4112                   U. S. PACIFIC  BAILWAY   COMMISSION.
~Q. And the four bonds paid for a liability which represented a valid liability, if you got those four bonds J There are four bonds charged to you for existing liabilities.—A. Yes, sir; I never received anything from the company excepting for full consideration.
AS TO ME. BAT'S INTEREST.
Q. Was Mr. Day similarly interested with yourself?—A. He became interested, I think, later on. I am not quite sure it was later on ; not much later on, but somewhat later on. He had an interest in this contract, and in that shape he became interested. He paid in his amount. Finally that was abandoned and he received his stock for what he paid in.
Q. His statement of what he received appears to differ from yours as to the proportion of money, bonds, and stock. Is it not your recollection that you and Mr. Day received bonds in the same proportion according to the interest you each had in the company ?—A. Those who were interested at the time and who had put in the $600,000 were all exactly the same. Whether Mr. Day became interested after that or before that I do not know. I cannot tell about that. If Mr. Day has made any statement that is different from what I state, he is laboring under a misapprehension.
Q. How familiar have you been with the operation of the road from the time it was completed down to the time it was sold through Mr. Ames ?— A. I have very little familiarity.
Q. What is your general understanding as to its financial condition ?— A. I know I used to ask Mr. Ames. Mr. Ami s—I mean the present Governor Ames—always canied a little memorandum book in his pocket, where he had noted the earnings of the road; and once in a while he would show them to me, and I would express my approbation or my disapprobation, whatever it was, and it would soon pass out of my mind t again.
Q. Was it not notorious among all of you, between 1870 and 1878, that the business of this corporation was very poor, and it was under financial embarrassment ?—A. We were certainly very poor, and I think it must have been a notorious fact.
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DEFAULT ON  FIKST-MOETGAGE COUPONS.
Q. Were you not in default on your coupons of the first-mortgage bonds ?—A. We were in default for, I think, three and one-half years or four years.
Q. Do you remember when you funded them ? Was it not in 18791— A. I think, upon reflection, it was; yes, sir.
Q. So that you were in default right down to 1879 !—A. We must have been.   I can recollect now.
Q. Who drew that funding mortgage ?—A. That funding mortgage was drawn by Mr. Henry Day, I think.
Q. Did you have any of the first-mortgage bonds of the company at this time?—A. That I cannot recollect.
Q. You do not remember whether you put in any of your coupons or not?—A. That I do not remember.
Q. Did you get any of the income bonds ?—A. Upon reflection, it appears to me I did get one for unpaid coupons, as it occurs to me now. It had my signature to it, and I gave it to my daughter as a memento. That comes back to me.   I think that came to me.