Centre Hall reporter. [volume] (Centre Hall, Pa.) 1868-1871, 1871-02-03
passed. and the govcrnmcnt has lost

Its security forever
The next step taken hy the corrupt |
parties TO his scheme was TO organize
n corporation called the credit nohi.
lier. With this corporation they, MS
individuals, deposited the money they |
had gained BY building The road, for
the government had donated 10 them
much more money than sufficient 20 |
defray the whole cost of the roadway, |
plant and equipment, Next, as cor. |
porators Of roads they borrowed this |
money from the credit mohlier, aud |
gave the latter, ia return. bonds OF the
companies secured hy first mortgage |
ON the roads, which first murtage has
u lien prior 10 all others, including
the claim of the government for the
millions il had loaned This transae,
tion was seen through at the time, and
characterized rs corrupt as the others,
Oakes Ames was one OF the ring lead
ers. Oaks Ames was charged with
fraud, and Oaks Ames VAS again de
Tended by the radical press as a pure
man. Mex, step the obligations CIV
en- by the companies to the credit mo
bilier. Was sold in the market, and
the proceeds pocktted individually
hy the conspirators.
The corporators Of the companies
thus became possessed, for nothing, OF
some twenty millions cash profits IN
building the roads, aud the cash avalls
of all the first mortgage bonds and the
stock and, in addition. first lien
covering the roads themselves, IL
was now only necessary TO create pub
lie distrust concerning the financial
standing of the roads, in order to pro-
duce a panic in the mortgage bonds,
and buy them back for song, after
selling them at putltd-up prices. No
sooner had the hold OF the government
upon the roads been got rid of by leg
islation than the companies stopped
paying interest 10 the government.
This accumulation Of interest was per
milted 70 20 on until il amounted to
81, 402, ,662. Then. and then only,
did Mr.. Boutwell, demonstrate.
This was the opportunity awaited
by the companies. They not only
refused to pay but they LEI out the fact
| Tor liel that they were unable to pay.
On top of this. their ringleader, Oakes
Ames, fails in business. Oakes Ames
is not only q member OF congress and
Pacific railroad eorporator, but the
principal Of the Ames manufacturing
company, and the Ames plow com
pany, with patent interest in the firm
OF Oliver Amss II Sons, and endless
other concerns. Suddenly the plow
company, biggest concern Of all, stops,
and the reason alleged is that Ames
has been carrying two millions Of Tn
ion Pacific bonds. At the same time
namely, within the past forty y-eight
hours-Pacitic railroad bonds fell
from high price To twelve. aud n pans
ie existed il the market This i at,
tributed 10 the failure Of Ames. The
game is double one. Anes says he
failed by reason Of the decline IN Pa
cifc bonds, while the decline in Pacii-
ic bonds is attributed 10 the failure Of
Ames. Doubts are now thrown out
that the interest on the bonds due will
be paid.
The result il that the schemers buy
in the bonds at tithe of what they
sold them for. Doubtless this was
done yesterday, and Oakes Ames and
his eonfederates, or their wives and
aunts, control to-day the bulk OF the
coveted securities. In all probability
the interest on the bonds will not be
paid, the mortgages will be foiecloscd.
and the road sold at auction 10 the
highest bider, who, Of course, will be
the impoverished Oakes Ames and his
coniederates, or their wives or grand.
mothers. The aggregate sum realized,
from these defrauding transactions
cannot be less than Sl50,00O, 900 IN
cash, besides all the transcontinental
railroads and their equipments, aud
$4,000 square miles Of land, consist
ing of alternate sections of these roads,
eleven miles wide and stretching from
the Mississippi direct TO the Pacific
ocean. This mighty nrize is the fruit
purely of radical fraud and corrup-
ton. Ii far transceuds in value and
Importance the Mississippi bubble Of
John La s. and all the values repre-.
sented by that famous scheme.
II cannot be doubted that the uni
versal execratiou which at length be-
fell the Mississippi scheme awaits
alike the Pacific railroad scheme
Ii cannot be doubted that justice, will
visit upon the corrupt Ames and his
fellow conspirators in and out of con
gress the same ignominious fate il Wis
I tied upon Law but, meanwhile, the
outraged rights Of a cajoled aud swim
died nation demand something more.
Ames from the house Of representa-
tives. They demand the impeach-
ment Of Boutwell, for suffering the
fraud to 90 on until il assumed its
present gigantic proportions. And
they demand the quick removal from
power of every other man in the gov
erument who connived at this colossal
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