Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1873-03-05

security for the bonds loaned the COM
pany, and consented thnt only half
tho compensation for services rendered
the Government by tho company
should bc required to be applied to tho
payment Of the bonds loaned.
Tho company was therefore enabled
TO sell its own bonds by giving first
mortgage as security to the purchaser,
and anticipated being able to pocket
half the compensation for services rem
dcred, though out OF this latter mat
ter grew a controversy, of which here
after. Tho 80 - Ju'y :, iooa' -.
- ~uo.-;-o tho company United
States bonds, but permitting it to
issue its own first mortgage bonds to
an equal amount, the question Of con-
structing the road began TO attract at
tcntion. Some of the shrewdcr stock
holders determined to get the con-
tracts for building the road them
selves, and by virtue Of their interest
in the company, TO make those con-
tracts as favorable to themselves as
possible.
The idea may bo better understood,
perhaps, by supposing that five mon
A, b. G, ID and Il, are in partnership,
and tho partnership business needs n
store. A, B and c, enter into an out
sido partnership to build the store in
order thereby to reap the profits of
the transaction, and then, by virtue OF
their position and influence in the or
iginal partnership, let tho contract in
the name Of that partnership to the
outside partnership they have formed.
Thomas C Durant, originally Vice
President OF the Union Pacific, seems
to have been at the head of this move.
There was in Pennsylvania sort
OF speculating company incorporated
by the Legislature of that State under
the name OF "The Pennsylvania Fiscal
Agency" and this affair, which had u
charter allowing it to do, almost any.
thing, Mr.. Durant and lis associates
bought, changing the title 10 "The
! Credit Mobilier of America" Orto.
Der 7, 1864, this transformation took
place, aud forthwith Mr.. Durant and
associates, as stockholders and officers
Of tho Union Pacific Railroad Com.
pany, contracted with themselves, NJ
the Credit Mobilier, to build the Unior
Pacific road Aa ihA r--:-- p---ia'
was receiving millions from the Gov
ernment in the shape Of United State
bonds, and other millions from th'
sale of its own first mortgage bond
and from the proceeds of stock sold
money to pay the Credit Mobilier 70
its labors was abundant, and Nj
, Durant and friends ladled it out frou
the Union Pacific Treasury to th
Credit Mobiier Treasury, !. c., int
their own pockets, in great quantie
and with much zeal Everythin
3 coming into the Union Pacific abov
the bare cost of construction bein
paid over to the Credit Mobilicr, th
t dividends Of that company were M
raculously large. In the fall Of 1861
= or after the Credit Moblicr had bee
in business about year, Mr.. OakC
y Ames appears as a Credit Mobile
i stakeholder, and Immediately began
e war upon Mr.. Durant, with a view
l. ousting that gentleman and bccomin
# the presiding genius of tho grab hin
l. self Durant resisted, and II iierC
II conflict between the Amcs faction an
# the Durant faction cnsued.
} In July, 1867, n compromise was u
y rived at, and in the September follow
b ing carried into effect. Oakes AM
o was TO manage the Credit Mobili
, business in the East, and Mr.. Dural
r was to 20 out West and watch the i
'e tercst of tho speculation on the line
s. tho road. Up to this time tho Cred
10 Mobiier had declared dividends u
'e gregating 270 per cent, and had earn'
Of an additional dividend of about |,
* per cent, equal in money to about s.
a 900, 900. Mr.. Oakes Ames haviI
10 thus settled himself in the saddle'lc
TX no timc in ousting Mr., Durant, n
~ finally reduced that gentleman 10 I
er rosi,ion Of mere unlnfuentlal stot
holder. Then, this being, as will
TO borne in mind, about tho end of I
ty year 1867, or near the time OF
On annual assembling Of Congress, \
cd Amcs went to work to place Gre
nd Mobilier stock whore IL would, in
ry language, "do good" |. e. procure c
cto tain legislation which was still deem
he desirable on bohalf of the Union
lc- ci6c, the object being to give Il
*, company more money, in order u
nd tho Credit MobiIier might suck m
all out Of 1t. fIl
ed By tho act of July 2, 1864, as
led been mentioned, it was provided I
in only half of the compensation for
lily vices rendered tho United States
the the Union Pacific should DO app
'ey to tho payment of tho bonds Ion
ra- tho road by tho Government.
be act saying nothing about the inte'
,es- on these bonds, the Secretary OF
ntil Treasury insisted that tho other
'ac- Of the compensation should go to