The daily gazette., 1878-01-09

:
was made public What occurred In
Congress and the dlsgrace which mantled
some Of It's active members Is a part Of
the history Of the country. The great
suit arose In this wise Henry S. Nc
Comb, one of the original stockholders,
In the spring Of '66 called at the office OF
the company IN New York, and subscri-
bed for $50 shares In the name of Ii. b.
FAINT, Of Richmond. He gave his DRAFT
on the latter for s25, 600, the subscrip-
tion price. FAINT failed 10 take the stock
and sent the DRAFT back to New York -
McCombj upon being called upon by Mr..
Crane, the assistant treasurer, 10 make
the draft good, sent clerk from his resl>
dence In Wilmington, Delaware, on TO
New York with O check for $685. 900 and
power OF attorney from Fant, for the
purpose Of having the stock transferred
In his name. The transfer was not
made because Crane objected toths form
Of the power OF attorney, and the clerk
returned home with the check. McComh
said b. thought everything was all right
and that the right and the title to the
FAINT stock was undoubtedly In him and
20 paid no further attention to the matter
and expected at any moment to be called
upon 10 day over the subscription money.
At this time Credit Mobilier as an In
vestment was not thought much Of except
by those, 10 use the words Of one Of the
witnesses, "who were on the ground
| floor" and knew all about the rich har-
vest. The contract for building the
Union Pacific was awarded and Oakes
Aines displaced @. T.. DuraDt as presl-
dent Of the company and began TO manage
matters In his own way. Jeaiousies and
contentious began " arise among the
stockholders. This was natural conse,
qucnce Of the distribution Of the enor-
nous profits that were realized. McComb
asked for his dividends ON the FAINT stock
and It's accretions. He was told that his
subscription was void, that Crane had
acted upon his individual authority, and
not being an officer Of the company the
transaction was Of no effect. McComt
persisted In asserting what be called his
rights, and commenced suit In '6S. Ames
had informed bim by letter that the STOCK
chad been placed where 1t would do the
!. most good" 1t was this paper which
u created the explosion In Congress, anC
}. was the basis of the investigation -
McComb, by--his legal proceedings, i
trying TO obtain from the court decres
!, TO compel the company to account TO hin
for the profits Of the FAINT stock. Argu
b ment was had upon this matter last May
a but the Judges were unable TO arrive a
a conclusion, and they ordered the re
3 hearing which began yesterday.
James f. Gowen, Esq, who Is as
sociated with Judge Jeremiah s. Blacl
opened the argument for Mr.. Nc
Comb. He reviewed the history OF
the case. He contended that the sub
? scription was binding, and that hi:
client would have been legally bound
. to pay over the $25 900 at any time
: when called upon. During his argu
f, ment a dispute arose between hin
, and Mr.. McMurtrie as to what Mr.
Crane had testified. "Henevsr said
:, that while giving his testimony il
/, New York." said Mr.. Gowen. "Ob,
interposed Mr.. McMurtrie, che wa
| paid Si5, 900 In New York TO say a
/, great many things that never hap
? peped."
. Mr.. McMurtrie began the argumen
; In behalf of the-Credit Mobilier, he
Y contended that the subscription o
' Fant's fell upon his refusal to homo
e the draft, and that McO Oomb never ha
= an intention to assume responsibility,
: and take the stock until after the prof
o it's began to be paying. Mr.. McMul
: trie wss about readi ng paper {
J, which McComb had signed his nam
e ratifying the manner in which Oake
; Ames would dispose of $65O0O Q
g stcc ck which mad been placed in b.
;. hands to be distributed in procurin
2 the passage OF the appropriation bill
e when Judge Black interrupted wit
n ~ object 70 your reading forgery
: "Iti Is not forgery" came the reply
n "but two words were changed In III
h paper after McComb sigaed 1T an
u they were verbs, altered from the pa
10 to the future tense" The paper, how
/, ever. was read In partial least 30 muc
y of 1t as suited Mr. McMurtrie's pu
pose. At this point the court adjourn
10 ed.
h THE ARGUMENT Concluded.
II The argument was concluded yeste
In day. Mr.. McMurtie closed his speech
ID behalf Of the company at half-past
y o'clock. Then stir was noLiceab
"a among the lawyers who crowded u
ar court room as Judge Black arose TO NAL
the closing speech In the case. For on
he laid most of his witand humor asid
ss and disappointed hisauditors BY general
u combining himself to the law in its app
cation to the case, as be viewed 1t. !
said there was no doubt of McComl
title to the FAINT stock, but at one tin
NJ. when Credit Mobilier was below par,
SO was sure his client would have liked
se Sc throw 1t upon the company. 1t W
- probably be some time before the col
announces Its decision.