New-York tribune., 1873-01-07
THE CREDIT MOBILIER.


were 10 De received In sOck ana bonds or the Union
Pacific Railroad which we're headed % tho building con-
tract. 1t must 10 Observed profits merely
nal contingent II the road completed and when
completed could interest the debt and profits be-
side then our profits would be great II our read
not completed when completed unpro1able, not only
would profits be lost but capital likewise
When tell you that OF contracts required the
actual expenditure of ss7OO0OOO while the resources
were the original capital Of the Credit Mobes all Of
which had been absorbed in prior construction. tho
bonds lent by the United States land grants and the
bonds OF our Company, the whole value Of which de-
pended ultimate success. you Will perceive why
was seeking for associates and assistance. We wanted
capital and influence not only legislative action. but
credit good will, and general favorable feeling II
tho community had confidence in ultimate success
that success was insured but there distrust or
III will, the reverse as certain.
For unless we could get off our bonds and land grants
10 raise money ID pay way we must certainly isiL
When, them tell you 10 the light OF these cfcum-
stances that went enlist public men a. we'll as
capitalists 90 obtain their influence have not tho Tzhs
TO ask you to infer that meant proper nhueneef Can
not appeal TO the openness Of my statements at ths
time aud absence Of cOncealmeDt on my pars
that intended nothing that ought TO brand one with
dlsgracei
At the start a number OF public had embarked
with us. the work progressed solicited sueh men,
wherever there chance Of SUCCESS. As our pros
poets Frightened and the profit had become almost cor
tain persuaded men whose means were small TO taEe
the risk and this certainly my part with the expeca-
ton that they would reap profit engaged as sup
posed at least, with number Of persons IN THIS way
Some asserted they agreed to take the stock that
could not remember and find that some dner ifOi1 me-
as 10 arrangements; but 1t Is very dsagreeaoc 70
in conflict to past facts known only 10 the us
putants 1t material for TO name persons or 20
into details for happily can prove by very con-
siderable number Of persons that share OF stock,
which corruption charged was obtained to enable
me to fulfill these engagements.
tits certainly true that those had expected 20 take
the stock thus received and paid for declined doing 80
when they heard Of the litigaons that were pending
1t was claimed by of these tigants that all the cap
ital we had subscribed the Credit MOber and al our
profits belonged to them. Mr.. McComb aso asserted
that this was his stock and demanded specific transfer
and an account OF all profits and perhaps not the least
motive was what has cuminated here, he charged hat
the object in issuing this stock was the couphng OF
members.
The result was most OF these men declined the stock.
and those who had long paid the price on my
promise the stock asked me TO return the money
and dld So There another motive, now recall.
that had influence in this. few among az, better
lawyers than Others convinced that we were al
liable as partners in the immense undertaking. We had
started as corporation and without that shoId "omu
never have been connected with 1t.
Just before the 100000 contract made, dispute
among resulted In the compulsory abandonment OF
the corporation, and this contract was made with me-
and by me put into trustees for the persons VINO were
stockholders most serious litigation has now deter
mined that the corporation not tho owner Of this
contract but that we had really assumed the positions
OF partners acting by the agency Of trust VIII not
trouble you with the details. They are 40
complicated that one Court was unable
to perceive this. and it required the Judgment
Of the Supreme Court OF Pennsylvania 20 make clear
that contract individual property. and so we're
profits The question arose IN an attempt 10 tako
profits divided profits and dividends Oh the corpora
ton.
WHY THE STOCK WAS ISSUED 10 HIS.
must now go into particulars relative 10 the issue Of
this stock TO You told The stock was N January
1868 worth more than par That is true, though the
value stated by Mr.. Coma is very much exaggerated
The actual sales These we're made at 100 or
thereabouts. When desired 20 secure the stock 20
enable me to meet my engagenentI n9t as is iaiy az 10y
asserted to & pGISen9se tS 0onsFe'S 70
met by the objection that i would not be fr TO
let any have the stock at par because 1t would sell
in market for higher price. stated the TACT that
and had made many engagements and that had
been beneficial in enlarging the number Interested anu
was similarly crcumstanced; that he had promised 10
secure stock and was bound TO do So
toned two persons that he had engaged 10 get
stock for. 1t said to him., what right had he 70
pledge the cOmpanys stock, and It was said hls rght
equal to mine. The company seemed TO think Du-
rant and myself entitled to some consideration.
owing to the stake always had Lad in the
enterprise IL was then verbally agreed that Durant
and myself should have all the unaoed shares TO uhl
The President Of the Company declined acting Mr..
McCombs verbal authority alone. and required writ
ten consent by the larger stock holders. It pre-
pared signed. Mr. McComb denies that he read It.
led t that he heard my Tor wishing that he
heard read more than once; that he was finally per-
The promise that he asserts made is untrue. Itis
quite different from what am informed he asserted
when examined in the litigation but II ia quite ip0ssi
lie did not know what the paper was il ne did not
read it. There had been lengthy discussion VerDal
agreement a refusal on his part 10 sign a paper
favor to Mr. DiOn with whom no mad quarroed ana
then signaturethey can be proved probably hall
dozenthe grounds of my demand and the grounds oi
| the hesitancy. ,.
nesses They have made the same statemen. undof oa
long before anything like this vas anticipated Mr
McComb's statement Of my avowed position Is simply
false and what did ayow was as innocent as my own
subscription In the first instance. There Is not word
OF truth in this and stated anything that Nc
Comb thought intended to convey that meaning.
He knew had stated why wanted the stock, and he
had gOt TO one hls friends. He had previously
planned that was trying to make this q local concern
In my letters tried TO point out the nnreasonaocness
OF ms request that had less stock than was required
70 Sdn rum & had endeayored to serve the paf
chases all parts of the country.
ments for which the Company allowed ~ take tho
shares and TO fulh prior engaenonts or what con;
sdered engagements. AS have stated, most OF them
declined taking the stock
NO LIST EVER DICTATED McoMB
Mr. McComb Gays / dictated list OF names for him 10
write down 1t Is not true II Is proved by the fact that
could not have mentioned the names as stated by him
as persons connected expected to DO with that stock
It's believe, true he did as%ho was 10 sst the stock,
aud have 10 Doubt mentioned the names Of some that
expected would take IL, had promised TO get 1t for
them, and had gdeRyoWed 10 persuade them 10 invest
| init. y =
While the statemenis Of Nj NeComb are entirely false
with regard to my alleged purpose and intent In dis
posing OF stock 70 members OF Congress, ant never
gave him the list OF names stated by him. yet the
Is true which never tried TO conceal from any who
any right y know, did agree 20 sell 10 several aud
did actually deliver to some members OF Congress, with
out as much a thought then Of any wrong