^ H. Sp^ep 'TP>e Credit t^ob‘\l(ep Robbery Return this book on or befo^ the Latest Date stamped below. /f The Credit Mobilier Robbery LIBRARY OF THE UNIVERSITY OF ILLINOIS SPEECH HON. MILTON SPEER, OF FENISTS YL V A.Fri^, DELIVERED IN THE HOUSE OF REPRESENTATIVES, FEBRUARY 27, 1873 WASHINGTON: F. & J. RIVES & GEO. A. BAILEY, REPORTERS AND PRINTERS OP THE DEBATES OP CONGRESS, 1873 . Digitized by the Internet Archive in 2017 with funding from University of Illinois Urbana-Champaign Alternates https://archlve.org/detalls/credltmoblllerroOOspee 3i'-i Resolution of Censure of Hon. W, D. Kelley. SPEECH OF HON. R. M. SPEER, Delivered in the House of Representatives, February 27 , 1873 . ‘-0 The House having under consideration the report from the select Committee on Alleged Bribery of Members, Mr. Speer offered the following: Whereas it is shown by the report of the select committee of the House to investigate charges of alleged bribery of members by Oakes Ames and others, that William D. Kelley, a member of Con- gress from the State of Pennsylvania, did receive, while a member of this House, from Oakes Ames the sum of $329 on the 23d day of June, 18(38, and the further sum of $750 in September, 1868, as dividends on stock of the Credit Mobilier of America, without having paid anything therefor; and whereas the said dividends arose from a dishonest contract and arrangement between the said Credit Mobilier and the Union Pacific Railroad Company, which com- pany was and is largely indebted to the United States, resulting in a gross fraud and wrong upon the Government: Therefore, Resolved, That for the receipt and use as aforesaid of the said Credit Mobilier dividends, William D. Kelley deserves and hereby receives the unquali- fied censure of this House. Mr. SPEER. Mr. Speaker, I trust I am not insensible to the gravity of this hour and its duties; and I may hope that those who know me believe that no feeling of party or faction has prompted the action that I have taken here this day. I declare before the House and the country that I have taken it with deep regret. For the gentleman from Pennsylvania [Mr. Kelley] affected by the resolution which I have felt it my duty to offer, I have personally no unkind feelings. I have known him by name for years as a prominent member of this House and as an influential member of his party ; and I would rather let my right arm fall from my shoulder than be the instrument here or anywhere of doing him intentional injustice. But, Mr. Speaker, I have a duty to perform higher than personal friendships, higher than my regard for personal feelings ; and I rise here this hour to perform it, regret- ting that it involves the dishonor of a Repre- sentative of my State — regretting that the proud State in whose bosom I have been reared, and upon whose soil I expect to be buried, bows her head in shame and grief over the evidence now before the House and the country, with its exposure of the conduct of her Represent- ative. My colleague says he has been charged with a crime and is here on trial unheard. Mr. Speaker, this investigation was ordered on your motion and he has been heard from his own lips and with great patience, fairness, and even tenderness, by the committee. He had the process of the United States to sum- mon any and every witness he desired, and through an investigation covering six weeks, with the power of the Government at his back, he has borne an almost death-like silence. But who is his accuser, if he is here this hour upon trial ? If he is to be convicted, will it not be on the testimony of a member of this House of his own party, strengthened and forti- fied as it is by his own evasions and prevarica- tions? No, sir; I would condemn no man unheard; but when opportunity has been given for six long weeks, and after as fair and impar- tial a committee as was ever appointed by this House have sat with open doors until nothing else was to be offered, until the last hours of the session, it is unjust to them, it is unjust to truth, to say he has not been heard. If he had witnesses, who are they? Where are S 008403 4 they? The world has never heard of them and it never will. My colleague complains about my reference to him in a brief speech I made this morning. 1 did not know whether he was in the Hall or not, but I do know if he was not here it was his duty to be here. But the complaint is strange, for when I now offer him the floor he declines to speak. I did make reference to him, as I also made reference to the gentle- man from Massachusetts [Mr. Dawes] and to my colleague from Pennsylvania, [Mr. Sco- field ;] and in that reference I did what I thought a simple act of justice, due to my convictions upon the evidence, to the cause of truth and due to these two gentlemen. I said that I believed upon the case as presented they were innocent, and I would vote for no resolution of expulsion or censure of either of them. I certainly had no political or personal motive in making such a declaration. They are both active members of the Republican party, one of them prominent as a leader of that party in my own State ; and if I had been governed by party considerations it would have been my party interest to strike him down, or at least to keep silence where I could not justly condemn. But I trust, Mr. Speaker, I shall be true to my own sense of justice and of right, regardless of whether such course may help or hurt my party. I am not the slave of party. I am the Representative of my people. And, sir, I would feel myself unworthy of a seat upon this floor if I should seek here or elsewhere to take ad- vantage of the just indignation of the people at the Credit Mobilier frauds to do a wrong to any gentleman whose name has been con- nected therewith. I have asked the gentleman from Pennsyl- vania [Mr. Kelley] to speak. I have asked him to have his friends speak. I have made the public offer here that he might haye, as far as I could give it, as many hours for public discussion as he desired, reserving only one hour for myself to close debate. That offer was declined, and I thought in a way unworthy of the spirit in which I made it. I have yielded a part of my hour to the gentleman’s friends who desired to speak, and I now propose briefly and fairly to review the evidence as it lies printed before the House. The commit- tee have found a special verdict, and it is now for this high court of the people to enter judg- ment upon that verdict. What are the facts? On the first day of this session the Speaker of this House rose to what he called a “ question of the highest privilege,” and after stating that “ during the recent presidential campaign there was a wide- spread accusation of bribery of members of this House to perform certain legislative acts for the benefit of the Union Pacific Railroad Company by presents of stock in a corpora- tion known as the Credit Mobilier,” and after stating further that the charge embraced him- self and several other members, among them my colleague, [Mr. Kelly,] he offered a res- olution for the appointment of a committee of investigation. The resolution was adopted, the committee appointed, and its report is now before us. Now, as my colleague’s name was mentioned by the Speaker in connection with this charge on December 2 last, he had notice then that the investigation might involve him, and hence he had ample time for preparation. What does the report find to be the facts in reference to my colleague? I take the follow- ing from page 7 : '"Mr. William D. Kelley, of Pennsylvania. “The committee find from the evidence, that in the early part of the second session of the Fortieth Con- gress, and probablv in December, 1867, Mr. Ames agreed with Mr. Kelley to sell him ten shares of Credit Mobilier stock at parand interest from July 1, 1867. Mr. Kelley was not then prepared to pay for the stock, and Mr, Ames agreed to carry the stock for him until he could pay for it. On the 3d day of January, 1868, there was a dividend of eighty per cent, on Credit Mobilier stock in Union Pacific bonds. Mr. Ames received the bonds, as the stock stood in his name, and sold them for ninety-seven per cent, of their face. In June, 1868, there was a cash dividend of sixty per cent,, which Mr. Ames also received. The proceeds of the bonds sold, and the cash dividends received by Mr. Ames, amounted to $1,376. The par value of the stock and in rerest thereon from the previous July amounted to $1,047 ; so that, after paying for the stock, there was a balance of dividends duo Mr. Kelley of $329. On the 23d day of June, 1868, Mr. Ames gave Mr. Kel- ley a check for that sum on the Sergeant-at-Arms of the House of Representatives, and Mr. Kelley received the money thereon. “ The committee find that Mr. Kelley then under- stood that the money he thus received was a balance of dividends due him after paying for tho stock. “ All thesubsequentdividends upon tho stock were either in Union Pacific stock or bonds, and they were all received by Mr. Ames. In Soi)tcmber, 1868, Mr. Kelley received from Mr. Ames $750 in money, which was understood between them to bo an ad- vance to bo paid out of dividends. There has never been any adjustment of tho matter between them, and there is now an entire variance in tho testimony 5 of the two men as to what the transaction between them was ; but the committee aro unanimous in finding the focts above stated. The evidence re- ported to the House gives some subsequent conver- sations and negotiations between Mr. Kelley and Mr. Ames on this subject. The committee do not deem it material to refer to it in their report.” There, Mr. Speaker, the committee find that Mr. Kelley received in June, 1808, $329; in September, 1868, $750; making $1,079 in cash. For what? Had he ever invested a dollar? He had never paid a dollar ; but out of only two dividends he had become the owner of ten shares of Credit Mobilier stock worth two or three thousand dollars, and had received a check of $329, which he put in his pocket and went to the Sergeant-at-Arms afterward, and upon it drew the money, and, impatient for further dividends, and although they had amounted to more than one hundred per cent, from January to June, he received from Mr. Ames in September following the further sum in cash of $750 dollars, which the committee finds “was understood between them to be an advance on dividends.” Thus, without the payment of a single penny, Mr. Kelley had received from Mr. Ames, out of Credit Mobilier dividends, in about six months, $1,079 in cash, and had become the owner of stock worth from two to three thou- sand dollars. When it is remembered that these enormous dividends were paid — part out of the money and proceeds of lands given by the Government to the Union Pacific Rail- road Company, and that Mr. Kelley had been a member of Congress when the acts were passed granting to this company these sub- sidies, this House and the country will need no aid from me to enable them to form a cor- rect judgment of his conduct. Now, while I agree with the committee in their finding of the facts, I do not agree with them in all the inferences they seem to draw from those facts. After finding that Mr. Kel- ley had never paid a dollar, but had been the receiver of $1,079 from Mr. Ames in the shape of dividends and advances, they say, page 8 : ” The committee, therefore, do not find, as to the members of the present House above named, that they were aware of the object of Mr. Ames, or that they had any other purpose in taking this stock than to make a profitable investment. It is appar- ent that those who advanced their money to pay for their stock present more the appearance of ordinary investors than those who did not; but the committee do not feel at liberty to find any corrupt purpose or knowledge founded upon the fact of non-payment alone.” Sir, tell me what kind of an investment that is in which you place no money. Is it buying a house, when you pay nothing for it? Or is it buying bank stock when, instead of paying money for it, money comes to you? And yet the committee attempt to draw the inference, gently, I admit, that this transaction between Mr. Ames and Judge Kelley was an invest- ment upon the part of Judge Kelley ! Let me, Mr. Speaker, call the attention of the House to what the committee must have found before they drew this inference. Mr. Kelley was sworn before them as a witness. Oakes Ames was sworn before them as a witness. Those two witnesses differ radically and vio- lently in their statements ; and when the com- mittee find in substance that the statements of Oakes Ames are true, as they do find, it fol- lows inevitably they must find that Mr. Kel- ley’s are not true. Now, what does Mr. Kel- ley say about this transaction ? In the first place the committee say that they have no evi- dence that Mr. Kelley knew the nature of this corporation. As to that I turn to page 198 of the testimony, where we find Mr. Kel- ley under oath stating that — “At this distance of time 1 do not pretend to re- peat the conversation verbatim, but I remember the substance of it pretty accurately. Mr. Ames said to me that while that was a speculative thing, he felt disposed to let me have an investment which would be of a better character, and spoke of the Credit Mobilier, of which I thought I knew some- thing from the fact that it was chartered by my own State some years before I became a member of Con- gress, and the provisions of the charter of which I had discussed somewhat with my professional brethren, both in my office and in the court-room while waiting for trials or arguments.” Mr. Kelley is a Pennsylvania lawyer, and was a Pennsylvania judge. The Credit Mo- bilier is a Pennsylvania corporation ; and Mr. Kelley swears that he was familiar with the provisions of its charter from having discussed it with his profesional brethren in the court- room of Philadelphia. And yet the commit- tee seem to intimate that this lawyer, this judge, this Pennsylvania judge, who had dis- cussed the provisions of this charter, did not know what they were ; did not know the powers they conferred nor the uses to which the charter could be put. Mr.> POLAND. Will the gentleman yield to me a moment ? 6 Mr. SPEEIt. Certainly. Mr. POLAND. There was nothing in the charter of the company that was in any way wrong. The whole difficulty grew out of some contracts that were afterward made. Mr. S|^EER.. I understand that. What the gentleman from Vermont says is abstractly true ; but the charter was one of those anoma- lous things that too often crawl through the Pennsylvania Legislature, and after having been passed it was taken to New York, and there bought, I believe, by some of these par- ties for the express purpose of making the use of it which has been made. It was a charter of almost limitless power, authorizing those operating under it to go to almost any place and do almost anything. It was just the charter these Union Pacific railroad men needed. It was just the charter that no honest company would want. Now, I say that Judge Kelley knew the pro- visions of that charter. He knew the Legis- lature that passed it. He knew there was litigation in Pennsylvania about that charter and the right of the State to tax the dividends; and yet with his knowledge of all these things he took that stock. I may say here that the State of Pennsylvania brought suit four or five years ago to recover about $1,000,000, I think, as tax due on the dividends of the Credit Mobilier. She obtained judgment twice in the lower court, but the judgment was twice reversed by the supreme court of the State ; the last time on the ground that the Credit Mobilier as a corporation did not earn the dividends, but that the trustees did. I refer to this, not to criticise the action of the supreme court of Pennsylvania, but to show how notorious the facts were. l"therefore deny the correctness of the inference of the commit- tee as to the knowledge and means of knowl- edge of Mr. Kelley. I cannot escape the con- viction that he did know all about it. But if he had not knowledge beforehand, what are the members of this House to think of a member of Congress who, without a turn of his hand or the scrape of his pen, or the payment of a dollar, by some magic unknown to the race of ordinary mortals, came into possession of $1,079 in cash, and became the owner of ten shares of stock worth $3,000 more, all in about six months, and yet did not know what kind of a hen was laying these golden eggs 1 Did not Mr. Kelley know that it must be a cor- rupt corporation from the enormous dividends that were being so rapidly declared and which he was receiving? Tell me that a man can stand quietly by, in this age and in this land, and receive an eighty per cent, dividend in January and a sixty per cent, dividend in June, and a seventy-five per cent, dividend in September, and not know or at least not have cause to suspect that the corporation which declared them was corrupt to the core ! I seek not to torture the evidence ; but this case so bristles with facts pointing irresistibly to the conclusion I have formed, that I cannot escape it. Who can? What further? Mr. Kelley attempted to turn this transaction with Mr. Ames into a loan, but th& committee have exploded that idea as every sensible man will explode it on reading the testimony. But what does Mr. Kelley say? On page 199 of the reported testimony he says: “Thus ended all connection of mine with the mat- ter. During that time, nor subsequently, have I re- ceived directly or indirectly any money, stock or bonds as dividends of the Credit Mobilier, or any interest in stock of Union Pacific railroad or bonds. I have never to my knowledge seen a share of the stock in Credit Mobilier or in the Union Pacific Rail- road Company.” And on page 201 : '"Question. The conversation you had with Mr. Ames resulted in an agreement on your part to take ten shares? "Ansioer. Yes, sir; and I wish it to be distinctly understood that it was not my fault that I did not get it. I supposed I had contracted for ten shares of stock. "Question. Were any dividends ever paid to you on it? "Anstoer. No, sir ; I received nothing from it. "Question. The result of the money transaction in reference to the Credit Mobilier stock, then, was that you neither paid Mr. Ames anything nor received anything on that account? "Answer. Yes, sir.” Now, what will the country think of a mem- ber of the American Congress who having taken a check from Oakes Ames for $329 to the Sergeant-at-Arms of this House, and drawn the money upon it, and having received in cash from Ames $750, both sums found by the committee to be on account of dividends from the. Credit Mobilier, now states on oath that he never saw, or touched, or received a dollar from the Credit Mobilier? This testimony was given before Mr. Ames had come to the 7 stand for the second time. Mr. Ames at first was mild, and coy, and gentle as a maiden with these gentlemen ; but when he discovered that they intended to put the whole respons- ibility of this transaction upon him alone, he gathered himself up, and shook his mane like a lion, and came back, armed with a power that struck consternation into those men who were trying to escape by putting their sins upon him. Here is the evidence ; on page 201 Mr. Kelley states : “ Question. State whether the borrowing of that thousand dollars frem Mr. Ames had any connec- tion in any manner with the Credit Mobilier stock? "‘Answer. I am here reminded of what Judge Bing- ham said on the uncertainty of speaking of what may have been passing in a person’s mind so long ago, and of all the considerations that may have entered into his motives.” Now, sir, was that such an answer as the committee and this House had a right to expect to a plain question involving the character of this transaction and the motives and under- standing of my colleague in reference to it ? The House will observe that what I am reading here is the sworn testimony of the witness, Judge Kelley, himself. But what does Mr. Oakes Ames say about that transaction. This, on page 298 is the account between Mr. Kelley and himself. It is as follows : The memorandum from which witness testified in regard to Mr. Kelley is as follows : W. D. K. Dr. 1868. To ten shares stock Credit Mobilier of America $1,000 Interest 47 Jan. 19. To cash 329 $1,376 1868. By dividend of bonds Union Pacific railroad $1,000, at 80 per cent, less 3 per cent $776 June 17. By dividend collected from your account 600 1868. $1,376 Sept. 29. To cash loan 700 ” Question. Do you think Mr. Kelley understood, when he received that check from you, that that was the money he was borrowing from you ? “Answer, I did not think so; you can judge as well as I can of it. “Question. Was anything said about its being a loan ? “ Answer. Not that I know of. “ Question. Did you have any conversation with Mr. Kelley after that in reference to this transac- tion in Credit Mobilier stock ? “Answer. Yes, sir; he inquired about the divi- dends, whether there were any more. I told him there would not be any more until this suit was settled.” In October or November, 1868, suit was brought against this corporation in Pennsyl- vania, and the dividends on the stock which Oakes Ames held as trustee ceased. Mr. Kelley then comes to Mr. Ames and inquires, “Brother Ames, are there any more dividends due?” “ What has become of the Credit Mo- bilier?” “A suit is pending, Mr. Kelley, and you cannot get any more dividends until that suit is determined.” Now, the gentleman from Massachusetts [Mr. Butler] says that Ames is a truthful man, and the committee have found his statement as to this transaction to be true. Then what are we to conclude ? It is that when that suit pending in the supreme court of Penn- sylvania shall be determined, if favorable to Mr. Ames, the dividends are to be paid to Mr. Kelley as before; or rather, that in such event they would have been paid if this inves- tigation had not been had. Now, did not Mr. Kelley know that the Credit Mobilier was a fraudulent corporation? Did he say “I wash my hands of it; I have been misled; the people and the Government are being wronged?” No, nothing of the kind. All he said was, “ What has become of the dividends?” I read from page 299: ” Question. Did you understand from that conver- sation that he considered himself entitled to further dividends if there were any more made? “ Ansxeer. I suppose so. “Question. You continued to hold that stock for him ? “Ansxoer. I did; and that is all Mr. Kelley has received out of it, the $329.” And now what lesson do you learn from this prevarication, evasion and denial on the part of Mr. Kelley? Are not evasions and denials of this character in court always taken against the man who makes them? Is it not right and just for the law to presume that if a man will not tell the truth it is because the truth will hurt him? What motive can Mr. Kelley have for withholding a plain statement of the facts ? It is because the truth was damaging, and he would rather — I will not say willfully — swear an untruth ; but he seems to prefer the path of evasion to the plain road of frank statement. Why deny the ownership of the stock ? Why deny the receipt of these dividends, unless there was guilty knowledge? What motive on earth could my colleague have to deny the 8 ownership of honestly acquired property? If you own bank stock, and your money has been paid for it, why deny it, and deny it under oath? Mr. Speaker, you know very well that if ray coat was stolen and it was found in your pos- session — or I will reverse the illustration, and say that if your coat was stolen and it was found in my possession, and when arrested with it on my back and asked where I got it I should prevaricate, and say I found it here or got it there, or refuse to account for my pos- session of it, you know what is the presump- tion of the law and of common sense. It is that I got it unlawfully, or that I got it from some person who had got it unlawfully. In other words, that I was ashamed or afraid to say how, or where, or from whom I had got it. Why, then, when the managers of the Union Pacific railroad, which had been richly en- dowed by the action of Congress, were rob- bing the Government through the Credit Mobilier corporation, and when that plunder and spoil were being divided among the Rep- resentatives of the people whose duty it was to protect their interests, why should any one of them when charged with sharing the spoil seem to attempt for a moment to withhold the whole truth? Would not his interest, and his honor, his name, and the name and the honor of his family and friends alike, induce him to state the truth, if the truth would help him ? But what further have we here ? This evi- dence presents another fact, which is that not only did Mr. Kelley prevaricate before this committee, not only did he attempt to conceal the truth, but he virtually attempted to get Mr. Ames to conceal it under oath. He feared that his own concealment would not be suffi- cient, and if Mr. Ames is to be believed, Mr. Kelley attempted to get him to swear to what was not true. Do I state it too strongly? Blot out my words, then, and take the words of Oakes Ames. I quote his sworn testimony, page 360; " Ansroer. Mr. Kelley spoke to me about this matter and said he called it a loan ; he said he had stated it was a loan, and then wanted to pay me the amount. I told him that I did not so consider it; that I had let him have $750 on account of the dividends that I held. He wanted to call it a loan and wanted to repay me.” Almost five years after he had received the money, when this investigating committee was hard after him 1 “He said he would give me a check on his bank and wanted to know when he should date it. I told him I did not know that it would make any difference, and he gave me a check for $1,000. That was before any testimony had been given, but after the invest- igation Was ordered. I tore the check in two and handed it back to him and called it a payment,” Mr. Kelley had got from Mr. Ames $1,079, which, with interest, would have amounted to over $1,300. Hence, if it was a loan, why not pay all, if any ? What a scene that must have been — the honorable gentleman from Pennsylvania [Mr. Kelley] and his honorable friend from Mas- sachusetts [Mr. Ames] concocting in the dark hour of the night a story to cover up a trans- action of which they were both ashamed ! I say, then, I can come to no other con- clusion upon this testimony than that the find- ings of fact by the committee are justified, amply, overwhelmingly justified, by the evi- dence. For belief is not a matter of choice ; we must believe upon evidence, and some- times the most unpleasant convictions are forced upon the conscience. So here I take no pleasure in stating my conviction formed upon this testimony ; but there are the facts spread before this House and the country, and there is not water enough in the Potomac to wash away this record which Mr. Kelley and Mr. Ames have made for themselves. No charges of persecution can be brought against the honorable committee or against this House. These men, if condemned, are self-condemned ; they are their own accusers ; and upon the record which they have made for themselves in this case they are now being tried by this House in the presence of the country, and by that record the case will be determined. Mr. Speaker, we have been told that the mob are crying, “ Crucify him I ” “ Crucify him ! ” No, sir, it is not the mob, and that is not the cry. It is the people who make the cry, and the cry is, “ Punish the men who have been robbing the Government, and punish the men who have been sharing the spoil.” To that cry this House of the people should respond, “Amen 1 ” The American people demand no victim ; 9 they are just and brave and generous; but having been plundered for long years by these corporations of immense power and wealth, they are trying now, Samson-like, to burst the bands that have bound them. They are at- tempting to reassert their mastery over their servants and to teach their Representatives that they have other duties to perform than to aid by their influence and legislation here schemes of personal profit. Mr. Speaker, I am satisfied upon this evi- dence of the truth of the finding of the committee ; and being thus satisfied I should be false to myself, to the people who have sent me here, and to my duty at this hour, if I faltered for onefmoment. I believe Mr. Kelley is guilty as the committee find him, of receiv- ing these enormous dividends of the Credit Mobilter without consideration ; and I further believe he had every reason to know they were corruptly declared and were paid to him with the expectation of securing his friendly interest as a member of Congress in any meas- ures that related to that fraudulent corporation. Thus believing, I recognize the jurisdiction of the House over the offender and I regard the offense as deserving its unqualified cen- sure. The American Congress should be the political sanctuary of the people ; and those who compose it, in fidelity to their high trust, should oppose and denounce all schemes of plunder. Popular liberty is here on trial, and the great question of the hour is, shall the people rule this land or shall they surrender it to the greed and corruption of mammoth corporations? But it is said that these gentlemen impli- cated in the Credit Mobilier swindle have heretofore borne good characters. I admit that in a case of doubt good character is a fact to be considered by the triers. But tell me what is character worth against clearly- proved guilt? If a man confesses himself that he has committed a crime, does the fact that he has previously borne a good name prove that he did not commit it ? When the check is produced by the Sergeant-at- Arms for $329, and Mr. Ames swears he gave that identical check to Mr. Kelley for Credit Mobilier dividends and that he drew the money thereon, does my colleague’s saying, “for many years I have been an honored Representative of the people of Pennsylvania on this floor,” show that he did not take the money? In some cases good character may be allowed to create a doubt; but in this case, if the check drawn to “ W. D. K.” or bearer and paid by the Sergeant-at- Arms on the 24th of June, 1868, was not for Credit Mobelier dividends, as Ames swears it was, should not Mr. Kelley state what it was for, or at least give some explanation of it? With his failure to do either, what is the use of talking about doubt? And how ungrateful it is for the gen- tleman from Pennsylvania, now in the hour of his old friend’s trial, to seek escape for him- self in the ruin and dishonor of Oakes Ames I a man who, whatever else may be said of him in connection with this investigation, has shown the most singular persistence in trying to shield all the members of Congress involved with him ; this man who was so good and so kind as to loan Mr. Kelley (as he alleges) $1,000 without note or security nearly five years ago, and who has never even inquired about either principal or interest during all that time! How ungrateful now to turn and seek the vin- dication of his own character by destroying that of his friend I It has been said “that he who deserts a friend deserves a foe,” and if Mr. Ames was worthy to be the companion and the financial adviser of Mr. Kelley for years, it surely is not becoming in my colleague now, when the storm of public wrath is gathering, to seek shelter for himself by ingratitude to his old friend 1 This investigation has engaged the earnest attention of the country; not from any thirst for vengeance, but because it has involved the honor of the nation, as well as the honor of those who have heretofore stood high in its love. The record of this day will pass into history, but it will prove fruitless of practical good if it do not become to all those in place and power a lesson and a warning. Jurisdiction of the House. KEMARKS OF HON. R. M. SPEER, Delivered in the House of Representatives on the same day, under the ten miniites^ rule. Mr. SPEER. Each member of this House is this day confronted with a solemn duty ; and however willing he may be to escape it, he cannot do so without proving false to him- self and false to his constituents. This duty is painful to me almost beyond expression ; but I have lived long enough to learn that duties are not to be avoided simply because their performance is not pleas- ant. I came to this House two years ago a stranger to all the gentlemen who are impli- cated in the Credit Mobilier investigation ; but I came with the kindest prepossessions in favor of the gentleman from New York, [Mr. Brooks.] I had long heard of his name and his fame ; I had learned to treasure them as a part of the history of my party and of my country. Hence, in the examination of this evidence, so far as it affects him, I was a par- tial judge in his favor ; but, step by step, as I advanced, my mind was brought irresistibly to the conclusion which I am now about to ex- press to this House. I would intentionally add no weight to the sorrow that crushes his heart, but I must obey my convictions of duty regardless of all personal considerations. Mr. Speaker, there are but two questions here: first, has this House jurisdiction ? If it 10 has not, that is an end of the inquiry. If it has, then what, if any, are the offenses which have been committed by the gentlemen named, and are they such as to justify their expulsion or censure? For myself I have no more doubt of the power of the House to expel a member for an offense committed before his election than I have of my existence. The power is expressly given in the Constitution, article one, section five, which declares : “ Each House may determine the rules of its pro- ceedings, punish its members for disorderly beha- vior, and with the concurrence of two thirds expel a member.” “Punish” them “for disorderly behavior” committed when and where? Committed in the presence of, or d ring the session of the House? The Constitution does not say so. Committed during the session of Congress, but in a recess? The Constitution does not say so. The time when the offense shall have been committed is not stated. The power is abso- lutely given, with this single limitation and qualification of its exercise, that it shall be by a two-thirds vote of the House. In terms the grant of power is limitless; but' its exercise should be guided by a wise, honest, and con- scientious discretion. The grant is dangerous ; but this fact appeals only for care and caution. The express grant of a power like this is not to 11 be rendered worthless by the charge that it may be abused. This House has the absolute power to expel a member, but the true inquiry in each case is, do the facts justify the exercise of the power? Now, in properly construing this grant of power, we should inquire what was the pur- pose for which it was given, what is its use and necessity ? It is a self-protective power, a self-purifying power. If, then, it has been given to the House for the purpose of en- abling it to protect itself against unworthy members, I ask whether the House does not need this power to protect itself from a mem- ber who may have become unworthy yester- day, as well as against a member who has become unworthy to-day? Shall the date of the crime measure its moral guilt or turpitude ; and if not, shall the date of its commission measure the power and jurisdiction of this House? I do not think so. Let us look for one moment at two or three illustrations to test this doctrine of jurisdiction. J[f I understand the position of the learned gentleman from Kentucky [Mr. Beck] and others who deny the jurisdiction of this House, it is that if a man on the last hour of the last night before the election should commit a rape, or a burglary, or a murder, and in virtue of an election held the next day should come into this House, we are powerless to protect ourselves against his presence ; but if the offense was not committed until the moment after the ballot-box was < closed, then we can take jurisdiction and expel him. The decision of Chief Justice Shaw, cited by the gentleman from Massachusetts [Mr. Butler] last evening, states that the legis- lative body has undoubted power to expel a man who has an infectious disease, and this the gentleman from Kentucky admits ; but if the doctrine of my learned friend from Ken- tucky is true, the man must have contracted the infectious disease after his election to give the House power to expel him. If the disease had been contraced before his election the House would be powerless. Now, Mr. Speaker, I draw an exact analogy between this illus- tration of an infectious disease and the crime with which these gentlemen here are charged. We have here an offense not dying at the moment it is committed, but the fruits of which are intended to run through the congressional career of the man who commits it — intended to control his voice and his vote on this floor as long as he remains a member ; month after month and year after year he puts into his pocket the price for which he has agreed to surrender his independence and honor as a Representative, in precisely the same way as the man who contracts an infectious disease on the night before the election may carry it with him for one, two, or three years after- ward during his occupancy of a seat here. The member makes a contract for a bribe, and sits here by the side of my honorable friend from Kentucky with the gold which is the price of his dishonor in his pocket ; yet, according to the view of my friend, the Representatives of the people are powerless ! The corrupt bargain may have been made before the elec- tion and carefully concealed until after; and yet this concealment saves the guilty party from defeat perhaps at the polls ; and the offense fortunately antedating the election, strips this House of all jurisdiction of the offender. This is not the case of a criminal prosecu- tion ; it is the cause of the people — -a cause involving the honor and the integrity of the Congress of the United States, the character and fair fame of the whole American people. Mr. Speaker, if there is any doubt about the jurisdiction of the House in this case I think the gentleman from New York [Mr. Brooks] himself has settled that question. Mr. Brooks rose in his seat on the 17th of December last to a question of privilege, and in defining his position in relation to the Union Pacific, rail- road and the Credit Mobilier, with uplifted hand and eye used these words: ““ But as a member of Congress and as a member of one of the most important committees of the House in which millions of dollars are directly or in- directly pending, if what Mr. McComb says be true, I am unlit to be a member of this House and ought to be expelled not only from this House, but from all association with decent men here or elsewhere.” I ask the gentleman from Kentucky, [Mr. Beck,] who is in his seat, for what purpose or by whose authority it is he interposes the 12 plea of jurisdiction here when the jurisdiction and the necessity for its exercise, if the facts be found, are expressly conceded by Mr. Brooks himself? That he admits the right and the power of this House to expel him if the facts alleged against him be true his careful and elaborate speech made upon this very subject most clearly shows. Next we come to the facts. I have not time to discuss them. I agree with the committee in their finding and recommendation as to Mr. Ames and Mr. Brooks, and I agree with Mr. Brooks, the facts being found, that they pre- sent a proper case for expulsion. I say fur- ther, while I have read and reread with anxious care this morning the testimony in relation to the gentlemen implicated, so far as the gen- tleman from Massachusetts [Mr. Dawes] and the gentleman from Pennsylvania [Mr. Sco- field] are concerned, I cannot and will not vote either to expel or to censure either of them. I owe them nothing personally or politically ; but I owe it to my conviction as a man, I owe it to my sense of duty, I owe it to the cause of truth to say, after the most careful examination of the testimony and the facts in relation to them, I believe them to be innocent of corrupt intent or conduct. But when I come to Mr. Kelley and to Mr. Gar- field I say with the same honesty of purpose and the same sincerity of conviction I cannot believe them guiltless. They never paid a dollar. Mr. Kelley received $1,079 in divi- dends. For what? For nothing. Without the investment of a single dollar he became in six months the owner of a thousand dollars of stock in the Credit Mobilier, worth three or four thousand dollars, and he pocketed $1,079 in cash besides. [Here the hammer fell.] Wote. After Mr. Speer introduced his resolution and the House voted to consider it, he offered half of his hour to Mr. Kelley. The latter rose and stated that he had not been heard before the committee, and did not wish to speak until after Mr. Speer had spoken. In order that no injustice may be done him, his defense, as made by himself, at the time chosen by himself, is hereto annexed. REPLY OP HON. WILLIAM D. KELLEY To the speech of lion. R. Milton Speer, delivered in the House of Represent- atives on the evening of February 27 , 1873 . Mr. KELLEY. I hope, Mr. Speaker, for the calm and dispassionate hearing of my judges, I shall detain the House from its legit- imate business for a very brief time. The occasion is one of too much dignity, of too much importance to me and my family, to permit me to divert it to personal or partisan discussion. I shall, therefore, not follow or attempt to reply to the remarks of my young colleague who brought my name thus before this House and the country. There are those on both sides of this House who have asso- ciated with me for twelve long years. The 4th of March, now rapidly approaching, will mark twelve years since I became a member- elect of the American Congress, and the 4th of next July will mark twelve years since when, on the threshold of the most eventful period of my country’s history, I took the oath of office. Since then the senior members of yonder side of the House, as well as many of the gentlemen around me here, have been my almost constant associates ; and, sir, were it proper I should adduce witnesses here and nov/, I would invoke, irr spite of past partisan or personal controversies, the testimony of each and all of them to my integrity ; but it is not proper. My case is not ready for argument. My witnesses have not been heard. The commit- tee acting as a grand inquest ignored the charges against me ; and yet I am showing cause why I should not respond by standing up for sentence. It is not proper, therefore, that I should now invoke your testimony. I may,' however, should the Congress of the United States so deny me the privileges ac- corded to the veriest criminal brought before any of the courts of the country — may and 13 will teach the boy who bears my name, when he shall meet any of you, to challenge you as to the blamelessness of my life among you, as to whether my habits have been such as to cause suspicion of extravagant expenditure or of the undue pursuit of wealth. It shall be his privilege to ask from any and all of you whether his father passed his life in your presence in luxurious or riotous living, whether he neglected his public duties for the pursuit of gain, whether his habits were not unostentatious, inexpensive, laborious, and whether for the best twelve years of his life he did not place, not only before him, but before his associates in every walk of life, the ex- ample of a life of labor and self-denial. What is now announced as the charge against me ? That I have accepted $329 as a bribe. Mr. Speaker, the last ten years have been said to be years of extravagant ex- penditure and profligate outlay of land and money. I was for four years a member of your Naval Committee when it was considering questions involving contracts for millions and tens and thirties of millions of dollars, but who here or elsewhere ever heard my name connected with the profits of a contract or the allegation that one dollar of my country’s money not received as salary for my services during that period stuck to my hands ? I have been for four years a member of the Commit- tee of Ways and Means ; a committee, sir, whose decisions touch more largely the pecun- iary condition of the country and the people thereof than those of any other committee of the House. On what question before that committee have I reserved my opinion until parties in interest might confer with me and determine my vote ? Have I ever failed to* be 14 outspoken on any question before that or any other committee of this House, or the House itself? It has been sometimes complained of me that I have been rash in the utterances of ray opinions and imperative in ray demands ; but 1 have yet to hear for the first time the suggestion that my opinions have halted until I could adjust them to the interest of others, nor do I believe there is a member of this House, or any one who has been a member since the Thirty-Seventh Congress organized, that ever entertained such a suspicion. In 1845, or early in 1846, I began to devote the leisure allowed me by my professional labors to bringing before the people of Philadelphia, and through them to the attention of the people of the country, the project of connecting the waters of Lake Michigan with those of the Columbia river and Puget sound. Asa Whitney had fascinated me by the grandeur of his scheme. It involved not only the construction of a railroad across the desert, but the peopling of that then almost unexplored region with the poor of the world. Connected with Mr. Whitney’s scheme for that great national and commercial enterprise was the magnificent and humane theory of bringing from the oppressed lands beyond the Atlantic, and gathering from the crowded cities of our own eastern States, each year a fresh array of laborers to cut the forests from around the base of lake Michigan ; to move forward with the construction of that railroad, and to leave behind, as its guards for the present and its patrons in the future, colonies each year, so that when it should be finished the mails to and from British India would drop their fat- ness in our land as they passed through the then thriving towns and cities of the Rocky mountain region. And from that day to this no scheme which promised success and pro- posed to unite the ports of the Atlantic with those of the Pacific has failed to receive my early, ray ardent, my most liberal support. We have granted lands by millions of acres. But who has said, who believes — nay, sir, who suspects, that one acre of those millions or the proceeds thereof have lodged with William D. Kelley, of Pennsylvania, or any member of his family. No man, sir; for ray life has given the lie to such suspicions. Says the reso- lution, he has been speculating in the stock of the Credit Mobilier of America. I denounce the allegation as false and unfounded. In the twelve years that I have been a member of Congress I have bought one bond, not in ray own person, but through my counsel, Henry C. Townsend, of Philadelphia, and through the same hand, without ever having seen it, have sold it ; and if that be specula- tion in stocks and bonds, then have I erred in denouncing that allegation. Now, Mr. Speaker, as I have said, the time has not come for arguing my case ; nor do I mean to do it. But a becoming respect to this House — and I desire to treat it with all due respect — requires me in suggesting the pro- priety of pausing long enough to make some inquisition into the correctness of the findings of the committee, so far as they relate to me, to say that if I have owned Credit Mobilier stock I have not known it. If I have received the dividends of Credit Mobilier, I have not so understood it. That I have owed Oakes Ames $1,000 borrowed money, I have believed. I have given the committee evidence in answer to the question whether it was not a little re- markable that I should permit the loan to stand so long — evidence very painful to me to disclose, but which in vindication of my good name I gladly disclosed ; that from cir- cumstances involving no culpability on my part my life during my whole congressional career has been a terrible struggle against adverse fortune — a struggle which has only been relieved by the kindness of generous friends who believed that if I could hold on to the building lots and land I had purchased with ray professional eavings they would be reimbursed and there would be something for the support of ray widow and children if I should be summoned hence. And in making that statement I have an- swered satisfactorily to my own conscience and to my own judgment for the delay that might otherwise have looked suspicious. Before your committee, Mr. Speaker, if 1 am permitted to appear before it, this will be among the evidence I shall adduce : that on the 7th of June, 1869 — mark you, gentlemen, mark you, Mr. Speaker — I am -charged with holding since 1868 Credit Mobilier stock or with having it held in trust for me, and with receiving from it or being entitled to receive dividends from it so enormous that they alone should have admonished me that the transac- tion involved in its purchase was not fair and honest — I say, sir, that among the evidence I shall adduce will be the .officers of the Trades- men’s Bank of Philadelphia to prove that on the 7th of June, 1869, there was withdrawn from a box, long on deposit in that institution, ten $1,000 Union Pacific railroad bonds; that they were carried by their owner to the parlor of the president of the Fidelity Trust and Insurance Company of Philadelphia, and in my absence left there as collateral security for a loan to be made to me by that company of $7,000 at six per cent. The understanding was with Hon. N. B. Browne, the president, that I was to pay the institution its fees for holding these bonds as a safe deposit, and that I was to pay them six per cent., and five per cent, to the owner of the bonds on whatever sum was loaned thereon, so that the $7,000 was to cost me, as long as I retained it as a loan, eleven per cent. , and ten dollars per annum as a fee for guaran- 15 tying the safety of the bonds. And the records of Philadelphia will show that on the next day, the 8th of June, 18G9, I put on record a mort- gage on unimproved and somewhat encumbered real estate to indemnify the owner of these bonds against loss by their use as collateral security for me. Sir, if I had known that I was the owner of stock and bonds of the Union Pacific railroad, I should hardly in my poverty have paid $360 a year for a loan of such secur- ities in sufficieiJt amount to save my property. Sir, this will be among the testimony that I shall offer, and the witnesses referred to are illustrative of the character of the many wit- nesses I shall produce. Sir, I pray nothing from the favor of my associates on either side of the House. I ask them to deal out nothing but equal justice to me, and in their own behalf I ask them to do it according to law. That is all I wish. What becomes of me is of little importance now. They who were old men when I entered this House, Stevens, Wickliffe, Crittenden, and others, have long slept the quiet sleep of death. They who are now the white-headed leaders of the House to-day were in the vigor of man- hood when we first answered the roll-call. I felt myself then to be a young man ; but with three years of broken health I approach the threshold of threescore years feeling that the strength which might add another ten years to life is not accorded to me. It is not therefore for myself that I plead when I ask you to main- tain the law and to give to me as a member of the American Congress those privileges which are secured to the vagrant, to him who is charged with petit larceny, or to the assassin who has deliberately murdered his brother man.