Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-02-18
CREDIT NdOBILIER-
Report Of Ju1ge Peland's Committee.
Resolutions fer Expulsion Of MeSSrs.
Cakes Amses and James Brooks.
The Cases Of other Members.

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OAkes Anses and James Brooks.
The Cases Of other Members.
The House special committee, of which Judge
Poland is chairman, to inquire whether any
members OF the House " were bribed by Cakes
Ames TO perform certain legislative acts for
the benefit of the Union Pacific railroad com
pany by presents of stock in the credit mo-
bilier Of America, or by presents OF
valuable character derived therefrom,'
OF whether any member was bribed by Oakes
Ames =" or any other person or corporation, in
any matter touching his legislative duty,r sub
nitted their report to-day.
In order TO a clear understanding Of the facts
as to contracts and dealings in reference TO
stock OF the credit mobiGer OF America, be-
tween Mr.. Cakes Ames and others and me m
bers OF Congress, the committee make
A PRELIMINARY STATEMENT
of the connection of the company with the
Union Pacific rsslrsad and their relations 10
each other-with which the public is already
familiar. This part Of the report closes as fof-
"After the Ames contract had been executed
ii was expected by those interested that by rea-
son OF the enormous prices agreed to be paid
for the work very large profits would be de-
rived from building the road, and very soon the
stock of the credit mobilier was understood by
those holding il to be worth much more than its
par value. The stock was not in the market
and had no fixed market value, but the holders
OF it December, 1861 considered il worth at
least double the par value, and in January or
February, 1868, three or four times the par
value, but 1t does not appear that these facts
were generally or publicly known, or that the
the holders OF the stock desired they should be.
Mr.. oAKEs AMEs
was then MEMBER of the House of Representa-
tives, and came to Washington at the com
meneement OF the session, about the beginning
Of December, 1864. During that month Nh
Ames entered into contracts with a consider
able number Of members OF Congress, both Sen
ator and Representative, to let them have
shares Of stock in the credit mobilier company
at par, with interest thereon from the 1st day OF
the previous July. 1t does not appear that in
any instance he asked any Of these persons to
pay higher price than the par value and in
terest non that Mr. Ames used any special eff
fort or urgency to get these persons to take it,
In all these negotiations Mr.. Ames did not en-
ter into any details as to the value of the stock
or the amount OF dividends that might be ex-
pectfd from IL, but stated generally that it
would be good stock, and in several instances
said he would guarantee that they should get
at least 10 per cent. for their money.
Mr.. Ames was at this time a large stakeholder
in the credit mobiler, but he did not intend anv
OF those transactions to be salesof his own stock
but intended to fill all these contracts from
was finally ara anged that 3i3 shares Of the stock
of the company should be transferred to Mr.
Ames to enable him to perform his engage
meats, asrl that number of shares were set over
on the books of the company to Cakes Ames
trustee, to distinguish 1t from the stock held by
him before. a+.f
Mr.. Ames at the time paid to the conn any the
par of the stock and interest from the July pre-
veus, and this stock still stands on the books i'm
the name OF Cakes Ames trustee. except thir-
teen shares which have been transferred to par
ties in no way connected with Congress.
The committee docs not find that Mr. Ames
had any negotiation whatever with any of these
members OF Congress on the subject of this
stock prior to the commencement of the ses-
sion OF December, 1861 except Mr.. Scotield. OF
Pennsylvania, and IL was not claimed that any
obligation existed from Mr.. Anes TO him as the
result OF il.
In relation to
THE PURPOSE AND MOTIVES OF Mr.. AMrs
in contracting to let members Of Congress have
credit mobilier stock at par, which he and all
other owners of it considered worth at least
double that sum, the committee, upon the evil
dence taken by them and submitted to the
House, cannot entertain double. When he said
he did not suppose the Union Pacific company
would ask or need further legislation, he stated
what he believed to he true. But he feared the
interests of the road might suffer by adverse leg
islation, and what he desired to accomplish was
to enlist strength and friends i'm Congress who
Wouid resist any encroachment upon or inter-
ference with the rights and privileges already
secured, amt to that end wished to create in
them an interest identical with his own. This
purpose is clearly avowed IN his letter TO
MeCon'b copied in the evidence. He says he
intends to place the stock "where il will do
most good to us" And again -'.we want more
friends In this Congress-" In his letter to
MeComb AMI also in his statement prepared bv
counsel me gives the philosophy OF his action, to
wit: that he has found there is no difficulty i'm
getting men TO look after their own property
Inc committee are also satisfied that Mr..
Ames entertained a fear that when the true
relations between the credit mobilier company
and the Union Pacific because generally known
and the means by which the great profits ex-
pec;ed TO be made we're fully understood there
Was danger that congressional Investigation
ard action would be invoked. -
The members Of Congress with whom he dealt
were generally those who had been friendly and
favorable to a Paciic Railroad, and Mr. Ames
did not fear or expect to find them favorable to
movements hostile to it; but he desired TO stimu-
late their activity and watcAfu lness in oppp,i-
tioN to any unfavorable action by giving them
personal interest in the success Of the enter
Prise espe cay so far az il affected the interest
day December, 1861, Mr.. g. G. washburn.
Of Wisconsin, introduced i'm the House a bin
to regulate by law the rates of transpor-
tatton over the Pacific Railroads Mr. A,nes
az well as others Interested I'm the Union
Pacific road were opposed To this. and desired
to defeat it. Other measures apparently hostile
into the House by Mr.. wasiburn, of Wlscon-
sin, and Mr.. Wasiiburn, of HIiaOis. The COM
mittee believe that Mr.. Ames, in his distribu-
ton of stock, had specially in mind the hostile
efforts of the Messgs. washburns. and desired TO
gain strength to secure their defeat. The refer
ence in one OF his iesters to :. WashSarns move )"
The foregoing is deemed by the committee
sufhcient statement Of facts as to Mr.. Ames
taken In connection with what wiz he s,lbse-
9uently stated Of his transactions with par
tracts for stock i'm the credit mobilier with
MEMBERS or THE SENATE
In public discussions OF this subject the names
OF members OF both Houses have been so con-
nected, and all these transactions were so nearly
simultaneous that the cOMmittee deemed il
their duty to obtain all evidences in their power
a. 70 all persons, then members Of either House.
and to report the same to the House.
Having done this, and the House having
directed that eridence to be transmitted to the
Senate, the committee consider their own power
and duty, as well that Of the House fully per-
formed, rs far as members Of the Senate are
concerned. Some Of Mr.. Ames' contracts to sell
stock were with gentlemen who were then mem
bers Of the House, but are not members OF the
present Congress. The committee has sought
for and taken all the evidepce within their reach
As to those gentlemen, and reported the same
to the House. Az the House has ceased to have
jurisdiction over them Is members the com.
mittee have not deemed 1t their duty to make
any special finding Of facts As to each. leaving
the House and the country to their own conclue
sions upon the testimony In rerard to each of
the members Of the present House, the com.
mfftee deem IL their duty to state specially the
facts they find proved by the evidence, which
In some instances Is painfully c0nfictinr.,
!, 49, 4 gF0THKR NHMBRRs. - =
Tie committee, after recapitulating the testi-
mony in rofotNnce seserally to Speaker Blaine
and 0eafA Henry i. Dawes, Glenni w, SEQ
.neld, JQhn Bingham, w. u. Kelley, and James
A. Garfield (as already Published ii, Tae SrIRl.
eSooA IA At