two millions of dollars for
building the road; also concise history of
the road from its commencement to its COM
pletion by the company. Expects such an
increase of business this year as to enable it
| to meet all obligations.
In answer to question by the chairman,
| the witness said that the northern aad south
til WUulu luterISTe Win the
| business of the Union Pacific, but the last
| named would make up in mineral and other
| DEVELOPMENTS of the country what it would
| lose by competition roads; had never heard
! Of any money being used to influence mem
| bers of Congress; he had no recollection OF
| where a member of Congress came to give
counsel, but it was at the instance of either OF
| the Pacific railroad companies on the Credit
| Mobilier; nor did he know that any such
| member received fee.
DR.. Durant informed Wethers that he was
going to assist Senator Harlan in being elect
I'd Senator by sustaining one or two Iowa
newspapers in his interest. This was prior
to 1870. Ny impression was that Harlan was
| al that time secretary of the interior. Wit
ness was asked whether any senator or rep
resentatiye had been elected with the aid OF
funds from the Union Pacific or Credit Mo
bilier companies, to which he replied GAS
| to himself, he had always literally subscribed
| for general political purposes, and his i'm
preston was that in one instance he contrib
| uted $1,000 to Senator Thayer, which money
was drawn by draft on him. He said tina,
| this was in the Nebraska state election of 1870
| when Ihayer was a friend of witness, and in
| giving the money he thought that it might aid
| in his (Thayersl recollection. Witness dill
not remember OF ever having made any other
contribution for anybody flor a similar case
he did not think he had ever made such 8
large contribution before; he generally gave
s 900 or s., 500 for electioneering purposes
just as he would pay taxes, every man must
| do something to save his country. Laugh
ter.) Witness never heard of any of the
| trustees having given money or bonds to in
fuence the election of members of Congress
if this had been so he was in a position to
know the fact, he signed a paper authorizing
Cakes Ames to deliver 50 900 and add shares
Of Credit Mobilier stock, to certain members
OF congress, and Mr. Ames informed him
| that he had disposed of that amount of stock,
and the members. expected him to fulfill hi:
engage ments never heard Ames say that he
would place the stock where it would be OF
most good, but that it would be bad policy to
break his engagements, and witness also
thought SO. Witness was surprised that
while gents should be willing to Lake stock al
, 81, that they had not the moral courage tc
say they did SO, when it was worth from POO
to 800 per cent.
The Committee, at six o'clock, adjourned
till 80 2. NJ.