National Republican. (Washington City (D.C.)) 1872-1888, 1873-02-19
THE CREDIT MOBlLIER.
CONTINUED from Eve, rus,)

AtVNHN |INta some hnbseQucnI GOnNefhhtOuh huu
Negotiations between Mr.. Kelley and Nj. Ames
pHthls subject. The committee do not deem u
material TO refer 70 II In their report.
The facts IN regard 10 Nj, Gariieid, as found
by the committee, are Identical with the case o.
Mr.. Kelley 10 the point Of reception OF the check
for ts7o. lie agreed with Mt, Ames e ,as , zen
for the same. Mr. Ames receiver the - pei
cent. dividend In bonds and sold them ior " PEI
cent, and also received the 90 per cent. ca s
dividend which, together win the pIlcc OF tne
stock and interest, left balance o. VIZ. inns
sum was paid over 70 Mr. uarnell W enecs on
ne ACCOMMODATIONS MT A ,s Ie0svea ~
not and that since the payment Of the s39e there
has been any communication between MI Mines
anh MI uatnell on the suDleet untll thls lnSest,
ration began. some correspondence Detweeh
VT, uarneld and MT, hmcs and some conveIs ,,,
tion between them during TINS investigation VIII
bc Iounl IN ne reported testim9ny, ,,,.. I'm M.
The committee 70 not llnd tnat MT hnleA ~ wv
ncgotla.ionswlth the pa above ~
into any detail OF tue Ielati0ns LEVEL ~ "a ~
GreIlt mobller COMPANY anI tnS hyn
company, OF gave tnen any specinc IhoIlna'''gn
~ 70 tue amount o. ulNluenus lhey Nvulu W.
likely 10 receive iutthet tnhh nH aIcnn uton
stated. They all kneM from nun, oI ohnefNIs WIS.,
pany TO build the Union faeilc TOal NY y uS.s
not appear that any ol tnen Knew tnat tne pi,vu.
and ulylIenls were 70 Oe IN hI91h anu pOnu , W
mat company. Inc circuit inobnet Whs stat
corporation, not subject 70 C0ngresslonM leRs,
iauon, AMI tne Iact ihM w. pfohu weIe sN S
70 be derived from nnlulns lne ! mon iaClnv
road dld not apparently create sucn an lnteTett
IN that company as 70 ulsquany the holuet oI
credit mohhler stock irom PARTICIPATING IN any
iegislAIlon aueStlng VIC IMIoen COMPANY. an
MS NEGOTIATIONS WIN tncee ineninets oi lOng,ets
MI. Ames male no Suggestion that nc ueelreu 70
secure thelr tav0rAhle lnnuenec W congress IN
iavor OF the railroad COMPANY, anu whenever ,he
question was raised as TO whether the ownership
OF this stock wOuld In any way Interfere WIN OF
embarrsss them In their action as members OF
Congress he assured them y would nyt. Ihe
committee therefore DO not hnu, as 10 the mem.
hers Of the present House above nameL that
they were aware OF the object Ot MI. Ames or
mat they had any other purpose IN taxing thls
Stock than to make profitable investment.
money 10 pay for this stock present more the ap-
peatanCe OF ordinary Investors tnah inOse VINO
It'd not, but the committee do not feel al liberty
TO md any corrupt purpose or knowledge found
cd upon the fact Of non-payment alone.
" ought also TO be observer tnat those gcnle-
men who surrendered their stock TO MI. Ames
before there was any public excitement upon the
subject do not profess TO have done SO upon any
hlea OF lmprunflety IN hpldlng W bul lut reasons
ment. but the committee believe that they must
nave ielt That there was something - Oul o. lne
prIinArl course OF business IN the cNtraoIIlhnry
mNIlenus ihey were receNinE ~ " tcu ,ut Nv
INVESTMENT ltseli suspicious ,i snu 'ua' '"'' WIS
one OF the motives OF thelr acllOn'
The committee have not been able To- nnd that
any o. ihese nemDers o. lonsrrss haye oee y,
hnetlei IN thclf Onl.ial actlnh IN consequence Vi
men interest IN circuit mOOiloI sWSk:
has been suggested that the TACT that none
~ this stock was Transferred 70 those Win whom
WI. Ames eontiacteI was enYumstan y. IIoni
Mhich sense o. nnproprleIy' " not Ol So, ,I,p
,on, was 70 ne lntetteu: lne Cummll.ve Denvno
ms u capable Of eNnlans1Yn w,,hoas sn mn m
ference. The pr0nts OF DulIlnH the Ioah unueI
lne Anss uontiac NstV On,1 70 ue ~
bueh holders OF credit mObller stOeh rs snOull
vome IN and become parties 70 certain e9nultlons
set out 10 the contract o. trasiet 70 ihe ustecs.
80 that transfer from Mt. Ames 70 new holders
MOuil cut nu lhe tlght 70 uiNlusnus nus, lIVui ~
lIusteeh, unless 'ney also he,ams pat,lcs 70 'ue
aWeementi and thls the cOmnllNee DeHeNe W
ne the true reason why no Transfers were naIe'
Inc committee arc Oi nplnion tnM uneie VA ~. !.
saustactory reason lot uelay On VI; Aines p ~
70 close setuelnenh Win some OF tness Eehue.
men for stock aud bonds he nal received AZ dlNl'
aends upon the stoSk SonttaStea 70 theih. ~
the tall o. isos Mt. MGInmb commenced snll
egalnst the credit mOhlller company anu MI.
Ames AMI othefs, claiming 70 DC enuuleh 70 iW0
hundred and niiy shares OF me credl. mooinei
stock upon q snhserlpuon ~ stoIs 70 thnl
amount. Ihat suit u sun pendlng. " McIomb
prevailed in that suit Mr.. Ames might be CON:
neled 70 SURRENDER so much OF lhe stoca asslgneu
TO him as trustee, and he was not, therefore,
AhNlons 10 nave the stock 70 Ont OF ms hanIs
until that suit was terminated. II ought also "a
be stated that no Ore Oh the present members OF
tpe House above named appear TO have has
my knoHledge VI the dealings OF MI Ames VIII
other members.
The committee do not mud that either " III,
above named gentlemen in contracting with Mr.
Nmes hal any corrupt motive or purpose him
self, or was aware that Mr.. Ames had any, no
did either OF them suppose that he was guilty o
any lmprOnriety o. even indelinacy In becoming
apurchAser OF this stock. Had y appeared tina
these gentlemen were aware Of the cnormou
dividends upon this stock and how they were 4
he earned We could not thus acquit them. An,
here, AS well as anywhere, the committee ma
Auule 10 that subject. Congress hal chartere
the Union Pacific road, given TO u liberal gran
OF lsnds, aud promised liberal loan OF Govern
lnent bonds, to be delivered as fast as sections
the road were completed As these alone nigh
not be sunicient TO complete the road, Congress
authortEed the company TO issue their own bond
Tor the denSit and secure them by mortgag
upon the road, which should be a lien prior I
that Of the Government Congress never In
tended that the owners Of the road should exc
cute mortgage on the road prior to that of tn
Government TO raise money to put into their owl
pockets, but only TO build the road.
Inc men who controlled the Union Pacln
reem to have adopted ~ the basis Of their actiO
the right TO cucumber the road by a mOrtgaR
pnor to that Of the Government, TO the full OK
tent, whether tue money was needed for the con
struCtlOn OF the rOad or not
IL was clear enough they could not do thl
directly, and In terms and therefore they re
sorted TO the devise Of contracting with them
selves 70 build the road, and nx price hlRl
extent, and then divide the bonds or the pro
ceeds OF them under the name Of profits on IN,
contract, All those acting IN the matter seem Il
have been fully aware Of this, and that this wa,
obe the effect OF the transaction. The suddeT
rise OF value OF credit mObler stock was thu
result OF the adoption OF this scheme. Any un
due aud unreasonable prOnts thus made By
themselves was aS much fraud upon the Coy
eminent a. II they had sold their bonds and d.
Vided the money without going through the tOnI
Of denOnlnatlng them prOnts on building TIT
road.
Now, had these facts been known 10 thesI
gentlemen, and had they understood they wbri
to share In the proceeds OF the scheme thel
would have deserved the seyerest rensure. Hal
they known only that the prOnts were 10 h
paid In stock aud bonds OF the Union facih,
company, anti 80 make them interested In II
we cannot agree to the doctrine, which has beeI
nrgeu betoro US ant elsewhere, that II was per
iectiy iesitllnate LOT members OF Congress 10 In
vest In corporation, deriving all rs rights from
Anu SUBJECT ~ AL tlmes 10 the action OF Con
Etess. ~ suSh case tue rue OF the House a.
Wen as the rules o. decency would require sucf
members 70 abstain from voting on any question
Anecllng MS interest, But aNer accepting the
Vohuoh " neMneT OF congress, we 10 not
lIihh ne nat VIC Tlgnt 70 llslnAlify himself IRON
neunR lpon subjects nkely 10 cope before Con
Ness mlthout some hlgneT anu more urgent mo
Won IMAM merely 10 maze profitable Invest
nent, but " u not much To lie feared that In
, .ncn ease az interested member would vote, as
tnht nc wculn exercise MS influence by persona
appeai W nus ienOW menbers. anu ny Othe
u,ou.e wl.u oileh - it more pOteht thnn |
Spkle sleht sOte;
w NO not thlhh ahy nelnpct ought TO feel 81
,Vnnue , " us nMn strength ~ 70 allow hinsel
~ py uIongnl mo lhls temptation. We thinl
, W. nih1s luiseu snIeWug IN SAYING thht maj
NUN ,n ,S ma.Sniu VI MS own interests ths'
'" ~, " o,ie, rcoplc. .,,,
,hih MY u piohuer view sih winch VI
,un Uusn. " w tAhen, nus country Is las