Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-01-31

BuRLNGroS, Vt.
The credit Nobnicr Business.
$50 Is oAEEs ANEs
Mr.. Ame- Is one of the widely known
manufacturer afilat name, in Ma~~achu-
sets. lie resides n North Eastan, Mas,
about TWENTY-FIVE miles ~5uth of Boston,
amt la, scIa.-aatel tie Second Con-
gre.-ianal 3.-ui,s of tia; State for ten
y,ar. past. nsi> taus described, evidently
hy friendly pen
lie is the son OF father, and one oi
family 81 brothers. famous chiefly Tor
financial success | doubt If his mind
,Y.ll c..ceiy. OF a success wholly uncon-
nee,el with money and profit. Yet all his
lille il ia- been money and profit a. the re-
suit of labor. trade, and iuSt inye>tmenis-
notlnuuev as the sequence Of Wild specula-
tinn,-wiich he has sought II OakeS
Ame- has been Teputed a a tnancler, and
a millionaire hy right Of that iEancerin-,
be ha- been regarded no les> a man oi
prlbity and honor Not an ideal states
man. -arelv. ike Winter Davis and Charles
Sumner. pursuing lofty. imperS3ual stand
AIDS ul government. without reference 10
fear or favor. hut wise, practical leglSla-
to-. bringing his great financial experience
to bear upon legislative huSness-a man
who would never subsidize the interests Of
lust government 10 any personal considera-
lion wha:ever. Such was Oakes Ames in
the estimation OF his colleagues and IN the
upini9u of all who knew him well. Such
is Oakes Ame> to-day in the prevailing al
trihltes of his character.
Another says Of him
In any age of the world he would have
been remarkable man. Having accumu-
lated fortune in the modest business of
>aovel-making. he finds himself in middle
life IN control OF one OF the main CONNER
cial avenues Oft the country, leyYins toll 20
the amount of millions annually on all pas
Senger> and merchandise passing between
the western and the eastern coast Of the
continent. and Mt the same time in consider
able doubt from year to year whether he Is a
millionaire or IA bankrupt.
Mr. Ames is known in this vicinity a. the
capitalist who furnished in good part tie
funds with which the Oakes Ames steamer
On oa- lake was built. which was named
after him. when it was launched.
WHAT Is The CREDIT NoGILIER
We have heretofore explained the general
character and operation Of this COMPANY
We learn from the Nation that II was not
chartered to build the Pacific road but
was in existence before. \ charter had
been granted by the Legislature of Penn
sylyania, some fifteen years before Mr.. Ame-
took hold Of the Pacific road, incorporating
George Francis Train and some other gen
tlemen as Fiscal Agency" Its name
had, meantime. been changed to the Cred
itMobilier Of America" and As the stock
was almost worthless, it occurred to Mr..
Oakes Ame- that, instead ofproceeding ac-
cording to the terms of the charter Of the
Union Pacific Railroad and subscribing the
very large sum Of 500, OOa zoo to build it,
it would be a far simpler matter to buy ont
the Credit Mobilier for few thousand, and
let the Credit Mobilier build the road. Ac-
cordingly Mr. Train was approached by some
one on the subject, and the result was that
the charter Of the Credit Mobiler changed
hands Tor S2O, 600 or $50, 600 The stock
holders Of the Union Pacific anu of the
Credit Mobilier were the same an in their
first capacity they proceeded to contract
with themselves in the latter capacity to
build the road for all the securities. bonds.
stock and lands which the Pacific charter
gave, any surplus above the cost Of the
road to be divided among the stockholders
of the company. 1t was at first regarded A.
exceedingly doubtful whether there would be
any such surplus but as the work advanc-
ed and proved to be far les expensive than
was supposed possible, dividends oi cash.
and Union Pacific bonds, and stock, having
a high cash value, came thick and fast,
and soon amounted to two or three times the
par Of the Credit Motiier stock
WHAT Mr.. AMEs SAYS TOR HIMSELF.
AT the time the last subsidy or grant for
accomplishing the great national object of
connecting the Pacific and Atlantic hv rail
was offered 10 the public, ! had no connec-
ton with the enterprise, and DO expectation
of such connection II was not until the
persons who had undertaken it had halted
and asked assistance from me that turned
my mind 10 the subject. ] and my brothers
embarked very largely There were mem
hers of Congress who jid the same. No one
seems to have thought this was corrupt.
Those who embarked in the enterprise
thought their acts We're praiseworthy and
patriotic We hoped TO make profit. bat
knew the risk was enormous.
When | tell You that one of oar contracts
required the actual expenditure OF Si7 ,0o0,-
coo, while the resources were the original
capital Of the Credit Mohilier. all OF which
had been absorbed in prior construction,
the bonds lent Us ly the United States land
grants, and the bonds of our company. the
whole value of which depended on our ulti-
mate success, You viii perceive why | was
seeking for associates and assistance We
wanted capital and Observation-Disclosures not
on legislative action, bat on credit good
will, and general favorable feeling If
the community had confidence in our ulti-
mate success, that success was assured but
If there was distrus: or ill-will the reverse
was rs certain. For. unless We could get
of our bonds and land grants to raise /
money to pay our way. We must certainly /
fail.
Nv hen. then. tell yoG. in the light Of 4
these circumstances. that / wished L. enlist I
our public men. As well as capitalists. 20 OBJ /
tain their influence. have not the right t.
ask You 10 ia!er that meant proper M /
huence? Can | not appeal TO the openneS> /
OF my STA temeEtS al the lime and the utter
absence ct all concealment On my part. that /
| intended nothing that ought 10 brand me .
with disgrace2 Vt the start. number of !
public men had embarked with u. A. the I
work progressed, | solicited such men 4
wherever there was chance of success As /
our prospects frightened and the profit had /
become almost certain. persuaded men /
whose means We're small To take the risk. .
and this certainly on my part WIKI tie .
expectation that they would reap profit. -
So Mr.. Ames distributed nearly 300 /
shares Of his stock among members of Con-
gress where, AZ he said in one Of hi, letters.
1t would " do the most good" The trouble
with his case appears to be, however, that
he did not make the distribution in a- open
a way as he did some other things. lie
seems TO have kept most Of the stock in liz
own name, and whenever lie found any
member of Congress who had any money to
invest, he simply let it be understood that
50 many shares were his. and in order to
save any trouble about the transfer of
papers he was willing to keen the stoct and
pay over the dividends as they accrued or
he would return the stock if the investory
did not like the bargain. ana guarantee
them ten per cent. on their money N,,-
members OF Congress took the stock inno.
Gently supposing, as they have all testified
that there was no more wrong in the trans
action than in their investment in the stock
ola national bank or a factory. Some of
the members kept their stock, and received
dividends on it; Others, hearing of the diff
culties in which the road was becoming in.
VOWED, returned their shares to Mr.. Osks