The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1873-02-03
thus sestlad hinseIf ln.thsI eddie lot

| Sun1 botskou Qlmeeu 1ns t0e' 0o0le 100
no time in oustipg Mr.. Durans, and
finally reduced that gentleman to tn
fpodtion of d mers uninHuentiaf stock
holder. Then. this being as will b,
borne 10 mind, about the end of th,
year 1857, or nesr the time OF the an.
nual assembling Of Congress, Mr.
Ames went to work to plsee Credit No
bilier stock where it would, in his Ism
1 gusge, "do good" ia. procure certain
Legislation which3was still deemed de-
sifable on behalf of the Union Pacific,
the object being to give that Company
more money in order that the Credit
Mobilier might suck more out Of it. By
tact ofJuly 2.I864, as has been mentioned
1t was provided that only half of the
compensation for services rendered the
United States by the Union Pacific
should be applied to the payment Of
the bonds loaned the road by the Gov
eminent. The act saying nothing
about the interest on these bonds, the
Secretary OF the Treasury insisted that
the other half of the compensation
should go to pay that, whereas for the
Union Pasific, l. g., really for the Credit
Mobilier, it was contended that one
half should 20 TO pay the bonds and
the other half should DO paid over to
the Union Pacific in money. To Be-
cure an act putting this beyond ques.,
tiop, 90 that the Secretary Of the Treas.
ury should be compelled to pay, was
therefore q prime object with Mr..
Cakes Ames, and the process Of secur-
ing the requisite Congressional strength
to pass such an act was eotered on.
This process was to sell Credit Mobilier
stock, then enormously valuable, to
prominent Representatives and Sena.
tors at par, allowing them the divid-
ends due on the stock az a set off on
the purchase money. Thus twenty
shares were sold Vice President Colfax
at par and interest; but as q
dividend of eighty per cent. in
Union Pacific bonds was then due
on those shares, Mr.. Colfax was only
called on to pay the difference between
this dividend and the par Of the stock,
with interest added. This difference
was s53472, and by paying this Mr..
Colfsx became the owner Of the twenty
shares. Cakes Ames therefore gave
him the difference between $534.72 and
$1,000 and accrued interest, but as the
stock was worth far more than par he
really gave him much more. Thus the
stock was really worth at the lowest
figure $3.50, or $4,000 for the twenty
shares, and the net value OF the 80 per
cent dividend, which was in bonds
worth 81, being 1852, the twenty shares
were really worth in the market $6752
at the lowest estimate, ard yet Mr. COL
fax got all this for s53472, or really
paid not more than s per cent. for his
stock. In like manner Mr.. Dawes
bought ten shares at par, paying $1,000
therefor, and in three weeks thereafter
received a dividend of $3.50, making
the transaction really stand. value paid,
$1,000 value received real value OF
stock, $780, dividend, $780, total,
$780, surplus of value received,
$3.50. Mr. Dawes, it should be mem
toned, paid all that he had received
back with the exception OF ten per
cent. on his money for the month he
owned the stock. 1t should also be
mentioned that he did not pay back
until he heard the Credit Mobilier was
threatened with litigation. Senator
Patterson also owned stock, swore that
he had never owned any, and finally
had it proven point blank upon him
that he had, and had furthermore re-
ceived dividends thereon. Other Sen a.
tors and Representatives, present or
past, as Logan, Wilson, Harlan. Binsii
BON, Kelly. ocofeld, Allison, and
Alley, were likewise tempered with by
Cakes Ames in the same general fash.
ion az those whose cases have been
more particularly recited. and on the
proposition desired by Mr.. Ames COM
ing before Congress it was passed forth.
with, and ia now the much mentioned
ninth section OF the army appropriation
act Of March 3, 1871 Its cum and
substance is to command the Secretary
of the Treasury to pay over in money
to the Union and Central Pacific roads
one-half the compensation for services
heretofore" that is, before March 8,
1871, or hereafter, that is ever since
that date, rendered the Government. In
other words, half OF thatsecurity which
the people Of the United States were
under the act incorporating the Un'on
Pacific to have that they would not be
called upon to pay the loan to the Union
Pacific, so far as the services OF that
road 10 the Government could offset 1t,
was surrendered by this section. 1t
was plain gift TO the railroads-and 80
far a. the Union Pacific is concerned 10
the Credit Mobilier-of from $4,OoO,oOo
to $6,OO0,OOO. .-la !, l. +.
SIeixhing.