Year: 1876

TEE ON EXPENDITURES IN THE WAR DEPART


MENT-THE HISTORY OF THE KENTUCKY CEN


TRIAL RAILROAD CLAIM SATISFACTION OF


THE COMPANY WITH THE SETTLEMENT OF


THE CLAIM-rRsTIMoNY OF SENATOR STEVEN


son AND GENERAL BoYNToN.


George H. Pendleon before the Committee on
Expenditures in the War Department to-day and gave
a history Of the Kentucky Central Railroad Company,
which was formed in 1853 Robert B. Bowler OF Gin
cinna and two or three associates operated the road
till 1868 The copartncrship continued with various
changes till the death OF Mr. Bowler. In 1869 he
became the President and represented the estate OF Mr.
Bowler his deceased brother In law. The witness had
been director in the company but had taken no
active part till tho fall of 1870 after he became Pres
dent when he found the company had claim against
the government for difference between ninety per
cent of its regular rates and the amount that had
been paid for the transportation OF troops and
supplies When he heard this claim existed
he went to Senator Stevenson. William Earnest and
the other owners of the road. Mr.. Stevenson in
formed him that the claim had existed for long time,
and that the company would give large percentage to
anybody who would get it through. He said they
would give him fifty per cent OF the claim If he should
obtain the money. That put q aspect upon the
case and Mr. Stevenson said that the owners OF the
clam would assent such arrangement The ar



tered upon tie examination of the claim His impress
sion was the claim was for $l49 500 This claim
presented the War Department, and, by direction OF
tho Secretary OF War; II was referred to General Dunn
then acting law officer OF the department. After sew
era months the claim was allowed by the War Depart
ment and passed the Treasury Mr.. pendleton went
to see Secretary Boutwell, aud made but single re-
quest that, he should not be kept waiting Ior the
money The Secretary said the examination should be
n. H. ala
II was over week before the warrant was issued


O. In procuring the award from the War Depart
ment did you pay tho late Secretary of War, any
member OF his family, OF rny other person for him,
directly indirectly, ANY consideration for hs
acIonS A. Not dollar, or any other consideration.
In further reply to questions Mr. Pendlcton said he
found on examination there had been convention OF
representatives OF railroad lines in States not affected
by rebel ncursions, at which certain charges for
freight had been agreed to- but exceptions were mado
in favor of roads in territory liable such ncursons;
the claim of the Kentucky Central Railroad Company
was the difference between what had been paid to il
and ninety per cent OF regular tariff rates. such
difference being ten per cent, the company having ro
ccyed only ninety the dollar; he found that
tho Baltimore and Ohio Railroad Company and the
Louisville and Nashville Railroad Company had been
paid the full OF freight charges; he presented
the claim TO the Secretary of War Ia Novem-
ber 1870; he went To the Sccrotary's onlce
at half past nine O'Clock in tho morning;
he had an interview OF half hour, and stated the
case when he thought the Secretary sent for General
Dunn and referred the to him. he was of the i'm
preston that he went Immediately to General Dunns
room; he had acquainted with him, having served
in Congress with him; he saw him once or twice and
had several written communications with him. he was
not in Washington again until the ensuing 4th or
March he without special business and was not
now able to say he the Secretary OF War
or not although his claim lad previously been before
Secretary Stanton, no could not say whether 1t had
| ever been before Secretary Rawlins.


| O. Was there any other person interested with you
in the prosecution of the caim2 a. The only other
| person was A. ii. Ransom, who a clerk in the
railroad company's Office during my time OF service
! Ransom made up the original account which the
CLAIM was based addition the nty per cent to be
paid me- there was stipulation that should pay Ran
| som.


In further response questions Mr. Pendleten said
the Bowler interest fraction less than three ths
! the interest in the road


In reply 10 intcrrogatores OF Mr. Robbins, he said
that Dunn made favorable report and on this
the clam was allowed by the Secretary OF War.


O. Was any pecuniary nducement asked OF paid to
General Dunng A. None whatever; not a cent


O Did any Official of the government have any inter-
est in the claim? A. Not ono.


BY Mr. Blackburn-Did | understand you to say
there was nothing the prosecution OF the clam that
would warrant any statement that would mplcate tho
Secretary War General Dunn, any member OF the
secrctarys family tho prosecution Of the claim ?
J A. You did understand me to say that most cmphat-
cally.


BY Mr. Danford-The claim Of the Kentucky Central
Railroad Company had been pending Tor years in
the War Department. had it not been presented and
ti,- t.fn hotn
am not able to answer of my knowledge; my in
formation is that had been presented to Secretary
Stanton, but not any other Secretary; do not
dcrstand that Secretary Stanton's action concerning
the claim was rejection; II the claim had ever been
presented TO Secretary Rawlings the fact
TO my knowledge


In further response to questions r Pcndlcton said
Judge Holt Judge Advocate General while Stanton
was Secretary OF War.


q Was not the claim presented twice while Judge
Holt held that position and twice rejcctcdS A. have
no such knowledge


O. Did you interest yourself with Secretary Belknap
TO have the claim referred General DunnS A. | do
not know how It came TO be so referred.


O. Did you ever take the papers Cincinnatls A. |
did not; prepared two three arguments In Cincin-
naii without having the papers by me; think very
probable that had a copy OF the adverse report Of
General Neigs


q Did you get your facts from Neigs' statement Of
the case? A. am not able to say; obtaiued my
formation from every pertaining TO the claim


q On what basis the claim originally rejected !?
! A. | could only tell from the papers; have an
! impression that the original report from
General Meigs; my impression is u General
| Megs when was here, and had conversation with
him on the subject; having replied to his argument
General Mcigs told tho claim ought not to be paid
having once been before the War Department and not
allowed he did think II ought TO be reopeneJ; the
General further said the Kentucky Central Railroad
Company was not entitled to make the claim, because