The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-05-20
xNoza woNDERFUI STORY.
IL 10 True that Col. scott Made e7OO,OOO on
Union Pncinc stockt

To THE EDITOR OF The SUN-St,.. In
the Times Of to-day Mr.. Scott makes {. correc
tion Of published statement regarding the
Pennsylvania Railroad Company. and then pro
ceeds to correct his own testimony before the
Washington committee relative to large salaries
paid to railroad presto ents. The statement II
all right, hut the salary corrections tell a queer
story. That of the President NJ the Philade ell
phis, Wilmington and Baltimore Company, ac-
cordinR to his testimony, was $4,000. His cor
rection Is that II " only the small sum of
s4,VO0. A very small difference, certainly.
But why this testimony People al know
that very large salaries are paid to such able
and enterprlsing gentlemen as Mr.. Hinckley,
Mr.. Gowen, and Mr.. Jewett.
But what about Mr.. Scott's salary This was
5000; and Mr.. sco;t says they bought from him
and paid him $4,000 for Fort Smith bonds, In
stead Of the $500 salary. Do you not think this
was asalary grab Of peculiar charscter2
IL was we'll known at the time Mr.. Scott was
asked to take the Presidency OF the Union Pa
cinc road for ono year, that the stock vas much
depressed, and 1t was expected that this would
appreciate II, because II would indicate that the
outreaching arms Of the Pennsylvania company
had embraced the Union Pacific. As q small
compensation to Mr.. Scott, tho Union Pacific
Company offered to carry for him 5000 shares OF
the stock, the rise Of which in the market would
compensate him for his trouble and small salary
The operation made for hin, have been In.
formed, just ylvJ,O0O. why, then, should he
take the 5000 salsry4 Well, he never did, but
instead thereof he took the $4,000 for the Fort
Smith bonds. Are any so green a. to believe
thisf None, we think.
But this Afforded a nice plan for covering up
the footprints OF some one, and Mr.. Scott was
equal to the occasion. Mr.. Blaine had refused
to take Credit Mobiier stock, az others had
done. But he did not refuse to take the pro-
ceeds OF the Fort Smith bonds paid by the Credit
Mobiiier's successor. Mr.. Scott made the
100000 salary, and he took the Fort Smith bonds
from Josiah Caldwell, who willingly furnished
them to MIR. Scott, as the Fort Smith road was
built by Caldwell In the interest OF the Southern
Pacific road, OF which Mr.. Scott was also Presi-
dent without such a salary, and then. as Presi-
dent OF the Union Pacific Company, he buys these
rotten bonds for somebody's advantage, GER
talnly not his own. For whom, then, did he
buy them2
The whole arrangement was q cunningly de-
vised scheme for the profit OF Mr.. Scott and
some one else. Who this secret person Is can
be easily understood, and the testimony Of
Thomas A. Scott only points more directly at
MIR. Blaine the ecipisnt OF this fraud upon the
linton Pacific Company. and the more strongly
be asserts the payment OF salary 10 him as Pres
ident by this means. the more tho we'll informed
public will have their own opinion.
The ex Speaker is q man Of wonderful tact,
but his summing IN getting MIR. Scott to cover the
traces OF this transaction has overshot the mark
decidedly. NEMESIS.
NEW York, May II, 1876