Bozeman avant courier. [volume] (Bozeman, Mont.) 1872-1882, 1873-02-07
THE CaEDIT M1BILIER.

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Il 5sss sss ---4---9 st 84A
Persons who wish 10 60 to the bottom ol
tile Credit Moilier'. scandal, now so much
talked about. will dc well to read the report
of Amcs and Alleys lawsuit with the state
sof Pennsylvania, in the b7th volume of the
PENNSYLVANIA state feports-tile last (and
l7th) volume issued by T. Frazer Smith, the
present st I. reporter. 1t begins on the
23rd pagc of the volume and covers nearly
10 pages; continuing the proceedings Of two
jury trials and two hearings under writ oi
error before he Supreme Court of the state.
The first trial was Noveniber23 23. 1867 before
Judge Pearson. who 50 charged the jury
that they gave a verdict Of $4O7 ,4S3 against
the .Credit Mobiliers' for 4 state tax .on the
fat dividends OF that company in ls67-S.
when Oakcs Ames was placing the stock
s..where twill do US the most good.o At
that time, as shown in the trial, the capital
stock of the Credit Mobilier" was So, ,750, 900
and it lad declared two dividends, Decem-
Der II, 1867, in bonds ,ot the Union Pacific
road valucdat $1.7Oo 600; one dividend. jan
.uary s, 1868, (in bonds3 of 637s5oO; two divi-
dends Zone cash and one bonds) June IL.
1868, of $2.25O. .OU( CASH and $525, 900 (bonds);
one dividend (bonds, Jrly 8, 1868. afterwarl
proved to be bogus) of So 500 cas- and final
~. one cash dividend, July s, 1865, ,,of 81 .l25,
600. This makes total Of So, 375 900 in cash
and $3,s62.275 in good bonds. about tw o
thirds of which. were valued at So and the
rest at SO at the time Of ditidend- Here
then was an aggregate of dividends am ouilt-
Ing TO 170 per cent. IN seven months, not
counting the sptsrfotfs 81, 390, ,625; aud upon
this the state claimed tax .'of one-half mill
on the capital stock for each one per cent of
above per cent a year, amount
ing TO $4s1 ,4Os. and 10 per cent penalty
reHen dividends of $4s ,14l; so
that the waole amount claimed by Benjamin
III. Brewster, the attorney-general, was $529,
547. The jury gave him, as above stated,
$4O6, ,4S3, making reduction for the bogus
Ii vidend OF July, 8, 1868. But Messrss
Ames and Alley excepted errors in the
judges ruling, and gotta new trial Decem-
ber19, 1s7O--two years ago4- before the same
Judge Pearson. who laid down the law as
be had been instructed by the Supreme
Conrt, and the jury again gave verdict for
the State Of 1858; which, in November
1871, was again set aside, Justice Aghew dis
senting. and another ncw trial has hecn
< graMed. glTTa = ,,,,., = /. -,yyps ,y,..s
-van;a Jury VIII ever give vefd'e' '0' ..a,ss
~, AIlav-a host of Interesting rese'l'ioa. =.
80 made and there are many YET - -
q. RI .eeu,s that The '.Credit .Mopiii.' -.
# America $50 baptized by George fra''u,, y,
Train in 1854 was first Incorporates 40 ,.,a, m
.s,snrsyi.a..ia Fiscal Agency oy inc san :,
,..;si,t,,re in 1859. The charter hay ~ y
5aai, the acts Of 1860 (aot 1851 page go o9e
and tbc original incorporates were oanu' ,
: .p.loes. Enis Lewis Garrick malia, a1an,
n y F Green. David r. Porter. Jacob leg'e :.
Charles Nj. Ifail. Horn r. kfeass' houe.. NE.
poss. william L. Dousherty' lsa'o Es'a 49,, 49,.
q q 1,sM Reed. William Worknrn, asa fav,.s ~
= I.sse azcar. e. S. Kaufman, Z. l.. ,'''' "A
ana Henry NJ. Fuller. Duff Greeh' e"o -, =
W. aat son;su editor and politician proc uI' !
thc charter and became pre,'as,s e, ;,,,,,v1
connany which was exempted ,l ifon % liz,
,,al liability in its stockholders, was sas.r %
- hnv andi sell railroad bonds, susa'' s
+ money to railroads contractors, max :.
...ats ate-in short, to do almost eve
ri t,s,, rhnt banking and the issue ol =.
!, rrhe capital stock was fixed at so,oooW00 ooo
= business might begin when Sooo'ooo
70 srhscrhed andS2 900 paid it,. Ihe ase'
D. a.uan;zed. but the war coming Oh, anu
y, :, aa;..eted operations be;ng at the South
be p1 ,'a ,ary little business. In 1864, by y
= aeteristic fraud on the part o. nun , n,,
,e s associate. who had sold out TO lra,"' - -
III a.o0o .e Green being supposed dead-anu ~,
on .ct, bt March ,26, 1854, the fenhssn ~
dy - .s,siature changed its name to "Ine =.
lot n.on.,;er Of America In 1860 a con
nt, ,o.de with one Hoxie, TO Duiiu
rp- hundred and forty-seven miles OF .he ..; =
on pac;fc road, and this contract was ass .a.
nai !, tha Credit Mobiler; and tue 'aAe'
ne J. ~, dividends thus sccrning were pa
It's nY' ~, s,ara of Pennsylvania. But on AZ
aaa ' 1e. 1897, Oakes Ames mace = .D ,,.ae =,
anu anu the m ,ailroad, in which lie was q 'a'so =
',Ty - h,,ild six hundred and. slxty-sesen 80
ms sna Ills Was assigned octcber TO- io' =
age aarta;n trustees, for their own Dehen :,
the l that Of the Credit Mobiler, OF wh'o'
en- =. sa Ill the chief stockholders, afens
wise ns..s Ames. These trustees were
pea .n,ss John 8. Alss Henry 5. MeIoo 20.
con- = Durant, Sidney Dillon =. :. -
'os.t- - "a Ren;amin E. Bates; and it IS out $
tne a sat;on Of these eight men that al ING :.
'or "s S..,.onia lawsuits and all the congte
70 M : scandal has come. rreclse.s ! w. 80
OF seer. ..asmcnt Of october Is, 1867, mea
faaus nar - curt has vet found out,-but under
!. ssed ..c.e,,;t Mobilicr.' declared dividends
or lis aas ,as nartly bogus. as above men
ieasy. s, previous to this agreement sba aus1s
saen I'm atatcs legislature had aSah s.E;sn + a
,.a .mas sisarter Of Duff Green's o,u i.ass dnn,
','v giving 1t larger powers lnis " . N0''
~ ~ ,,a. ruary %. 1867. ..sa,. Iohn I
'.e - In the course OF tilese .ala.a' ..1,,a
na ~ .ha testified that he Went atu ~ su Hoxi
~ ns the bil,er' company ~ lou. .Hn Mav "a
frand having been assigneueao f. =, a,,1.. went
in de- AnaeSs ,srsonal, liability; that when tll
above, aso.u ,s.act ~ terninated. j. M. ). william
nicely anassr coa,.. Of Congress elect from the
inmate ysua.rc nsen ,li,tric:s took another con-
olIntrv LII rho rns1l. which was not fully
aiureiy p ~ s.,vas designed to hayc been tuT
8. from Dus ,...d;f IfdaSlser. If certain q
artful 10 ,,.G - = s,,.oeured.h which was not;
Of the coa.a No. 7, NJ rtv in May 1867 turned
gentle An'es ,l~ filled the Williams contra
Y como oue, :" .,.;s ,,,,a,saI grew at last ti