Rensselaer Union, Volume 5, Number 19, Rensselaer, Jasper County, 30 January 1873 — The Credit Mobilier Investigation. [ARTICLE]

The Credit Mobilier Investigation.

Representative Scofield stated before the Committee, on the 16th, that he had taken some of Ames’ railroad securities; he knew nothing of Ames’ deriving Congressional aid; had voted against the act of "1864, giving, the Company’s mortgages priorty; nothing was said about legislation. B —Senator Paterson testified that he never owned a penny’s worth of CreditMobilier, although he would have done so at one time if he had had the money. Subsequently he purchased of Ames both bonds and stock of the Union Pacific Road, which he afterwards sold in New York, making a fair proft. lie regretted that his investment was not larger, as the transaction was honorable and honest. He nezer received nor purchased any property which, directly or indirectly, was connected with his vote. William D. Kelley testified that he agreed with Ames to take some Credit-Mobilier stock as an investment only, but the matter was dropped, and he never received any dividendsror profits from the Credit-Mo-bilier;4iad not had an offer from Ames of Credit-Mobilier stock to influence legislation. If the witness had been able to purchase stock, he would have done so. He saw no more impropriety in a member of Congress buying that stock than in buying a flock of sheep, and then voting upon the tariff on wool or woolen goods. Benator Wilson testified substantially to what has already been published—that the stock was taken in his wife’s name, but surrendered when he ascertained all the facts in the case. Representative Bingham made a statement to the effect that he had purchased twenty shares of stock and received -dividends upon it, and defended the transaction as perfectly legitimate, the same as though it was bank stock. It was purely a business transaction,-androeveF-influ6nced his vote in the Honse. At the session of Mr. Poland’s Committee, on the 18th, B. M. Boyer, ex-member of Congress from Pennsylvania, voluntarily appeared and said be had nothing to conceal. He took seventy-five shares in his own name, and twenty-five aa trustee for his wife, and has held them, regarding it as a legitimate stock transaction. Curing the time he was in Congress neither the Credit-Mobilier nor Pacific' Railroad required legislation. All sudsidies and grants had been voted on before he was Congressman, ne invites a critical examination of his Congressional record, and says his investment in CreditMobilier was consequent upon the recommendation of Durant. James F. Wilson, of lowa, made a lengthy statement, saying he once bought and paid for ten shares of capital stock of the CreditMobilier, which he subsequently sold, after having learned that there was a prospect of continuous and serious litigation concerning the Company. His application to Ames for the stock was made at the suggestion of M’Corab. When he entered Congress, in 1861, his constituency were unanimously in favor of the construction of the railroad to the Pacific, and he had always "earnestly supported the enterprise. Neither Ames, M’Comb, nor any one else attempted to influence the action of the witness as a member of Congress. He did not know at first whether he had a profit or loss on the stock. He would act again exactly as he did under the same state of affairs. General Banks took his seat with the Poland Investigating Committee, for the first -time, on the 20th. Sidney Dillon, President of the Credit-Mobilier, testified that he knew of shares put Into the hands of Durant and Ames, to fulfill previous contracts, but did not remember the names of thd persons. Ames said he was undsr obligations to the same. Allusion was made tp Congresmen, but he did not remember the names; thinks Ames mentioned James Brooks; witness said Brooks came to him, saying that be received 100 shares from Durant, and under the rule was entitled to 50 shares additional, which were finally made over to Neilson, son in law of Brooks. At the same time Neilson borrowed $5(000 of him (Dillon) to pay on them, Durant pjid for the stock transferred to Neilson by the Company; could not tell whether Neilson repaid the $5,000 without looking at his books; did not know what Ames did with the stock transferred to him. At an interview with Brooks relative to the 50 shares, neither Alley nor M’Comb were present. Brooks had nothing to do with the money loaned'Neilson by witness. Brooks said briefly that the stock was to go to his son-in-law, Neilfion, and not tohim (Brooks). Witness never knew of Brooks having received any dividends from Credit-Mobilier; did not know where the books of the CreditMobilier were, unless they were intbe hands of Mr. Ham; never heard Of Alley's conoecion with the transaction of Brooks.

Mr. Bnrant was recalled on the 21st, and produced a list of persons to whom he had transferred stock. He did not think any was held in trust for Congressmen. —He produced the receipt of J. B. Alley for 200 Shares, at 160. Mr. Brooks testified to the effect that when he accepted the position of Government Director of the Union Pacific Railroad, he felt compelled to renounce a right to purchase, at par, from T. C. Dnrant, 200 shares of Credit-Mobilier, a right belonging to him hi 1806, or early in 1867, before he was a member of Congress, and which did not become valuable until December, 1867. He had transferred hiß right to purchase the shares to his son-in-law, C. H. Neilson. He did not then receive, and has never since received, one cent of profit from the transaction in his own or in any other names. He did not give Neilson the money to purchase the stock, but advanced the purchase money as a loan, and held Neilson responsible for paying it back as soon as he could. Mr. Brooks did not wish apologetically to convey the idea that he declined ownership in the Credit-Mobilier stock because he was amemberof Congress, for if he had never been named a Government Director, he should probably have been owner of a large amount of stock to this day; He had as much right to own paper stock as live stock, or sheep, or spindles, or a lead or iron mine, or barley, or timber, or steam engines, or foundries, with two or three thousand tariffed articles, largely indorsed by Congressional legislation. He had never been asked to give, nor had he given, a vote in Congress that was unjust to the Government, or for the profit of the Union Pacific Road, nor had he, as charged bv McOomb, asked Democratic members of Congress to vote for the road, and he did not remember ever to have spoken to any Democratic member upon any legislation relating to the road. Senator Patterson again voluntarily appeared before the committee, and insisted that what he had heretofore stated was correct, which was that he gave Ames money for investment in Union Pacific Railroad stock and bonds, and was not aware that the latter had applied it to the purchase of Credit Mobilier stock. Oaks Ames testified before the Committee, on the 22d, that he agreed to give Mr. Colfax twenty shares'of Credit-Mobilier stock in December, 1867. Witness received dividends upon it of 80 per cent, in Union Pacific bonds, and accounted to Colfax for tne bonds sold ny witness. In March. 1868, Colfax gave witness a check for $534.72. He didn’t remember delivering stock to Colfax. The check and proceeds of the Union Pacific stock paid for the Credit-Mobilier stock. In the Jane following he gave Colfax a check for $1,200, dividends on Credit-Mobilier. Colfax had never called upon the witness for Credit-Mobilier stock, and it is ready to deliver to him whenever he wants it. He supposed that Colfax understood the $l,2QO_ was a dividend upon the stock. Witness had no recollection that Colfax paid him $1,200. It don’t belong to witness. Mr. Colfax, who was present, said that he reasserted what he said before in regard to the $1,200. He now gave notice to Ames that he would prove the negative, and asked that the Sergeant-at-Arms Jje summoned with his accounts. Ames declared Senators Conkling, Fowler, Bayard, and Wilson, of Massachusetts, and Representative Blaine free from any connection with the Credit-Mobilier. Dawes and Allison bought and paid for stock, but afterwards returned it. Garfield took stock; which more than paid for itself by dividends; the balance Ames paid him by check for $329. This, he said, was what Garfield called a loan. Kelly, Scofield and Bingham were each owners of stock. The statements of Mr. Wilson, of lowa, he corroborated. Allison testified that Ames must have understood that the stock accepted by him (Allison) was gives back to Ames, as there have baen frequent dividends upon it, but the witness had never received any of them with one exception. N. G. Ordway, Sergeant-at-Arms of the House of Representatives, was «sworh and examined by Colfax. He had examined the account of Colfax for 18t}8, but saw no entry pf a deposit of $1,200 there; had noV examined the asconnts of Ames; he did deposit some money in 1868; did not remember if the check given to Allison was indorsed; saw a check with the letters “8. C.” or bearer, for $1,200; witness does not pay out or receive money. The paying toller in 1868 was Thomas B. Chene. Other checks were payable to initials. No indorsement was required from members of Congress generally when they drew money themselves. The check payable to “8. C.” was signed by Oakes Ames.