Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-02-21
Credit MObilier.


DEFENCE OF THE COMPANY, AND OF Mr..
AMEs.
We have been requested to copy the fol-
lowing article, by friend of Mr.. Ames,
who very naturally thinks the other view of
the case is having undue prominence before
the public mind The article recalls some
facts worth remembering at this time, and
will be read with interest even by those who
cannot accept all oft statements and con-
illusions.
From the Corinne Utah Reporter.
Cruelty Them.
The country seems to be getting as sick
over the fact that it has Pacific Railroad
as it was crazy ten years ago TO get one. We
are at peace, it is hard TO see how great
war can ever again threaten US, our bonds
are away above par, and we do not love TO
recall that about ten Years ago, our nation
al existence was seriously imperiled, our dol
lar promises 10 pay were worth only 80
cents, and our bonds went begging at 40,
vet such was the case.
1t j. probably easier for US who are so vi
tally affected by the Pacific Railroad to re-
call the time when the men who came for
ward to build it were extravagantly lauded
for their patriotism, energy enterprise, pub
lie spirit, and what not, than it Is for those
down East who did it and who are now as
extravagant in their denunciation of these
same men, crying, indeed, in full pack,
Cruelty them - ''Crucify them y
What are the facts? The Union Pacific
Company contracted with the Credit Mobil-
Ter to build and equip the road for the sum
total of its assets The Credit Mobilier,
which was an Incorporated construction com
pany, built the road at cost in stock and
bonds ofabout Sl00, 900 a mile. This Is re-
garded as extrayagant, but fifty of the lead
ing roads of the country, aggregating in
length 10 ,0i5 miles. cost an average OF S95,-
COO a mile. These in the old settled States,
the Union Pacific in the wilderness.
1t is falsely charged that this organiza-
ton corruptly procured the amended char
ter of 1864, doubling the land grant and
taking a second instead of first lien on
the road for the government loan. The
first charter was approved July |, ls62.
The > 900 shares that had to be subscribed
before the company could organize were
only taken by Sept %, 1862 The company
was then organized, it broke ground near
Omaha, bought little material, but devot-
ed itself chiefly to besieging Congress for 4
more liberal charter.
1t was period of unexampled financial
embarra ssment. The war was at its worst,
the future ofthe country, on which depend
ed the value of its securities, was very dark
and unpr0mlsing \ greenback dollar was
worth but 30 cents, and government bonds
were slow sale at 40 The Iowa roads were
$50 miles distant from the initial point, and
the Missouri River was worth next to noth:ns
a. means Of transportation.
The engineers We're interrupted by lndi
ans on the plains, and the transportation
trains by guerrillas in Missouri. Two or
three millions had to be put in before the |
company'- bonds or those of the Govern |
ment were available. Capitalists wouldn't |
touch it, away ont on the frontier, far from |
the money centres, uncertain of ever reach |
ing the Pacific, or of paying half interest |
on cost and expense cooperating, if it should. |
What kind OF an invitation was this 10 in
yestment? No capital could be induced TO |
touch it. Meanwhile the entire country |
and Congress demanded the road, it must |
be had at all events. and Congress, with the |
universal acquiescence of the people, pur
poSely made it an object for somebody 10 |
build IT, Then the work dragged. Nov. 4, |
lo6j, (the new charter was approved July |
>, ls6i,) Gen. Dix. the President of the
Company, reported that they had built %
miles, expended 50, 500 900, all of it derived
from private sources. They were exhausted,
and the work was about to cease when the
attention Of Ames, man Of unbounded
wealth and credit, was called 10 it. 1t was
in August, 1865, that he first seriously
looked at the enterprise at all.
lie finally took hold of it. happily for
this part of the country May :, 1866, but
10 miles Of road We're completed, or At the
rate of ten miles year for the four Years 1t
had been under way. But within three
years to a day but one, 1860 miles were
built. and the East and West met face 10
face on Promontory Mountain at the head
Of Salt Lake. They did $50 600 900 worth
Of work and cleared 8 ,O00,O 900, less than
l. per cent. At the rate Of progress made
by the original parties. the road would not
have been finished till 1872 for it would
have taken them 10 years 10 build l, 100
miles of road at the rate they We're going
On. or rather standing still.
Surely the West ought to stand by these
men. and it can do - with a good heart.
They built railroads more economically than
usual, and they never " bribed anybody |
IN earth. 1t Is false that there has been |
my important action in Congress on the
subject since 1864 True, the Treasury De-
larment attempted 10 withhold money |
rol the companies which was due them by
he terms of their charter. The Senate iu-
liciary committee first, and then both
Houses Of Congress, were obliged, by the
Jain reading and meaning of the charter,
o override the Treasury Department.
" Whoever says this action was bought or
muggled through, dOesnt know whereof he
peaks, or else he deliberately or carelessly
ieS. 1t was Jim Fisk's raid on the com .
any, and not the action Of the Treasury, ,
hat sent the stock to zero and the bonds to !
8, and forced Ames to ask an extension Of
is creditors. !
Finally, the government loaned whoever
-Ould build the road $500 600 of its !
onds for 30 wears at six per cent. interest, :
really for nothing except the q
performance of half the govern I
tent service that might be needed. and five
er cent of the net earnings for a sinking >,
md TO meet principal and interest. !
oppose it never gets principal or =
lterest, it will have done exceed !
lgly well. For the Year the road really :
arted, lSd6, it paid quite the interest at i
Y per cent on S56 900 200 for the freight 3
est Of the Missouri river, and without the i
,ad il would have had it TO do every year =
nd from the Minnesota massacre in 1862 =
lS6S We had an Indian campaign every ~
INNER at the cost of ten to thirty millions
ch. Since l56S we have had none The
)vernment has saved twice the amount of
e principal of the loan in Indian cam a
ignS, and it is likely to save ten times
er before it becomes due. rs to the
nds, the less the government has of them l.
e better, but were they Iowa lands they o
)uld still have done well, for it would II
We made n market for one-half of them at eg
uble price by giving away the other half. al
We might add to this that the Credit Mo-
la l.. az IL.
9th meridian. the rest of the road was II
ill under the Cakes Ames and Davis con- 81
let, and the Credit Mobilier had no in
rther connection with it than to agree TO de
rnish money as it might be wanted at a a.
ed rate & per cent? Of interest and
mmi>~ion II q per cent. Failing to fur IN
III the money a wanted. the contract with IN
2 Credit Mobilier was dissolved by mutual pc
lsent all
But Of course the men who carried lie!
-Ough this magnificent undertaking must
W be crucIied Half world must lie su
elf black in the face about them. All re-
, good words that have been said for we
IN must be taken back and obloquy he
lped on them instead. They must be set
the stocks for fools to jeer at, pilloried as TN
ewes, made the scapegoats of a genera OF
n, cruciiied. Of course, - Cruelty gr'
m - - Cruelty them - Republics tn
re immemorially poisoned or stoned their Tn
/ men-why shouldn't We? dis
sig
The Ship Canals. lie
We copy below abstracts of the speeches re-,
Hon. Smith Weed, and Hon. John Young de,
ore the joint committee ofthe New York in
,islature on canals, on Wednesday last mi!
will be noticed that Mr.. Weed gave Sir dor
neis Hincks, Of the Canadian govern try
ut, as authority for the important state 7
Il { /. L % L =.