The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-05-16
THE MATTER SUMMARILY DISPOSED or.
Colonel Thomas A. Scott Throws q Brilliant
Light on Dark Subject.
THE LOUISIANA INVESTIGATION.
Bonanza of Fraud and Corruption
Struck at Once.
FROM OUR REGULAR CORRESPONDENT.

WASHINGTON, May Is, 1870
Mr.. BLAINE COMPLETELY ExoxERArED-
COLONEL TOM SCOTT EXPLAINS THE MYSTERY
OF THE LITTLE ROCK BoNDs-A PURCHASE
MADE IN CONSIDERATION OF HIS VALUABLE
SERVICES.
Tho friends OF OK Speaker Blaine quite happy this
evening over his complete yindication from any CON-
plcity In supposed corruption involved in the sale
OF the Little Rock bonds to the Union Pacific Railroad
Company for $6l 900. Mossrs Harrison and Willard,
tho directors of the road repeated under
oath tho statement that Mr.. II. II. Rollins had told
them that investigation of the transaction would in
voye Mr. Blaine When Mr. Rollins put on the stand
as tho next witness, he admitted that he
got this impression OF the transaction In way,
he could tell how, but he had since satisfied him
self that Mr. Blame not In tho matter
The committee took recess until four O'clock when
Colonel Tom Scott went upon tho stand and IN lucid
and busincss-likc why explained tho whole thing and
exoneratcd Mr.. Blaine completely from any conncc-
ton with the transaction Coonc! Scott acknowledged,
with frankness which dsarmcd all thoughts of wrong,
that in his business operations he had become
indebted to Morton, Bliss Co. in the Of 700
and interest, the balance of loan OF sl6o,0O0 Of
foreign exchange which had been negotiated for him
through that house. Al this time he had bcen worry
successful in bringing the Union Pacific Railway OF
its slough Of despond having triplcd and quadruplcd
Its credit and than doubled the price OF its shares
in the market Relying upon his good Offices IN this
direction he asked Of the company, and success
full procuring through the cnorts Of his friend Mr. Car
nage OF the members of the Executive Committee,
tho purchase from him Colonel Scott ot scventynvo
land grant bonds of tho Little Rock aud Fort Smith
Railroad at about eighty per cent TO take up and
eel the remainder Of the loan in Morton, Bliss Co.'s
Office 1t was an act OF gratitude the part OF tho
n hal "a nfhor ttonh v
way salary for his duties president Of tho Union
Pacific In view OF what no had done for tho road,
tho difference between tho market value Of the bopds
and that at which the company took thcm of
his hands-about $4,000 in round figures
would DO only small return for his services. Tho
president Of the Erie Railway gets $40 900 year and
the president OF tho Reading Railroad gets $50, 600
year. lie (wtncss) had paid 500 900 In cash tor the
bonds and no disposed OF them in this way only be-
cause he pushed for money. He thought they
so good an investment that hc stipulated with the
company for the privilege of being allowed to buy chem
back nj the same price he sold them.
Mr.. Blaine had nothing whatever in any way directly
or indirectly, to do with the transaction.
This does not end NJ. Blainss troubles, however.
There is another vague charge anoat that he was
given land grant bonds Of tho Little Rock
road to influence the making up of Housc
committee In 1872, whilc no was Speaker, but
tho committee to-day very properly declined
TO hear the testimony. as the present
inquiry could not 60 into matters outside the
specific transaction with tho Union Pa
cGc Railroad mentioned in the resolution
authorizing the investigation which was begun Sat-
urday and ended so happily for Mr. Blaine to-day.
THE BELKNAP IMPEACHMENT AND THE QUEs-
TON OF NEUTRALITY-SUSPICIOUS. OF THE
DEMOCRATIC SENATOR'S.
Acting Vice President Ferry has signiGcd that the
elaboration OF the Senate a court on the qucs-
ton Of Jurisdiction would take considerable tmc
yet he thought, before decision reached. The
proceedings to-day seem 10 have been marked by .
tnge OF humor, almost every Senator who came
out from tmo TO timc had n smile OF amusement on
his countenance The democratic Senators arc solid
for decision favorng jurisdiction, and tho reports in
regard to disagreement OF Senator Thurman with his
party colleagues pronounced to be without ounda-
ton II said that but a few republicans neccs-
sary to side with the democrats Nhcn decision will
DO reached and enough already known TO be dis
posed To place the issue beyond doubt
proposition has been made to have all the dclibcra-
tons public and opinions submitted 60 the
record. II meets with some favor.
INFORMATION SOUGHT FOR THE BKNKFIr OF
THE wRIsKEY RING.
One OF the republican members OF tho House having
become very much exercised to-day at tho resolution
offered by Mr.. o'Bricn, Of Maryland, that the sccrc-
tary OF the Treasury Furnish the House with all tho
information possession in regard to the whskcy
prosecutions remarked in exaspcrated tone, he
looked over At tho democratic sdo with predatory
cxplctve:--
srhc democratic side OF this House Is not satisfied
with the way In which tho whiskcy Ring was being
prosecuted by the Treasury Department. but were
anxious get all tho information into the House for
the benefit OF the whiskcy Ring and this just what
this resolution meant, which proposed TO call tho
Secretary of tho Treasury for what he knew and had
done"
THE ISDoMITABLE MRS. MYBA GAINES TO RENEW
HER STRUGGLE IN NEW oRLEANs-AN OFFER
or sPEcULAToHs.
Mrs Myra Clark Gaines left by the Southern
night for New Orleans where, fortified with the recent
decision or the United States Supreme Court. she
will her suits for her Since the delivery
OF this opinion OF the Supreme Court is SAID she
has been offered $3.50 900 cash and onc-lfth OF the
proceeds OF her property when recovered II she
would assign her interest to pool made up In New
York speculate IN the enterprise. II Is thought
probable that the city Of New Orleans will compromise
with her and give her bonds in quit claim
decd OF tho land in dispute.
GENERAL WASHINGTON DISPATCHES. +,