New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-08-27

structiOn of q portion of its road, by which
also they got possession OF all the resources
which it would be entitled by the compile
ton of said portion" Ihat
in making this contract the interests OF the
Union Pacific Railroad Company were ut
terly disrogarded, your committee do not
doubt. That it was deliberately done we
do not hesitate to believe" 1.-THE
stockholders in the two corporations we're
substantially identical. Inc
management of the affairs of the railroad
company during the execution OF the work
under this (Amesl contract land the DAVIS
contract, hereafter to be trested) was I'M
der the contract Of the benehclarle' there
Of"
Now for the evidence Of Mr.. Tilden's
connection with this business. Cornelius
S. Bushnell, one OF the inoorporators ana
original directors of the Union Pacific
Como auy, testities (see page 54) as follows:
"Ouestion-Who have been the attOr-
news of the Union Pacific Company and Of
the Credit Mobiliers Answer-Messrs.
Tracv; Omstead g. Co. have been from the
first the steady counsel Of the Union Pa.
ciic Railroad Company. They have had
the assistance in behalf Of both the Union
Pacific Company and the Credit Moolller
of Mesers. --, Samuel ). Ilden ana
others"
Mr.. Tilden, then. was assisting as an At
torney from the FIRST of both corporations.
To an outsider it might seem strange that
ono could act a. attorney for two parties
whose interests were, prima facie, at any
rate, adverse. But the eminent counsel I'M
derstood themselves.
John B. Alley, az to 1000 shares of Union
Pacific stock obtained by him, says (psge
aal T., ..,,;.o III.
stock-these 1000 sharesa Answer-My i'm
preston il that purchased it Of the Credit
Mobilier; believe that it was stock that
came to them under the Hoxie contract:
that is my impression. I could not tell you
exactly without reference to my books:
"Queston-You got it as . dividend!
Ans wer-No, sir; a. purchase.
"Question-What did you give for it?
Answer-I have forgotten now. think it
was 81 share, upon which $50 had been
paid. do not remember exactly about It;
that is my impression.
"Questi0n-Did you engage to pay the
other SO, or was that to be paid by the
Credit MObilior, under this contract An
swer-I do not remember how that was.
"Question-You had 1000 shares, amount
ing to $lOO, 900 at par. This was just before
the execution of the Cakes Ames contract.
Now, there had been paid by the Credit
Mobilier $50. 900 on these 1000 shares. An
swer-I said $50 share; that is my recol-
lection.
Question-Well, you got for 81 in
that way what $50 had been in some
manner paid for, according to your
recollection Answer-Yes. sir"
Page 32S)-"Question-Y understood
that this was really payment for that
stock in bodybuilding; and you further re-
garded it, did you not, that the amount SO
paid fog the stock in bodybuilding differed
from its nominal par value in cash by the
difference of the estimation which the con-
tracing parties put upon the value of. that
stock compared with it's actual cash value9
Answer-l think so, to very great degree
Question And, further, I understood
you to say that you were instructed by emf
nent counsel, upon whose advice you relied,
that the course you took was in compliance
with law! Answer-Yes, sir.
"Question-Have you seen, or do you
know whether that opinion Of eminent
Answer-I do not know. l do not know
whether it was given in writing.
"Questi0n-Was it given to you by these
eminent COUNSEL Answer-Mr TildeD,
know, told me that he regarded it as COM
pliance with the law.
"Questiou-Wast that advice given to you
personally? Answer-Not to me partlcu-
larry. was talking with him, and he said,
incidentally, that he regarded it in that
light"
The advice, it will be perceived, of emf
nent counsel was incidental merely-un-
sought-in pursuance of which tho ring got
s24.oO0,Ooo in stock at thirty cents on the
dollar in bodybuilding, and thereby made
$l6,SOO,OOO.
The law on which Mr.. Tilden based that
opinion is as follows:
1.-The said company shall make assess
ments upon its stockholders of not less
than IS per share, and at intervals of not
exceeding six months from and after the
passage Of this act, until the par value of
all shares subscribed shall be fully paid;
and money only shall be receivable for any
such assessments"
[Act approved July ., 1864. Statutes at
Large, page 356
How eminent counsel arrived at this re-
mar&able conclusion, we shall perhaps
never know, as there was no written opin-
ion presented. That Mr.. Alley is not mis-
taken as to the views of eminent counsel is
shown in Cakes Ames' examination on this
subject (page 1921.
Question By MIR. Hoar:
"Were you not informed by counsel who
drew the contract that it was a violation of
the law9 Answer-We were informed by
counsel whom we consulted that this issu-
ing of stock in payment upon the contract
for building the road was in entire compli-
ance with the law.
"Question-Who we're the counsel that
gave you that advice! Answer-Mr. -,
Mr.. Samuel j. Tilden, and -"
"Question-All of New York; Answer
All Of New York. They were the parties
that were consulted in this matter"
General B. +. Butler, having been men,
toned as an attorney for one of the COM
panies, deemed it due to himself to, and
did, volunteer statement under oath be-
fore the committee, showing just what he
did, for whom and at whose instance, and
what he charged for his services.
He was employed by Alley e. Ames Au-
gust Z, 1868, with respect to one matter on
behalf of the Union Pacific Company. He
went to New York to attend to it. He
says IN the course of his explanation page
6S4):
II met the other counsel, Mr.. Tracy,
Judge Black and Samuel j. Tilden, and /
c0unseled with them. MI. Black repre-.
sented McComly, Mr.. Tracy represented
Durant and the stockholders, and Mr.. Til
den, I understood, was on our side"
General Butler knew whom Mr.. Black
and Mr.. Tracy represented, but after con-
sultation was only able to speak with .
qualification % to Mr.. Tilden's client.
One with Mr.. Bushnelfs knowledge, that
Mr.. Tilden was Likewise counsel Tor the
Crodik MnhiIine SSfrn,vn fha R,nt " N. 80