The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-05-18
THOSE TROUBLEsOME noNDs.
A Queer Transaction between Col. scott and
the linton Pacific Railroad.

1
| WASHINGTON, May 1.-THE sub-commit
tee Of the judiciary Committee this morninI
resumed the Investigation of the ALLEGATIONS
against Representative Blaine In connection
with the seventy-1ve bonds OF the Little Rocl
and Fort Smith Railroad Company. James II
wilson was recalled and testified that he had
Informed Mr. Blaine that he understood fro
sta ement Of Mr.. Harrison that his name had
been connected with the sesenty-nve bonds OF
that company that were in the possession OF the
Union Pacific Riroad Company. MIR. Blaine
replied that he never had anything to do with
these bonds, and that he had no present pros
pective interest In them. The only theory, be
said, by which he could account for such a state
ment was that during the tendency Of the me-
COLLATION. between the Little Rock and Fort
Smith Railroad Company aud the Southern I'm
urovsmeht Company he had been requested to
SPEAK TO the pdItie In ard VI the negotiation,
and he did so.
r, L. =. Morton, 81 the 1rm Of Morton. Bliss &
Va destined that In June, 1871. the 0rm loaned
mr. tainegie $1O.OOO on the CURLY fine Union
paoluc lneoIn bonds anu Il s bonds of tue Ii Ito
ROCK aud Fort Smith Railroad Company. Ii
Wes talned from Carnegie hat the loan was
negDti ted for Col Scott. lie did not know why
the seventy eVe bonus were among the cOllat-
erds Ihe IN had no reason to believe that
Mr.. Blaine had any connection with or interest
~ the loan. lie Knew of no Transaction Of his
DIR wien MIR Blaine, or that they ever m AIDE "A
loan Tor his benefit, directly or Indirectly.
Sir. y ru .gio ties filed tn ne nad Oeen direo-
tor ol the Union Pacinc railroad Coup nv, and
me'nber oil its Executive Committee. While g !.
scott was President Oi the company ne sttendeI
20 much ~ otis business. there was an IN Iis-
tinct understanding that II Col. Scott should
make tue rlai agreat success he should be no
orally compensated. Col. scott was not, white
the witness was director, paid his ST. ry
President. lhe witness was present at tue
NEE ting Of the Executive C0mmittee wuen II
was agreed that the COMPANY snould receive the
seventy five bonds OF the Little Rock anu Fort
~,
Co. $4,000 ( r them. The witness tnOught
that at that tine the Uunas were worth eighty
cents on the dollar. lie made the loan for Col.
Scott, depusiting 10 coll teral sixty-seven tn-
co e bonus OF tue Union iacl0c and seventy
ave bonds Ot the Litte Rock aud Fort Smith
Railroad companies. Having use for tue sixty
seven income BOMBS he withdrew tnem, putting
IN their place lW bonds Of the keokuk aud
Hamiton Bridge Company.
~ NJ %hoa ais you msxe tns o as
the loan 100 Nun tie wanted 100000 aud borrowed
ine money for him and gave Il to ns pvs secreary
nected Ia any way, snape, or manner "ih tns ansac-
ton.
Sidney Dillon testified that he was director
IN the Union Pacific IL dlroad Company from It's
commencement, aud was now It's President. In
DeCe inOer, lb,l, Cvi. scott ia tns hrst placs
" iDted the Executive COMMITTED to give bim
loan. MIR. Dun, Mr. BUSHNELL nd others were
active u beers oil the board, anu tue witness
was called IN by them to cOnsunmate the ar
Iangement. Col. scott wanted To leave the sew
ent five bOnGs OF tue Little Rock aud Fort
Smith Kan. oad With the Executive COmmittee
either u sell or form the oasls 4 loan. lbe
Executive Committee Thought Col. SC 1T had
been Of inucn hello TO the company. Its finances,
creuit, and securities were low, aud wDen Col.
Scott became President at the COMPANY all IT'S
tecuritles much Improved In ylue. Tue com
mittee felt kindly toward Col. scott. and there
Tore concluued To take the bonus and pay tue
money for them Tue witness could not say
whether the money was a consideration for Col.
SCOTS salary, Tx d amount never having been
a. reed on. lie never heard Of Mr. Dlaine's name
In tnis CONNECT. Il, except from newspaper re-
port. =
1ne committee adjourned until tomorrow.