The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1872-12-28
THE CREDIT MOBILIER.
what &c n In France aud In the
Cnited stRtes.


what &c IN In France aud In che
United states.
From the Hartford Courant.l
Without at this time gong into the
history of the Credit Mobilier, whose
affairs 90 far as Congressman have
been connected with them are now being
investigated, we give, in answer to in
ouiries, something about the nature
and objects OF such a corporation. The
Credit Mobilier OF this country takes
it's plan Of operations as well as its
name from a similar company founded
in Paris about twenty years ago, on
the principle OF limited liability, and
sanctioned by the French Government.
The Paris Company was a joint
stock affair, the shares being made pay
able to bearer, and its capital Was CO..
OOO, 900 francs, and after the complete
issue OF this cap tai. it was authorized TO
issue its bonds for ten times this
amount. 1t WAS founded for the trans.
action OF a general banking business,
and its professed object was to aid in
constructing public works, promote the
development Of national industry, and
consolidate into a common stock the
shares and bonds of trading companies.
As NJ. Pereire, the French financier,
and one OF the founders o. the company,
expressed it. at is to play with respect
to the fixed capital employed in in
dustrv, q part analogous to that which
banks OF discount fill with re
spect to its circulating capital
The French Company WAS au-
thorized TO subscribe for and
acquire public securities, and
shares and bonds OF industrial enter
prises, particularly railroads, canals.
mines, etc. 1t had unlimited power TO
engage in the most extensive opera
tions, and it has been concerned in
many OF the famous enterprises Of
Paris, such rs the consolidation OF its
gas and omnibus companies, and with
great railway operations, extending
through mary European nations. NJ.
Berryer, one OF the prominent oppo-
nents OF the company (whose profits
fluctuated greatly from year to year,
and whose shares rose or fell with
every political excitement, and were
effected by financial Disturbance }
spoke OF it as "the greatest gambling
house the world has ever seen" Upon
the general plan OF this company,
though with some notifications, smi-
lar institutions have been founded in
Switzerland and the German States.
The American Credit Mobilier WAS
founded upon the came general idea.
The exact privileges or limitations OF
it's charter we do not know. The pow
ers granted are doubtless a. extensive as
its ambitious and liberal founders could
obtain from an accommodating Perm
sylvsnis Legislature. It's first great
enterprise was the building OF the Union
Pacific railroad. OF course, a. many
OF the prominent men in that enter
prise were also among the stockholders
OF the Credit Mobilier, it was easy to
secure favorable contracts. Taking the
bonds allowed tor each
mile OF road, and the other resources OF
the Union Pacific road, it was easy tor
the Credit Mobilier managers to cslcu
late upon large profits in the construc-
tion OF the road. II they could give
that dividends would speedily
amount to one hundred per cent. it was
an attractive stock to hold Favorable
legislation for the Pacific road by Con,
gress wonld. OF course, be 10 the advsn.
tsge OF the Credit Mobilier The mana
gers OF one played into the hands OF the
other and vice versa. ia Congressman
held stock in the Credit Mo5ilier which
be had given his note for, he would
naturally be very glad to have the dvi-
dends cancel bis notes at maturity.
The holding OF stock might influence
his vote upon railroad legislation under
OF course the proper
way would be for him to decline to vote
upon a matter in which he had large
pecuniary interest. Just what relation
to legislation, il any, the distribution OF
OF the stock OF this company bad, the
investigation now in progress hopes 10
ascertain. The general character Of
the Credit Mobilier corporations il all
we intended TO speak OF 10 this article.
This is given in the description OF the
French institution which we have given