Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-05-16
Investigation OF the Charges Against
the EX-Speaker Of the House in
Relation 10 the Fort Smith
Bonds.
Mr.. John y. C.. Harrison, OF IndianapO.
lis, on the Stand-Ie Sustains
His Telegram by His Testi-
mOny.
Several Pacific Railroad Men Examined
- Colonel Tom Scott Explains
the Transaction Satisfactorily.

and Little Rock railroad bonds
John &, s. Harrison, OF Indianapolis
in response to questions put by Mr.
HuntOn, chairman, testified that he wa
the Harrison alluded to IN the articl,
published in the Cincinnati Gazette o
April 26th, and that interview, as pub
lished, was correctly reported; has beer
a government director Of the UnioI
Pacific railroad for about four wears
Clark, the president OF the Union Pacific
railroad, told witness that he had eX.
changed seventy.five bonds OF the Fcrt
Smith aud Little Rock railroad fOr fif
teen Of the new bonds to be Issued by
the Unien Pacific; witness thought il
strange transaction, and at q meeting
Oi the board OF directors in September,
1872, moved that committee be ap.
pointed to investigate the matter; Rol.
| Inns came to witness and asked him to
withdraw the motion, rs the investiga-
ton would involve Ex-Speaker Blaine,
and might defeat his reelection to the
house; wishing TO fully understand the
matter, he took Millsrd, of Omaha, y ith
him next day to see Rolling, and asked
him further in regard TO the mstter, and
Re lIins then said that it would involve
| prominent member OF the Republican
| BoAtg "tACh NllC llOusS W d5 III
| vestigating the credit mObilier case,
| Rollins was on the stand
witness wrote to Wilson, Of Iowa, and
asked him to PROFOUND certain questions
! in relation TO the matter to Rollins, but
saw from the daily reports that it was
| not done; witness found an entry on the
books OF the executive committee direct
| ing Morton, Bliss & Co. to draw on the
treasurer for siXty-fOur Thousand dollars,
and hold the Fort Smith and Little
Rock bonds ss collateral security; Roll
liDs did not tell witness how it would
involve Blaine; in the following March
an effort was made 10 change the whole
board OF directors; witness did not re-
ceive any letter from Secretary DelanO,
but lac had a letter in his possession
written by Delano to Senator Morton, as
follows:
DEPART VENT OF THE INTERIOR, !
WASHINGTON, February %, 1873. I
DEAR SIR-As l promised ia our con-
velsstiOn " s.erdsy, now write to say
that it is deemed advisable to change
the entire board of directors for the
Union Pacific railroad. l shall there
fore feel obliged If you will give some
name for Indiana in place Of John c. s.
Harrison, against whom there is no per.
sonal objection whatever. Very respect
fully, your Obedient servant,
C. DELANO, Secretary.
o. r. Morton, United States Senate.
Witness had never made any investi
CATION about the matter, but understood
Wilson had done so; Morton, Bliss &
Co. drew on the company for sixty-four
thousand dollars, and Rollins, as treas
urer, paid it; witness regarded the trans.
action on the books as mysterious one,
but perhaps it could be satisfactorily ex-
planned; he himself knew nothing fur
Iber about the matter.
Jos. Millard, of Omaha, testified that
he bad been a government director Of
the Union Pacific railroad about four
years; was present at the conversation
between Rollins and Harrison in Sep
tember, 1872, and heard Rollins say that
the Investigation spoken Of by Harrison
would involve gentleman high in po.
litical circles; understood it TO refer to
Mr.. Blaine, although he did not recol-
lect that his name was mentioned.
By Mr.. Harrison-Did / not say TO
you, after we came out, to stick 8 pin
on what Rollins had said about Blaine?
WItness-I don't recO.lect it; | knew
nothing about the bonds spoken of, only
what appeared on the records OF the ex-
aminiBg committee Of the conRpaDy;
never made any investigation OF the
matter; Rollins had siEce told witness
several times that he was mistaken
about Blaine being mixed up in the
matter, sud that there was nothing
wrong about it.
By Mr.. Blsine-Did Harrison ever
ask for an explanation Of the matter in
any meeting had by the beard Of direct
oIs?
WitnGs3-No, sir.
The Interview between Blaine and
himself TOOK ClRcs in Washington;
Blaine, in this interview, denied that he
ever had possession of any OF the Little
Rock ard Fort Smith railroad bonds,
excspt those for which he subscribed
and paid; Blaine did not say he held
seventy Hye bonds for any Of his con-
stituents; on the contrary, he had MOTH
ing 10 do with the seventy-five bonds
passed TO the Union Pacific railroad
company; Wilson talked with Dillon
and others on this subject; Dillon had
for two years been president Of the com.
pany, and the only explanation he oO.
tanned was that the bonds were put in
by Colonel Scott in accordance with the
arrangement between him and the
Union Pacific railroad company; these
bonds remain on the books OF the COM
pany as an unsdju5ted question, and
Colonel Scott has not yet received his
salary for the time he was president Of
the company.
H. Rollins, secretary and treasurer OF
the Union Pacific railroad company tes-
tilted, being interrOgated by Hunton,
and said that he did not think Harrison
offered 3 resolution in the board Of di-
rectors to investigate the subject of
the owDe ship Of the seventy. Fl We bonds
by the Union Pacific railroad, but he
thought that he simply made an infor-
NAL motion to investigate the trsnssc-
tion at that time; Rollins had heard !
that the bonds belonged TO Blaine, but |
he could not now say from whom he de. |
rived the information; he could only |
state the fact; when Harrison made |
his motion or suggestion, he remem- |
bered that the road and its MANAGEMENT |
bad been the subject Of severe criticism |
I'm the newspapers and elsewhere. as this |
transaction had been closed up; he de- |
siTed to obviate the scandal in conuec- /
tion with BlsiDe's name, wht theT the |
report was true or false; he may have |
said to Harrison, under these oircum- /
stances, that the bonds In question were |
Blaine'F, or some equivalent expression. |
Question 10y Mr.. HuntOn-And that /
au investigation would involve Mr.. |
Blaine?
Auswer-I may have said that they |
we've Blaine's bonds, or that he would /
be involved in the matter; may have |
used words equivalent TO these; l merely |
state as a matter Of memory l heard |
that these were B,sine's bonds, and that |
Blaine might be involved.
QuestiOn-TheD you confirm Harri. |
som statement?
AnsRer-I have given you my state
ment.
Mr.. Rollins, in further testimony, said
that Harrison was mentioned in the &C. |
curreuce; the Maine election took place |
two days previous to the meeting, when |
Blaine was triumphsntiy elected to con- !
gTeSs; Rollins did not ask II arrison to |
withdraw his motion, but may have |
said to him that the Investigation would |
involve Blaine.
Questlon-How would the ownership |
OF these seven ty-five bonds involve MI. |
Blaine?
Answer-BecAnss Mr.. Harrison said |