New-York tribune., 1873-02-19

MOTIVES IN PLACING STOCK AMONG CON-
GREssMEN-HE MEANT BRIBERY BUT THEY
DID nor SUSPECT T-coMPLIcITY or EACH
vICrM-rHE JURISDICTION OF THE HOUSE
N TIRE CAsE-THE EXPULSION OF ABES AND
BROOKS RECOMMENDED.
GENERAL PRESS DISPATCH
WASHINGTON Feb. lS.-The Special Committee
appointed under the following resolutions Of tho
House 10 wit:
whereas Accusations have been made in the public
press founded on alleged letters Of Oakcs hmcs'
Representative from Massachusetts,, and apon tho
alleged aidavits Of Henry = McComb, citizen OF VIII
mingOn In the State OF Delaware. the effect that
members OF tms House were bribed by Oskes Amos 20
perform certain legislative FOR the benet Of the
Union Pacific Railroad Company. by presents OF stock in
the Credit Mobier America by presents Of yalua
bic character derived therefrom Therefore,
Resoloed That special Committee Of five members
be appointed by the Speaker pro tenn, hose duty t
shall be 10 investigate whether any member Of th'
House bribed by Oakes Ames or any other person
corporation any matter touching bis legislative
dutY
Resoiped, That the Committee have the right 70 EN-
ploy a stenographer and that they be empowered 10
send for persons and papers.
beg leave 10 make the following report I'm order ~
clear understanding Of the facts hereinafter stated
as TO contracts and dealings IN reference % stock OF
the Credit Mobier of America. between Mr.. Amos
and others and members Of Congress, it is necessary
to make preliminary statement Of the connection
Of that Company with the Union Pacific Railroad,
and their relations to each other.
HISTORY OF THE CREDIT MoBHIER.
The Company called the Credit Mober Of
America, was Incorporated by the Legislature Of
Pennsylvania and in 1864 the control Of its charter
and franchises had been obtained by certain
persons, interested in the Union Pacific Rail
road Company for the purpose Of using it
as construction company 20 build the
Union Pacific Road In September, 1854 a contract
was entered into between the Union Paclhc Com
pany and II. W. Hoxie for the building by said
Hoxie of 100 miles of said road from Omaha west.
This contract was at assigned by HoXle TO the
Credit MObilier Company as 10 was expected to be-
when made. Under this contract and extensions of it
some 200 or 800 miles of road were buit by the Credit
Mobllier Company but no considerable profit appears
to have been realized thcrefrom. Tho enterprise of
building railroad 10 the Pacific was Of such vast
magnitude and was beset by so many hazards and
risks, that the capitalists Of the country were gen
orally ayerse to investing in ii. and Notwithstanding
the liberal aid granted by the Government II
seemed likely 10 fail OF completion. In
1866 or 1866, Mr.. Oakes Ames, then and
now a member Of the House from tho
State Of Massachusetts and his brother Oliver
Ames became interested in the Union Pacific Conn
panv, and also in the Credit Mobilcr Company az
the agents for the construction Of the road. The
A[essrs Ames were men OF very large capital and Of
known characterand integrity in business. By their
example and credit and the personal efforts of Mr..
Oakes Ames many men Of capital were induced To
embark in the enterprise and 20 take stock in the
Union Pacific Company and also IN the Credit Mo-
bilier Company Among them were the firm or
$. Hooper 6c Co. of Boston, the leading member Of
which Mr. Samuel Hooper, was then and Is now 4
member Of the House Mr.. John B. Alley then i
member Of the House from Massachu8ctts and hr.
Grimes then a Senator from the state Of Iowa.
Notwithstanding the vigorous efforts Of 5ir. Ames
and others interested with him. great difficulty
experienced in securing the required capital
THE OAKEs A3iEs CONTRACT
In the Spring of 1861 the Credit Mobilier Company
voted TO add 50 per their capital stock which
was then S25O0OOO aud. to cause it To Doe readily
taken each subscriber TO it entitled to receive
as a bonus an equal amount Of first mortgage bonds
of the Union Pacific Company. The old ss0cAhold-
ers were entitled TO take this increase bUt even he
favorable terms offered did not induce aii the Old
stockholders to take it, and the stock ot tAe Credit
Mobiher Company was never considered worth ts
par value until after the execution Of the OaEes
Ames contract hereinafter mentioned. On the 10Th
day Of August 1861 contract was executed between
the Union Pacific Railroad and Oahcs Ames. by
which Mr.. Ames contracted TO bald dOl miles
from $4,000 to $4,000 per mile amounting IN tho
aggregate 10 S47,OO0OOO. Before the contract was
entered into it was understood tina, lIr. Ames was
70 transfer it 10 seven trustees who were To execute
it, and the profits of the contract 20 b. divided
among the stockholders in the Credit Moblher Com
pauv who should comply with certain conditions
set ont in the instrument transferring the contract
TO the trustees The Ames contract and the transfer
to trustees are incorporated IN the evidence sub
mitted and therefore further recital of their terms
is not deemed necessary. subsequently, all the
stockholders OF the Credit MoDilier Company COM
piled with the conditions named in tae transfer,
and thus became entitled 10 share in any
profits said trustees might make IN
executing the contract. All the large
stockholders in the Union Pacific were also stock
holders in the Credit Moblier, and the Ames con-
tract and its transfer 10 trustees were ratified by
the Union Pacific and received the assent of tho
great body Of stockholders, but not OF all. After
the Ames contract had been executed, % Was eX-
pected by those interested that by reason OF tho
enormous prices agreed to be paid lOr the work. very
large profits would be derived from building the
road and very soon the stock OF the Credit Mobilier
was understood to be worth much more than .ts par
value The stock was not in the market, and had
no fixed market value but the holders of
it, in December 1861 considered It worth
at least double the par value, and IN
January OF February, 1868 three four times the
par value: but it does not appear that these facts
were generally or publicly known, or that the
holders of the stock desired they should be- The
foregoing statement, the Committee think. gives
enough of the historic details ard condition and
value of the stock TO make the following detailed
facts intelhgible:
AMEss DEALINGS WITH CONGREssMEN.
Mr. Oakes Ames was then a member of the House