Bellows Falls times. [volume] (Bellows Falls, Vt.) 1856-1965, 1873-01-31
The Credit Mobilier of America.

railroad across the unsettled portions
of the west, girding the whole country,
from sea to sea, with parallel bands of
iron. The idea was secuted as the idle
dream of a visionary brain. The men
who had before derided even the thought
of locomotive, steamboat and rail-
road for the same cause, still refused To
believe that Yanke pluck aided by
Yankee skill and Yankee capital could
accomplish anything that was possible.
lime passed on, and the breaking out of
the rebellion demonstrated its necessity.
Steamers and overland stages were too
slow. The Pacific coast was practically
Isolated from the country east of the
Rocky Mountains, and even Republic
of the Pacific was projected. Aside
from the necessity for travel and inter
communication, a railroad uniting the
two seas would form firm, indissoluble
bond of union. These views gradually
gained ground among thinking, shrewd,
patriotic business men, and finally took
form in the charter, by Congress, Of the
Union Pacific railroad. The first step
was taken, but millions upon millions of
capital was required. Government ex-
tended her aid, the capital of the com
pany was expended and yet the laborers
the engineers and artisans called for
more. How should this be raised was
the question to be met, and met at once.
Money must be forthcoming or the pro-
ject must be abandoned. Then it was
that the Credit Mobilier' was organized.
What is the "Credit Mobilier p is a
question often asked. 1t is somewhat
strange that an organization that accom-
plishes the grandest achievement of the
age, that has played SO important part
in American politics, has given rise to so
many newspaper and Congressional dis
cussions, and that has been a nursery for
so many scandals, lawsuits and investi-
cations has no published history. APP
pleton's Cyc1opedia, generally so full
and minute, has not, in either its first
or annual series, even passing allusion
to the great organization that built and
equipped the Pacific railroad The idea
was borrowed from Paris, where Joint
stock company, under that name, was
established in November 1852, with
capital of sixty million francs, for the
traniaction of general banking bust
ness and with the object of aiding in the
progress of public works, of promoting
the development of national industry,
and of consolidating into common
stock thd shares and bonds of leading
companies. Its object was further and,
perhaps, better described by one of its
founders as being "to play with respect
to the fixed capital employed in indus
try, part analogous to that which
banks OF discount fill with re pect to its
circulating capital" 1t was authorized
to purchase stocks, bonds and shares of
railways, canal, etc., and to issue its own
honda to an amount equal to ten times
its capital. Its most noted achievements
were the consolidation of the Paris gas
and omnibus companies and immense
operations in Railways in Spain, Austria,
and Russia as well as in France and
elsewhere. From France the same plan
of organizatson for building railways
and other works, was carried into other
countries of Europe, and there, also,
proved alpecuniary success to the found
ers as well as beneficial to the public.
Having these organizations in view. a
charter was obtained from the Pennsyl-
vania Legislature and the 'Credit Mo
bilier of America" was organized, but at
first under another name, with Cakes
Ames and other persons prominent in
the construction of the Union Pacific
railroad as corporators and stockholders.
This was the organization that furnished
the capital that built the Pacific rail-
road, in the same way that the capital is
furnished to build all railroads, by ener-
getic, shrewd, far seeing captiIists and
contractors, whether they are voluntary
copartnerships or Incorporated compan-
les. sle
This is all there was of it. You can
call it the "Credit Mobilier," an organ
ization, a monopoly or ga ring" if you
please, but the fact remains that with
out it the Union Pacific railroad would
not have been built for years to come,
and it was therefore public benefit
But it is said that they made large pro-
hts, declared large dividends, and that
Members of Congress were stockholders.
AS to the profits and dividends, they
we're entitled to them. They took the
risk and are entitled to the gain. 9th
ers would not invest, and, seeing the
profits ahead, they furnished the funds,
reaped, as they had right to, large re.
wards. As 10 the fact of Members of
Congress being stockholders. it. in and