Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1872-10-03
HON J. T. HARRIS:
ERR. GREELEY ON CORRUPTION.

ley's speech at Indianapolis, which we
published yesterday. gave general idea
of the manner of his arraigpmeut of cor
ruption and pro6igacy in much of our
legislation. We give now full report
Of the speech, in view of its force and
importance Mr.. Greeley was introduc
ed hy Hon. D. W. Voorhees,. He said:
People Of Indiana: The Distinguish
Cd gentleman who just addressed you has
pronounced the two watchwords of the
present canvass. The first is reconcile =
ton the second is publication. l have
spoken heretofore on reconciliation. l
propose to speak tonight in the interest
of publication. Our country has recent
" encountered and vaDquished the peril
of disunion. She is to-day confronted
with the deadly peril of corruption. The
cancer is eating into her vitals, whereof
the essence is purchased Legislation,
bribed public servants and serious be
trayals of the highest trusts. will en-
deavor to illustrate her present peril by
simply recounting to you uuaeniable facts
which illustrate the history of legislation
by Congress with reference to the Union
Pacific railway. would fix your atten-
tion on this as sample of the means
whereby schcming, selfish, avaricious
mei contrive to glut their own greed
whilo they talk of public bene6cercs.
Ten years ago Congress passed an act
charteripg the Uuion Pacific railway
That act was intended and calculated to
secure connection by railway of our
Pacific with our Atlantic States. noble
purpose, and one which cannot but lie
strongly commended As it was certain
that private capital would net build a
road through 1000 miles of mountain
and desert. Congress resolved 10 aid that
enterprise generously. In the first place
right of way was granted, with the right
also to take material from any part of
the public domain. Next. large grant
was made in aid of the Pacific railroad
Thirdly, bonds of the government to the
extent Of $25, 900 per mile were lent to
the company 10 aid ofthis project, and a
first mortgage Oh the railroad taken there
for 1t was thus provided that the road
saould lie built with public money for
the public use by the charter OF the com
psny.
After few years. this project having
passed into the hands of capable, grasp
ing men, some of whom were members of
Congress was induced to authorize new
step was taken. Congress was induced
to authorize new loan in aid of this
pr ject, and an equal amount from the
government aid, thatis co say, to the ex
tent of at least $40, 900 per mile, and
then new loan was authorized to take
precedence Of the government loan, In
other words Congress relinquished our
first mortgage on the railroad and took a
second mortgage, authorizing the CON-
pany to make first mortgage Of equal
amount ahead of ours. Now, then, our
security was destroyed in this way, SO
that our investment was to be Of no
avail In little while private com
pany was somewhere chartered, entitled
the Credit Mobiler of America, and that
private company or ring was composed of
lot # active members of the Union
Pacific Railroad Company, some of them
members of Congress.
No list of the stockholders of the Credit
Mobller was ever published. or can be
obtained but these gentlemen proceeded
TO make contracts virtually with them
selves; that is to say, the same gentlemen
fhciating as officers of the Union Pacific
railroad contracted with themselves as
officers of the Credit Mobilier of Amer
lea, 10 construct the Uaion Pacific rail
road at enormo US prices, which absorbed
both tie bonds lent by government and
tho private loan of the company, equal
amount, which was made the first
mortgage en- all the property of the road.
In oiherwords, these gentlemen contract
ed with themselves to pay themselves
twice the fair cost Of entirely building
and equipping the road, and, building
road with the proceeds of the money lent
by the government, they proceeded to
divide among themselves the other bonds
equal to the amount for which Congress
had made a mortgage on the entire road .
BY these means $40, 900 900 Or $50, 900
900 were divided among the parties. and
all that money SO divided we are called
upon to pay. They divided the bonds,
and built the road with government bonds
which were second mortgage on that
company.
Now, you see these same gentlemen
~ no engineered through Congress this
project Of making the road cost double
ahat it should cost, and making half the
cost private dividend among themselves
these gentlemen now appear before
Congress for still further advan tages.
Congress had thus far reserved to the
country such sums as this railroad earned
BY carrying the mails and provisions,
&C., for the army Of the United States;
but the company said Mo- They said
fWe want to reserve half of the money
J gu can pay over halfof the money to Us.
Consequently, 10 March, 1871, by an
amedment fastened on an army appro-
priation bill, the Secretary of the Treas
airy was instructed to pay over to these
companies half Of the Lloney they earned
by carrying the mails and army supplies,
and only reserving half of those earnings
towards the payment OF the interest semi
annually, accruing on bonds due to the
United States So that on this DAY the
people Of this country are paying some
millions per anEum out of their hard earn
ings for interest on these bonds lent to
iLe Pacific road, paying this money as
interest to meet the vast sums divided by
these gentlemen among themselves, as
the dividends Of the Credit Mobilier Of
America.
Now. gentlemen, do not ray what
individuals have received this money.