Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1873-02-25
Investment itself sssnl,s,oicioas and N; :


Congress have been affscted in their
pficIal action in consequences Of their
interest IN Credit MDbiiier stock. 1t
has been suggeste Ithat the fact that
none OF this stock was transferred to
hose with whom Ames contracted
was a circumstance from which a
sense OF improperly If not corruption
was TO be inferred The committee
believe this is capable OF explanation
without such inference,
Tho committee in referring to the
apparent readiness OF Amss TO take
mack Credit MObiher stock, state That
The suit of McComb against Amos.
now pending, if it should be cecided
against Ames, might compel the lat
ter To refund such stock az WAS as
sighed TO him as trustee None of
the COngr ssmen above mentioned
appear to have known of Ames deal
ings with the others. nor do the COM
nlttee had that they had any pit
motives in their dealings with Amas.
Ii it had appeared that they were
aware of the enormous dividends and
now they we're TO be earned, he
committee could not acquit them.
The commi tee then referred TO the
iiberality of Congress to the Union
Pacific railway, and say that Con-
gress never Intended that the owners
II the road shoald execute a m ,rt-
gage on the road prior to that of the
government 10 raise money to put
INTO their pockets. The sudden rise
IF the value of Credit Mobilier stock
vas the result of the adoption of a
f.cheme whereby the whole road wa
mortgaged to contracting party
,mpOsed of men who controlled the
Union Pacific stock, who contracted
with themselves To build the road.
The undue and unreasonable profits
,hus made were as much fraud up
N the government as if they had
said their bonds and divided the
money.
Tue committee discuss at some
length what should DO the position Of
Congressman relative to subj cts like.
Y TO come before Congress, shey be.
ieving that no member has the right
80 disqnalify himself with ut some
higher motive than merely To max q
profitable investments.
The committee think that mem.
bers. in taking stock. were not suffi
GENTLY careful in ascertaining what
hey were getting The committee
dad nothing in the conduct of the
above named members calling for any
commentators.
The committee say the case of Mr.
Brooks stands upon different state
If facts from the others. They re-
bearse at length the evidence, show
ing Brooks efforts in the press and
IN his official position 10 behalf of The
road, and his operations with Dur
mt, etc. After referring at great
ength to the evidence relative to
| Brooks. the committees say without
further cnmDent upon the evidence :
The comm ee fad that $50 shares
81 stock appearing on the books OF
ihe Credit Mobiier in the name of
Nelson were really the stock of
Brooks and subject to his control,
and that il was understood by both
parties. Brooks had taken such an
interest 10 the Credit Mobilier Com
oany and was so connected with
| Durant that be must ia regarded "a
having full knowledge of the rela
lions between that company and
railway company. and Of the con-
tracts between them. He must have
known the cause Of the sudden in
crease OF value Of Credit MobiIer
stock. and how large the expected
nrOfi,s were To be made. We have
already expressed our view or the
propriety of members Of Congress
becoming owners Of stock possessing
knowledge but Brooks was not on
~ a member OF ,ngress, bnt he was
| Government Director in the Union
Pacific 9 'mpany. As such it was
mis- duty TO guard and watch over
ae interests Of the q ,vernmeut on
the road, and see that they were
protected and preserved. To insure
uch taitbfulness on the part Of the
| Government Directors Congress
very wisely provided that they
should not be stock holders in the
road. Brooks readily saw that
hough becoming stockholder in
he Credit Mobilier was not forbid
den by the letter of the law, yet it
was violation of i,s spirit and es.
sence, and therefore had the stock
nlaced in the name of bis son-in.law.
The transfer of O,kes Ames, con-
ract to trustees for the building Of
the road already under contract from
which the enormous dividends were
all derived was during Brooks Off
cia life as Government Director.
and must have been within his knowl
edge, and yet passed without the
slightest opposition from him The
committee believe these could not
have been done without an entire
disregard of his official obligations
and duty, and that while appointed
TO guard the public interest ia the
road. be joined himself with the pro,
moters of q scheme whereby the
Government was to b. detrauded.
aud shared 10 the spoils. ln the con-
cusion of this fact upon the evidence
the committee are entirely agreed
TIE committee DISCUSS at great
length the jurisdiction of tho House
over it's members, concluding that
the facts in the present case amply
Justify the taking Of jurisdiction for
the following reasons: The subject
matter upon which the action of the
mem bers was intended TO be iufiu,
enced was of a continuous character
and was as likely TO be the subject
Of Congressional action In fu ,ure
Congress in the Fortieth. The in
duence brought to bear on members
ware "a likely to be operative upOn