Evening star. [volume] (Washington, D.C.) 1854-1972, 1876-05-16
The Blaine Investigation.
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INTERESTING TESTIMONY.
After our report of the Blaine Invests CATION
closed yesterday, Mr.. Harrison was recalled,
ana having been asked the question by Mr..
dunton whether he could tell the proximate
Salue OF the seventy five bonds, replied he
nad heard them spoken Of as valueless bonds.
Mnen ne made motion in the. board OF
directors for An Investigation he believed
tnem TO be valueless and thought IL strange
they should be found among the assets OF
the Union Pacific Railroad Company.
Mr.. Blaine called Mr.. Harrison's attention
70 a point in the latter's testimony which
Mr.. Harrison explained by saying that after
what Rollins had told him he as xed Mr.. Mil
lard 10 stick pin there; that such an in
vestieation as he had proposed would involve
Mr.. Blaine and might come up in future"
He meant come up in Congress. Mr.. Harri-
son said that when Mr.. Rollins was on the
stand before the Credit Mobilter Committee
he telegrsphed TO jeremiah NJ. Wilson, the
chairman, TO ask Mr.. Rollins certain Ques-
tons about the seventy five bonds, but the
questions were not asked.
MR.: BLAINE CORNERS Mr.. HARRISON.
MI Harrison, in answer TO question by
MI Blaine, said: so far as the books and
papers OF the Union Pacific Railroad Com
panS are concerned, your name Is not con-
nected with these bonds"
Mr.. Blaine.-Have you any reason to be-
them?
Mr.. Harrison Only from what Mr.. Rol.
Mr.. Blaine.-Have you not said that You
held something that would blow Blaine sky
hlgh whenever you chose?
MI Harrison.-I only repeated what Mr..
Mr. BIaine.-You did not speak of having
dynamite that would blow me up?
Mr.. Harrison.-No thing of that kind. l
have always had a friendly feeling for you,
and hope that you will come out of this m 1T
ter satisfactorily. If you had written to me
books OF the Union PACING RAILROAD com
pany did not show your name in connection
with the seventy-fv bonds, or in any trans
actions at that kind. All my Information
came from Mr.. Rollins, who said an investi-
cation would ruin You and defeat your cleo
tion to Congress.
Mr.. Blaine.-When 1 had been elected two
Mr.. Harrison.-Thats what Rollins told
me. In further answer to Mr.. Blaine's cues
Indianapolis Journal that If Blaine was q
candidate for the presidency this matter
ought to be cleared up.
Mr.. Blaine replied that Mr.. Harrison had
never afforded him an opportunity 10 satisfy
him of the truth.
Mr.. Blaine, addressing Mr.. Hunton, said
that although the resolution OF the House
under which this Investigation was held did
not refer TO him by name, the proceedings
had been conducted as If he had been on the
stand.
Mr.. Hunton said that while il was true
thai Mr. Blaine's name was not mentioned
In the resolution, there was not man, wO-
man or child but knew the investigation was
designed for him, and SO Mr.. Blaine must
understand 1T after his conversation with
MIN.
Mr.. Blaine thanked Mr. Hunton for his
courtesy and kindness in opening doors to
this investigation, and said that on Colonel
ScCtvs testimony this case must stand or
fall.
TESTIMONY OF COL. THos. A. SCOTT.
Col. Scott said he came before the commit
tee according to the summons, aud lot on
auybOdy's SIDE While here he had heard
evidence on points duplicating his own per-
SOD, and therefore he wanted TO testify; he
could explain not only all transactions with
reference TO himself. but everything about
the % bonds this was correct and proper
self, and with which Mr.. Blaine had nothing
TO do; he desired TO be witness in this case
so that mis- testimony might 60 to the coun.
try in connection with that already taken,
and perhaps after his testimony there would
DC no need OF other Witnesses.
After recess Of an hour and half Col
scott was sworn, and or being examined by
Mr.. Hunton testified that he formerly owned
these IS bonds OF the Little Rock and Fort
Smith railroad company. and bong them
ayear and four months previously to his
selling them TO the Union Pacific railroad
company. he bought them from Josiah
Caldwell, who was negotiating bonds for
that company. Caldwell belonged to Bos-
ton, but he did not know where ne now was;
he understood, however, that Caldwell dur
Ing the panic of 1873 went to Europe after his
failure In the west, and was there now. He
gave Caldwell so cents on the dollar for the
bonds, and paid him in currency or check or
draft; he did not remember which; the pur-
chase was made in 1870, when he had nothing
TO do with the UDioa Pacific railroad COM
pany; he gave $4,000 for the bonds and sold
them to the Union Pacific railroad company,
through Morton, Bliss Il Co., for nearly
upon the duties of president of the company
the stock was low down and every thing con-
nected with it depressed, but 1t was not long
all It's affairs. He had believed the company
would give him a liberal compensation for
his services. He was pressed for money,
which he wanted more than the mere
salary, and it was finally suggested that
the company should buy these seventy-five
bonds OF the Little Rock and Fort Smith
rair os company He was to have the OPP
committee agreed to buy the bonds at the
price d xed, through Morton, Bliss < Co, and
the bonds went TO the Union Pacific railroad
company In this direct way and in no other.
His years salary had never been paid; that
would be $1,000, with interest, II the Arkan-
sas road had been completed the bonds
on the dollar. He had rendered the Union
Pacific railroad company q service for which
there was no market value; he was satisfied
road had been built its bonds would have
been as good as those of the Union Pacific
are day. He repeated that this purchase
sideration OF valuable services rendered by
him. The investment In these bonds was
because the company wanted to do an equit-
display the transactions on their books, and
never expected that it would become the
subject ofinvestigation by Congressional
committee.
@. Do you know whether Mr.. Blaine had
any part in these transactions?
A. never had any relations with Mr..
Blaine in Little Rock and Fort Smith rail-
road bonds, directly or Indirectly.
BY Mr.. Lawrence:-If understand you
correctly the sale of the bonds TO the Union
Pacific Railroad company was adopted as a
means to compensate You in part Tor extras
ordinary services?
A. Yes.
O. How does the compensation you re-
ceived compare with the compensation of
other companies for similar services?
A. The Reading Railroad company gives
Its president $4,000 Der annum, the Pnila-
adelphia, Wilmington and Baltimore s3i 900,
and the Erie SAC, 900, but when you come to
consider how low down the stocks OF the
Union Pacific Railroad company were when
became president, and the prosperous con-
dition OF the company soon afterwards, my
compensation was worth double the value OF
the % bonds of the Little Rock and Fort
Smith Railroad company. The reason why
compensation was given In this form was
the executive committee did not wish to In
terfere with or disturb the fixed salary OF
IS 900 to the president.