New-York tribune., 1873-01-08

ten cent on the par Value' dnu tuht """'" '"'"
good thing for which Congressman were suDscrlDng
EFFECT OF THE TRANSACTION
This act subrogating the United states mortgage TO
the second mortgage by which the United states mort
gage was rendered worthless and the second mortgage
took all the there hereupon passed, and
the Credit Mober stock went 800 or 400 per cent and
members Congress and others who had doubts about
taking it lest il might not be "g0od thing" became
very camorOus get IT, and they called upon Mr. Ames
and Mr. Durant for their stock. These gentlemen came
before the Credit Mobcr stockholders and said
substantially ave must have more stock
than THIS ESQ shares, because, while we don't
know that we promised any more, people now
come and claim that promised them 50 shares where
we supposed had promised only 25 and want this
extra amount TO make good these claims for it is
sary to keep in with Congress" After good deal of
controversy Durant and Ames each insisting that they
must have the Stock to make good their several prom
ses the Company to the conclusion to water the
stock so as to give Mr. Ames sls shares and Mr. Durant
little than that. running up the $50 shares TO 7SO
shares and Ames and Durant got stock enough to
answer their contracts and took it and distributed
among their friends, whore they had promised it,
ANOTHER SMART TRANSACTION
Everything thus going We'll but the Credit
Mobiier here met with a little setback. The state OF
Pennsylvania finding that they had this very rich corpo
ration under their controls being naturally dsrous to
tax everything taxable. called upon the Credit Mobiler
to pay onehaf per cent It's dividends; and as they
to make such very igreat dividends the tax was
pretty large matter and was 90 be avoided possible
because the promoters Of the enterprise had very natural
objections paying out money that they were not going
70 pay themselves Therefore they let the contractto
build the remainder OF the road to Cakes Ames for
SiSOOOOOO being the portion which there was mort
gago bond of per mile $4,000 to the United States
$4,000 to the second mortgage and the rest S9SoO
| per mile--that is TO say, $4,000 10 the United
| states and $4,000 TO the second mortgage, which
| By act OF Congress had become the
| first mortgage-to build with the under
standing that he to assign this fortyeight million
for building the road TO the stockholders OF the
Credit MObilier but not to the Credit Moblier ITSELF
because then the dividends, profits would be taxed
by the State OF Pennsylvania. But by assigning this
contract the stockholders there would not be any
dividends for the corporaton for building that piece
Of road for doing which there were TO be very great
prots thercfrOm, depends upon how one reckons
these dividends If you call the stock of the road, say
90 per cent and the at par then they were many
millions If one rockons the profits when the bonds
were worth than 26 cents on the dollar ana the
stock 10 cent? the dollar then the profits were not so
much SO difference in the valuation OF the profits
they divided the bonds and stock among themselves
it is likely very different versions of the profits will
be sworn to by the witnesses In the Investigation. The
land along line all went in also toward building the
road as part of the profits.
| THE M'CoND TROUBLE.
Then another trouble came upon these enterprisins
Union Pacific road and also large of the Credit
Mobiier stock came in and said: " "Gentemen, sub
scribe $50 shares, $4,000 worth OF the Credit Mo
bier stock for Mr. Fant Of Richmond. Mr.. FAINT, when
you called upon him to pay up his subscription, before
the stock became so valuable unable to
do it. You called upon me and gave you my check
and now want my stock" But they said TO him. "There
is no stock for you IL all divided up now" But he
sad There the peculiar stock that Ames and Du-
rant had" They said, But that has been disposed or
Wel them" said McComb, "water the stock as you did,
for them and give what paid for" "No." they re-
Piled I'VE will lnot do that. You take your $4,000,
which you say you have paid and be quiet You have
got your share original subscriber with the rest
and there no why should have for yourself
$4,000 paid In for FAINT stock which has become worth
more than 100000
And hereupon there arose euroclydon, as 1t Is
translated, "tempesuous wind" They thereupon de-
MED that McComb ever paid even the s25OOO but he i'll
sisted that he had paid 1t and upon his legal rights but
said: will submit all this question between us TO
Judge Nelson Of New York Of the Supreme Court and
Will abide by mis- decision, whatever that decision may
be-" That proposition was submitted TO com
mittee OF the stockholders OF the Credit Mobier,
! and two of them, Oliver Ames and Thomas c.
! Dvrant, reported in favor OF 1t. The other
! member Nr. John b. Alley insisted that he would not
have any such thing done. McComb was willing to take
the decision of TIE majority Of the committee and tried
in various ways get reference, but failed to get 1t
done. . -
1t occurred to him. however that perhaps Ames had
not distributed this stock although he said he had II
be had not distributed this stock which stood in his
name then Amcs held stock in trust for the Credit
Mober, and of had it in trust for McComb he
could make good his claim. Thereupon McComb went
TO making res of men, who said they had not had it
where Ames said they dd have It, Then he thought that
Ames was cheating him, and said TO him, You must
give me TINS stock, which you have not distributed
enough 10 do II standing
in your naIne you must settle this matter with me-"
| Ames refused. Then" said McCOmb II must bring
suit and expose this whole affair and that don't want
10 do don't want TO get these people mad with me.
am in railroad enterprises and don't want to stir
hornets nest here. You don't want to have this
posed" Ames replied that he did not care anything
about that; everybody knew that Congressman were
brbed; he could bribe any of them, and that McComb
might tel,all!he knew or not, as he pleased
| THE LAWSUIT.
Thereupon McComb brought his bill in eduity, and
called upon Mr.. Ames upon oath to testify. McCOmb
apparently thought his best plan railroad man.
was to leave the members Of Congress- and there
fore he instructed his counsel Judge Black not TO put
in the bl IN equity the names OF the parties, but simply
70 aver that the stock had been illegally distributed
Judge Black objected to this because the b drawn
might not good unless the names OF all who held
stock improperly we're on IT, and required OF McComb
guard himself from the !mputauon oI peng poor law,
This Mccomb gave him. az he was Very anxious as
large sockhoder Of the railroad and Of the Credit Mo-
which the companies had been established, and made
profitable had been passed AID he hoped by keeping
this secret that would be easier TO make settlement
with Ames and the Credit Mobilier and get his money
so the bill in equity ony referred TO the transactions
and Amess letters In general way. To this bill so
framed Ames answered upon his oath that he never
wrote any such letters aud that he never distributed
| any such stock.
THE DEVELOPMENT
The matter referred to q Master in Cbancery to
take testimony 1t is probable that Mr. McMurrie Of
Philadelphia Amess lawyer, believed Amess oath, and
did believe there wasTany transaction such as was
hn.