Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1873-02-12
HIsrORY OF THE CREDIT Mo8ILIER.


HISTORY OF THE CREDIT MoRILIER.
Various explanations have been given
Of the Credit Mobilier, some learned
writer's going into a French definition OF
the name. but generally falling to throw
much light on the institution that has
become 50 famous in this country. Its
fall history would indeed be as yolumin-
Gus as bound copies Of the Congress
sional Globe. A comprehensive state
ment Of the origin and history OF our
Credit Mobilier, however, can be con-
depsed into a very small compass. About
tweuty.three years ago the Pennsylvania
Legislature granted a charter 10 hs-
cal agency" headed by General Duff
Green. After his death the charter was
sold by his heirs to George Francis
Train for nominal sum, as it had
never proven source Of profit to its
oriQinators. Train secured an act Of
the Legislators changing its name to
Credit Mobilier, in fsneiful imitation Of
some institution which be had heard Of
in France. The character OF the COM
pany was purely financial, but II was
not organised for the uses Of such men
as Cakes Ames. In 1873 the Union
Pacific railroad was Incorporated BY
Congress, with an authorized capital Of
sloO 600, 900, heavy land grants in alter
nate sections and heavy Government
loan in six per cent. bonds for the con-
structiou OF the road. Yet in the midst
of the war it was found impossible to
obtain the required paid up capital. In
1865. therefore, Congress doubled the
land grants, and made the claim of the
Government for reimbursement only a
second mortgage, giving the contrac-
tors for building the road first
mortgage. And here comes in the
Credit Mobilier Company. Cakes Ames,
n Massachusetts, Congressman, who had
grown rich from business and contracts,
purchased the charter of the Credit
Mobilier Company, and devised plan
for securing, through subordinate com
pany, the immense profits of such
gigantic enterprise without running the
heavy risks of the undertaking. The
directors Of the Union Pacific Company
were prohibited by law from being inter
ested in contracts, but the contracts
were let out 10 the Credit Mobilier Com
pany, which had controlling vote
within the Union Pacific Railroad Com
pany. II was big ring within ring,
aud the inner ring could do certain acts
without risk, which the outside ring
could not do without violating the law
il was whipping the old gentleman
around the stump on large scale. To the
the CreditMobilier therefore was awarded
tie big contract. and even the profits on
the part Of rhe road already built, all the
franchises, grants, bonds, etc, Of the
road, granted by Congress-, were voted
over to the Credit Mobilier The man
agemeat Of the two corporations was
virtually one and the same. but the in
side ring had the Grst mortgage; they
we're TO be paid first and last and all the
time, and the Government afterwards or
never. The vast public domain donated
TO build road 70 California, aud pre-
vent the possibility ola Western Pacific
Republic, and the bonds voted out Of the
pockets Of the people, all went into the
immense Golfers Of the Credit Aobilier
Company. Some adverse blackmailiDg
Legislation was proposed at Warrington,
aud an arrangement was soon made TO
issue Creit MOblier stock, sell It below
the market value to Congressman, and. in
the language fMr. Ames, place it where
it would do the most good" Matters
went smoothly until MeComb fled bill
60 recover the value of two hundred and
fifty shares Of the stock which he claimed
TO have paid for, but which Ames asserts
had been placed" Last summer the
receivers Of this stock denied the
charges made against them with well
feigned indignation, and the Democratic
press and speakers, for want of proof,
had to almost admit that they we're mis-
taken. But the quarrel went on inside
of the ring; the press became holder and
demanded investigation This was
granted at first before committee with
closed doors, aud finally the doors had
TO be thrown open to the reporters and
the public. The results generally known
A dozen Congressman, the Vice Presi.
dent elect aud in Office, the chairmen
of the leading committees 10 the House,
and others prominent for sanctity Of
characters eminent loyalty heretofore,
are proved to have shared the profits Of
the Credit Mobilier-in other words, we're
bribed to cast their votes and use their
influence favorably to the Union Pacific
and Credit Mobilier companies. The
clear profits of the latter. it has been
shown, we're upward Of $35, OOO, 900. from
which vast fund Congress vas corrupted,
and a score Of lofty patriots are convicted
Of selling themselves for a price. Their
guilt is established beyond a doubt. The
next question is, what viii be done with
then7 How are they to be punished
A MINNESOTA paper which feels ths
scarcity Of greenbacks urges the estab