The Placer herald., 1873-01-11
THE CREDIT MOBILIER.

| StcdiiIS EC OulOu dCliC odu SItui
Mobilier that is creating so much stir ant
scandal in the East and Congress, is exactly
the same in principle and action as the Cen
trail Pacific Contract and Finance Company
As Randall, Democratic Congressman from
Pennsylvania, one of the leaders in unearlh-
ing tie rascalities of the L. P Credit Mo-
bilier, tire eatcns to 60 after the G. u. Con-
tract and Finance Company, we propose to
give briefly what was the naodus operand1
Of the California company. When the Cen
trail Pacific Railroad Company was formed,
the two Stanfords, two Crockers, Charles A.
and f. b., and Huntington & Hopkins took
a large amount of stock and then refused to
open the books for more than three million OF
dollars, so as to make sure of holding the
control aud handling the Government, State
and county subsidies, should any be granted.
7. ID. Judah was made chief engineer, and
sent to Washington on half salary ($3, GOO Il
year) for the double purpose Of explaining to
Congress the practicability of the route and
TO lobby fof subsidy, where, in connection
with Senator McDougall, Sargent and
Phelps ,Congressmen, they secured grant Of
land of G400a acres per mile, ,and United States
bonds for SIG 900, $32 900 and $4S, 600,
according TO the elevation and character of
he country the road was to be built over
This bill became a law in July, 1862, and
in 1868 they attacked the Legislature Of
California and secured legislation giving them
SIC, 900 mile from the State, S4OO 900
from San Francisco, $500, 900 from Srcra-
monto and $3.50 600 from Placer, making
in all subsidy of 50, ,G97 900 from Sacra-
mento to the State line, distance of about
1873 miles, or $40 2GS rer mile, sum am
ply sufficient with the receipts to build and
stock the road Up to this time the compa-
ny had let some contracts for grading the
road between Sacramento and Rockin at
prices averaging about $40, 900 per mile.
At this time the company discovered that
the subsidies granted would more than build
the road from Sacramento to Salt Lake. and
then a Contract and Finance company was
formed by the chief controllers of the road
and one or two outsiders, and this company
made of the same men that had subscribed
the majority of the stock took the contract
from themselves to build the entire road to
Salt Lake, that is Stanford, Crocker & Co.
as the Central Pacific railroad company, let
the contract for building it to Stanford Crock
er x Co., the Contract and Finance compa-
ny. 1t was then question of how much
they could make in building the road, and
keep for themselves the second mortgage
bonds amounting to some S25 ,O0O, 600, which
would freeze out the counties and minority
stockholders. 1t was clear they could clear
the second mortgage bonds, but how to get
rid of the Government first mortgage bonds
was the rub Huntington, the brains of the
company, was in Washington, and probably
had cented the U. p. Credit Mobier, and
got his California Contract and Finance Com
pany admitted into the ring to get more
lands and swindle the United States Gov
ernment out of her first mortgage bonds.
Evidently the two companies, the [. p.
Credit Mobilier and the G. p Contract and
Finance company, joined hands and bought
the bill through Congress giving the compa-
nies SIG, 900 per mile more in lands, and
substituting their second mortgage bonds for
the Government first mortgage bonds This
gave the Central Pacific Contract and Fl
nance company including the Western Pa
cic, which was afterwards built, clear
cold grab on the Government for about $33
920, 000 in lands and first mortgage bonds
and all in as good as gold. The reader must
understand that we are approximating very
close to the facts in the case, generally under
rather than over estimating the sums tha,
make up the grand total which this company
wrrng from the Government through the
loyal, corrupt Congress of 1864. The two
Credit Mobiliers, the L. p. and G. p. hac
at stake in the Congress of 1864 about $40
600 900, and they won it by bribing Con
gressmen and Senators. We have had tC
be brief in this article, but we think enougl
is shown to ju tify the Government in tax
ing possession of both roads and consignins
the perpetrators of these grand vilainies t.
assylums outside of this country as soon al
these statements can be proved. The Law
under which the roads were built directl,
authorized the Government to take posses
sion of the roads by reserving and satisfyin!
the equities of the builders, which necessa
rlly gives the Government power to at onc'
seize the roads with all the books and pa
pers of both the Credit Mobilier and Con