Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1876-05-16

Rock bonds spoken Of; had heard tina
Oliver Arnes gave his check for twenty
five thOussnd dollars for them, but die
not know whether il wss true or not
1t would be thought questionable
transaction, ss he did not see why thu
Union Pacific railroad company shnU!C
buy bonds OF tile Little ROek aud For
Smith railroad company, or any Othsl
company in acting as he did he desired
avoid scandal
QusstiOn-What scandal did you de-
sire to avoid?
Answer-Tbe reported connection oi
Blaine with the bonds.
Q1e5tiOn-Iu what connection was il
| q scandal?
AnsWer-It was treated as q scandal,
and l presume as now unsccOmpanied
by any explanation from Mr.. Blaine il
would be regarded a scandal, aud the
public would think it not right; that
would be their ju igment.
Witness knew nothing about the own
! ership OF any Fort Smith and Little
! Rock bonds; thought at the time the
! Harrison took place that Blaine was
mixed up in tie transaction, but from a
! conversation with Rollins since sll that
impression has been dissipated; under
! stood that an effort was made the next
! spring to change the entire bosrd OF di-
! rectors, but did not know it had any
thing TO do with their action about these
particular bonds; thought the credit
| mobiier inquiry had something to do
with it, as that matter was being inves-
tigsted at about that Tins; neither wit
ness nor Harrison were directors at the
time Of the credit -mobilier transaction,
and they were both resppOinted direc-
tors of the Union Pacific.
10 response to another question the
witness swCre that he knew nothing
about the case under consideration.
James f. Wilson testified that he had
been the government director OF the
Union Pacific railroad company since
1869, and in reply TO questions by Hun
ton said he had s9en by the record that
certain bonds of the Little Rock and
Fort Smith railroad company had come
into possession of the Union Pacific
railroad company; he heard that they
came through Colonel T. A. Scott, presi-
dent Of the company, from 1871 to 1872;
had no knowledge OF John c. s. Harri-
son having introduced at q meeting of
the board OF directors resolution in-
quiring how these bonds came into pos
session of the company, but Harrison
informed him that he had introduced
such resolution, and he was also in
formed by Harrison that Rollins told
him Blaine would be implicated if there
should be an investigation; Wilson at-
terward had conversation with Rol-
lins on the subject, when Rollins said
that Harrison had no right to use
Blsine's name in that connection; wit
ness mentioned the matter to Blaine q
few months after September, 1872 when
Blaine asserted he had no interest in
these bonds, and no one could be more
surprised than himself that his name
should be connected with them.
Mr.. Rollins further testified that he
thought he talked with Oakes Ames
and derived from him the fact tha, Col
onel Thomas A. Scott furnished thes
enty.tive bonds to the Union Pacific
railroad company; the reason why the
old bonds were cancelled and new ones
issued in their place, was because B0s-
ton parties made arrangements to COM
plete the Little Rock road; he did not
know or remember from what source
he learned that Blaine was connected
with the bonds.
Mr.. Blaine-DO you know Of any cir
cumstauce that led you to suspect that L
had any connection with the bonds?
Mr. R0lIins-NoDe whatever.
MIR. Blsine-Did Mr.. Harrison renew
to you his desire for an investigation?
Mr.. Rollins-He did not.
Mr.. Harrison was recalled, aud hav
ing been asked the question by Mr..
Hunton, whether he could tell the prob
able value OF the seventy-five bond,
said he had heard them spoken of as
valueless bonds; when he made mo-
ton in the board of directors for an in
vestigatisn, he believed them to be
valueless; thought it strange that they
should be found among the assets of the
Union Pacific railroad company; the |
company at that time was large bor- |
rover, and the ten per cent. income |
bonds commanded only from fifty to
sixty cents on the dollar.
Mr.. Harrison continued: When Rol- |
lins was on the stand before the credit |
mObilier commission, he telegraphed to
jeremiah NJ. Wilson, chairman, to ask |
Rollins certain questions about the |
seventy five bonds, but the ques
tiOns were not asked, and the |
next thing he received was in |
formation from Secretary DelanO that |
the whole board of government direct. |
Ors, including himself, Of the Union |
Pacific company should be changed.
In answer to question by MIR. Law |
renee, he said that the bonds were in |
the possession of the Uaiou Pacific |
railroad company, and that Rollins re. |
quested him to withdraw his motion for |
an investigation, on the ground that it |
would involve Blaine and defeat his |
election.
Question-But that remark would |
seem, from the testimony, to have been |
made after the Maine election?
Answer-Yes; but that is what ROl-
lins told me.
Blaine asked number OF questions of !
Harrison, to which the latter replied
that he thought it strange that seventy
five bonds of the Little Rock and FOIt
Smith railroad company should be found
among the assets Of the Union Pacific
railroad company, and that there must
be some corruption about 1t; he abRn-
doned an investigation before the board
Of directors and reported TO the congress
sional committee.
Blaine-But did you do SO officially?
Hsrrison-I signed my name to the
telegram to the chairman as govern
ment director of the Union Pacific rail-
read company.
Mr.. Harrison, in answer to question
Oy Mr.. Blaine, said that so far as the
books and papers of the Union Pacific
'ailroad Company were concerned, your
name is not connected with these bonds.
Mr.. Blaine-Have you any reason to
believe that l was corruptly associated
with them?
Mr.. Harrison-O from what Rol-
ins told me.
Mr.. Blaine-Have not yCu said that
you held something that would blow
Blaine sky-hign whenever you chose?
Mr.. HarIison-I repeated what Rol.
ins told me.
Mr.. Blaine-You did not speak OF
having dynamite that would blow me
Up?
Mr.. Hsrrison-Nothing OF the kind;
have always had friendly feeling for
you, and hope you will come out OF this
natter satisfactorily. II you had writ
en- TO me should have told you in re-
)ly that the books Of the Union Pacific
ailrOsd company do not show your