Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1873-02-07
TIM CRBDIT .wO1sLEEH BTSI-
.yESS.


SO much interest attaches 10 the Credit |
we lay before our readers the following re-
sumo of the matter:
WHO Is oARrs ANEgY
Mr.. Ames Is one of the widely known
manufacturers Of that name in Massachu-
sets. He resides in North Eiston, Mass,
about twenty-five miles south of Boston,
and has represented the Second Congress
sional District of that State for ten years
past. lie is thus described, evidently by a
friendly pen;
lie is the son of q father, and one of
family of brothers, famous chiefly for H.
nancal success. l doubt If his mind could
conceive of Il success wholly unconnected
with money and profit. Yet all his life 1t
has been money and profit as the result of
labor trade, and just investments-not
money as the sequence of wild speculations
which lie has sought. If Oakes Ames
has been reputed as "A financier, and mill
lionaire by right of that inancierng, he
nas Uovii 'U-a'uvu no ivs, .----. - T.. yLi.y
and honor. Net an ideal statesman, sure
ly, like Winter Davis and Charles Sumner,
pursuing lofty, impt rsonal standards of
government, without reference to fear or
favor; but a wise, practical legislator,
bringing his great financial experience to
bear uuon legislative husiness--a man who
would never subsidze the interests of just
government to any personal consideration
whatever. Such was Oakes Ames in the
estimation of his colleagues and in the o.
-. :.
Cakes Ames to-day in the prevailing attr-
butes Of his character.
Another says Of him:
In any age of the world he would have
been remarkable man. Having accumu-
lated a fortune in the modest business of
shovel making, he finds himself in middle
life in control of one of the main CONNER
cial avenues Of the country, levying toll to
the amount of millions annually on all pas
sengers and merchandise passing between
the western and the eastern coast of the
continent, and at the same time in consid-
erable doubt from year to year whether he
Is millionaire or bankrupt.
WHAT Is THE CREDIT MoBIL1ER?
We have heretofore explained the eener-
al character aud operation OF this company.
We learn from the Nation it was not char
tered to build the Pacih" road but was in
existence before. \ charter had been
granted by the Legislature of Pennsylvan-
ia, some fifteen years before Mr.. Ames
took hold of the Pacific road, incOrporat-
ing George Francis Train and some other
gentlemen as "Fiscal Agency" Its name
had, meantime, been changed to the "Cred-
it Mobl 'er of Americi;" and as the stock
was almost worthless, it occurred to Mr..
Oakes Ames that, instead Of proceeding ac-
cordng to the terms of the charter of the
Union Pacific Railroad and subscribing the
very large sum of sl00,000,00O to build it,
it would be a far simpler matter to buy out
the Credit Mobilier for Il few thousand, and
let the Credit Moblier build the road. Ac-
cordingly Mr.. Train was approached by
some one on the subject, and the result
was the charterOfthe Credit Mobicr chang
ed hands for $4,000 or 10000. The stock
holders of the Union Pacific and of the
Credit Mobilier were the same; and in
their first capacity they proceeded to con-
tract with themselves in the latter capacity
to build the road for all the securities,
bonds, stock and lands which the Pacific
charter gave, any surplus above The cost OF
road to be divided among the stockholders
of the company. 1t was at first regarded
as exceedingly doubtful whether there
would be any such surplus; but as the
work advanced, and proved to be far less
expensive than was supposed possible,
dividends of cash, and Union Pacific bonds,
and stock, having a high cash value, came
thick and fast, and soon amounted to two
or three times the par of the Credit Mobil-
ier stock.
WHAT MIR. AMEs SAYS ron HIMSELF.
In his testimony before the Poland COM
mittee Mr.. Ames says:
AT the time the last subsidy or grant for
accomplishing the great national object OF
connecting the Pacific and Atlantic by rail
was offered to the public, had no connec-
ton with the enterprise, and no eXpecta-
ton Of such connection. 1t was not until
the persons who had undertaken it had
halted and even asked assistance from me
that turned my mind TO the subject.
and my brothers embarked largely. There
were members of Congress VINO did the
same. No one seems to have thought this
was corrupt. Those who embarked in the
enterprise thought their acts were praise
worthy and patriotic. We hoped to make
a profit, but knew the risks were enorm
ous. When | tell YOU tha
one of our contracts required the actual eS
penditure of Sl7, 200, 900, while the resource
were the original capital of the Credit Mo
biler, all of which had been absorbed il
prior construction, the bonds lent us by
the United States land grants, and tn,
bonds of our company, the whole value o
which depended on our ultimate success
you will perceive why 1 was seeking TO
associates and assistance. We wanted cap
ital and nfluence-infuence not on legis
lative action, but on credit, good will, auC
a general favorable feeling. If the com
. munity had confidence in our ultimate sue
cess, that success was assured but if ther
was distrust or ill-will the reverse was n
certain. For, unless we could get Off on
bonds and land grants to raise money I,
pay our way, we must certainly fail.
"When, then, I tell you, in the light q
these circumstances, that wished to enlis
our public men, az well as capitalists, Il
obtain their Influence, have / not the righ
to ask you to infer that l meant prope
! influence? Can not appeal TO the open
ness Of my statements at the time and tn
utter absence OF all concealment on m,
, part, that l intended nothing that ought t.
, brand me with disgraceH At the start,
number of public men had embarked will
us. AS the work progressed, solicite,
such men wherever there was chance o
success. AS our prospects frightened an,
the nroflt had Income almost certain I Der