Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1873-02-21
.AHE.S AND BROOKS.

The discrimination made By the Poland
Committee between Ames and Brooks and
other members of Congress implicated in
the Credit Moblier, whereby the expulsion
of only those two is recommended, will be
understood by those who read the report
Ames was an agent and contractor for the
building Of the Union Pacific, and thus
became thoroughly acquainted with all
the affairs Of the company as well as with
the origin, plans and purposes of the
Credit Mobilier company. He knew how
the large dividends in the Credit Mobilier
stock arose, and evidently intended to use
the stock he placed to secure an improper
influence with members OF Congress. He
knew that the Credit Mobilier was q fraud
upon the government, whose interests as
member of Congress he was bound to
protect, and his clear intent was bribery
of his ASSOCIATES With Mr.. James Brooks
there was also no Ignorance of what he
was doing when he invested in the stock.
He was director in the Union Pacific
road, entirely familiar with all its business
operations and the relation of the Credit
Mobilier company to it, knew what the
profits ON the stock were to be, how the
extraordinary dividends arose, his share
of which he had no scruplcs in taking and
keeping. Although he endeavored to
make it appear that his son-in-law and not
himself was owner of the stock, the COM
mittee regard this as but sham and
Brooks the real owner. They also con-
slider his attempt to cover up his owner
ship as an evidence that he understood he
was engaged in an improper transaction.
How the great profit accrued on the Cred
it Mobilier stock is explained in the fol-
lowing from the report;
Congress had chartered the Union Pacific
Railroad, given to it liberal grant of lands,
and promised liberal loan of Government
bonds, to be delivered as fast as sections of
the road were completed. As these alone
might not be sufficient to complete the road,
Congress authorized the Company to issue
their own bonds for the deficit and secure
them by mortgage upon the road, which
should be a lien prior to that Of the Govern
ment. Congress never intended that the own
ers of the road should execute mortgage
on the road prior to that of the Government
to raise money to put into their own pockets,
but only to build the road. The men who
controlled the Union Pacific seem to have
adopted as the basis of their action the right
to cucumber the road by mortgage prior to
that of the Government, to the full extent,
whether the money was needed for the con-
struction of the road or not. 1t was clear
enough that they could not do this directly
and in terms, and therefore they resorted
to the device of contracting with themselves
to build the road, and fix price high enough
to require the issue of bonds to the full ex-
tent, and then divide the bonds or the pro-
ceeds of them under the name of profits on
the contract. All those acting in the matter
seemed to have been fully aware of this, and
that this was to be the effect of the transac-
ton. The sudden rise of value Of the Credit
Mobilier stock was the result of the adoption
of this scheme. ANY undue and unreasona-
BILE profits thus made by themselves was as
much fraud upon the Government as if they
had sold the bonds and divided the money
without going through the form of denomina-
ting them profits on building the road.
With these facts, Ames and Brooks by