Essex County herald. [volume] (Guildhall, Vt.) 1873-1964, 1873-03-01
THEREFORE, OF THE POLAND COM
MITTEE

Has been made, and the document
read to the House, the members man
ifesting intense interest. After re-
viewing the history of the Credit Mo-
bilier Company, the report gives the
connection OF Mr.. Ames Herewith.
1t appears that in 1866 Mr.. Cakes
Ames and his brother Oliver Ames,
became interested in the Union Pa
cific Railroad Company, also in the
Credit Mobilier Co., as its agents,
being men Of large means and OF
high standing in business circles. Mr..
Cakes Ames being then as now a
Congressman from Massachusetts,
they were able to induce many men
of capital to take stock in the two
companies amcng them Mr.. Samuel
Hooper and John B. Alley, represen-
tatives from Massachusetts, and Mr.,
Grimes, then q Senator from Iowa.
Notwithstanding the efforts OF
Ames in its behalf, the Credit Mobi.
lier stock did not find ready market,
and was never worth its par value,
till after the execution Of the Ames
contract, so called, in August, 1867.
The contract was between Cakes
Ames and the Union Pacific Railroad,
was an agreement by Ames to build
667 miles of the road at an aggregate
cost of SAT, 100000, with the under
standing that Ames was to transfer
this contract to seven trustees, who
were to be divided among the Credit
Mobilier Stock holders. On account
of the enormous prices agreed on fol
building the road it was expected that
large profits would accrue to the
Credit Mobilier Company, and the
stock at once became worth double
its par value. The stock was not in
the market, but the above facts were
publicly known and the holders of the
stock desired that they should be
known. In Dec, 1857, Ames came tc
Washington and during the month
contracts with number Of Senators
and Representatives, to let them have
shares in the Credit Mobilier Com
pany at par, with interest from the
first of July previous, quoting sug
gestions that it might embarrass in
dependent action as Congressmer
by statements that the company haC
received all the grants from Govern
ment which it would ask for. The
sales thus made Ames intended tc
fulfill from the stock belonging to the
company, some $50 shares of wheel
had been put to the credit Of I. G
Durant, $40 shares of which were Sc
over to Ames as trustee for this pur
pose.
The Committee report that the mo
tive of Anles in thus disposlng o
stock at par, which was worth doubl,
that value was to create an interes
in the welfare Of the companies, il
the parties to whom he sold the stock
similar to his own, and for the pur
pose of resisting future adverse lcgis
lation, but not with view that tn
Union Pacific Company would ask O
need any more grants or aid. Thu
report then proceeds to give the con
nection of various Congressman wit
the Company and states the circum
stances and facts of each case b
which it appears that Speaker Blanc
although some negotiations we're ha
between himself and Ames, never wa
a stakeholder.
Mr.. Dawes, of Massachusetts, di
purchase ten shares, for which L
paid, but that afterwards litigatio
having commenced between the con
pany and certain Of the stakeholder
he returned the stock to Ames an
received his money again with 10 pt
cent. of interest during the time
had held the stock.
Mr.. Scoield of Pennsylvania, pu
chased one thousand dollars of IL
stock, received various dividends, OF
being Of 80 per cent, another of
per cent, but afterwards returned Il
stock to Ames, and took instead, ]
shares of Union Pacific r. r. stoc
and thousand dollars Union Pacil
bonds.
MIR. Bingham of Ohio, paid Am
for twenty shares, in Feb. 1868, I
,ceiyed the dividends till Feb. 1877
when the stock wds returned to Amc
Mr.. Kelley of Pennsylvania, agre,
to take ten shares of the Credit M
bilier stock, but not having the mo
ey to pay for it, Ames agreed TO car