Lamoille newsdealer. [volume] (Hyde Park, Vt.) 1860-1877, 1873-02-26

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the snormou, dividends aud how they we're
TO be earned, committee could not aequit
them.
The report then refers to the liberaliiy
Of Congress to the Union Pacific company
and says: Cosgress never Intended that the
owners OF the road should execute mort
gage on tie road, prior to that Of the gov.
ernment, TO raise money to put into their
own pockets. The sudden rise Of value
of Cre'lit Mobilier stock was the result Of
the adoption Of a scheme whereby the
whole road was mortgagcd to a contract.
ing party, composed Of men who controlled
the Union Pacific stock, who contracted
with themselves TO build the road. The
undue and unreasonable profits thus made
we're as much fraud on the government
as If they had sold their bonds and divld-
cd the money.
The committee discuss a. some length
what should be the position Of congress
men in relation to subjects likely to come
before Congress, they believing that no
member ought to disqualify himself with
out some higher motive than merely to
make profitable investments This coun.
try is becoming 6le1 with gigantic and
powerful corporations, and it is notorious
that in many State legislatures these in.
huences are often the controlling. and. in
effect are the ruling power of the state.
Congress has in effect, within few years
been brought under similar Influences,
bringing more discredit than there were
facts to justify the public belief. The be-
belief is to general that the use Of money
to carry public measures is legitimate. No
congressman should place himself in cir
cnmstances of suspicion. 1t is Of the high
est importance that the national lcgisat-
ure should BE- free Of all taint of cotrup.
ton, and cquallj important that the peo-
pie should feel confident that is so. The
people will not respect the laws if they
lose their respect for the law makers. The
committee think that members, in taking
stock, were not sufficiently careful in as.
ccrtaining what they were getting. The
committee find nothing in the conduct Of
the above named members calling for any
recommendation.
THE CASE OF MR.. BROOKS.
The committee say the case Of Mr.
Brooks stands on different state Of facts
from Tic others. They rehear.e at length
the evidence showing Mr.. Brooks efforts
iu the press and in his oflicio! position, in
behalf of the road, aud his operations with
Durant. &c.
The committee also discuss at length
the evidence relative to Mr.. Brooks, ant
say tha: the $50 shares Of the stock ap
pearing on the books of the Credit Mobi
Ter IN the name Of Nelson were really the
stock of Brooks and subject to his contro
and that it was understood by both par
ties that Brooks had taken such an in
tercst in the Credit MobiIier company
and was SO connected with Durant tina
+ he must be regarded as having full knowl
edge Of the contracts between that com
, pany and the railroad. In relation to th'
cause Of thesuddcn increase in the valu,
Of Credit Mobilicr stock, and how tn,
large expressed profits we're to be made
we have already expressed our views, u
well rs the improperly Of member o
congress becoming an owner of the stock
possessing the knowledge. Mr.. Brook
was not only member of Congress. bd
he was government director of the Tn
! Jon Pacific company. As such, it was hi
duty to guard and watch over the inter
, ests of the government in the road and
see that they were protected and presery
I ed TO insure such faithfrln on th
/. part of government directors, Congres
Q very wisely provided that they should nc
. be stockholders in the road. Brooks reac
: lily saw thai becoming stakeholder in th
Credit Moblier was not forbidden by th
I letter Of the law, yet that it was viols
Y tion Of its spirit and essence, and there
!. fore had tho stock placed in the nan (
! his son.in-law. The transfer of the Oakt
!. Ames contract 10 the trustees, and th
r building Of the road under the ccntrat
4 from which the enormous dividends wer
!. derived. occurred during Brooks oficii
q life as government director, and must hay
!. been within his knowledge. The con
J. hittee believe this could MT have hal
: pened without an entire disregard to b
i official obligations and duty, and tha
. while appointed to guard the public iute
! ests in the road, he joined himself wit
: the promoters Of a schcme whereby Ii
government was 10 be defrauded. an
a iained In the snoil. In the conclusion