ALLEY, JOHN B., testimony of:
Existence of the Credit Mobilier, p. 1; officers of the Union Pacific Railroad, 1; who
procured the charter for the Credit Mobilier, 2; parties to the original organiza-
tion of the Credit Mobilier, 2; Credit Mobilier a regular corporation, 2; New York
agency, Credit Mobilier, 2; officers of the Credit Mobilier, 3; office of the Credit
Mobilier, 3; custodian of the books, 3; officers and directors of the Union Pacific
Railroad Company, 3; custodian of the books of the Union Pacific Railroad, 3;
amount of stock of the Union Pacific Railroad Company subscribed and actually
paid in, 3; the first contract for the construction of the Union Pacific Railroad, 3;
Mr. Ames induced to become a member, 3; the contract for 247 miles of road
practically made with the Credit Mobilier, 3; the Credit Mobilier had nothing to
do with building the road except the first 247 miles, 4; Mr. Durant objects to the
Credit Mobilier having the contract to build the road, 4; the Credit Mobilier agree
to guarantee the fulfillment of the Ames contract, 4; property of the Credit
Mobilier consisted of, 4; Oakes Ames agrees to build 667 miles of the road, 4;
Davis contract, 4; the Ames contract subject to the assent of the stockholders of
of the Union Pacific Railroad, 5; Ames contract assigned to seven trustees of the
Credit Mobilier, 5; dividend declared by the Credit Mobilier, 5; profits made from
the Ames contract, 5; out of what the two 6 per cent. dividends were made, 6; stock-
holders of the Union Pacific Railroad assent to the Ames contract, 6; the Government
was not regarded as having an interest in the contract, 6; protest of Government
directors filed with the Secretary of the Interior-testimony with reference to,
307; Mr. Sherman, Government director-his position with reference to the 58
miles of completed road under the Hoxie contract, 307, 308; Alley opposed to the
Ames contract, 308; Mr. Ames did no work under his contract, 303; stockholders
assent to the Ames contract, 308; reason why Mr. Ames demanded the assent of the
stockholders, 308, 309; $10,000 paid to aid Harlan's election, 309, 310; suspense-
account of $435,000, 310-313; report of the committee on the suspense-account,
314; resolution of Mr. McComb, approving the suspense-account, 314; a large por-
tion of the money set out in the suspense-account was expended in 1862 and 1864,
314; the $112,000 mentioned in the suspense-account as having been paid to Durant
December 29, 1865, 314, 315; money spent under the authority of the board, 315;
money handed over to J. B. Stewart, 316; no report made to the directors of the
Union Pacific Railroad of the result of the investigation of the suspense-account,
316; names of the committee of investigation on the suspense-account, 316; the
$50,000 paid in settlement of the Fisk suit, 317; the Credit Mobilier and Union
Pacific Railroad never paid a dollar to aid in the election of a United States Sena-
tor, 317, 318; explanation as to the $1,004,000, 318-320; can only explain the expen-
ditures from memory and not from the books, 320; $36,000,000 in cash paid into
the treasury of the Union Pacific Railroad on account of stock, 320; Credit Mobi-
lier paid for the stock in cash or checks, 320; explanation as to the mode of paying
for stock, 321; advice of counsel as to what constitutes an equivalent for money,
321; value of stock at the time of the Ames contract, 322; Oakes Ames mistaken
about the value of the stock, 322; stock had no market value, 323; the price per
mile agreed to be paid for the construction of the road was increased because the
payment was to be made in stock, 323; the Union Pacific Railroad could not get
dollar for dollar for its stock, 324; the stockholders of the Union Pacific Railroad
Company and the stockholders of the Credit Mobilier were the same persons, 324;
proposition to buy stock of those who were not willing to become stockholders
in the Credit Mobilier, 324; those who did not buy stock in the Credit Mobilier
received a part of the profits, 325; mode of letting the contracts, 325; when the
Oakes Ames contract was let the stock was understood to be worth less than par,
325; the stock issued to the Credit Mobilier paid for in cash, in effect, 326; price
paid per share for Union Pacific Railroad stock, $4 per share, 327, 328; all banks
are organized under the advice of counsel, Boston lawyers, 329; parties to partici-
pate in the dividends under the Oakes Ames contract, 330; proxies, by whom
ALLEY, JOHN B.-Continued.
held and for what purpose, 330; the Hoxie contract, its extent, &c., 331; track
laid not accepted by the Government, 331; the Oakes Ames contract extended over
the one hundred and thirty-eight miles of completed road, in order to give the
Credit Mobilier a profit upon the construction of that portion of the road, 332;
Credit Mobilier claimed an interest in the Ames contract, 333; don't know how
the profits were estimated, 333; dividends, amount, dates, &c., 334; in case the
money paid out in dividends was required to complete the road, it was to be paid
back, 334, 335; loans made to the road, how secured, 335; dividends could only
properly be made out of the earnings of the road, 336; actual cost for building
the road under the Ames contract, 336, 337; $12,000,000 profit, 337, 333; Mr. Ames
did not expect to put the contract through himself, 338; value of stock, 339; what
saves the company from bankruptcy, 339, 340; large sums owing to the Credit
Mobilier by the Union Pacific Railroad at the time of making the Ames contract,
340; road accepted by the Government, and bonds issued, with dates, &c., 341;
consideration paid to Hoxie for the assignment of contract, 342; the road con-
sidered in a delicate position financially, 342, 343; amount of Union Pacific Rail-
road stock held by Mr. Alley, 344; statement, and additional testimony of Mr.
Alley, 556.
AMES, OAKES, testimony of:
The Government has paid to the Union Pacific Railroad Company $16,000 per mile to
the foot of the Rocky Mountains, p. 23; about $27,000,000 of bonds in the whole,
23; the Government has given about one-fourth of the land, and withholds the
other three-fourths, 23; we have got the land certified to us for 250 miles at twenty
sections to the mile, in all, 5,000 sections, 23; amount of the first-mortgage bonds
prior to the lien of the United States, about $27,000,000, 23; first-mortgage bonds
were used for the construction of the road, 23; the first mortgage-bonds sold at
924, 23; the bonds were sold for 923, and we afterward got par for them, 23; about
$2,000,000 worth of land sold, 23, 24; the Credit Mobilier assumed the Hoxie con-
tract, 24; the Union Pacific Railroad paid over $47,000,000 on the Ames contract,
24; price per mile paid, 25; the Boomer and Davis contracts were assigned to the
trustees, 25; I think the entire cost for construction of the Union Pacific Railroad,
including the equipment, and the entire paraphernalia of the road, amounted to
about $60,000,000, 25; stock all paid in cash, 25; I think we made about 15 per
cent. on the Ames contract, 26; the first-mortgage bonds were taken by the trus-
tees, 26; I took the contract without regard to anybody else, 27; dividends paid,
27; Union Pacific Railroad is not now paying dividends, 27; Union Pacific Rail-
road earnings, 27; net proceeds last year over running expenses and interest on
bonds, $3,500,000, 28; I am a shovel-maker, 28; I looked over the estimates before
making the contract, 28; I estimated that I should make 20 per cent., 29; the
profits of the Credit Mobilier were about 300 per cent., 29; I guaranteed lots of
stock-buyers against loss, 29; I guaranteed Senator Grimes and others, 29; I took
the capitalists in before I made the contract, 30; my present judgment is, that we
made $8,000,000 or 9,000,000 on the Oakes Ames contract, 30; I think the profit
was more than 200 per cent.; I think it must have been 300 per cent., but I cannot
tell you from memory, 30; hotel item of $18,000 paid at Willard's, 344; I have a
recollection that an estimate was made by the chief engineer on the 31st of De-
cember, 1868, 679; I think the salary paid to the first president of the Union Pa-
cific Railroad was $8,000 per year, 679; General Dix was a stockholder before I
had anything to do with the road, 679; I recollect there was a letter from General
Dix, 679; I let Painter have thirty shares, 680; Painter was clerk to some com-
mittee, 681; memorandum of agreement made the 16th day of October, 1867, be-
tween Thomas C. Durant, J. B. Alley, and others, 723; I wish to correct my former
testimony as follows: on page 25, instead of the words "$16,000 a mile in stock,"
I want to insert "$16,000 a mile in first-mortgage bonds," and on the same page
strike out the words "we, the people," and substitute "the trustees;" also other
corrections, 724.
AMES, OLIVER, testimony of
Elected director Union Pacific Railroad Company October, 1866, p. 241; elected presi
dent Union Pacific Railroad November, 1866, 241; became a stockholder in the Credit
Mobilier in 1865, 241 and 242; Oakes Ames contract assigned to trustees within a
month or two months after it was made, 242; Oliver Ames president of the com-
pany at the time contract was made, 242; Oliver Ames one of the board of trustees,
242; Davis contract, 242; Davis contract assigned, 242; Oliver Ames president of
the company when Davis contract was made, 242; assignment of Davis contract
to trustees, 242; trustees construct the road embraced in Davis contract, 242;
trustees declare dividends, 243; only 5 and 10 per cent. paid on subscriptions, 243;
$3,000,000 subscribed under the law of 1862, 243; stock subscribed for under the
Hoxie and Ames contracts, 244; stock received by the Credit Mobilier, 244; first
subscription made, 244; subscriptions for 1867, 244; original subscriptions in 1863,
244; 10 per cent. paid on shares, 244; subscription June, 1868, 245; dividend of 60
per cent. in cash and 40 per cent. in stock, 245; stock on which the dividend was
made, 245; stock dividend at its par value, 245; trustees subscribe for $2,500,000
Union Pacific Railroad stock, 245; allotment of 75 per cent. to the stockholders
Credit Mobilier, 245; proposal to sell 28,125 shares Union Pacific Railroad stock
at not less than 40 per cent., 246; allotment of 30 per cent. in cash to the parties
interested in trust, 246; subscriptions for $4,000,000 stock Union Pacific Railroad
and purchase of $2,500,000 of certificates first-mortgage bonds Union Pacific Rail-
road at $101, 246; payment for stock how made, 246; Credit Mobilier calls for pay-
ment of $11,666,363, being amount due from Union Pacific Railroad on contracts,
246; Credit Mobilier subscribes for $7,500,000 stock in the Union Pacific Railroad,
246; allotment made to the parties of the trust 200 per cent. in stock Union Pacific
Railrad, 246; committee to confer with Governor Evans in respect to iron and ma-
terials for the Denver road, 246; Duff and Bates, a committee to sell $5,000,000
Union Pacific Railroad stock at not less than 50 of the par value, 247; committee
to adjust accounts, 247; resolutions of the seven trustees, 247; all stock subscribed
for, 247; abandoned stock, 247; shares reduced to $100 each, 247; books kept
open until 1869, 248; subscriptions, where made, 248; public notice inviting sub-
scriptions, 248; on stock subscribed in 1866 and 1867 only 10 per cent. was
paid, 248; first subscription by the Credit Mobilier, 248; indebtedness of the
Union Pacific Railroad Company for construction under the Hoxie contract, 248;
stock only represented when issued, 249; only paid stock voted in the government
of the company, 249; stock paid for by the indebtedness of the Union Pacific Rail-
road to the contractors, 249; subscription of 50,000 shares of the stock of the Union
Pacific Railroad by John A. Rice, 249; authority by which the Rice subscription
was made, 249; how the subscriptions made by Mr. Rice was paid, 249; entries in
the ledger of the trustees, 249; stock issued under contract, $1 per share, 250;
paid cash for building the road and took stock from company, 250; stock not con-
sidered an equivalent to so much cash, 250; Credit Mobilier actually paid cash,
250; Union Pacific Railroad Company considered stock equivalent to cash, 250;
contractors paid in cash, bonds of the company, and Government bonds, 250;
value of the stock, 250; mode of payment by checks, 250; understanding at the
time of making the Oakes Ames contract, 251; expectation in regard to aid, 251;
partnership between Oakes and Oliver Ames, 251; Hoxie contract, 251; profits on
Hoxie contract shared by the stockholders of Credit Mobilier, 251; Ames paid for
road already built, 251; the character of the route and the existence of the Evans
pass, 252; location of the road, 253; trustees actually pay $30,000 per mile in con-
struction, but their contract with the Union Pacific Railroad gives them $96,000,
253; Credit Mobilier, how paid, 253; over one hundred miles completed and in-
cluded in the Ames contract, 253 and 254; Ames's profit on the work, 254; road
let upon engineer's estimates, 254; route adopted after the Oakes Ames contract,
255; opinion as to price at which the Oakes Ames contract was let, 255; Hoxie a
man of no means, 256; stockholders in Credit Mobilier in 1865, 256; dividends,
how divided, 256; affirmance of Mr. Alley's testimony, 256 and 257; stockholders
in the Credit Mobilier interested in the Ames contract, 257; existence of the board
of trustees, 258; one hundred and thirty-eight miles of completed road included in
the Ames contract, 257; dividends, how divided, 258; route, 258; cost of the one
hundred and thirty-eight miles of completed road included in the Ames contract,
258; Government commissioners examine the road, 258 and 259; the money
derived under the Ames contract for the one hundred and thirty-eight miles of
completed road divided among the stockholders of the Credit Mobilier before
Ames commenced work on the road, 259 and 260; special legal expenses, including
the $126,000, 260, 261, 262, 283, 264, and 265; release of Oakes Ames from his con-
tract, 266; stock held by Oakes Ames and his brother, 266 and 267; note for
$2,000,000, dated August 4, 1869, due Credit Mobilier on account, 267, 268, 269, and
270; Credit Mobilier on account of agreement for contract claims, $1,104,000,
being money advanced by the Credit Mobilier to the Union Pacific Railroad, 271;
dividends declared by the trustees, 271 and 272; proxies, by whom given, 272;
Ames and Davis contracts, 272 and 273; statement of cost of road west of one
hundredth meridian, per mile, built when the Oakes Ames contract was made, 273,
274, 275, and 276; value of stock at the time of making the Ames contract, 276;
number of miles embraced in the Ames contract, 277; in letting the Ames contract
the prices of the lettings were fixed with reference to the value of the stock, 276
and 277; stock issued to the contractors or the seven trustees, 277; resolution of
Mr. Bushnell in relation to the item of $1,104,000, 278; under the Ames contract
the Credit Mobilier was to advance money, 278; stock of Credit Mobilier held in
trust by Oakes Ames, 278 and 279; stock to be disposed of among Congressmen,
280 and 281; dividend 12th December, 1867, 281, 282, and 283; resolution offered
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