American citizen. [volume] (Canton, Miss.) 1864-1890, 1873-05-03

as a lien OF the road. The Gov
lien thus became worth
less, as the new mortgage which
took precedence amounted to all
the value of the road. The pro-
action went to swell the profits of
the Credit Mobilier. which had
nothing to pay out except for the
mere cost of construction. This al
so explains why some of the divi-
dends of the latter company were
paid in Union Pacific bonds. As
result of these processes, the bond
ed debts of the railroad exceeded
its cost 10y at least $4,000, OOO,"
Mr.. Ames was deeply interested
in the scheme, being. indeed, one
of it's principal managers. Being
Il Member of Congress-, he was pc
culiarIy prepared to appreciate the
value of Congressional assistance
III behalf of the Credit MObilier.
1t would seem that the object of the
Credit Mobilier was to drain money
from the Pacific Road, and cOnse-
quentls from the Government, as
as long possible. Any legislation on
the part OF Congress designed to
pr, ct the Interests of the Govern
ment, would, as a matter of course,
be unfavOraUle to the Credit Mo
biIier, and it was the aim of that
Corporation to prevent all such leg
isIatiOn. The price agreed upon
for building the road WAS so exor-
bitant, and afforded Sucl, an iniqui-
tous profit TO the Credit MObilier,
that it was very certain that some
honest friend of the people would
demand that Congress should pro-
tect the Treasury against such
spOliatiOn. H. was accordingly de-
termined to interest in the scheme
enough Members of Congress to
prevent auy protection of the Ma
tional Treasury at the expense of
mnla wluI gains Os the Credit Mo-
hilier. MIR. Cakes Ames, being in
Congress. undertook to secure the
desired hold upon his associates.
The plan was simply to secure them
by bribing them, and for this pur-
pose, a certain portion of the Cred
it Mobilier stock was placed in the
hands of Mr.. Ames, as trustee, to
be used 10y him as he thought best
for the interests of the company.
Provided with this stock, Mr..
Ames went to Washington in De-
cember, 1867, at the opening of the
session of Congress. "Dnring that
month";" say the Poland Committee
in their report, "Mr. Ames entered
into contracts with a cOnsidera ble
number of members OF Congress-,
both Senators and Representatives,
to let them have shares of stock in
the Credit Mobiiier Company.
1t is of course evident that all
legislation which favored the UuiOn
Pacific Railroad ewelled the profit .
of the Legislators who became
stockholders in the Credit MObilier.
The awkwartlness of this position
was vastly increased by the thin
disguise of purchase being torn
away, under which the pr"titbear-
ing stock had been really the gift
of Cakes Ames. The denial Of the
"
a criminal act
Reduced to plain English, the
story of the Credit Mobilirr is sim
ply this: The men entrusted with
the management of the Pacific
Road made Il bargain with them
selves to build the road for sum
equal to about twice it's actual cost.
Il mt hi al, hnx
been estimated at about Thirty
Million of dollars-this immense
sum coming out of the pockets OF
the tax payers of the United States.
This contract was made i'll October,
1867.
Son June II, 1868, the stock
holders of the Credit Mrbilier re-
ceivel 60 per cent. in cash, and 40
per cent. in stock of the Union Pa
cific Railroad /; on the 2nd of July,
1868, IS per cent. stock and IS per
cent. first mort gage bonds; Sep
TENDER 3, 1865, 100 per cent. ST Ock
and 75 per cent. first mortgage
bonds; December 10, 1868, 200 per
cent. stock while, before this con
tract was made, the Stockholders
had received, on the Goth of April,
1866, d dividend of 100 per cent. in
stock of the Union Pacific Railroads;
on the LIST of April, 1867, so pei
cent. OF first mortgage bonds were
distributed on the LIST of July,
1867, 100 per cent. in stock again."
After offering this statement. it
is hardly necessary to add that the
vast property of the Pacific Road,
which should have been used to
meet its engagements, was soon
swallowed up by the Credit Mo
bilier.
This is the story of the Credit
Mobilier, as far rs the facts have
been permitted to become known.
We shall now see how 1t came to
make such noise in the world.
MIR. Ames was not the only mem
her of the company engaged in
"placing" the stock where it wonld
benefit the corporation. Mr.. Eu-
rant, the President of the Pacific
Railway, was engaged in securing
his friends in the same way, and he
received a portion of the stock to be
used i'm this manner. Mr.. Henry
S. McCOmb, of Delaware, who was
also interested in the scheme. now
put in his claim for part of the
stock, which was being used IA
o,rc,,ptinn funA sl fnr hiS CriouIS ~