The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1873-09-18

J. amendment of 264l-How as-it- spent?
: Why, the testimony in this book shows
3 that Dnrant would not-eYen -lelI one of
r the directors how II was spent And when
: a committee was appointed to inquire
I how that money was spent, he told them
e ii WIS a secret matter that be could reveal
/ to no one at sli.- But he did state to his
co-stockholder, MIR. John B. Alley, of
: Massachusetts, (who was a memOe of
/ Congress) that the bulk of thai money
was spent down here IN Washington, aud
thatIhe larger part OF 1t went 10 purchase
votes of members of Congress He told
that no less a sum than $50 900 went into
the pockets of Thaddens Stevens, the Re-
publican leader the House of Represen-
tatiyes This J. b. Alley says he does
: not believe; and Durant has the audacity
to testify that no part of that money went
: 10 his knowledge. into the pockets of
members OF Congress. \ ct hIs testimony
was so tagrantlY false that that committee
unanimously found that $435,754 were
used to procure this amendment Of 1864
Nay, more; he admits that he put into
the hands Of Joseph B. Stewart and Hay
between 100000 and $1,000 to work
Tor this amendment. And this very
amendment which postponed the lien Of
the Government, and which, as 1 will
show, Will make the Government lose the
whole amount of these, bonds, and the in
terest upon them, This man Stewart says
WAS Written by himself - 90
BRIBERY DIRECT AND scASDxEOus.
What was done with that money p
$1,000 OF $S00,000 put into the hands
| of Stewart. a notorious lobbyist about the
halls of Congress; a man whose business
it is to make his living by getting schemes
| through Congress, faIr or foul. Stewart
was called as witness, and asked what
became of that money he Strengthened
himself up land because he has license
to practice law-staled that he was the
attorney of these people. and. therefore,
not bound to reveal tho secrets Of his eli
ents. He would not tell one word about
it, and the committee did not get one word
from hIm; but there is the finding Of that
committee, that $435, 600 Of that money
was used by the Union Pacific company
| to get that amendment of 1864 in its
charter. We'll, 1t got the amendment. NJ
Yop say this is little matter to at
| tract the attention of the public so much
about-this stock of the Credit Mobilier
| placed by Oakes Afnes where "where it
| would do most good" Here are $435,-
| 000-a great deal more than Oakes Ames'
Credit-Mobiier stock, used for the direct
purposes of bribing members of Congress
L .
ment; it had got the thing IN the shape it
wanted 1t had got the lien of the Gov
ernment for the Government bonds post
poned; and then 1t was asPrepared to 60 on
| with the scheme that was IN the hands of
| the managers of that institution and
the scheme was to get every dollars worth
/ of the property of that corporation-all
the lands granted by the Government, all
the eNGovernment bonds, every particle of
property that should belong to that cor
| poratlon-lnto their own hands, as indi-
viduals, and leave the corporation utterly
& absolutely bankrupt; so that in the end
1t would be sold out on its FIRST mortgage,
| and the Government would have nothing
IN the wide world to look to for repayment
for the Government bonds that would be
/ lost.
Howwas it about this thingr 1t could not, Ac-
eordlng 70 law, let the contract for the construc
i ton OF this road to the members Of the DirectO-
| ry themselves No court in the world would
sustain a contract by the Directors of the com
pany t0lth themselves for the construction of the
| road What then, was necessary to be done -
| for It was by means of fraudulent contract for
| absorb tie means Of the company. Is was nee
| essary % get up an artificial conoern-another
| but the corporation-the legal entity-being diff
| fsrenb the one set of men under the name of
one corporation could contract with the same set
| Of men under another Corporation. The Direc-
tors of the Union Pacific, as the Directors of that
1
Directors of the Credit Mobiler, only beiug con
tent, to contract in the name of the Credit No
] biIier. .a -. .r5i-tH .-s fr.- b.. lad
! ORIGIN OF THE CREDIT NoBILIER. -
So they set to work to get another corporation,
| and they found on the statute books ofithe
State Of Pennsylyania charter that had been
| granted in 1859 to corporation called 'The
Pennsylvania Fiscal Agency on NoYember I,
thorizing it to deal in railroad bonds and other
securities, and lend money 70 construction cpm-
gage in the construction of railroads itself They
discovered that charter. ON the Sd et Match,
vania Fiscal Ageney and on the 2stk 81 the safns /
month procured the Legislaturol Of that State 70
Credit MobiIisr Of America aud to enlarge its
powers 81 that it could not emily lend money and |
! buy bonds, but could actually embark in the |
the Credit M obiIier two french wnEs 5hst sig-ll
Hiiy active credit But they Pat tss car. bsEs
TWO HEA Bs, 4wo BODIES, But ONE PURSE,
Having bought this charter, what did they dol /
They proceeded to organize this Credit MobuieT |
company, buying up All the stock from the oEiE.
inal stockholders, and managing the purchase |
] that, IN the end, every dollar Of the stoek Of
4 that Credit Mobilier eAme 70 he oWned by the 4
stock holders Of the paian Pacific company. So |
that, assWOrn 20 here. this mass Of testimony,
/ the stockholders OF the two companies were 1
identicaily the same persona 49, II
| what did, they next do : They Proeeeded TO |
/ that to q man named Huxley, and to another |
/ named Blnme, and third contract to somebody |
it Mobiier in full operation, large portion Of /
the road, one hundred miles or more, had been !
merely blinds; for, in point ef fact the real
parties that were in it were the stockholders Of
the Credit Mobilier-in other words, the stock |
holders OF the Union Pacific company itself
But then came the time when i was necessary I
/ of the road. Roe That purpose, on the Ieth OF |
August Is67, they contracted with the celebrated 4
portion Of Tue road at q rate that averaged |
about 10000 per mile. Some portions OF itWere |
but large porti5n OF il was to be built At the
rate OF S9oOoo soRne portions at over 100000 per
mile. -- 1
Mark the first fraud. They make that contract |
covering the road that had been built under the /
Oakes Ames between Sz 09OO0O and SdOoO,OQO i LOT
building this read, which had already been built,
| and with which Amts had nothing TO do in the |
Why did they do thatl Why did they give l
| Cakes Ames from $4,000 to 10000 per mile !
more than they ought 70 have giYenl Because /
they knew when they Uers- giving IL to Oakes /
contract was made with oakes Anigs. but imIpe- !
diately after they assigned 1t to seven Trustees,
and these Trustees entered into an agreement |
with every man who was . stockholdeE in the 1
| Credit Mobilier company that he should have q |
share in that e9ntraei Pre- rata to his stock pro
/ Trustees irreFoeable proxy authorizing them |
to vote six-tenths Of his stock IN the Union Pa |
putting Is into the power OF those Trustees 70
elect and re-elect Trustees as long a. that com
n this arrangement these seven men became |
the sbsolute controlling power Of both the Union |
Pacific Railroad company and the Credit Mobi- |
ler company. When, therefore. the Directors Of /
| the Union Pacific company made q contract with 4
| Cakes Ames Tor the benefit OF the stockholders |
| OF the Credit MobilieF, il the same thing as
saying i was for their benefit, agreeing to give
| themselves twice the amount which they ought |
to have given for the eenstFpettop OF that Hofk-
| When they did that they we're simply absorbing (
/ the whole means of that company and putting it
i into their own individual pockets
/ ! What Wad their object It was 70 leave the |
Government without the slightest probability on
the face Of the earth for the pHyment OF the Gov
ernment bonds leaned to that eomPanY- That
/ was the object Of it. -'----@ .--
will now give you the particulars, and again
| refer 70 the report The total cost Of building
| the road, as found by the committee, was S50s-
| T3O6SS 81 Il
The amount paid to the Credit MobiIier ERs
s93546 ,2s7 p, making profit Of si2.s25,s2s a.
THE CONSCIENCE ~ OF THE CREDIT MO-
| BILIER.
/ Now, mark They took all the proceeds OF the
/ profits Of that company, and ninety-odd millions
of dollars, for what cost the company bat ttty-
odd million dollars, although their contract for
making it was made by the company itsolf and
] therefore there ought 10 have been profit at