The Portland daily press., 1873-01-09

The most prominent topic before the COM
" the past few weeks has been the Credit
[obiier and the investigations Herewith.
yet the most of us common people who have
very good idea of the bearing of the inves-
igation upon public men, know nothing
bout this mysterious s'what is it, called the
Credit Mobilier of America" In 1852 or
Congress passed an act incor-
Dorating the Union Pacific Railroad Compa-
ny, giving it land grant of ten square miles
for every mile of road built, until the road
should meet the Central Pacific, building from
San Francisco. Besides that, each had |
grant by the United States of six per cent.
bond of sixteen thousand dollars per mile for
the first certain number of miles, say two
hundred and seven miles. Then, it being
assumed that the next six hundred miles, go
ing through desert country, would be worse
to build, it had bond of $4,000 per mile
for that distance; and then, as the road APP
preached the Rocky Mountains, where it was
still more expensive, the bond was made at
$48, 900 mile.
The stockholders accepted this charter and
about ten millions of stock was subscribed, OF
which the subscribers were called upon to
pay in five per cent. Thereupon the stock
holders took to themselves all the assets OF
the road, its lands and United States bonds,
and gave them to ano her corporation to
build the road so that the stoc zholders had
paid up stock at 800 per share for their sub
scription of 5 per cent, or for SIS share.
This amount was considered ample to build
tie road.
To build this road really, though ostensib.y
for other purposes, the "Credit Mobilier OF
America was Incorporated by an act of the
Pennsylvania Legislature. The Credit Mo
bilier was largely composed of the shar shold-
ers of the Pacific Railroad except such men
asywere taken in afterward on The ground
that they 'scould do good" When the Union
Pacific road let the first two hundred and
seven miles to the Credit M lbilier to build,
it gave all the assets of the Union Pacific
railroad, to wit: the land grant. the United
States bonds, which were to be secured by a
first mortgage on the road, and whatever was
donated by the inhabitants of counties or
towns along the line of the road, in payment
for the expense of building the road. The
profits of building the road were thus to be
divided among the stockholders ofthe Union
Pacific through the form of the Credit Nc
bilier.
The building of the first section did not
pay the Credit Mobilier stockholders such
large profits as they hoped and thereupon the
managers conceived the plan of putting a
second mortgage on the road of the same
amount that the United States gave its bonds
for; but this mortgage would not be very val
liable since the Government DIS were Sc
cured by frs, mortgage, consequently the
second mortgage bonds W ,uld be of little val
ue. This fact led the brilliant operators to
conceive the project of making such repre-.
sensations to Congress as would convince the
| members that the road could not be built un,
less the mortgage of the United States was
subrogated to that of the Pacific Railroad
Company. Sometime between 1865 and 1866
upon these representations and yielding to
the great pressur Of the country to complete
the road, Congress accedsd to the wish o.
the Company. This action sent the Mobiliel
| stock up to three or four hundred per cent
and made it exceedingly desirable. For GER
tain purposes the stock was watered several
times but with its immense resources, deriv
ed from building the road at an enormou.
price, it could well bear it.
IT. ia in tbio commodities +1,o4 49, .,,:4 =.
Nice NIB against Ames and others arose, ou1
OF which grew the scandal in the last cam
paign and the present investigation.
This is mere outline o: the history which
If full would show all the steps by which the
Credit Mobilier mas attained its present I'M
desirable notoriety and show the processes by
whic the Pacific Railroad Company and
Credit Mobilier loaded down a road with $71, :
100000 debt which cost only $4,000, 900, all
of which the United States paid and all Of
which these two corporations, principally the
latter have secured.
If some other gentleman than Senator
Harrington had introduced the bill prohibiting
manufacturers of cider or their agents from
'0iiiS III quauiibiOs icSo 1ndA Saiiou, VIC
should have at once concluded that it was a
move in theinterest of those dealing in that
delicious juice, by which the consumer is to
be compelled to drink a full four quart meas
ule on each occasion or to take it home in his
little gallon jug. Years ago similar me; s.
ure was tried with dis iled spirits but we have
not learned that it was effective.
SEvENTY-sIX per cent. of the weather