The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1872-09-19
STARTLING: SliIIIliR TIIl.IIHl I !: ::IRlEI:VlIIElLiHONi IRlI:VlII ! /

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An Astounding Tstory sof' Congressional
Corruption-- Inside View of the Pacific
Railroad Ring---Three Million Dollars
Divided Between sThirteen Members OF
| Congress---Onr 0wn Piotis and Patriotis
Congressman Interested.a ify4anau altl =,
| IFrom the sun. September 81
The full import Of the revelation
contained in the letter from our. Phil
adelphial correspondent, published IN
yesterdays Sun, can only be apprecl-
ated by Q, careful reading Of the testl-
mony of Col. McComb: The main
points of this expose are as follows:
The Union Pacific Railroad, OF
which McCetnb was one of the corpo-
rators, was incorporated IN 1867 by
act of Congress From tins, to time
this act was amended, until the sub
sides bestowed upon the company in
bonds amounted to9far nlore,t than the
cost, of, the snterprise, while there " as
in addition a grant of more than ll3,-
100000 acres of the public lands.
9Tihe Sworn testimony of Colonel
Ne Comb disclosesy first 81 That a few
capitalists, in order to obtain control
of the vast sum of money which was
to be realized from the Government
| bonds, purchased the franchises of a
Pemnsylvania icorp0lsation, known as
the Pennsylvania, Fiscal sAgeneys and
changed its name to the Credit Mobl-
lier Of America. Like many other
concerns chartered by the PenHsylva-
MIA Legislature, this corporation seems
to have had authority-to do anything
it chose. pr. Th9mas z. DqEant, ..pf
this city, seems to have been the orig
if1ator Of this scheme, and to have or
ganized the eineide ring as M6Conab
terms it, Durant, Cornefins S.eBush-
nell, Charles L, lambert and Mcttomb
took all the stock of this Credit Mobi-
lier, or the grcat majority of it, and
Dafarti was made president. This
was sin Oct6berp 1S64.i q DnrantO was
also VicerP President of the1U Union Pa
cific Railroad Company. and the 9th
er gentlemen were It's. principal man
ayers. aisA contract had previously
been made oby IDurant with asiman
namedt; HoxieI TO build the first 100
miles, of the road mo- Hpxie was, as Nc
Comb testifies, d mere fgure-head to
represent the !" inside ring of the
STOCKHOLDERS ,gtoa whom all the profits
realized from the contract were to goi
There WAS danger of cincurripg g per-
sonaI liability under this arrangement.
Hence the ring organized The Credit
Moioilier of g Americas. hsFhe Hoxie
eontfact was transferred the
Mobilier, and, thus the officers and
managers of the railroad were enabled
to make contract with themselves,
as the officers of the Credit Mobiliei,
to1builtb aniis equip the road Under
this arrangement, the. stockholders of
the. Credit ;Mobilier realized millions
of dollars. The dividends during
1866 aniohnted to 220 per cent: ''''
Some time after the organization of
the Credit Mo biliers Oakes iLAmes1and
"a few fother Boston capitalists were
taken in. They were not willing to
allow SDurant and his friends. to man
age the concern. They madeia fight
against Durant, and finally succeeded
in ousting him. McComb seems to
have been 2 friend to- sDqrant, and he
was marked for spreV,als lso,a -.-,fT,Y
: OaKes and Oliver Ames, who are
brothers, were the leading spirits in
the Credit Mobilier iii 1867. With
their friends they did pretty much as
they pleased fora while. atAbout this
time some: additional Legislation was
wanted from Congress. Oakes, Ames.
was a member of Congress, and man
agedit business. The ring was not
making enough to satisfy them out of
the bonds received from the gGoyern-
meflt.. They wanted am act passed al
lowf3g atIe Union Pacific Railroad.
Company gtoD issue. first mertgagei
bonds, with, the linterestngua
by the GoYernment, to- am amount
equal to those issued by the; Govern,
me1It. But the Government held a
first mortgage ON the road bed and
franchises of: the company, and this
must be retired and the Government
made to accept a second mortgage.
This Ames managed but lit required
q liberal distribution. Of Credit Mobi-s
lier stock, to the leading Senators and
Representatives. in Congress.odl 10 115
The following letter from iAmes to
McC Comb shows how he ruadc7 7th6dfss7
fribntion s5tosiujitaHt nsoiidng
bee .sn4lll IjWAsHISGToE.oJans an so, 1868. .3s
= 1stk & f sfn sPla9 Of the ssth Is at hand, en- en-
closing copy of the letter from, or rather to, Mr.
IsSf aa n sre
York can,S be counted on with any eftainty. |
You do not understand bysyeur letter what II
aRa e sve ps
with New York. OF have aereedtol You must
ssw S thss Il an and esrs
six eight n for me TO place, II could not give
al they wanted. 9E they might Fant ont Of that at
(hI) 10 anyoneD We allow Durant to place
$5soo0 to some three or four of his friends or
sseR y sse aays q ai
: 1 in view of Kings letter sandl Washburn's
& heFs 5Ss L ssas ae
derstand theopposition TO- itcapAe from Alley.
He is on the Finance Committees apd can raise
lieve we shall; and If We do we Gam loan our
bonds to the Company. pr loan them the money
Ess sde Rave 81 %aS
you in Washington iBa0i3aE to ssJ9Jig : 4
ps Y0uFs We tyay ssSbd about like this AkHs A4Fs'
Bonds first mortgage reeeivedioh 525 is9I--ill
6a1e miles rs as $1see0 per rscs;5s mls On
teen miles, at Sas'00o per niiieli Tso 600
Bonds first, ,m0rtgage received on10eoty g i
miles At s4S,VVo per mis- f,s1isfsrc
Total... ...!llG.ss. . LIS $is,saO, 900
$40, ,0O0, 900 sold and TO sell to pay oir
4 SsPfi Stffi - 1iifia5id i.0iiii --.~sY,GY1
EirSsS salSfSs nsf cent dsiea Sn.s ,oo sz0pOV
093 Credit AIoBilier. .s.3!t. ~. 8 600 coo
Lsgtn hhBa s3 bHs,6 @ailsH soso ooo |
Government % B01lit ie1tivc his lily % $4,000
Duo from tninsiSoftstion $auos 3sieoi4 ol J
casslh,,ftTua rrOi% ai3s1:s,,i,-tf 10 se1Vys
Totai!. ,ua GsLe -.li Lac .s!ll 9, ,0so 600
Z In adition 70 this we can draw Governnient |
Ssnss Pf Ss srass arc Sftk
!. The following i IN IN pencil on the
= = nles ' ieS isttSSt' al at0d .IslagaTGk "a III
0sSss 9 Sf A%e5S sit i5 9h fesTs shown
BLATxE. of Maine s..l.s 9!!i III. aG..qa.l COO
rATEGssoS s5 q Msw sSSSSS
PAINTER, (Rep.) for Qulgley. ............. eco