The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1876-05-16

stood, however, that Caldwell, during the
. panic OF 1873, went to Europe, after his
failure In the West and was there now.
He gave Caldwell eighty cents on the dol
lar on the bonds. The purchase was
made in 1870, when he had nothing to do
with the Union Pacific Railroad Com.
pany. He gave 100000 for the bonds,
and sold them to the Union Pacific Rail.
road Company, through Morton, Bliss &
Co., for nearly $4,000. When in March,
1871, he entered upon the duties Of Pres
ident Of the company, the stock was low
and everything connected with it de-
pressed, but 1t was not long before there
was marked improvement in all its af-
fairs and he had believed It would give
him liberal compensation for his SER
vices. He was pressed for money which
he wanted more than the mere salary, and
Il was finally suggested that the company
should buy those seventy-fve bonds OF
the Little Rock & Fort Smith Railroad
Company, and he was 10 have the option
Of buying them back. The Executive
Committee agreed TO buy the bonds at the
price fixed through Morton, Bliss 4 Co.,
and the bonds went to the Union Pacific
Company In this direct way and no other.
His years salary had never been paid,
that would be 5000 with interest. II
the Arkansas road had been finished the
bonds would have been worth from 90 TO
100 cents on the dollar. He had render
ed the Union Pacific Railroad Company
n service for which there was no market
value. He was satisfied that il the Lit.
lie Rock & Fort Smith Railroad company
had been built its bonds would have been
as good as those Of the Union Pacific TO.
day. He repeated that this purchase Of
rs bonds by the company was in con-
sideration Of the services rendered by
him. The investment in these bonds was
because the company wanted TO do an
equitable thing for him. The company
did not display the transaction on their
books and never expected it would be-
come the subject Of investigation by Con.
gress.
@. understand you 10 say that the
Executive Committee Of which you were,
ex.officio, a member, bought the seventy.
FIVE bonds to oblige your A. Partially
to oblige me and also In consideration Of
valuable services. Col. Scott repeated
that the bonds bonds belonged 10 him and
we're sold to the company when he want.
ed money, and the amount he received
helped him pay his debts. he had twice
asked for his salary, but had not yet re.
ceived II.
@ Do you know whether Blaine had
any part In the transaction? A. l never
had any relations with Blaine in regard
to the Little Rock Railroad bonds direct.
ly or indirectly.
Mr.. Lawrence-If I understood you
Alright, the sale Of the bonds to the Union
Pacific Railroad Company was adopted
as a means 10 compensate you in part
for your extraordinary services7 A.
Yes.
Q. How does the compensation you
received compare with the compensation |
paid by other companies for similar servi. |
ces2 A. The Reading Railroad Company
gives its President $4,000 per annum,
The Philadelphia, Wilmington & Balti.
more $34 900, and the Erie $40, 1000. But
when you come TO consider how low down
the stock Of the Union Pacific Railroad
was when became President, and the
prosperous condition Of the company
soon after, my compensation was worth
double the value Of the sevcnty'tive bonds
Of the Little Rock 4 Fort Smith Com
pany. The reason why the compensation
was given In this form was that the E1-
ecutive Committee did not wish TO inter.
iere with or disturb the fixed salary Of
$4,000 to the President.
@. Have you any knowledge or infor-
nation that connects Blaine with the 20
bonds? A. None whatever. Ialways sbe-
lievcd that Caldwell, from whom bought
the bonds, was the principal man in nego.
,iating them.
Mr.. Blaine-Did ever speak or write
to you in behalf OF CALDWELL A. You
never did.
Mr.. Blaine-Have you any knowledge |
at all that was interested in the bonds
before you purchased them, or was in any
way interested in the proceeds after you
sold them TO the U. P. Railroad Co.? A.
/ have no knowledge or belief whatever
that you had anything to do with them.
John McLure, OF Arkansas, was sworn |
and testified that Le.was acquainted with
Josiah Caldwell, who was connected with
the Little Rock & Fort Smith railroad
company. y.,.y.j
He was asked the questionable you
ever hear from Caldwell what disposition
was made Of any Of the bonds OF the COM
pany?
Mr.. Blaine here interposed, saying he
koJ .nHnxoJ M dnuht In tho nattmaIInn
Of good people through the allegation that
he was interested in the bonds that went
to the Union Pacific Company, as there
was nothing else in the resolution under |
which the investigation was held; he was
entitled to report on that subject alone;
be did not want it complicated with any
thing else; he wanted it unmixed with
any other question; 1t should stand ex-
acily where tho witness left it. He thought
be had right in the name OF justice TO
make this demand.
The witness (McClure) said he knew
nothing about the matter that would be
testimony.
By Mr.. Lawrence-Have you any
knowledge or information as to the sale
OF the 70 bonds concerning which testi.
mony has been taken?
Answer-I never knew that any bonds
were sold, and all know about them is
what Caldwell told me.
Il was decided that hearsay testimony
could not be taken, and the committee
adjourned.
LOUISIANA INVESTIGATION.
The special committee 10 investigate
the Federal offices in Louisiana to-day
examined Major Seelye. He refused TO
testify in regard to the pay rolls In the
custom house at New Orleans, on the
ground that he would Criminate himself
by SO doing, and the chairman Of the
committee was directed TO apply to the
Attorney General for the necessary pa.
pers granting him immunity. As to other
matters, the witness testified that there
was defalcation Of S6S000 in the
New Orleans postofice during Lowell's
term. Lowell aud his deputy were
arrested aud held to bail in the sum Of
$1,000 each, but were not prosecuted.
Lowell turned over to bis bondsmen
about $4,000 worth Of property, which
was afterwards returned 10 him. The de-
falcaliOu was finally compromised for
$1,000. He further testified that Con-
yF,..sman Morav mid him the eeasie,t Way