The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1873-02-25

bilier. We are told that it is compa-
ny by which the government has been
swindled, and that is about all. We
are not told how it has been done. A
matter of so great Importance to the
people, ought oy them TO be understood
| have inquired of several, but every
one processes ignorance as to the mo-
dus operandi. VIII you tell us all a.
bout 1t? Editors know everything.
Very truly yours, &c,
The Credit Mobiler Company to which
our correspondent refers, if it has any
legal existence, was chartered by the
Pennsylvania Legislature. There is
discussion among the newspapers, as to
whether this is the company there organ
lied, as Cakes Ames asserts, or whether
as Benjamin Il. Greene, son of General
Duff Greene, asserts, the Pacific II. r.
Company Credit Mobilicr is sham
corporation, a forgery and a fraud, and
the Credit Mobilier, chartered by the
Pennsylvania Legislature, duly organized
on the 9th of November, 1859, was for
other business within that state.
Whichever of these versions is the cor
rect one, the Credit Mobilicr Of which
reference is made above, was originally
largely composed of capitalists who were
connected with the management Of the
Union Pacific II. II. Co. Congress had
voted large land grants and guaranteed
the bonds Of the Pacific Railroad to an
enormous amount, only expressing the
further limit in the indefinite terms of
IS such part of it as may be necessary to
put the road in operation" The road
and its construction was put in the con.
troll of board of directors, among whom
were Cakes Amcs, James Brooks, other
members of Congress, and prominent men
outside. These were shrewd business
men, and the opportunity was early per-
ceived The Credit Mobiier was organ
lied with large capital, real or nomi-
nal, these directors and stockholders Of
the Union Pacific Railroad, and their
friends, largely composing it, for the spe-
cific object of taking the contracts for
building the road.
Ii the road was supposed to cost $780,
900 per mile, these directors contracted
the building with the Credit Mobilier at
100000 per mile, or such other sum as
they thought would best answer their
purpose. The Mobiicr Company then
sub-let the job at actual cost, and put the
surplus in their pockets, or judiciously
"placed" it among Members Of Congress
to guard against further contingencies of
legislation. 1t is thought that the Unit
ed States government is out about twen-
ty-three millions by the direct swindle,
and how much more by the cost of inves-
tigation, &C., it is impossible for any one
not familiar with the expenses Of legsla-
ton and legislative committees to csti-
mate.
But this swindle, as such is not the
matter now under investigation. The OBJ
ject Of the Investigation is expressed in
the resolutions under which the Poland
committee was appointed, as follows:
Whereas, Accusations have been
made in the public press against Rep
upon the alleged affidavits of Henry s.
McComb, a citizen of Wilmington, in
the State of Delaware, to the effect that
members of this House were brbed by
Cakes Ames to perform certain legsla-
tive acts for the benefit of the Union
Pacific Railroad Company, by presents
of stock in the Credit Mobilier of A
merica, or by presents of valuable
character derived therefrom; therefore,
RESOLVED, That special commit
tee of five be appointed by the Speaker
pro tenn, whose duty it shall be to in
vestigate whether any member of this
House was bribed by Cakes Ames or
any other person or corporation in any
matter touching his legislative duty.
The testimony before the committee raised
for the purpose ofshowing that legislation
had rot been influenced by the "placng"
of the Credit Mobiier stock, has also re-
vealed the hideous form Of this swindling
scheme, besides discovering the innate
depravity of Congressman who can't say
with little George Washington, " can't
tell lie.'
The following extract from the report
of the Poland Committee throws some
light upon that part of the subject which
we are just now considering:
Congress had chartered the Union
Pacific Railroad. given to it n liberal
grant of lands, and promised liberal
loan of Government bonds, to be deliv-
cred as fast as sections of the road were
completed. AS these alone might not
be sufficient to complete the road. Con-
gress authorized the Company to issue
their own bonds for the deficit and Sc
cure them by a mortgage upon the
road, which should be lien prior to
that of the Government. Congress new
er intended that the owners of the road
should execute mortgage on the road
prior to that of the Government to raise
money to put into their own pockets.
but only to build the road.
The men who controlled the Union
Pacific seem to have adopted as the ba-
sis of their action the right to encum-
Der the road by mortgage prior to that
OF the Government, to the full extent.
whether the money was needed for the
construction of the road or not. 1t was
clear enough that they could not do
this direct, by deed in terms, and there
fore they resorted to the device of con-
tracing with themselves to build the
road, and fix a price high enough to
require the issue of bonds to the full ex-
tent, and then divide the bonds. or the
proceeds of them, under the name of
profits on the contract. All those act
ing in the matter seemed to have been
fully aware Of this, and that this was to
be the effect of the transaction. The
sudden rise of value of the Credit Mo
bilier stock was the result of the adop-
ton of this scheme. Any undue and
unreasonable profits thus made by
themselves was as much a fraud upon
the Government as if they had sold the
bonds and divided the money without
going through the form of denominat-
ing them profits on building the road.
Addison County Temperance Convcn-
lion.
According to call a convention of the
Temperance men of Addison County was
Ill Al L Al.