Wilmington daily gazette., 1872-09-05
rne KING OF FRAUDS.
How the Credit MobiIier Bought its
Way Through Congress.

From 1000 TO 5000 SHARES EACH TO HENRY
WILSON. SCHUYLER CoLFAx, GEoEaE ), Bour-
WELL, .JoHN A. BINGHAM, JAMES A. GARFIELD
THE PAT TkRsoNs, ErfOT, BROOKS, DAWES AND
JAMES u. BLAINE.
Correspondence Of the New York Sum-.
paILADA, Sept 3 The revelations contained N
III, sworn testimony accom- mpany ing this need no eA-
nlanatory Int reduction 1t is the NEST ,.sinaun
exhibition Of Official and private villiany and cor
ruption ever laid bare to the gaze OF the world
The Vice. President Of the United States. the
Speaker of the House Of Representatives, the
chosen candidate of u great party for the second
highest Office in the gift of the people, the chan
man Of almost every important COMMITTEES in the
House of Rspresentatives-all of them are proven,
by irrsfutable evi ionce, to have been brlbed
Surely, after tins exposure, no man who has any
respect for the honor OF his country-any love for
our institutions-will by his vote aid to maintain
these men III place and power. Ii there was room
for doubt in this case, for one would BE- in liz
vor of giving these the benefit of it, for it s
almost beyond belief that our public men could
have fallen SO low. But there Is no rscapine tn,
conclusion that they are guilty
The public has long known, IN vague sort c
way, that the Union Pacific Railroad was ri.,n
tic steal. The subsidies IN bond- alone gwen ~
the Government were sufficient to hnili and cuuip
the road. Yet. in addition Ia tins Congn 81 l..
ed an act allowing the company to isslca 1a.i
mortgage bonds. aud coWpeing the t,ov.inththt
to accept II second mortgage as .e,urity iol ,he
millions OF bonds guaranteed by 1t. Nor w,. thu
all, Slens Of millions oi acres of the phhn' 10
main were thrown III rs another nice hc,lun,l t,
this corporation The evidence printed i.l,,u
shows into whose hands all thIs piundcr frlt ir,N
1t enriched favored lew, who stiil cvn,iuin, l.,
grow richer and richer ns the valuable lands " in9
along the line of the road thrown upon III"
market.
A half dozen men, by buying up a pennsylvsnn
corporation known the pennsylvania FIs,aI
Agency and changing its uame tu the Credit Mo
ber OF America, got control of the Union PacIiir
Railroad, and made millions upon m,l!ions ol dol
lars in building and equippns IT. They still con
troll Il, and as Mr.. McComb says below, the stock
holders outs de the Credit Mobilier Of Ampric, |
shave not and never will receive u cent Of div,- !
dsnd." The history of the SUIT which is the means
Of giving this exposure to the public Is somewhat
curious. 1t seems that Henry $. McComb, who |
has filed = bill in equity IN the Supreme Court OF |
Pennsylvania against the credit Mobilier was ono
Of the original corporators of the Union Pacific |
Railroad Company, as well one OF the favored |
few who got into the inside ring. He was All ac.
tive manipulation of both the railroad company and
the Credit Mobilier and, as will be seen by In,
testimony, he made piles OF money out of BOTH !
But some OF his good friends, it seems were not
willing tina. he should have all that rghiully be-
louged to him. He had subscribed ter 30 shares
-$25O.OO0 wOrth-of the stock OF the Credit Mo-
bilier of America for H. u. FAINT, then OF
Richmond, Va, now of Washington, ID. c. He |
gave his draft FAINT to the treasurer OF the co.
pany in payment of this stock; but FAINT failed TO
honOr Tue uIaIt, anu tnus Threw tne ioau on Nc
Comb. Mr. McComb knew there u big thing
in 1t, and he had the cash to spare, he agreed to
take Fants stock.
But there was some difficulty at the time about
ali imperfect power Of attorney from FAINT, ami
when that corrected the President was out
West and there was no certificates signed Be
fore the President returned he had bsen deposed
by another faction headed by Ames, aud the stock
had become so valuable that they determined to
cheat McComb out of his stock lie demanded
1t time and again, but the Aues faction wouid
not let him have it, He then threatened to brine
suit This made them tremble aud promise tair
but never brought them to terms. They explain
ed to HIM that it had been necessary t. use all of
his $50 shares and great deal more 10 keep cel.
tain members OF Congress right and told hm
that he had bean benefited thereby and ought to
bear his proportion OF the loss. THIS explanation
seems only to have increased McComb's deter
IMITATION to force them to settle with him He
had adroity drawn two letters and several verbal
statements from Oakes Ames. explaining how he
had DIST iouted the stock among the prominent
members OF Congress, and he determined to use
this informati ION To bring Ames and his faction
who are still controlling the company, to terms
Accordingly. in 1869. he filed his hll III equity IN
the Supreme Court OF Pennsylvania After !,
great deal OF man9uvering the counsel Tor Me
Comb applied for an examiner to take testimony
In the case A. Wilson Norris. OF fMmdelphr,
was appointed, and the testimony of McComb has
thus far been taken. BY the most singular chance
this testimony has been placed Ill my hands. aud
l hasten to lay 1t before the SIMS million 1t
readers.
The testimony makes fourteen columns OF the
Sun, and Is too vouminous tor our columns.