Lamoille newsdealer. [volume] (Hyde Park, Vt.) 1860-1877, 1873-02-12
The Credit MObiller.


character Of Credit MObllier. So much
has been said about il, that the Poop ave
anxious to know something Of its origin
and objects. To fully understand it, the
cause Of its origin. which is found IN the
act authorizing the building of the Pacific
Railroad. That act provided that the
stock of the company should not be sold
below par. Congress evidently supposed
that the Government aid would be suth.
cient 10 construct the Road anl saw no
necessity for any embarrassment which
could result in the reduction Of the value
Of its bonds The object of this provision
was to prevent an unjusti6eble sacrifice Of
the bends of Thu Road This provision,
how ever. had the effect Of deadlock up
on the whole scheme. 1t became evident
that the Road would cot be built it the
Company waited for the sale of It's bonds
Under these circumstances, the Credit
Mobilier Company was organized, under
the laws Of Pennsylvania, and with this
Company contracts were made to build
the Road for all the securities, bonds.
stocks and lands which the charter gave,
any surplus above the cost of the road
to be divided among the stockholders OF
the Company. It was regarded as ex'
cesdingly doubtful whether there would
be any such surplus.
The Credit Mobilier, after securing the
contract for the building of the Road. be-
ing a separate organization. could sell the
lands at any price which they would conf
mand in market The work was com
menced and probably much of the money
expended during its progress resulted
from the sale Of the DO nds and lands. In
referring to the condition of affairs at the
time the work ives commenced the Boston
AdeertiSer says:
10 our personal knowledge Mr..
Cakes Ames, at the same time that he
was selling stock to such members of Con.
grcss as cared for it, was freely offering it
to our prominent fnaucecrs. 1t was de-
clincd by several bank presidents and
bankers,-certainly for no moral reasons
who we're at tho same time eagerly
taking up stock in other Western enter.
prises To one gentleman. with whom
Mr.. Ames had business relations, he Of
Jared the option Of taking the stock at her
within sixty days, and upon solicitation
renewed the option for another sixty days;
and as within that time the market price
had advanced to 1875, the gentleman
awaited himself of the option, and sold
the stock. Mr.. John |. Blair of new Jer-
sey, VINO amassed large fortune in rail-
rocd contracts, stated at dinner given him
in this city that "the Union Pacific was
too big for him and he had declined an
interest 1t should be added, moreover,
that all the legislation in behalf of the
Pacific Railroad was passed before the
Credit Mobilier company was connected
with it at all. and from three 10 forr years
before the transactions with the members
Of Congress now under Investigation. AS
the building Of the road went on, 1t was
found that the difficulties had been great
ly exaggerated, and that the cost of cross
ing the mountains was much less than they
feared. and very large profits were rcaliz,
cd. 1t was the old story of Columbus
making the egg stand upon the little end.
Anybody could see it after it was DONE
1t will be seen that the Credit MobiIer
association, or some similar organization
Of Capt. alists, was necessary to the prose.
eutiod of the work. aud the fact that they
obtsined good bargain Is by no means
remarkable, although a! the time it wa
pot SO considered.
So far as the transaction of Cakes Amcs
and other members Of Congress is con.
cerned, VIC have no dou BIT but the object
of Ames was corrupt one. That it was
so understood by all who bought the stock,
is by no means true; but that some Of
them had knowledge upon the subject,
there seems little room to doubt. The in.
noccnt ones are in the condition of poor
Tray, and some Of them. at least, will be
made TO suffer for having been caught in
bad company. The enemies of any mem.
Der of Congress who has Invested 10 Cred
it Mobilier stock, no matter how Innocent
ly such in esment Eay have been made
will use it as club with which to slaugh
ter him. Thus, Butler is endeavering tt
kill Dawes, and no doubt he is also en-
couraging ,he use the same means agail
at Speaker Blaine.
1t opens up great deal sfmatorial FOL
feeding malice, and many innocent per
ions WILDE injured by the investigation
now in process. If Congress can succee,
in distinguishing between the guilty aut
the innocent, some good may be accom-