The Republican journal., 1872-09-26

examiner in the aforementioned case
had Il meeting at his Office, 24l Soutl
Third street, in the city of Philadelphia
ON Monday, the 18th day of June, Isl
where he was attended 10y James T.. Cow
en- and Samuel &. Thompson, Es1s, fnl
complainant, Richard McMurtrle lor de
PENDANTS.
The sun, of Sept. 9TH, yives u synopsis
of the sworn evidence. with comments u,
follows:
THE INCOME REVELATIONS.
The ull imp r,it ef the revelations con
tanned IN thn letter from onr PhiIalelpha
correspondent published IN yesterdays
sun, can only he appreciated by Il care
iul reading of the testimony of Col. Me
Comb. The main points Of this expose
are rs follows:
The Union Pacific Railroad, of which
McComb was one of the curporaturs, Wa
Incorporated in 1862 bv act of Congress
From time to time this act was amended
until the subsidies bestowed on the com
panv in government bonds amounted tc
far more than the cost of the enterprise.
while there was in addition 4 grant ol
more than thirteen million acres of public
lands.
The sworn testimony of Col. McC Comll
discln1eS. first That n few capitalists. in
order to obtain control ot the vast Snms
of money which was to he realized from
the Government bonds. purchased the
franchises of PENNSYLVANIA corporation
known rs the Pennsylvania Fiscal Agency,
ana changed lis name to the Credit Mohi-
licr of America. Like many other con-
Germs chartered hy the Pennsylvania
Legislature. this corporation seems to
have had authority to do anything ii chose
Or. Thomas {. Durant. OF this city, seems
to have been the originator Of this scheme,
and To have organized the ''insidr ring" "
rs MeComb terms ii. MessrS. Durant.
Cornelius $. Bushnell. Charles l.. Lam
bert, and McComb took AL the stock OF
this Credit Mobilcr, or the great majority
of if, and purant was made President.
This was in October. 1864. Durant was
also vice-preSi1ent OF the Union Pacific
Railroad Company. and the other gentle
men were its PRINCIPAL managers. A con-
tract had previously been made by Du-
rant with Il man named lloNie to build
the FIRST one hundred miles Of the road
lioXic was, rs McComb testilies. a mere
il@urchead t. represent the ''inside ring"
OF the stockholders, to whom all the pro-
fits realized from the contract We're to 90
There was danger of incurrng personal
liability under this arrangement Hence
the Ring organized the Credit Mobilier of
America. The IIoxie contract was trans
lrrred to the Credit MobIier. and thus
the officers and managers of the railroad
were enabled TO make Il contract with
themselves, and the officers of the Credit
Moblier, to build and equip the road.
'ndrr this arrangement the stockholders
of the Credit Mobilicr realized millions
Of dollars. The dividends during 1866
amounted to 22o per cent.
Some time after the organization of the
Credit Mobilier. Oakes Amrs and few
other Boston capitalists were taken in.
They were not willing to allow Durant
and his friends 10 manage the concern.
They made a FIGHT against Durant, and
finally succeeded in ou,ting him. Me
Comb seems 10 have been Il friend of Du-
rant, and he was marked for prey also.
OalleS and Oliver Amrs. who are broth
erS. were the leaning spirits in the
Credit Mpbilier in 1867. With their triends
they did pretty much rs they pleased for
Il while About this time some addition
al Legislation was wanted from Congress.
oakcS Ames was Il member of Congress,
and managed the business. The RING was
not making enough to satisfy them out of
the bonds received from the governments
They wanted an act passed allowing the
Union Pacific Railroad Company to issue
first mortgage bonds, with the interest GUAR
anterd by the government, to ;ln amount
equal to those isSned hy the government.
But the govei nment held u first mort 1are
on the road bed and franchises of the COM
panY, and this must be retired and the gov
rrnment madet0 accept a second mort gage.
This Ames managed; bnt it required n
liberal distribution of Credit MobiIipr
stock to the leading Senators and Repre-
SentativeS in Congress.
The following letter from AmeS to Me
Comb shows how he made The distrihu-
tinn:
"WASnINGroN, Jan. 80, 1865.
"H. $. omb-DEAE SIR: Yours ot the
2Sih is at hand. enclosing copy Of letter from or
rather TO Mr.. King. | don't fear any nypSiig:l-
tion here What some of Dnrant'S friends may
do in New \ ork cant be counted on with any
certainty. You do not understand hv Your lei
ter what | have done and am To do with my
sales of stock. You say more to New York
have placed some with New York, OF have
agreed 10. You must remember that it WAS
nearly AL placed as You saw on the list in New
York, and there was but 6 or 3 NJ ior me 10
place. | could not give all they wantet, or they
might want ont of that. You wonld not want
me to offer less than one thousand Ny TO any
one We allowed Durant 10 place S,S. 900 to
some three or four OF his friends or keep il him
self have used this where it will produce
most goo'! To us think.
n of IA lott
move here, | 60 in for making one bond livid-
end in iulI. We can do il with perfect safety
understand the opposition To il comes from
Alley. He is on the Finance Committee. and
can raise money easy if we come short, which
don't believe we shall, and if we oo we can
loan onr bonds to the company or loan Them
the money we get for the bonds. The contract
calls for the division and say have it. When
shall see you in Washington?
Yours truly, OAKEs AMEs.
"P. S.-We stand about like this -
Bonds first mortgage received on 30
miles at $4,000 per mile. s., 400, 900
Bonds first mortgage received on II
miles. AT $4,000 per mile. T20 OG0
Bonds first mortgage received on 100
miles, at S4S.n00 per mile, 800 900
sl3,9a0o 900
2lo,0o0,ooo sold and TO sell to pay onr
slehts, 0000 600
50 800 900
EIGHTY per cent dividend on $1,000
600, C.. Mohilicr. 5000 900
1920 600
Government bonds received this day, $40 900
lDne Tor transportation S40o,000, one
half cash, 3O)00O
S2,0S0, ,0ON
I'm addition 10 this, we can draw Govern
mcnt bonds for two-thildS of the work done in
advance of The track, if we desire it,
The following is in pencil on the Ames
letter =
Oakcs Ames' list of names as shown to-
day to me for Credit Mobiier is:
blalhe,o oi Maine. 3.Wh
Patterson. of New Hampshire. 3 o0o
Wilson, Of Massachusetts. O0G
Painter u;ep.), for Quigley, :. 3.onC
=. Coif *. Speaker. 49,. ,00C
Scolied and Kelley, Pa. >. each) 1000
Eliot Mas >achuSctts, :. . UO(
Dawes. Massachusetts, 1000
Fowler, tennessee. -. 2.00(
| Boutwell,, Massachusetts. 1000
/, Bingham and Garfield, Ohio, (each 1900
! Indorsld: OAKEs AMEs, January, 80, 1868
On Jan. %, 1868, Ames had written tc
| Nnft fo11,