New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-09-07
THE CREDIT MOBILIER.
GRAVE CHARGES OF BRIBERY AND COR
RUPTiON.
HOW THE UNION PACIFIC RAILROAD WAS MAN
AGED-BUYING CONGRESSMAN.
Pora TA< Yesr York SHA


Tho fru import of the revelations contained
in tho letter nom our Philadelphia correspondent pub
ushed in Yesterdays sum- only be appreciated DS
careful reading OF the testimony OF Col McOOmO' Al"
main points Of this expose are as follows;
The Union Pacific Railroad, Of which McComo was
1 20 tbe cornorafors was incorporated in 1862 by act
of Congress From time TO time this act was eTD
until the subsidies bestowed on the Company IN
ment bonds amounted 70 far more than the cost Oh o
enterprise, while there was in addltioh sIaiitoi i'
thaS is ogO Ie@opy Of COL McComb discoses first
That few capitalists IN order 70 OBTAIN O from the
Government bonds purchased the franchises OF reni
Agency and changed its name to the Credit Mopet U
America Like many ether concerns chartered Dy 'f t
Pennsylyauia Legislature, this corporation seeLns W
have had authority TO do anything 1t chose III
c. Durant OF this city seems 70 nave 9 t " inside rne
as McCOmb terms 1t. Durant, COrnenuS ?; DusIol,
Charles l. Lambert anu ST eat majority of it, and Du-
rant was made President This was IN OCooer, I1;
Durant was also VicePresident OF the Union
Pacific Railroad Company and the otnef Seeo
its principal managers. eOhIsU o6 "a" H6Te to bnd the
made by Durant with man naneu fo ~ testi
first 100 miles Of the road. Hoxie WAS as McSonp , 70
nes mere fgurehead 10 represent the INSIDE ring Oh
the contract were go. There danger OF ncurng
Ring Organized the Credit MobilieT of America The |
Hoxie contract transferred 10 the Cred niopleI
enabled TO make contract with themselves as the on
GERS of the Credit MOber, TO build and equip the roau
Under this arrangement the sockhoders OF the Creut
during 1866 amounted TO 22O per cent.
SOME time after the organization of the Credit Mo
blier Cakes Ames and a other Boston capitalists
were taken in. They we're not willing TO allow DuIant
aud ms friends to manage the concern They made
fight against Durant, and finally succeeded IN 0ustng
him. McCOmb seems TO have been friend OF DuranN
and he was marked for prey also. -, -. ,,o |
leading spirits in the Credit Mober in 1867; With their
friends they did pretty much as they pleased Tor Wilt
this time some additional LEGISLATION was waneu
from Congress. Cakes Ames was member OF congress
and managed this business The Ring was not lah h
epoug 10 satisfy them Of the bonds received from te
Government. They wanted an act passed allowing the
Union Pacific Railroad Company to issue hTst mortgage
flta
10 AN amount equal 10 those issued by the GoveTnmen
But The government held mortgage on the road
bed and franchises Of the Company and this must be
retired aud the Government made TO accept sec9 9
mortgage. This Ames managed but ~ required di o
eral distribution Of Credit MObier stock TO the leadlng
senators and Representatives in Congress -, -,
The following letter from Ames TO McComD shows now
he made the distribution; ,r.o-ov Ian N 1864
HSMcCovu-Dear SIR Yours Of the zslh is at hand 9eosng
copy Of s,I s OF Of Ias friends may do IL Essok can't be
counted on VITA any certainty Zoo 90 .G ~ oc Ycu saw more to
N@Yo have placed with HwlOrk or have agreed TO- You
s T,3ssT , Va, S S S'a or io Pc e place
icy san o. e{ @s M Soi any one We SLOWED
Place go .G@i i s D 5 SS5 1 r6Od H
View k wsSr move c her. ! g n for T 91df
rd he opposition Alley He on The finance Com
e e IH s and we DO bond, to the Company Or
sisoS and say have Whea shall see you whDg.on
Bonds fret oTgsge received 5S miles $4,000 per M mn
Bond. G, mortgage received 90 Is mile. per
Bond, ir nor gage on $4,000
'''''''''''''' 'f
sIooOoo sold ard to sell to pay 100000
s597O00
Ish per cent dividend OF $4,000 c. MObsr.. 2Ooooo
$4,000
GssiEs 1 bond. sa 90 Sass 5000
IN addition to ,h. We can draw Government vCthds Of
the sork dore IN advance Of the track II we desire it,
Tie following Is in pencil ON the Ames letter; 10.
Amess list II names As shown to-day TO me for Credit
b. ne 1900 Eliot M,;.,eh1',t 300
Wilson ns1sgss, F Ro~ 1908
= Cola 2O0 Bingham and GARFIELD o.. ca 1000
S''A'' anu A'-' niorsed: OAKE, ArE, 30. 1868.
On January 25 1868 Ames had written to McComb as
follows about bribing members Of Congress: o. ,oeo
YOU sy s,rof Tsc written il 1,l relation 70
Their stock ave spoken no 70 fT eO linn O soon You saw must not
Hq, in one locality 6ay 5 isf S a Iss S1 One
spdI have i1s to place which pot
most good am here on III, SPOT and can better Judge where e
sScsoO stock where will protect US Let
T e ' he B' stoR want oT ds5uo here
A . 0go 70 f 5Sn we ought ss 0o o Be- ale spare them
viii Aey Cisco the Finance Committee We used 10 be able 70
o sn sisp S & What say you about the dividend
S.s S Ss P5'4 meet ts sIS PAYMENT S on the stock the n
@ them sh @s would get ,s 9ass en- OS 80 pe4 e5 DIVIDEND We
When The eIP ne & n s mot amount % sSything with us
some Of the q whether they have the bonds
ersea,es or t vii lend their Company, they have
s bat Oaeeui6 have taken half ougIsy
JUICE CARER wants part At future day
rena,r part 10 Yours truly, OAKEs AIMS.
The act SO much desired by tie Inside ring" was
passed by Congress as everybody very wen Knows. an
act twice inqUOus could have been pulled through
when Wilson aud Patterson in the Senate. aud the
Speaker OF the House. Mr.. COliaX and Messrs Blaine,
sco6ed Kelley, Dawes, Eliot. Boutwell,. Bingham, and
Garfield been bbed, Alnes declares they were.
They were the most prominent and influential men on
tbe Republican side of the House. Dawes being then
Chairman Of the Committee on Elections, ana Sconed
chairman of the Committee Revised and Unfinished
Busines4 Boutwell, was on the Judiciary Committee,
Bingham and Blaine prominent members OF the Com
mittee Military Affairs and Kelley and Garfield held
As bad showing as Amess list makes for the great
lights of the Grant party, II Is not as bad as II Will De
when truth is known, The Ames list Is not
complete IL will observed that IL does not include
the name OF James Brooks OF NewYOrk, yet Col Nc
CouIb swears that ne received 90 shares -
But Brooks was not the only one omitted We have
informed by one OF the legal gentlemen employed
Robert G. Sehenck OF Ohio, Benjamin NJ Boyer OF Penn
sylyania In the House, and Pomeroy, Chandler, Cam
erOn Nye Stewart Sherman, and Morton in the Senate
also received q number OF shares McComb has the
proof and will produce 1t compel Mr. Ames who all
along refused 10 appear before the examiner and TESTIFY
10 produce II.
sued the following novel course I'm bribng OF these
He would first hand 10 a member or Senator Ger
t6cate OF stock and tell hun II good thing. IL
mot cent present" Then IN few weeks he would
again pay visit ana hand the gentleman cheek drawn
by the Treasurer Of the Credit MoDler ana say Here
is your first dividend" This first dividend suf1
pay for the stock al its nominal value. That
dividends sufficient 10 do this is shown by the
following extract from Col. McCOmbs testimony:
dividend declared the Credit Mober iOck amer the
. 1905 per Railroad 81 per Union
Pacific Railroad s,oe 80 per cent mon aehe kso BONDS Above
OF stock Of Credit Mober June IL received 20 cent IN Union
rs.ie hsfoaa SOL VAN % PEI een 10 Ga On go S
on go shares sept % per cent 10 bonds and 10 per cep IN socl