Dodgeville chronicle. [volume] (Dodgeville, Wis.) 1862-current, 1873-02-28
The Report of the Poland Committee.

WASHINGTON, February IS.
THE Special Credit Mobilier Committee of
the House submitted its report to the House
to day.
After quoting the resolution under which
they were appointed and acted, the Commit
tee gave history of the connection of the
Credit Mobilier Company with the Union Pa
| cifc Railroad, by the Hoxie and Ames con.
tracts. The Committee then rehearsed the
| operations of Mr. Ames in placing some of
the stock of the Credit. Mobilier and the diff
fculties which arose between him, Durant
and McComb. Prior to the session of De-
cember, 1867, Ames had had no negotiations
with congressman, except Mr.. Schofield.
The Committee say they cannot entertain
any doubt 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 friends in Congress
to resist any encroachments upon the
privileges already secured, and his purpose
to create in them an interest identical with
his own is clearly avowed in his letters to
McComb, especially in those in which he
says: 81 intend placing stock where it will
do most good, and we want more friends in
Congress-" Another letter gives the philos-
ophy Of his action where he says: 81 have
found no difficulty in getting men to look
after their own property" The committee
are satisfied that Ames feared that when the
great profits became known there would be
danger of Congressional investigation. OF
those with whom he dealt he did not fear
any hostile legislation, and the committee
believe Ames specially designed to secure
the defeat of the efforts of the Washburnes
of Wisconsin and Illinois to regulate trans
portations over the Pacific Road and other
measures, and they quote a reference of
Ames to Washburne, in one of his letters, in
| support of this belief.
The evidence in regard to members of the
present House, the committee proceed to
state, Is in some instances painfully conflict
ing. They find that Speaker Blaine did not
take any stock, although he was recon-
meuded to by Ames.
Mr. Dawes received no other benefit from
his transaction with Ames than ten per cent.
| upon his money, ana after settling with
Ames had no further interest in the stock.
| The evidence relative to Mr.. Schofield is
| rehearsed, showing also that Schofield gave
up his Credit-Mobilier, but retained 81 900 in
| Union Pacific. The precise terms Of the set
| Element are unknown from lack of data, but
since the settlement Schofeld has had no in
terest in Credit Mobilier.
| Mr.. Bingham's connection with the matter
was settled by Ames retaining the thirty
shares of Credit-Mobilier stock and account
ing to Bingham for such dividend 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 De-
cember, 1867, to the settlement in February,
| 1872 and had the benefit of all the dividends
upon it. Neither Ames nor Bingham bad
| such records OF their dealings as to be able
| to give the precise amounts of these divi-
| dends.
The Committee find that Mr.. Kelley, of
| Pennsylvania, had ten shares of Credit Mo.
bilier, taken upon the solicit alton of Ames,
the latter carrying it for Kelley until the
| dividends paid for it, and that on the 23d of
|
| in q check on the Sergeant-at-Arms. Subse-
| quent dividends were paid in Union Pacific
stock or bonds. In September, 1868, Kelley
received $3.50 from Ames, which was under
stood to be an advance to be paid out of the
dividends; but there has never been any ad-
justment of the matter, and there is az entire
variance in the testimony of both as to what
this transaction was. Subsequent converse
tions and negotiations between them are in
the evidence, but the Committee does not
| deem it material.
Relative to Mr.. Garfield, the Committee
find the same facts as in Kelley's case to the
point of the reception of q check for 1929.
| The Committee do not find that since the
| payment of the 1893 there has been any CON-
munication BET ween Ames and Garfield on
the subject till this investigation began
| Some correspondence between Garfield and
Ames, and some conversation between them
| during the investigation will be found in the
reported testimony. a
| The Committee state that it appears that
Ames did not give any details of the rela-
tions between the Credit Mobilier and the
| Union Pacific Company, nor did any Of the
| parties know that dividends would be paid
| in stock or bonds of the latter The Com
mittee say that the Credt-Mobilier was a
State corporation, not subject to Congress
| lonal legislation, and the fact that it's prof
its were expected to be derived from the
building of the Union Pacific Railway did
not apparently create such an interest in
that company as to disqualify the holder of
Credit-Mobilier stock from participating in
any legislation affecting the railway COM
pany. Ames assured Congressman when
| questioned on the subject, that their owner
ship of stock would not interfere with their
legislative duties. The Committee, there
| fore, do not find that the Congressman
above named were aware of Ames' object, or
that they had any other purpose than profit
able investment 1t is apparent that those
who advanced their money to pay for their
stock present more of the appearance of
ordinary investors than those who did not
But the Committee do not feel at liberty to
find any corrupt purpose or knowledge
| founded upon the fact of non payment alone.
| The Committee think that members, in
| taking stock, were not sufficiently careful
in ascertaining what they were getting.
The Committee find nothing in the conduct
| of the above named members calling for any
recommendations.
| The Committee say the case of Mr. Brooks
stands upon different state of facts from
the others. They rehearse at length the
evidence, showing Mr.. Brooks efforts in the
press and in his official position in behalf of
the road, and his operations with Durant,
etc. After referring a. great length to the
evidence relative to Brooks, the Committee
say without further comment upon the evil
| dence: 1.-THE Committee find that one hun
dred and fifty shares of stock appearing on
! the books of the redit-Mobilier in the
name of Nelson were really the stock of
| Brooks, and subject to his control, and that
it was understood by both parties. Brooks
| had taken such an interest in the Credit-Mo
b1i1er Company and was so connected with
Durant that he must be regarded as having
| full knowledge of the relations between that
| company and the railway company, and of
| the contracts between them. He must have
known the cause of the sudden increase of
| value of Credit Moblier stock, and how
large the expected profits were to be made.
We have already expressed our view of the
propriety of members Of Congress becoming
owners of stock, possessing that knowledge;
but Brooks was not only member of Con-
gress, but he was Government Director in
the Union Pacific Company. AS such it was
his duty to guard and watch over the inter-
ests of the Government in the road, and see
that they were protected and preserved. To
insure, such faithfulness on the part of
Government Directors, Congress very wisely
provided that they should not be stockhold-
ers in the road Brooks readily saw that
though becoming stockholder in the
Credit-Mobilier was not forbidden by the
letter of the law, yet it was a violation of
its spirit and essence, and therefore had
the stock placed in the name of his son in
law. The transfer of Cakes Ames'
contract to trustees for the building
of the road already under contract,
from which the enormous dividends were all
derived, was all during Brooks official life
as Government Director, and must have been
within his kuowtadOa and yet Da sSad with