Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1873-02-20
n. O. WALLACE, ]
The Credit Mobilier
SWindIe

ne henton democrat calls the
Credit Mobilier the "swindle of
the age, " and has the following to
; say about it:
We have before referred to this
dlsgraceful affair, which is now
undergoing investigation before, a
Congressional investigating COM
mittee at Washington. A large
proportion OF the public are ignor-
ant of the facts connected with
this scheme, and have little knowl-
edge of what the Credit Mobil-
Ter" is, except they have been
reading the daily press closely du-
ring the past few months. 1t is
one of the biggest and most shame
ful swindles that ever disgraced a
country or its Legislature. The
job had its origin in the Union
Pacific Railroad. To encourage
this enterprise at the outset, grants
were made to it of ten square
miles of land for every mile of
rail along the route, with addi-
tional grants of six per cent. bonds
for $4,000 per mile for about
200 miles, $4,000 per mile for
coo miles, and $4,000 per mile
for the rest of its progress through
the Rocky Mountains. The stock
for which the country was thus
made responsible was bought up
by ring of spectators who paid
ouly five per cent. on their shares.
The ring then put a second mort
gage on the road, issuing a guam
tity of stock equal to that repre-
sented by the original Government
grants. Having thus doubled the
stock, the Credit MobiIier" re-
solved to engineer bill through
Congress which would give the
second (or Mobilier) mortgage
precedence over the first (or Gov
ernment) mortgage-by which
trick the shares of the second is
sue would be a very valuable in
vestment without ever having
cost the holder a cent. The peo,
pie at large, whose credit is repre-
Sented by the Government would
alone be losers by their enormous
swindle. To persons unacquain-
ted with the mysteries Of Stocks,
the exact nature of the fraud
thus perpetrated may not be read
lily Ineligible; but all can COM
prehend the rest of the story. In
order to pass this disreputable and
fraudulent bill through the Fed.
eral legislature, the agent of tie
ring was authorized "tO use a por-
tion of the stock wherever it
would do most good"- which is a
soft way for saying that he was
to bribe those members whose
votes would be needed to legalize
a gigantic fraud. The stock was
put "where it did most good,"'
namely, into the palms of impe-
cunious Congressman and plous
Senator's. The bill was carried !;
and the peoples money was thus
''legaly" embezzled by the cor
rupt aid of the peoples represea-
tatives. A member of the Credit
Mobilier ring, becoming dissatis-
fed with his own share of the
spoils. demanded more; and beiug
refused he threatened toexpose the
whole swindle. The rogues fell
out, and by accident an inquisi-
tive report completed the exposure
which the dissatisfied speculator
threatened to make. The inves-
tigation is still in progress, but e.
nough has been already developed
to show that not only were por-
tons of the stock placed 'to do
good" among many unregenerate
members at whose purchase no,
body would be surprised, but
shares were accepted even by
such blameless and holy men as
Schuyler Colfax and Henry Will
son. Ia;ao'