Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1876-03-23
MIR. PENDLETON'S SHARE IN
THE WAR CLAIM.
He Appears in n Singular Light
SSO.OOO Fee for Doing what He
was Bound to do Without.

He Appears in a Singular Light.
SSO.OOO Fee for Doing what He
was Bound TO do Without.
WASHINGTON, March 1.-THE histo-
ry of the celebrated Kentucky railroad
claim, rejected by Secretary Stanton
and paid by Secretary Belknap, as told
by Geo. II. Pendleton and Senator Ste
venson to the Committee on Expendi-
lures in the War Department to day,
is very interesting one. While no
evidence of corruption in connection
with its payment has thus far been
found, and while all those who have
testified positively deny that any mon
ey was paid to Belknap, Mrs. Bower,
or any one else. it illustrates very for
chilly the impolicy of the practice, rare
ly INDUCED in by heads of depart
ments, end always considered irregu-
las, of reopening old cases which have
been adjudicated by their predecessors,
and paying claims when many of the
circumstances originally surrounding
them, and governing action upon
them, have been forgotten. The sto-
ry, as brought out in the testimony, is
as follows:
Soon after the beginning of the war
a conference was held between the Of
ficers of the leading railroads of the
country and the representatives of the
Government, at which a schedule of
rates tor the transportation OF troops
and supplies was agreed upon. AT the
same time, according to MIR. Pendle-
ton, an exception was made in favor OF
roads extending through country lia-
bic to be occupied by the Confederate
army and to have its business inter-
rupted or its property destroyed by
military operations during such Occu-
patton. These roads were to be allow
ed to make special contracts with the
Government, and to receive greater
remunertiOn for services rendered than
those not subject to such dangers. The
Kentucky Central road claimed place
in this class, but its claim was not ad-
mitted by the Government until the
summer of 1864, after which it was al
lowed 80 per cept of its regular tariff
rates. Prior TO that time the company
was paid for the transportation of troops
and supplies, in accordance with the
rates fixed by the general conference
of railroad managers.
The Company then preferred claim
against the Government for the differ
ence between the amount, which had
already been received, from 1861 to
1864,& that which wo'd have been paid
had tie classification of the road been
originally admitted as claimed. This
was rejected by Secretary Stanton on
the recommendation of Quartermaster-
General Meigs, who, on several subse-
quent occasions, when request to re-
open the case was made, and always,
stood by his original opinion. Several
attorneys were at different times en-
ployed by the Company to collect this
claim, and contract was made with
a Mr.. Ransom, by the terms of which
he was to receive % per cent OF any
money which he collected. Three
fifths of the road was during the war
owned by Mr.. Bowler, who, according
to Senator Stevenson, remarked previ-
GUS to his death that he would sell his
interest in the claim in question for
five cents on a dollar, AMI none of
those interested ever expected that it
would be paid. Senator Stevenson
testified that they all considered what
they got as clear gain.
In 1870, Mr.. Pendleton, having in
the meantime become executor of the
estate of Mr.. Bowler and president of
the road, made contract with those
who owned the road to undertake the
collection of this claim for contingent
fee OF 80 per cent. The contract, which
was very peculiar one, considering
Mr.. Pendleton's relations to the own
ers of the claim, has caused great
deal of remark since he made its terms
known in his testimony to-day. In
the first place, as executor of the Bow
Ter estate, he represents three-tifths
interest in the claim, and in his capa-
city as executor was of course legally
and morally bound to do everything
in his power to secure its payment. As
president of the road, also, he repre-
sented the entire interest in the claim;
and in consideration of his salary of
$4,000 year was again legally bound
to protect and promote the interests of
the Company in everything he could.
Holding these two positions, he made
a contract with himself to collect the
claim, which he was bound to try to
collect without fee, and the condition
of the contract was that he should have
80 per cent of all he collected. None
of the partners made any objection to
this arrangement, and this fact shows
how much they valued the claim. The
preliminary work of preparing the pa
pers in the case had already been done
by Mr.. Ransom, who, Mr.. Pendleton
says, had spent several years In WASH
ingtOn attempting to secure its pay
ment.- Mr.. PendletOn's service cOnsis-
ted in seeing the Secretary of War, in
ducing him to submit the case once
70 hn Cnnnrol
and after he had reported adversely |
guments in its favor.
FINAL ~ it was turned over to the As
sistant Judge Advocate General, and
Ou his favorable report was approved
by Secretary Belknap and paid. Three
drafts were issued by the Treasury |
Department, each in its liquidation,
one for about S68 ,533, one for $oO,OO0,
and one for $50, 900. By an arrange |
ment which Mr.. Pendleton made with |
Mr.. Ransom, the latter received $751; |
600 for his services, this sum being par
tally paid by the railrord company out |
of its half, and partially out of Mr.. PEN
dletOn's share. Mr.. PendietOn himself
received $4,000. He denied having
ever paid any portion of the proceeds
of the claim to Secretary Belknap, any
member of his family, or any one else,
or that he had performed any act in
connection with it which was not le- |
gally proper.-N. Y. Tribune special.
Relics Of Washington Going to
Philadelphia.
DIR. A. w. Washington, grand |
nephew of Gen. George Washington,
the nearest living relative to the father !