Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1872-09-28

The rull import Of the revelations con
tained in the letter from our Philadelphia
correspondent, published in the Sun Of the
9th can only be appreciated by a careful
reading Of the testimony of Col. MeComb.
The main points OF this expose are as iol-
lows:
Fhe Union Pacific Railroad, of which
McComb was one of the corp0rators was
incorporated in 1862 by act Of Congress,
From time to time this act was amended
until the subsidies bestowed on the Com
many in Government bonds amounted to
far more than the cost Of the enterprise,
while there was in addition a grant of more
than l3,O000 600 acres Of the public lands
The sworn testimony Of Col. McComb
discloscs 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
chises of Pennsylvania corporation,
known as the Pennsylvania Fiscal Agency
and changed its name to the Credit Mo
| bilier of america. Like many other con-
Germs chartered by the Pennsylvania Leg
| islature, this corporation seems to have
! had authority to do anything 1t chose. DR.
| Thomas C. Durant of this city seems to
have been the originator Of this scheme,
and to have organized the inside ring
as McComb terms it. DuGnt, Cornelius
s. Bushnell, Charles H. Lambert and Me
Comb took all the stock Of this Credit Mo
bilier, or the great majority OF it, and Du-
rant was made President. This was in
October, 1864 Durant was also Vice
President OF the Union Pacific Railroad
Company, and the other gentlemen were it,
principal managers \ contract had pre-
viously been made by Durant with man
named HoXie to build the first 100 miles O
the road Hoxe was, as McComb testi
fies, a mere hgure-hcad to represent The
Inside ring of the stockholders, t,
whom all the profits realized from the con
tract were to 30. There was danger OF in
curing personal liability under this ar
rangement. Hence the Ring organized tn,
Credit Mobiicr of America The HoNi
contract was transferred to the Credit Nc
bilier, aud thus officers and managers o
, the railroad were enabled to make a con
, tract with themselves, as the officers of tn
Credit MObilier, to build and equip til
!, road Under this arrangement, the stocb
holders of the Credit Moblier realized mi
lions of dollars The dividends during lS6
j, amounted 22O per cent
| Some time after the organization of tn
Credit Mobilier, Oakes Ames aud ie
other Boston capitalists were taken il
they were not wiling to allow Durant an
his friends to manage the concern. The
made a fight against Durant and final
e succeeded in ousting him. McGomb seem
: to have been friend OF Durant and h
a was marked for prey also,
Oakes and Oliver Ames, who are brotl
: ors, were the leading spirits in the Cred
u Mobilier in 1867. With their friends the
Q did pretty much as they pleased Tor
:, while; about this time some additional les
r islation was wanted from Congress. Oakt
! Ames was a member of Congress, an
" managed this business. The Ring was NJ
. making enough to satisfy them out Il
q bonds received from the Government. The
|, wanted an act passed allowing the um'
[, Pacific Railroad Company to Issue III
. mnrtaaoa handy with tho interest ouara