Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-02-21
CREDIT MOBlLIER. No. 2.
Report and Recommendation Of the
Wilson Conn pmittee

The House special committee Mr.. Jeremiah
II. Wilson, chairman,) to investigate the credit
niObilier and the Union Pacific railroad, and
their relations to the government, made their
report yesterday afternoon. 1t gives an elab-
crate history OF the Union Pacific railroad and
credit mOblier, in connection with the Union
Pacific railroad. In the Hoxie contract the in
terests Of the Union Pacific railroad company
were utterly disregarded, and the conclusion is
drawn that the cost OF the road so, Oo0. 0o0.
which cost was wholly reimbursed from the
proceeds OF the government bonds and first
mortgage bonds, and that from the stock, the
income bonds and land grant bonds, the build
ers received in cash value at least SO 900 ,00
prOht, being percentage of about fOrty-eight
Per cent on the entire cost. The committee do
not conceive it to he their duty to express or
to form an opinion as To the degree of moral
blame that attaches to the persons engaged in
these transactions, except so far as they NAV
righttully affect the exercise OF the discretion
OF Congress in dealing with their franchise
The committee think the facts shown would
furnish ground for Judgment of forfeiture OF
all the franchises Of the corporation: but il
would be harsh and unjust to forfeit the rights
OF the present stockholders, a large majority
OF whom have bought their stock in good faith
IN the market, for the wrong-doing of their
predecessors.
The report rs signed by all the members OF the
committee except Mr.. Swami, and
TIE PASSAGE or A BILL RECOMMENDED
which provides that tke Attorney General shall
cSrse "a suit IN equity to be instituted i'm the
name OF the nlteu states against the L MON
Pacific railroad company, am against all per
sons who NAV, i'm their own names or through
any agents, have subscribed for or received
capital stock in said road. which stock has not
been paid FOR in full in money, or who NAV
have received as dividends or otherwise por-
tions of the capital stock of said read or the
proceeds or avails thereof or other property
OF said road. The bill also provides that the
laws OF the United States providing for pro-
ceedlBgs in bankruptcy shall not be held to ap-
ply to said corporation; that no dividend shall
hereafter be made bv said company but from
the actual net earnings thereof, and no new
stock shall be issued; that no director or officer
of sand road shall hereafter be interested di-
rectly or indirectly, in any contract herewith
except for his lawful compensation as sach Off
Ger; that any director or officer who shall paw
or declare, or aid in paving or declaring any
dividend or creating any mortgage or pledge
prohibited by this act shall he punished by i'm
prisOnment not exceeding two years, and by
fine not exceeding $1,000.
Mr.. swANN's VIEWS.
Mr.. Swami. who does not sign the majority
report, concurs in the facts and figures of the
report and in the legal remedies recommended
by the o0msaittee; but objects to the adoption
OF the report as incomplete under the resolution
until some recommendation is embodied in the
same in reference to certain members of Con-
gress who have had transaction with Honora-
hie Cakes Ames, believing that the same
should be promptly considered and disposed of
TN her laSS of