Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1873-01-21
THE CREDIT MoBIL1ER swINDLE.
The Credit MoBifier investigation
~no ha. ossurrad . national

importance, and is developing many
facts in connection with
the Congressional representatives Of
the nation. For the benefit of those
who have not a full understanding of
this now notorious Credit Mobilier
matter, we will publish the following
from the San Francisco Bulletin:
After the Union Pacific Railroad
Company was organized and about to
Its important work. q con-
tract for the construction of 100 miles
Of the line, west of Omaha, the initial
point, was let to H. n. Hoxie. by
Thomas C. Durant, the Vice President
of the Company, in August, 1854. The
superintendence Of the contract was
effected By the Vice President himself.
Subsequently this contract was extend
cd, at $4,000 a mile, and the Credit
Mobilier was formed, ostenslbly to
lend money to Hoxie to enable him to
carry on his work, but really to ana
BILE a ring Of directors and their
friends, including certain members of
Congress aud other influential per-
sons, to speculate off the work by max
ing it cost far more than It would have
cost under honest management. Hoxle
transferred his contrnct to the Credit
Mobiller, which, with tho ascent of
Cakes Aines, President Of the Union
Pacific, and a majority Of the Direct
ora, Notwithstanding protests, injunc.
lions. and other efforts Of the general
stockholders in opposition, finally
took the whole charge of the work.
1t has since been fully proven that a
portion Of the road which was made
to cost $4,000 a mile over a nearly
level plain, could have been built for
$25, 600, leaving still an ample profit.
The cost or construction was, plus a
fair profit, $,l50,000, while the Credit
Mobilier received for It $l2, 236, 900.
land warrants worth $4,000, 700, and
actually charged and received pay
ment for $50 miles OF road that had
been built at u cost Of $2,75o,O0O be-
fore they had any right, title or inter.
est in the contract. The $40. O0O
| thus netted was divided among the
members of the ring to the robbery OF
the Union Pacific.
In order to prevent exposure through
the interference Of Congress, many
members Of that body aud their friends
| were sold shares in the Credit Mobi-
lier at par, that Is to say, $1,000 each,
the real value, owing to the enormous
dividends, being eight times as much.
| In some instances, as the event before
| the Committee OF lnvestigation proves,
| the money used In buying these shares
| was borrowed. In u or two cases,
those Of Coliax and Wilson, the pur-
chasers withdrew from the bad invest
ment on realizing its character, or OH
learning that Is was likely to provoke
| litigation aud scandel, for 1t Is difficult
to see how they could ever have thought
it was strictly Legitimate. Others, like
Brooks, OF New York, transferred their
stock to relatives. 1t spite OF all that
shifts, evasions and awkward explana-
tons made, the plain fact remains that
certain members of Congress accepted
stock for n thousand dollars which was
worth eight or ten, In a concern formed
to make money BY defrauding n com.
pany subsidized by tho nation to build
a national highway. They must have
known that such a rich opportunity to
pocket eight dollars for one was not
oueIeu .ae~ ,h.,r ni,o;ai aotio" On anv
% s, .ne aoa,s hafoss concre:.
matter iiso', h,;Ia;nn ~ ,ha Ifnion
Tsiasave ~ .n po.,ssan ~. ,orinn
RACINE I.al,.oau. nI".s 80
OF stoSk unue, ,hora T. son,o J;s.
tne G.A'hs -,.an,io d;Snrence
t,ne.'oh, o %..i; p W,s,ii;"r was Sormed
Inat sne sn.n,,Ior ,n.sair i. syi-
!oi ,ho pac, ,ha, - mayer nor
oem. no n,an mv far ,ha Iir;on Pacific
soTe" .rodi. hu, aIwov. IN the
on us omn 1919 nG ~ ..;,h ,Is] sscnr;.
crea.t o. tue ,S. "a oo I ~" ri. had
t'es vi, guy ioa ~ asaSi,,ni5ors of tha
delf"uue1 oHay ~" s,n"Oanw nUhI,c inv
Snlon "v v.n',I Sa ias: ,ban 4, IA IN
u'sua;,yn VII" st,a e.,., ,La, ,ha covorn.
khoMieuSe VI ~ Ist.'Ma.J y, ;u,ar-
nelit mas aiio OIen io", 90 constr,c, the
ess va III .%"t ,,sn,her. of Conoress
,oau' anu sn.i;,iIv ,urn.ncsd re in
rave o sha u s my, shisId n corr,int
uorse lug "sous ana all nn,,;sh.
speeu'a'''" '"
'uett. ,-o,,,o,s h, ,o n. .,ened
souie -ool.ho,d
10 ueteuu SSI,N"m 49, - IN
In q Creole Mooiiiel W ueS.a'."f,m
substance. mat tne const o;ho'I
road Ia the malne. ueI ~ USi.h %a ,Ss~
purely ousiliess ",a.sea, a. RI, snch !,
risKea the'r own n,o s,n, Tho, rho
plea ignorss Ine g.a' credi. MohI.
very orsan, mnnov hw doubiino the
l.er, 70 m.a s"s, oS y road and leaving IL
n.,"n1sa with debt in the hands of
m]s;vo,s cit;sen could have embarked in
It without damage to his reputation
among scrupulous people. Iilat mem.
bers OF Congress, WY a'e o1.Iaa S ~,
. - peonIe. sbould engage in il, is even
- .h.,.aa Sr.onh of trust n