The home journal. (Winchester, Tenn.) 1858-188?, 1872-10-03

York SuR are genuine documents, sub
miucd in his own handwriting in the due
course of trial still pending before an
Examiner III the Eastern District of the
Supreme Court of Pennsylvania duly
authenticated ON oath and confirmed by
sworn testimony
From the Now York Sun.
The full import OF the revelations con.
tanned in the letter from our Philadelphia
correspondent, published in the SIM of the
Gth can only be appreciated by u careful
reading Of tire testimony of Col. McComb.
The main points Of this expose are rs fol-
lows:
The Union Pacific Railroad, of which
| McComb was one of th" cOrpOratOrS, was
incorporated in lSG2 Ivy act of Congress
From time to time this act was amended,
until the subsidies bestowed on the Com
puuy in Government bonds amounted to
far more than the cost Of the enterprise,
while there was in addition grant Of more
| than $4,000 600 acres of the public lands.
The sworn testimony of Col MCCOmh
disrIoScs, first; That few capitalists in
order to obtain control Of the vast sum OF
money which was to be realized from the
Government bonds, purchased the fran
| chscs Of a Pennsylvania corporation,
known rs the Pennsylvania Fiscal Agency,
and changed its name to the Credit Mo
blicr Of America. Like many other con-
Germs chartered by the Pennsylvania Leg
lsIaturc, this corporation seems to have
had authority to do anything it chose Dr.
Thomas e. Durant of this city seems to
have been the originator Of this scheme
aud TO have organized the inside ring
aS McComb terms it. Durant Cornelius
5. Bushnell, Charles l.. Lambert, and Nc
Comb took all the stock of this Credit Mo
bilicr, or the great majority of it, and Du-
rant was made President, This was in
October lSGi Durant was also Vice
President OF the Union Pacific Railroad
Company, and the other gentlemen were its
principal managers. A contract had pre-
yiousIy been made by Durant with man
named IIoNir to build the first 100 miles of
| the road IIoNic was, as McComb testi-
ics II mere ilgurc-hcad TO represent the
" inside ring Of the stockholders, to
whom all the profits realized from the con
tract were to 90 There was danger OF in
curing personal liability under this ar
rangcmcnt Hence the Ring organized the
Credit MobiIirr of America. The lIoXlc
contract was transferred to the Credit Mo
biIicr, and thus officers and managers Of
the railroad were enabled to make II con
tract with themselves, as the officers Of the
Credit MobIicr, to build and equip the
road Under this arrangement, the stock
holders Of the Credit Moblcr realized mil
lions Of dollars. The dividends during 1866
amounted go per cent
Some time after the organization of the
Credit MobIIicr, OakoS Amcs and Il few
other Boston capitalists were taken in.
hey were not willing to allow Durant and
his friends to manage the concern. They
made fight against Durant and finally
succeeded in ousting him. McComb seems
to have been u friend OF Durant, and he
was marked for prey also.
Oakcs and Oliver Amcs who are broth
crs, were the leading spirits in the Credit
MobiIcr in lS67 With their friends they
did pretty much as they pleased for a
whjlc about this time some additional leg
isIation wa wanted from Congress Oakcs
Amcs was u member of Congress, and
managed this business. The Ring was not
making enough to satisfy them out the
bonds received from the Government They
wanted an act passed allowing the Union
Pacific tailroad Company to issue first
mortgage bonds, with the interest guarnn-
tCcd by the Government, TO an amount
equal to those issued by the Government.
But the Government held first mortgage
ON the road bed and franchises of the
| Company and this must be retired and the
| Government made to accept u second
mortgage, This Amcs managed; but it
required liberal distribution of Credit
MobiIcr stock to the leading Senators and
Representatives in Congress
On JANUARY %, 1865, Amcs had writ
ten to MlcCOmb as follows about bribing
members Of Congress
MAsuINrru~, Jan. -, 1858.
II. :. MCCOMH, E@I mar SW: ours Of the Ih
lsat hand in which YOU say senator, liayarl ana
Fowler have written you IN relation olnlr STOCK
have spoken to Fowler, but not to Bayard
have never been introduced to Bayard but VIII see
him soon. lOu say must not put TOO mucll IN one
locality. have assigned rs iaI IT, have gwen 10
-luur from Massachusetts,; on" from New hamp
shrr: one. Delaware: one, Tennessee. onc-half,
OHIO: two, Pennsylvania one. Indiana; one.
Maine: and have three lO place" which shall pul
where thry viii do the most good to Is | am here
on the srot. and can better Judge where they should
90. think after this dividend 1, paid We should
max" our capital ti0m.1" and Distribute the ntw
stock " her" II will protect MS. Let them have the
stock ut par and profits made IN the iuturc. me
6l per cent increase ON the old stack want for MS
ributiun here, and soon, Alley lS opposed TO the
tIvsiun of the bonds says we Will need them, 6c.,
Ec. | should think that We ought To be able To
spare them with Alley aud CISCO On the Finance
Committee. We used to he able To borrow when
"" had no credit ana dents pressing: we are now
about the bond dividend part OF the purchasers
mere are ruur, and want their bonds to sell to ena-
bile them to meet their payment ON the stock in the
e. VI. have told them what they would get as
dividends, aud they expect | tnnk-when the
bonds the parties received aS the ~ crrcmt, divi
hCnd. we better give them the bonds. II VIII not
amount tn anything with us. som" of the large
holders will not care whether they haye the bonds
or certificates or they will lend their bonds to the
Company. as they have done before. or lend them
money. Quigey Ia, been here. and We have got
| Thai Gnc.trnth that was l'ndrrwuOds. | have ta-
ken a half, QuiglCy quarter and you quarter.
Judge Carter wants II part Ot it, At some future
OAKES AMES.
The following letter from Ames to Me
Comb shows how he made the distribution
WAsuIHGroS, Jan. ~ iSiS.
n : urCouu. mar Sir: Yours of the 18th isat
hand incOsing copy of letter from OF tnner tU % nI
King don't fear any INVESTIGATION hsr"; Wmtt. ru
SOM, of Dmrlnt's friends may dc IN New lprh
cant b. counted ON with any certainty, roy uo
not understand by your letter what nav nav nr w"
to New York. | have placed some WIN NsM
Work or have agreed to. NOu must remember
that ii was nearly all placed as you saw on the list
In New York aud there was but OrS VI for me To
uincp | could not give all they wanted or they
might want out Ofthlt. Nun would not want me
10 offer less than one thousand NJ to any one. We
allowed purunt to place $500 To- some three or
four of his friends, or keep II hinI-elt have used
this where IL Will produce more good To uS, thinK
In view of Kings letter and WaShburn's move
here, go in for making one bond dividend III iull.
We can du itwith ppriecis afety. UNDERSTAND Tue
opposition tn 1t comes from Alley. lie Is ON the
Finance Committee, and can raise money easy II
we come short which | don't believe We shall, and
If we do we can loan our bonds to the Company uI
loan them the money VIC get for the bonds. The
contract calls for the division, and say have II
When shall | see you in Washington?
Yours truly, OAKES AMEs.
p S-We stand about like this:
Bonds first mortgage received on ID miles,
at sliuD per mile, sNhc,N
'o',' at .isI" per mile. 1000
at as JuG per mile, $4,000
| si3gNn'
SiUNOyp0 sold and to sell to pay our debts, 100000
sSoAic