The Portland daily press., 1873-02-07
WASHINGTON.
Credit MObiIier.
Before Judge Poland's Committee.

WASHINGTON, Feb. 6.-Judge Poland's COM
mittee resumed its session this morning.
James Brooks submitted letter from d. H.
Browning, Secretary of the Interior, dated
March q, 1868, transmitting to him commits
sion from the President as government director
in the Union Pacific Railroad, and also stated
it was the 9th of December, 1867 that Nelson
got his shares from Durant, prior to the time
witness acted as director.
Horace f. Clark, President of the Union Pa
cific road, was then examined by Brooks. He
testified that he never had any kind of interest
in Credit Mobilier. He regarded it as con-
struction company. Was invited to take inter-
est in it in 1856, but declined, deeming it too
hazardous. Part of the workmen had to be
armed to guard others while at work, and he
regarded it as preposterous to build road un-
der such circumstances. He did regard 100 per
cent as large profit on constructing railways.
New York capitalists would never go into rail-
roads in unsettled sections of the country un-
less large profits were guaranteed; did not
think capital could be raised now to build the
Union Pacific Railroad, not if it was guaran-
teed that the profits would be ten million dol
lars next year.
Judge Poland inquired the use of this testi-
mony. ~ 3
Mr. Brooks replied it was shown that govern
ment directors were justified in allowing the
Credit Mobiier to build road.
Gen. Banks-If there was any irregularty in
the proceedings of the Credit Mobilier, upon
whom has injury fallen?
Answer-Upon the stockholders of the Union
Pacific Railroad.
Q.-Rather than TIE government of the Unit
ted States?
A.-The position of the government is that of
second mortgage bondholders.
GLOW have you regarded the transactions
or the Credit Mobilier as business men your
selves? -s.s
Ave have taken no action on the subject
1t is only recently that Developments have been
made as to the whole history of the concern,
and we have waited developments which might
establish claims. My own opinion is that some
time or other there must be an account, and 1
think court of equity will have to look at the
question as to whether the profits of the Credit
Mobilier have been reasonable or unreasona
BILE.
Horace F. Clark's testimony was continued.
Question-Since your connection with the
company, have you known Oakes Ames in con-
nection with the affairs of the company as a
business man?
Answer-I know Oakes Ames very WELL 1
first met him in 1872, and have had business
relations with him. He always attended the
meeting Of the board, and always exhibited
deep interest in the affairs of the company.
Q.--Are you permitted to state your reviews
o0his action in connection with the company
in regard to that? Il
Al have no secrets in regard to that
Q-What is your idea of his character as q
business man? .-.-s..
A.-Mr. Ames is u peculiar man. He has
impressed me as thoroughly honest man,
without great accuracy and without perhaps
that peculiar culture that some men have ac-
quired. s~Es
Q.-I ask you for his general character as a
business man?
Al think very well of Mr. Ames. I should
not call him an accurate man, but l regard him,
sir, as thoroughly honest man.
Witness further testified that great many
stockholders in the Union Pacific Railroad were
also stockholders in the Credit Mobilier, or they
had not an opportunity to become stockholders
in the latter, SO that if an exorbtant price was
paid for the construction of the road it went to
stockholders in the Union Pacific.
By Judge Poland-Have you examined so as
to be able to give us any opinion as to the guam
tity of the Union Pacific stock not represent
ed in the Credit Mobilier?
A.-About 10000 shares out of 100000. Wit
ness never had any knowledge of the stock
holders in the Credit Mobilier until after they
were published.
Wilson Committee.
Before the Wilson committee DR.. G. G. Cox
and e. j. Smith of Washington, stated that
the testimony of Hoover that they had receiv-
ed Pacific bonds from Judge Kelley was false.
In answer to questions by Gen. Banks, Mr..
Clark testified that with friendly relations be-
tween the government and the Union Pacific
Railroad Company, and not otherwise, the gov
ernment would be secure as to the Indebtedness