Rensselaer Union, Volume 5, Number 18, Rensselaer, Jasper County, 23 January 1873 — Vice-President Colfax and the Credit- Mobilier. [ARTICLE]

Vice-President Colfax and the CreditMobilier.

v.iT” 1 ?? woently before the Credit*Mobilier Committee, Mr. Colfax, after & br *?i preliminary statement, was sworn. P-Vi gave his testimony in written form as ■follows: "I state explicitly that no one ever jgave or offered to give me any shares of •took in Credit Mobilier or Union pacific Railroad. I have never received nor had tendered to me any dividends, in cash 1 , stock or bonds, accruing upon any stock in either of said organizations, and neither Mr. Ames nor any other person, connected with either of said organizations, ever asked me to vote for or against any measures affecting the interests of it, either directly or remotely, or to use any personal or official influence in their fayor. I desire, hpwever, to state that all the circumstances through which, probably, my name came to be associated With this organization. Five years ago, about the time of the holiday recess, I was conversing on the floor of the House With Mr. Ames in regard to the Pacific Railroad, in favor of the buildiiig of which I had previously made hundreds of public addresses. In the course of this conversation he asked me if I would not like to purchase some stock in the Credit-Mobilier. Up to that time I knew nothing of its capital or profits, and 1 in-' quired of him as to its objects and value of its stock. As near as I can recall this conversation after a lapse of so many years, I was informed by him that it was a legally incorporated company, composed of the principal stockholders of the Union Pacific Railroad, who were themselves building the road instead of letting it out to contractors who always expected large profits for their risk and their advances of money for supplies. I told him after his explanation that it looked like a good and safe investment for one of limited means, and I would be willing to purchase twenty or thirty shares at fair prices if 1 had money, but I added frankly that 1 could not pay for them until two or three months, afterward, as my housekeeping expenses in opening montks of session were much larger than the average. He replied that he would contract to sell rue twenty shares at par if I would, in addition, agree to pay the interest until final payment. I inquired what per cent, it would pay, and he replied that there had been large dividends, but as the road was pushed farther into the Interior, thm they would be very surely remunerative. The l. nion Pacific. Railroad had no legislation that I know of pending before Congress at that time, nor did 1 suppose there could be any in future, as the last amendment to their charter, authorizing the issue of first mortgage bonds, which should have priority- of government had been enacted in 18(34, over three years before this conversation. In feeling that any questions arising under their chapter would be judicially settled, and supposing at any rate that I- had the same right to purchase this stock as to buy stock in a National Bank, chartered by Congress, or in a manufactory, I told him I would agree to purchase twenty shares at par and interest, to be paid for as soon as I had money. Some weeks or months afterward, at the same session. I paid Ames about SSOO cash on this contract of purchase, being all the money I had, but received no dividend nor certificate of stock, in whole or in part. My impression is that he told me that one or two dividends had been earned, but they were not in cash and were as yet unadjusted. Certainly 1 did not receive any, anl was not offered any in, cash, or bonds, or stock, then or Since. A few months or weeks after this, I heard a rumor that unpleasant controversies existed amongst the largest stockholders, which were certain to involve or engage them in prolonged litigation. The very day I heard this rumor I told Ames that no profits, present or prospective, cotrhd induce me to buy into a lawsuit, .as plaintiff or defendant in a court, of justice, that I must therefore recede entirely from the transaction between us. I did not want stock of any kind on any terms that Would make me a party to litigation. He answered to this and nothing was said as to money paid, my anxiety-being not to get into a law suit. All these things occurred at the same session of Congress five years ago, which closed in the summer of 'OB. Next year, or the year after, Ames suspended payment in consequence, as was said, of financial involvements connected with the Pacific Railroad, and his creditors gave him an extension on his liabilities, but regretting his failure and its cause, I tola him so dismiss from his mind the small amount of money between us. I suppose but for tbis_he would have repaid the money I had paid him. I may repeat; therefore, that neither stocks nor bonds were giyen to me, nor offered to be riven to me ; that I never received a dollar in bonds, stoeks or money or dividends'; that I did contract to purchase twenty shares of stock hut that —after partial payment I~ withdrew entirely from wlfat l regarded as an incomplete contract, from repugnance to being involved in litigation, and that instead of being enriched by it SI,OOO or $20,000, as has been charged, I am volantarily out of pocket SSOO, and have been for nearly five years.” Colfax remarked he might add one hundred more. Ames never paid him the value of a dollar on any account whatever. The chairman asked whether the witness had. a knowledge of ownership of stock by any member of Congress, to which he replied he had no such-personal knowledge. Witness had been for years regarded as in favor of building the Pacific Railroad. He had made speeches and written in favor of it, and he thought the Government ought to build it, if cap italists cotfld not be interested for that purpose.