The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-29


Charter Grantdl for $50, OOO-Ncw York
Wouldn't DO II for 100000 Nor New
Jersey for 15O,OOO-Rfnging Speeches
in the constitutional Convention.
PHILADELPHIA, Jan. 49, 1873.
The history of the organization of the Credit Mo-
bilier came out this evening" during an animated
discussion in the Constitutional Convention on
the corruption in the State Legislature. Mr..
Boyd, OF Montgomery said :-T will vote for
biennial elections, and will follow 1t up by voting
for biennial sessions, because believe there is
standing between tho people and the Legislature
body OF men known as politicians, who have been
working for evil. Sir, Notwithstanding gentlemen
rush from the House of Representatives and tell us
that there is no bribery that there is corruption
in that body. believe that there is corruption
in that body. believe that there is corruption
there. believe too, with The most glorious and
as he wrote few short months ago. that
CORRUPTION WAS LIKE TIDAL WAVE
sweeping through the country and was up to the
nation is to begin any where by this Convention 1t
should be in the Legislature. Why do gentlemen
that for the pary sum Of 81 enaced he
Credit Mobilier, corporation which was refused
incorporation by the Legislature ofNew York for not
ture for not less than $3.50, 900 But when they
came over into Pennsylvania they found the
$4,000 to set it on foot. Then it was transported
to Maine and ran its silly course throughout the
entire Union and, Sir, 1t has corrupted men in the
highest walks or life as well as those in the lowest
until we are told by the Investigations now going
on that this country has been robbed Of over on
hundred million dollars. II this is not glory enough
for the gentlemen who favor such a Legislature as
we have had during the last few years. 1t seems
to me their ambition can never be satisfied:
politicians will be lopped-Of, for this "third house"
cannot subsst unless they are fed at the crib Of the
state, and I want the people to have an oppor
tunity Of Kidding themselves OF those rascals who
have helped to make our state
BYwORD AND A REPROACH.
Besides my advocacy OF biennial sessions WILL at
the proper time, vste TO increase the members of
the Legislature In the Eastern States the Legis-
atures are much larger than our own, and we
do not hear OF their members being brought
up r as p II Is reported our members are.
CURED to 20 around that large beay will,
when divided up, be so exceedingly thin to each
member that he viii consider It not adequate.
And as another safeguard will vote for increasing
the pay or the members, In order that they may
have competent compensation while in the dis
charge Of their public duties, without resortlng to
corrupt schemes.
Mr.. SMITH, OF Lancaster-Mr. Chairman, the gen.
tleman from Montgomery (Mr. Boyd has given you
THE ORIGIN OF THE CREDIT MoBLrER,
and ne implied that our Legislature could be much
latures | have a correct version OF the history OF
that corporation, which will briefly give you. A
who had been clerk in both houses met me on one
occasion and told that q gentleman who
usually full OF speculative theories came up
to the Legislature one session. The project that
he had in hand at that time was the organization
in this country OF q corporation similar to the
Credit Mobier established In France. He framed
a bill and had II passed by the Pennsylvania Legis
lature before the Pacific Railroad was barely con-
ceived or company was organized In this city,
and each OF the directors then ana there elected
were veted thirty shares Of paid up stock-they
being OF me ground noor-at 81 900 a share. After
wards. at another meeting, the name OF the cor
poraton WAS changed to
THR PENNSYLVANIA FISCAL AGENCY,
but nothing was ever done by organization. The
charter, stock book and the papers were stolen
and bodily carried OF 10 New York, where the com.
pany known as the Credit Mobiier was organized.
The changes were stricken out and they
returned back to the original title. The
father OF the bill said that he would have
been entitled to receive q large sum at one
time II be had held on TO his paid up stock
for when the question Of the paid stock came up
in New York they sent party to Philadelphia to
buy IL all up. He would have received, according
10 his calculation $1,100, 900, whereas his thirty
shares brought him, when he sold 1t, but $270
believe this to be
TRUE HISTORY
OF the origin OF that company I don't think that
the Legislature OF Pennsylvania should be charged
with having sold itself so much cheaper than the
New York Legislature.
THIS was one set of skeleton charters which we're
constantly passing through our Legislature. Penn-
sylvana has been generally believed to be the
birthplace Of &c n, whose obituary was pub
lshed In the HERALD few days ago. and the re-
marks OF the above named gentlemen seem to Ok
the matter beyond disDutes