The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-05-15
WHO POCKETED TIE CASH I?
SOME MYSTERIOUS FIGURES ON THE
UNION PdCIFIC hooks.
Ono Hundred and Twentv-six Thousand Doll
lars CHARGED to special Legal Expenses
The Cost Of : somo Favorable LEGISLATION.

One Hundred and Twentv-six thousand Doll
lars CHARGED to Special Legal Expenses
The Cost Of somo Favorable LEGISLATION
WASHINGTON, May 14.-Gen. G.. N. Dodge.
Chief Engineer Of the Texas Pacific Riilroad,
and formerly connected with tho Union Pacino
Railroad. both as civil engineer and as engineer
OF legislation through Congress. was examined
yesterday BY a sub b-committee OF the Judiciary
Committee, as to his knowledge OF the t6OO,00)
OF Union Pacific bonds which were lost In the
spring Of 1869.
The examination was m erely preliminary, but
Gen. Dodge professed not to have any impor-
tant information ON the subject. He was, how.
ever, examined In regard to another transaction
about which Dodee's inform alton ought to be
very extensive. 1t will be remembered that In
1873 the wilson special committee OF the House
on the Credit Mobilier and Union Pacific Rail
road discovered that sls0ooo had been paid for
special legal expenses.
In their efforts to nDd to whom this large sum
Of money was raid, the committee examined
number OF witnesses. and were very anxious to
have the testimony OF Gen. Dodge Also A sub
pcena was telegraphed to Gen. Dodge, who was
then somewhere IN Texas on the line of the
Texas Pacific Railroad He acknowledged the
receipt OF tie message, and replied that he
would start forthwith for Washington.
The com nittes waited patiently for several
weeks, aud not being eratined with a sight OF
the General, despatched deputy Serceant-at-
Arms to hunt him up. This special messenger
travelled several thousand miles. and from time
to time reported that he was on the heels OF the
lodging Dodge, but for some reason or another
could never ovt rhaul him.
IL appeared from the testimony of II. W.
spence, who was from June. 1863 to June, 1871,
cashier of the Union Pacific Railroad Company
that $24.5C0 OF the sl28,OOO was paid to Gen.
Dodge. lie testified that there was a charge on
the books Of res eomtang, a under date Of Maren
$l260oO. He also testified that ne had
neard Mr.. Williams and MIR. Bushnell
talk about the dish ,rseme II Of this money, aud
unds stood from their conversation that II was
used to obtain a reversal Of Secretary BOuiwel's
decision In regard to payment OF money to the
attornei Tees paid TO JUDGE C"r..cc H. Rock
,M.ogl uoAf .nu sidney Bartlett ortheir services
-. .nis matter, but none OF the Sl26,OOJ went to
either of these gentlemen.
MIR. Spence testln-d that he had paid the
| money in two checks and two or three drafts.
| for $1,000 They were drawn payable to the
| order cf L. II. Rollins, Secret iry OF the company.
lhey were then endorsed by ltollins. Inc one
for Ss4 80 Spencer says he delivered to Gen. q.
NJ. Dodge, and the one for $4,000 to j. +. Wilson,
| then and now joint director The balance was
| York, and were handed to c. ;. Bushnell. MIR.
| Wilson denied tnat he received the $40 900
NJ
| testified that ne received IL.
MIR. Spence produced a memorandum which
was given to him by one Of the Ulcers ~ the
cot1p ny, showing how the cnecks and dtafts
were To be drawn, and the amounts OF each.
| This memorandum he preserved. Hnd on the
| back OF II were ccrtlin other n-ures vhicn eyi
| IDENTITY had some connection with the dlsburse-
| ment OF the $4,000. For Instance. over the
| initials q. NJ. ID. are the hsures 5000 and
| $l75yO. and after the word Dodge are the neurrs
| Szi,5oO. spence did not know OF hts own knowl-
| edge what these figures meant. but he saws that
| he observed that there was 4 great deal OF mys-
| terry about the payment Of this money, and SO
| be concluded TO keep tue original III memorandum.
In regard TO the payment OF the tl28,0O0 for
special legal expenses. John Dun, one OF the
directors Of the ompanv, testified that he
appointed on u committee OF directors to audit
OF examine the disbursement OF tits money. but
Washington In the spring OF 1871 to see what
could be uone toward having Secretary bout
wells decision Withholding the amounts due
for Government TRANSPORTATION on the interest
account reversed. lie said that he did
not know OF any legal expenses incurred
here in connection with the matter. He declined
to serve on the committee to investigate the
| disbursement simply because he knew nothing
Gen. Dodge and the President OF tho company.
lie said tnat nearly all the large stockholders Of
the inpany were in Washington that winter
urrine Congressional action IN regard TO Secre-
tary Boutwell's decision. Ihoinas \. scott was
then President OF the company, and was h, re,
anu were Dodge, BUSHNELL and several 9TH
ers largely IN, crested In the company.
J. Vi. 5. Williams, treasurer of the company,
testined that he ordered the money to be paid
70 DOdge, but said that he knew nothing about
wn.t It was for. Ihe directors ordered II by
passing resolution, and he paid IL 10 obedience
to that He knew nothing about Il, aud never
heard the subject even tilked about.
L. ii. Rollins testified that the only knowledge
he had OF This transaction was the resolution
directing the money to be paid. There was
special committee appointed to investigate the
matter. lie SAID IL consisted OF Thomas A.
Scott, q. NJ. Dodge, Jonn Dun, j. J. Wilson.
They made the following report;
The Special Committee OF the Board to which was
referrcdt n'teI Of auditing and paying the special
legal expenses of the company rtport that exam
alton. they hnd the Same to amount to the
q t26OO0. end authorize the same TO oe PAID to the
Secret OF the company assgeat Of the conpan', for
Bosros, March 0. 1871
regard to this matter ne testified that tue $ai.-
$40 he received was to pay for a call he had
4. ). Bushnell for stock OF the company. This.
after the ftcts developed by the Investigation Of
1873 10 decidedly cool. lie may succeed In max
ina Ia committee Of Congress believe such a
story, but the public Will not be easily gulled
As tnis he whole OF the $l2G.0OJ was un-
auestionably used In Washington to se-
cure the desired legislation, and the money
was paid hve six days after that
legisl alton was obtained. The men who were
here looking after the matter were appointed a
committee TO PISS upon these s ecial legil L
pe1se accounts, and they decided that the COM
pnny owed just $4,000 and "a part OF the money
was haudeu over to two members or this com
mittee. Now Gen. Dodye says me S2i 40 he o.
ceiyed was for C 1t on Bushnell for stock. How
comes II hat he used the cOmuany's money for
this purpose ami had 1t CHARGED To legal ex-
penses.