The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1873-01-23
The Credit MO5ilier Corruption.
The History of the Affair.


The Credit Mo5ilier Corruption.
The History of the Affair.
lFrom the New York Herald
Information of the inner history of
the connection of that company with
the Union Pacific Railroad, is con-
tained III an affidavit of DIR. Thomas
e. Durant, and, although his statement
is a portion of the records of the Su-
preme Court, in the suit pending be-
tween the Two corporations..t the facts
it sets forth are now for the first time
published. sord
The simple history of the affair that
has created so much excitement is
soon told. While the Union Pacific
road was under construction. . sring"
was formed inside the direction, eIIi-
bracing. as such p combination always
does, the shrewdest, most active, and
least scrupulous of the Board, for the
purpose OF making large fortunes for
fts members i'll an illegitimate manner
at the cost of the road and the unsus-
pecting stockholders. AS usual, the
object was to be achieved by construc-
tion contracts. Through the votes of
the ring the work was to be awarded
to some dummy contractor, at q price
double. or more than double, the cost,
with fair profit added; for, as q
great manly capacious appetites had
to be satisfied, an ample margin WAS
necessary. The contractor was then
to make over the contract to the firing"
directors, in theiro capacity of stock
holders of the. Credit Mobilier, the
pretense being that the CreditMobilier
lad the means to push the work vig-
orously forward, and would be better
able to do SO than any single individ-
ual. In pursuance OF this conspiracy
for ii was nothing else-tbe contract
for the construction of large portion
of the road at fifty thousand dollars q
mile was awarded and duly assigned
TO the ''ring"-a price which, accord
ing to Dir. Durant's- statement, was
more than double the legitimate cost
OF the work. This, however, was not
enough. 4ss, l,.-., l.--f ,ff6.y
BY the votes of the conspirators
many miles of road which had already
been constructed and accepted by the
Uuited States Government as COM
plete, and which had nearly all been
paid tor by the Union Pacific Com
pany, were included i'll the contract at
fifty thousand dollars a mile, and thus
an enormous amount OF money was
taken bodily, as it were, out of the
pockets OF the stockholders without
a shadow of justification and trans
ferred to the greedy grasp of the ring.
The shares OF the Credit Mobiler
were thus made at once worth from
eight to ten times their face Value
tbatis to say,la single thousand dollar
share was worth from eight to cten
Thousand dollars in cash.. Armed
with this capital the members of Con-
gress who were in the ring set about
. satisfying" their associates at WASH
ington of the great virtues and bene-
| fits OF the Credit Mobilier; OF the adj
mirable and honest management of
the affairs of the Union Pacific Rail-
road Company, and the propriety and
patriotism of frowning down all. at
tempts to interfere with its great work
by petty inquiries and annoying in
VesIigations-of the wisdom, in short,
of allowing il to continue close cor
poration, sealed up from the eyes OF
all except the conspirators and their
allies.
OF course no improper induce
ments" were offered TO Senators and
Representative to bring them over to
this way of thinking. The offer OF
money bribe would, no doubt, have
been Indignantly spurned rs vulgar
and dangerous proceeding. A "pure
business transaction" took place be-
tween the lobbyists OF the Credit
Mobilier ring, and the speculative
members. The latter simply pur-
chased few shares each, in the Cred
it Mobiiier, and "paid their money"
for them-at par, of course, Some of
them were too punctilious even to do
this but they had wives and brothers
and sons and sons-in-law who had no
objections to such ventures, and who
enIeredinto them without reserve
Lucky dogs! they found their one
thousand dollar shares worth ten
thousand dollars in cash. if they de-
sired 10 send them back again, and
brimming over with heavy dividends
if they concluded to hold them in
their possession. What wonder that
corporation so signally successful
should be regarded by those fortunate
Senators and Representatives as de-
serving every encouragement and
protection that Congress could give it,
and that both the Credit Mobilier and
the Union Pacific Railroad found
warm friends at Washington always
watchful OF their interests and jealous
of their privileges. 's-E
There are some plain, blunt people
in the world who will insist that the
Senators and Representatives who re-
ceived the Credit Mobilier stock at
par, and voted for every measure de-
manded, and against every measure
objected 10 by the men who bestowed
it upon them, were bought up, like
cattle, at so much q head. There are
some artless enough to believe that
Senators and Representatives whose
wives, sons-iH-law or other near rela-
tives, were so favored as to be given
ten thousand dollars for one thousand
by the Credit Mobilier ring, have been
just as guilty of bribery aud corrup-
ton as if they had taken so much
cash for their votes. These singular
opinions will not have been changed
or modified even, by the course pur-
sueu by the legislators who have been
blatant in their denunciation OF those
Instrumental in exposing the scandal,
or who ut one time SO boldly and un-
truthiuiiy denied ali connection with
and all knowledge of the disgracefut
transaction. It is for the committee
OF Investigation to decide how far the
people Tho entertain these views are
correct in their Judgment. sutt
TuEArREs.-Rev. George Hopworth,
of Chicago, who has been laboring as
IN evangelist. in tho ConSreVational