Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1873-02-27

Credit Mobilier.
HISTORY oE ITS ORG ANIZATioN
Congress had chartered the Union Pacific
Railroad. given TO it liberal grant of
lands, and promised a liberal loan of Gov
eminent bonds. To he delivered as fast as
sections OF the road were completed. As
these alone might not be sufficient To COM
plete the road. Congress authorized the
Company to issue their own bonds for the
deficit and secure them by mortgage
upon the road. which should be a lien
prior to that Of the Government. Congress
never intended that the owners of the road
should execute mortgage on the road
prior 10 that of the Government To raise
money TO put into their own pockets, but
only to build the road. The men who
controlled the Union Pacific seem to have
adopted as the basis of their action the
right TO cucumber the road by mortgage
prior 10 that of the Government, to the full
extent. whether the money was needed for
the construction of the rodd not. Ii
was clear enough that they could not do
this directly and in terms. and therefore
they resorted to the device of contracting
with themselves to build the road. aud fix
price high enough TO require the issue of
bonds TO the full extent. and then divice
the bonds or the proceeds of them under
tht vi PROFITS on TIE All
those acSiug in the matter seemed to have
been fully aware of this. and that this was
TO be the effect of the transaction. The
sudden rise Of value of the Credit Mobilier
stock was the result of the adoption of this
scheme. Any undue and unreasonable
profits thus made by themselves was a
much n fraud upon the Government aS if
they had sold the bonds and divided the
money without going through the form of
denominating them profits on building the
road.
Views OF the Com. in relation TO MEM
bers of Congress who took the stock.
The Committee. therefore. do not find as
TO the members of the present House
above named, that they were aware of the
object of Mr.. Ames. or that they had any
other purpose in taking this stock than To
make a profitable investment IL is ap-
parent that those who advance their
money to pay for their stock present
more the appearance OF ordinary investors
than those who did not but the committee
do not feel at liberty to find any corrupt
purpose or knowledge found ON the fact
of non-payment alone. 1t ought also TO
be observed that those gentlemen who sur
rendered their stock TO Mr.. Ames before
there was any public excitement on the
subject do not profess to have done 80 on
any Idea or Improperly in holding it, but
for reasons affecting the value ani security
OF the investment; but the Committee be-
lieye they must have felt that there WAS
something so out of the ordinary course of
business in the extraordinary dividends
they were receiving as To render the in
vestment itself suspicious. ami that this j.
one OF the motives of their action.
The Committee have not been able 10
fluid that any Of these members Of Congress
have been affected in their official action
in consequence OF their interest In Credit
Mobiler stock. IL has been suggested
that the fact that none of the stock wa.
transferred TO those with whom Mr.. Ames
contracted was a circumstance from which
a sense OF improperly. if not of corruption,
was to be inferred. The Committee be-
lieye that this Is capable of explanation
without such inference. The profits OF
building the road, under the Ames con-
tract. were only to be divided among such
holders of Credit Mobiier stock as should
come in and become parties to certain
conditions set out in the contract of the
transfer 10 the trustees. 50 that a transfer
from Ames TO the new holders would cut
oil the right to dividends 10 the trustees,
unless thsy alec Los".ao r,...isv
agreement. and this the Committee believe
TO be the true reason why NJ transfers
| The Committee were also of the opinion
| that there was also a satisfactory reason
| for delay on Mr.. Ames's part to close the
/ settlement with some of the gentlemen for
/ the stocks and bonds he had received As
/ dividends on the stock contracted 10 them.
| In the fall of ls5S Mr.. McComb Commenced
a suit against the Credit Mobiier Company
I and Others. claiming 10 be entitled to two
hundred shares of the Credit Mobilicr
stock upon a subscription for that amount.
That suit Is still pending. If MIR. McConb
prevailed in that suit. Mr.. Ames might be
compelled TO surrender so much of the
stock assigned TO him as a trustee. ana he
was not therefore anxious To have the
| stock 20 out of his hands until that suit
! Yas terminated. II ought also 10 be stated
| DEALING ~ NJ 'i-.sa ahnye named ap-
/ VI MT. Anes with any other mem
! o.Is- Ihe Committee do NOT find IL,
ner OF The above named gentlemen in
contracting with Mr. Ames. had ana. 60 ~
luSt motive or purpose himself or ~
80 - mat Mr.. Ames had any. nor aid
e OF them suppose he was guilt Of
improperly or even indelicacy in no.
coming purchaser of the stocL III
appeared that these gentlemen were a,r., :.
y. me enormous dividends pron this stock
Anu no" they were ~ he earned. we Could
MOI Then acqait them, and here As well as
anywhere the committee allude To that
suDJcUi. " mai