, 1873-02-02
CREDIT mOBILIER.
Jules Hires and Ills "Caisse "...!The Mse
and Fall Of the Great French
Spec1iater.
.Eis Trial tor "Abuse of Conf
dence IA Specimen of
His Operations.

His Operations.
FORT DODGE, Iowa, Jan. %, 1879.
1b the Editor Of The Chicago Tribune:
SIN While the daily reports from Waahlng-
ton about the Credit Mobilier are still mobiliz-
ing peoples minds aud prompting inquiry on the
subject, something about the original inventor
of the Credit aIobilier may not come amiss.
In answer to such inquiries, you have already
given much valuable information, stating, in one
Of your recent articles, that the Credit Mobilier
was first imported from France in 1864
by George Francis Train. He is vel
coma to this honor, whether justly en-
titled to it or not but it seems to me that the
mysteries of French fnancioring were under
stood BY some Of our big Railroad Kings, and
even by oome Of the pettiest County Boards in
the remo:est corners of this country, long before
its formal introduction by Train. It is said that
tho foundation Of our new State Capitol, at Dss
lIoinos, has been laid On the Credit Mobiiar
plan.
The prototype Of the French Credit Mo-
b1ier, founded by Fould and the Broth
eEs Pereire, of Paris, was the "Caisse
des Actions Rennis, or afterwards simply the
"cA1ssr M1REs,'
established in 1850 by Jules Mires, who has re-
markable family likeness With some of our own
"benefactors Of mankind
As products Of our time, such characte.a are
worthy of careful steady; but, within the limits
Of this letter, can only givo you very general
outline Of this, the original inventor of the Credit
Mobilier.
M1nEs' CAREER.
The son Of an obscure pawn-broker OF Bor-
deaux, apprentice in small glassware store,
then clerk in commission house, where he
WAS discharged On account OF his inefficient
education, Jules Mires gradually works himself
up, through the successive stages Of copyist in d
tax-col1ector's Office, then agent for the recovery
Of wrongfully assessed taxes, then strcet-brok-
or at Paris. to the editorHhip Of the Journal lcs
Chemins-de-F Fer,-a email paper devoted to rail-
road interests; aud in this capacity lie steps up
on the public stage, in the City Of Paris, not
long after the Revolution Of 184S, just as the
frightened Capital was again peeping ont OF its
hiding places, eager to espy good chaucos for in
ysstment, and to mike up for the time lost DUR
ing the days Of revolution aud panic.
Mires could not write correctly, and had to get
his articles revised; but he undertook tho higher
art Of putting, and developed remarkable talent
to attract capital and influence public opinion in
~--~
His journal soon became
POWER Ar TIE BoUKsE.
He Vas well paid for his services, and began to
sail with tie wind he had himself created, draw
able to produce in the stock-market. His euc-
cess encouraged him to extend his journalistic
activity. He now WAS already man Of
some note, and could venture to call to his as-
once the idol of the French people, who did not
consider it beneath his dignity 20 associate him.
self with Mires in tie publication Of the Conseil
le,tr du Peuple,--a paper which, for time, also
proved grand financial SUCCESS.
In 1850, as already stated, h1irea establ'shedhis
Stock Company, with capital Of 100000
francs, created for the purpose Of buying, Bel~
ing, and making advances on rai1road-shnres,
mining and all klnds Of speculative stocks.
The Caisse fouIished. hlires soon declared
@ dividend Of 80 to 40 per cent and his institu-
tion became the model for the celebrated
CREDIT MoBE1ER,
callod into life by Fould and Peraire Brothers,
assigned to Mires 500 shazes in the Credit Mobi-
ier-
Mires genius now returned upon higher and
higher flights To the papers already owned by !
him, he added two drst-class Journals, then in !
service Of the lmperinl Government,-the Pays
and the Constitut,onnel,-Whic he used to OBJ +!
tain the favor of the Government by singing its |
praises in the highest style OF his art.
In 1856, the capital Of his Caisso Vas raised |
from 12,ooo,ooo to 5o,ooo,ooo, end now began
that series Of
GRAND FINANCIAL OPERATIONS
and dazzling projects which made his house the |
centre Of tho largest horsepower in Paris
which aroused at once the admiration and envy
gained Mires namo overehadowing even that !
Of the Rothschilds, the Cross Of the Legion OF |
Honor from tho late Emperor Napoleon H.,
Prince Polgrcc for & eon-in-law, and, through |
him, alliance with the oldest nobility Of France,
private establishments ;yying in splen dor with |
the Tuieries, and, at last, the Prison Of Mazas.
a11REs TnAL,
in 1861, for " escrogue,"ie' and q abus du con-
jidence, two crimes unfortunately unknown to |
our American penal codes,--is a French cause ]
here, is very interesting reading. t |
The reports are very volnmlnous, and 1 cnnnO ]
even mention here the various criminal trausac- i
tions of Airee, and the startling disclosures |
find place here as specimen, and as an illus !
trntion Of OUT own Credit Mobilier:
A SPECIMEN OPERATION.
4 welI-knoNn Spanish spcculator, who has
figured largely in this country, also, and from
Great Western Railrond, derived its name, had |
obtained charter from the Spanish Govern
ment for building 3 railroad from Pamplona to |
Sara sossa, to be dnished within the year 1860.
Alr. Salamanca, another product Of our railroad
pGsh, and got stuck. Mires throw ont his hook
for tl.ls fsn upon the sand, and Salamanca was
glad enough to be caught.
The two honorable gentlemen entered into
private contract in which Salamanca agreed to
finish tho road for 145, 600 francs per kiomeser;
and then made another contract for pubic use,
at S20o, 900 francs per Elometer With the for
ner contract in his pocket. and tho latter in his
Gorerenaent to form Construction Company
for the pAmplonR Il SarrArossa Railroad