New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1873-01-24
CREDIT MOBILIER.

! There are two corporations known TO
| French law. The one is the Credit Fon-
I cier, and is based on the responsibility OF
real estate. The other is the Credit Mo.
bilier, which represents what our common
law calls personal property. We have
long since had the same in the United
| States. The real estate bank at Column.
bus. Mississippi. was an institution of
| discount. deposit and circulation founded
| on o mortgage conveyance Of lands; and
the Citizens Bank of New Orleans ad.
ministered a department of the same ma.
ture. Then we have institutions basing
their loans on the deposit OF personal
effects, which is very little more than a
periphrasis for pawn shop.
1t is the province of American genius
to improve upon the institutions of other
countries and to make them more avail.
able for good. or mischief, than their pro.
iectors ever contemplated. So Messrs.
| Cakes Ames ana other have adopted the
the name of Credit Mobilier. which is
merely rascality disguised in French.
As this corporation was created, it seems
to have been based upon no contributions
of money intended for loan on the secur.
ity of deposited property. From a pc
rusal of the McComb statement it may be
inferred that it was an incorporation of
legislative corruption. Nothing more.
| The letter of Ames leads US 10 believe
that they were very poor at the start. but
became much better off as the scheme was
developed. This is contrary to the gen.
eral history of joint stock companies,
which are more flush of funds when the
first acquisitions are made, and answered
By the stockholders. than when the work
is fairly under way. Our translation of
this anomaly is as follows: Ames x Go. form
an ordinary ring. They take an act of in.
corporation because that proportions the
profits by rule. It also protects each OF
them from private action for damages.
Do they pay in anything toward the en-.
terprise? Yes. Each puts up according
TO the stock standing in his name toward
the working expenses of this enterprise.
Those working expenses are hote! bills,
railroad fare, money loaned TO those who
have the custody of the State or national
credit, and any other outlay which pro.
notes the object in view. These are the
acquisitions and payments required. and
this is truly the capital stock of the en-.
terprise. 1t may represent. paid u. one
to five hundred thousand dollars. This
association then goes to work TO procure
the congressional vote necessary to appro'
pirate lands or money for any Ostensible
, purpose. In the Cakes Ames case it was an
enlarged appropriation for building a
railroad to the Pacific. To obtain this
vote it was necessary to secure the support
of men having the confidence of Congress.
It was not easy to do.
Old trout are no doubt as fond OF bait
as young ones, but these ''monarchs Of
the brook" usually lie in the deeper water
, and are safely ensconced from view under
F rocks CT tree roots. II was to angle fol-
| these wary old chaps that Ames betoob
f himself. He was himself not an inapt
type of that class. The ingenious device
resorted to was to allow the members Of
Congress to become preferred subscribers
to the stock Of the Credit Mobilier. In
some cases it was taken in the name Of
some confidential friend. Sometimes il
was I. sale of stock with an engagement
. | to repurchase the stock with ten per cent
, interest if the first purchaser was not sat-
i. i,fied with the bargain. Then there were
direc: loans OF money TO members. fOi
made. with this organization til. bills
passed Congress. giving to the Pacific
Railroad Company, otherwise the Credit
{ Mobilies. An appropriation largely IN cX
, ,es. of the cost of TIE .oaI. This .ycee!
. constituted III. true capital stock Of tht
, Credit Mobi!ie.. They proceeded to MAKE
. .'diyiiends.' Not the legitimate Interest
on capita! paid ;n bu. the division %
. ! spoil. robbed from the people by ias,u'
! Of the very mel, elected 20 Congress &
/ ,qotec, the public interest and the public
!. credit. The ingenuity nj jribing thes,
! .en.l members Of Congress i" rob tn
! .re,-u.y .ni then paying them on: at III,
F.. proceeds o: :Lc!. own .i.alar constitute
= .h,. r,.rs!cul.: j. rhicl. We .iai,r fcr !h'
Z. American scorndre! d .uverio. capacity &
I ,ti.i,e an institution e!.cahe,e devoted Z
j.. good. !. !. proper - 81. that shes
, scheme. seem TO have been perfected witt
!. he aid .! members OF all parties. SO Ina
: ;.ot.!in. political enter. into GU: com
3: ae4:.. q. ..e :rati!iei :.l1; .:eonb!:ca'