New-York tribune., 1873-02-19

that of the overnment 20 raise money put into their
own pockets but only build the road The men VINO
controlled the Union Pacific seemed 20 have adopted as
the basis OF their action the right TO neumber the roau
by mortgage pror 70 that OF the Goyefnnon @ 20 sne
sructOn Of the road or not. IL was clear enough tey
could not do this directly and IN terms aud therefore
they resOred TO the device OF contracting with the-
selves 10 build the road and fix price hgh enough 70
require the issue OF bonds TO the fuH ehtent,
under the name OF profits the contract All those
acting in the matter seem to have been fully aware OF
The sudden OF value of Credit MOber stock was th
result of the adoption of this scheme ANY undue anu
much "a fraud upon the Government as II they
had sold their bonds , and divided tne ,
of depomnating them profits on tho building
OF the DAD Now had these facts been known To these
thc proceeds of the scheme they would have deserved
the ssverest censure. Had they known only that the
Parac Comp1ny and so make them Interested IN IL, we
cannot agree 10 the doctrine which has been urged be-
Ieritimate for members OF Congress to in
vest IN corporation, etri'tIIT az niIT ,nos sm to
tbe action Of Congress In such case the rule Of the
House as we'll as the rules of decenoy, would require
such member TO abstain IRON Young 9h any question az
fecting his interest But after aceePng te POSITION M y,
member of Congress- we do not think he mas the ght
to dsqualify himself from acting upon Su9eo'o He; 70
urgent motive than merely 10 MAKE pfoDt-
able Investment But sucb Is not case 50 an muIa l
terested member would vote ~ that he would
eTSTse h sd by oSr Dg
more potent than silent vote. we 40 not think any
Az TO allow himself to be brought into this empatOn
We think Mr.. Amcs judges shrewdly IN saying that
man is much more likely 10 be wdlchlu OF MS own H.
terests than those Ot other people
GROWING DANGER FROM CORPORATIONS.
But there is broader view still which, think,
ought to be taken. This country Is fast becoming filed
with gigantic corporations welding and controlling I'M
mense aggregations Of money, and thereby command
ing great influence and power 1t is notorious in many
state Legislatures that these influences often con-
trolling 80 that in effect they become the ruling power
the state. Within few years Congress has, to some
extent been brought within similar Influences aud the
knowledge of the public the subject has brought
great discred upon that body. Ear more was believed
fban there were facts to Justify But such the ten
encv Of the te and the belief too general that
all men be ruled with money ana that the use OF
such means 10 carry public measures are legitimate aud
uroper No member OF Congress ought to place himself
In circumstances of suspicion so hht any dscredt 20
the body shall arise his account 1t OF the highest
importance that the National Legislature should be free
OF all tant OF corruption aud Is Oi equal necessity hat
the people should feel confident tnat II Il so. In
free government like cannot expect the people
Will long respect tho laws if they lose respect for the
lawmakers. For these reasons we think u behOOyes
every man in Congress or IN any public position % hold
himself aoof far possible IRON all such influences
that he may not Only &c enabled 10 LOOK AT every public
question with an eye only 10 the public good, but that
his conduct and motives be not suspected or questioned
The only criticism the Committee feel compelled 10
make on The action OF these members In taking this stock
js that they were sufficiently caIou IN ascertatning
what thov were getting and that in their judgment the
1bey NEEDED Ne commend to them and 10 All men the
M, f Tho venerable senator Bayard in response To an
& &msny. 81 & I'm taang fns stock that calls
for any recommendation by the Committee.
MR.. JAMES BROOKs's CASE.
Tho case OF Mr Brooks stands upon different state Of
facts from any OF those already gwen The Committee
find from the evidence as follows:
Mr. Brooks had been warm advocate Of o Pacific
Railroad both in Congress and in the public press After
persons interested in the Union Pacific Road had OBJ
tanned control OF the Credit Mober charter aud
lied undcr IT, for the purpose OF making It cOnstruc
ton company to build the road, Dr. Durant
who was then tho leading man IN the en-
terprise mado great efforts TO get the stock
of the Credit Mobilier taken Mr. Brooks was friend
OF Dr. Durant and he made some effort to aid Dr. Du-
rant In getting subscriptions for the stock Ho intro
duced the matter To capitalists in NewNOrk, hut
his efforts not crowned with success During this
period Mr.. Brooks bad talked with Dr. DuIant about
taking of the stock for himself and had spoken Of
taking Sl5O $4,000 of IT, but 30 definite contract
was made between them, and Mr. Brooks was under no
TO give IL to him. In October, 1867 Mr.
Brooks was appointed by the President one Of the
In December 1867 after the stock Of the Credit MOber
understood by those familiar with the affairs be-
tween the Union Pacific and the Credit Mobier TO he
worth very much more than par Mr. Brooks applied TO
Dr. Durant and claimed that be should have 2O shares OF
Brooks claimed he had any legal contract for the stock
that he could enforce or at fant considered himself
i'm any way legally bound to let him have but still.
account OF what mad been said ana the efforts OF Mr.
Brooks to aid MIN he considered himself III. under
had been far taken up aud was then IN such demand
that Durant could not well comply with Mr Brooks's
for shares After considerable negotiation,
finally adjusted between them by Dnrant agreeing
let Brooks have 100 shares OF Credit Mobier stock
$4,000 of Union Pacific stock Dr. D1rant testified that
he then considered Credit Mobler stock worth double
the par value and that tne bonds and stock he 10
give Mr. Brooks worth s. OOO that he saved about $1,000
by not giving Mr. Brooks the additional 100 shares he
THE TRANSFER To Mr.. NELSON.
After the negotiation had been concluded between Mr..
Brooks and Dr. Durant Mr.. Brooks said that he
Government Director Of the Union Pacific road, and
the law provided such directors should not be stockhod
in the Company, be would not hold this stock, and
directed Dr. Durant to transfer It TO his sOnnlaw.
Charles H. Nelson. The whole negotiation with Durant
conducted by Mr. Brooks himself, and Nelson had
nothing to do with the transaction except to receive the
transfer The 5000 to pay 0r me lOO shares was paid by
Mr.. Brooks and he received the 5000 OF Pacific bonds
the shares from Durant to Nelson dated Decem
Der 26 On the 81 Of July 1865 there dividend
Mobiier stock The bonds received by Nelson but
passed at TO Mr. Brooks II s claimed both by
Mr.. Brooks and Nelson that the $4,000 paid by Mr.
Brooks was loan of that sum by him to Nelson aud
that the bonds he received from DuIant and those re-
ceiyed for the dividend were delivered and
loan. No note or obligation was given for the
either Brooks or Nelson was any account memo
randum Of tho transaction kept by either OF them. At
the time the agreement spoken
between Brooks and Durant, there was nothing said
about Mr. Brooks being entitled to have so per cent
stock by virtue Of his ownership Of the shares
Neither Mr.. Brooks nor Durant thought Of any such
thing. Some time after the transferlof the shares
TO Nelson, Mr.. Brooks called on Sidney Dillon,
then the President of the Credit Mobilier and
claimed that he or Nelson entitled TO
80 additional shares OF the stock by Virtue
Of the purchase OF the 100 shares Of Duran This was
claimed by Mr. Brooks his right by virtue the 50
per Increase OF the stock herein before described
Mr. Dillon said he did not know how that was but he
would consult the leading stockholders and be governed
by them. Mr. Dillon, IN order TO Justify himself the
got up paper authorizing the OF so
shares OF the stock Mr. Brooks and procured IL TO be
signed by most OF the principal shareholders After
mis- had been DONE entry Of 90 shares was made on
The stock ledger 10 some person other than
Nelson. The name In two places on the book
The Committee are satisfied that the stock was first