Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1873-03-05
CREDIT M0BELIER.
Synopsis Of the Report of the Poland
Committee to tEae House.

Committee:
After quoting the resolution under which
they were appointed and acted, the commit
tee gave a history of the connection of the
| Credit MObilier Company with the Union
Pac fio Railroad by the Hoxie and Anes con-
tracts, the facts in connection with which
have been heretofore published. The COM
mittee then rehearsed the proceedings Of Mr..
Ames in placing some Of the stock OF the
Credit MObiIier and the different ties which
arise between him, Durant and McComb.
Prior 30 the session Of December, 1867, AInes
had had no negotiations, with Congressman
except SehofeId. The committee say they,
cannot entertain any doubts as to the motive
and purpose OF AmeS In contracting to let
| Congressman have Credit Mobilier stock at
par when it was worth double that sum. He
desired to enlist strength and friends in Con-
grcss TO resist any encroachment upon the
rights and privileges already secured, and his
purpose to create In them an interest identi-
cal with his own is clearly avowed in his let
ters to McComb, especially in those in which he
says he intends ''Dlacing stock where it would
do the most good" and 1--WE want more friends
in Congress-" Another letter gives the philo-
sOphy Of his action, where he says he has
found no difficulty in getting men to look
after their own prosperity" The committee
are satisfied that AmeS feared when the great
profits became known there would be no dan
ger OF Congressional Investigation. Those
with whom lie dealt he did not fear any hostile
| legislation from, and the committee believe
Ames especially designed 10 secure the defeat
| OF the efforts of the Nashburnes Of Wisconsin
and illinois to regulate transportation over
the Pacific road and other measures, and they
! quote reference Of Ames to Washburn in
one OF his letters in support Of this belief In
| taking evidence the names of Senators were in
VOlved and their cases were investi gated and
that evidence having been sent by the House
| TO the Senate, the committee considered their
! duty as to the Senators fully performed. The
| committee do not deem it their duty to make
! any special finding as to those not members of
| the present Congress, leaving the facts for the
House aud the country to judge upon the eYi-
dence.
In regard 10 members of the present House.
the committee proceeded to state specially the
facts proved by the evidence, which in some
instances is painfully conflicting. They find
/ that Speaker Blaine did not take any stock
although recommended to by A1nes Dawes
received no other benefit from this transac-
tion with Ames than 10 per cent. upon his
money, and after settling with Ames had no
further interest III the stock.
/ The evidence relative to Schofeld is re-
hearsed. showing, also, that Schotield gave up
! his Credit MObilier, but retained 81 900 IN
Union Pacific. The precise terms Of settle
ment are unknown from a lack of dates, but
since the settlement Schnfield has had no in
terest in the Credit DIObilier.
Bjngham's connecti II with the matter was
] >
/ of Credit NObilier stock, and accounting to
Bingham for such diyi~ end upon it as Bingham
had not already received. Bingham was
treated as the real owner of the stock from
the time OF the agreement, late in December,
1867, to the settlement in February 1872 and
had the benefit of all dividends upon it.
Neither Ames nor Bingham had such records
OF thelr dealings as to be able to give the pre-
else amount of these dividends.
The committee find that Kelley of Penn
] l,o1 cl, e
upon the solicitation OF Anes, the latter car
Tying it for Kelley until the dividends paid for
1t, and on the 23d Of January, 1868, Kelley re-
ceived 1929 from AInes in check on the Ser
geant-at-arms. Subsequent dividends were
paid III Union Pacific stock or bonds. In Sep
tember, 1868, Kelley received $3.50 from Ames.
which was understood to be an advance to / e
paid out of the dividends, but there never has
has been any adjustment of the matter and
there Is an entire variance in the testimony OF /
both as to what this transaction was. Subse-
quent conversation and negotiations between
them are in evidence, but the committee does
not deem it material.
Relative to Garfield, the committee find the /
same facts as in Kelley's case, as to the point
of the reception of a check for 1929 The com
mttee do not find that there was any commu- i
nication between Ames and Garfield on the
subject till this investigation began Some
correspondence between Garfield and Ames. |
and some conversation between them during
IllG ILlNeSliSdbIOH Will IOuDt IN the reported
testimony.
The committee state that it appears that
Ames did not give any details of the relations
between the Credit MObiier and the Union
Pacific Company, nor did any OF the parties |
know that dividends would be paid in stock or
bonds OF the latter. TIE company say the
Credit M0bilier was state corporation not
subject to Congressional legislation, and the
fact that It's profits were expected to be de- |
rived from the building Of the Union Pacific |
Railroad did not apparently create such an in
tereSt IN that company as to disquaifv
holder of Credit M0bilier stock from partici-
pating III any legislation affecting the railroad
company. Anles assured congressman when !
questioned on the subject, that their hodership
OF stock could not interfere with legislative |
duties. The committee therefore do not find
as to the congressman above named. that
they were aware of Ames's object. or that
they had any other purpose than profitable
INV eStmentS. It's apparent that those who /
advanced thor moneys to pay for their stock
present more the appearance of ordinary in
YeStors than those who did not feel at Liberty
to lind any corrupt purpose or knowledge,
founded on the fact of non payment alone 1t
ought also to be observed that those gentle
men who surrendered their stock to Ames
before there was any public excitement on the
subject do not profess to have done so unon.
any idea Ofthe imprOprietv of holding it. but
Tor reasons affecting the value Of and security
OF the lnyeStnent but the committee believe
that they must have felt that there was some
thing out OF the ordinary course of business
IN the extraordinary dividends thcy were re-
celylng, as to render the investment itself
suspicious, and this was one of the motives of
their action.
The committee have not been able to find
that any OF these members OF Congress have
been affected in their official action in conse-
quence OF their interest IN Credit Mobilier
stock. 1t has been suggested that the fact that
none OF TINS stock 10
whom Ames contracted, was a circumstance
nom which q sense of lmprOpriety if not cor
ruption was to be inferred. The committee
beIeVe this is capable OF explanation without
such Inference. The committee in referring
to the apparent readiness Of Ames to take
back Credit Mobllier stock state that the suit
OF McComD against Ames, now pending if it
should be decided against Ames, might com
pei the latter to refund such stock as was as
signed him as trustee. None of the Congress
men above mentioned appear to have knywn
OF Anes' dealings with the others. nor do the
committee lind that they had any corrupt mo-
tlTes IN their dealings with Ames Had it an
peaIed THAT they were aware Of the enormous
dLVldends, ana now they We're to be earned,
the committee could not acquit them
The committee then refer to the liberality
/ OF congress to the Union Pacific Railroad, and
say UnaJ congress never intended that the
owners OF the road should execute a mortgage
! on the road prior to that of the Government
]
sudden rise of the value Of Credit MobiIier
stock was the result of the adoption of a
scheme whereby such road was mortgaged to
! the contracting parties, composed Of men who
controlled Union Pacific Railroad stock, who
contracted with themselves to build the road.
The undue and unreasonable profits thus
made were as much fraud upon the Govern
ment as if they had sold their bonds and di-
yided the money.
TIE committee discuss at some length what
should be the position of Congressman in re-
lation 10 subjects likely 20 come before Con-
/ gress; they believe that no member has the
/ right to disquaIify himself without some high
/ en- motive than merely to make profitable in
vestments. This country, say the committee.
is becoming filed with gigantic and power
! fuI corporations, and it is notorious that in
many state legislatures these influences are
often controlling, and in effect are the ruling
| power OF the state. Congress has to some ex-
tent, within few years. been brought under
similar influence. The public belief is too gen
eral that the use of money to carry public
measure IS Legitimate. No Congressman
/ Mo oil ,F