Evening star. [volume] (Washington, D.C.) 1854-1972, 1873-02-18

OF the railroad company, and whenever the
question was raised as 10 whether the owner
ship Of this stock would in any way interfere
with or embarrass them in their action as MEM
hers of Congress, he assured them il would not
The committee therefore do not End as to the
members OF the present House above named
or that they had any other purpose in taking
this stock than
| TO MAKE PROFITABLE INVESTMENT.
1t is apparent that those who advanced their
money % pay for their stock present more the
appearance of ordinary investors, than those
who did not. but the committee do not feel al
liberty TO find any corrupt purpose or knowl-
edge founded upon the fact Of non-payment
alone.
ought also to be observed that those gentle
men who surrendered their stock TO Mr.. AIMEE
before there was any public excitement upon
the subject, do not profess to have done ~ upon
any idea Of impropriety in holding 1t, but for
reasons affecting the value and security OF the
investment. But the committee believe that
they must have felt that there was something 81
out of the ordinary course of business in
THE EXTRAORDINARY DIVIDENDS
they were receiving, as To render the inyestme n
itself suspicious, and that this was one OF the
motives of their action.
GOT AFFECTED IN THEIR oFriciAs ACTION
The committee have not been able 20 find
that any of these members of Congress have
been affected i'm their Official action i'm conse
quenee Of their interest in credit mobilier
The committee do not find that either of the
above named gentlemen in contracting with Mr.
Ames had corrupt motive or purpose himself
or was aware that Mr.. Ames had any, nor did
either of them suppose he was guilty OF any i'm
propriety or indelieacy I'm becoming a pur
chaser of this stock. Had it appeared that
enormous dividends upon the stock and
how they were to be earned,
could not then acquit them And here, as well
as anywhere, the committee may aIlude to thai
| subject. Congress had chartered the Union
Pacific road, given to il a liberal grant OF
lands, and promised a liberal loan of Govern
ment bonds to be delivered as last 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 he n
lien prior TO that of the Government Con
| greSs never intended that the owners of the
road should execute a mortgage on the road
prior TO that OF the Government to rails
money to put i'm their own pockets
but only to build the road.
Nomember of Congress ought to place
| any discredt of the body shall arise Old his ac
count. IL If OF the highest importance tina; the
national legislature should be free Ofall faint OF
corruption, and il is of almost e1ual necessit,
that the people should feel confidence that it il
80. In free government like ours, We cannot
expect the people will long respect the laws if
they lose respect for the lawmakers.
For these reasons We think il behOves every man
I'm Congress, or in any hubble position, to hold
himself alOof as far as possible from all such in
huence, that he may not only be able to look at
public good, but that his conduct aad-motive>
be not suspected or questioned. The ONLY crti-
clsns the committee feel compelled TO make on
the acton OF these members in taking this
stock, is that they were not Sufficiently carefu
| in escertaning what they were getting, and
| that in their judgment the assurance OF good
investment was all the assurance they needed
We commend to them and to all men the letter
OF the venerable Senator Bayard, in response to
an offer of some of this stock, found on page -
of the testimony.
The committee find nothing in the conduct OF
motives OF either OF these members in taking
this stock that calls for any Recommendation ~
the committee.
MR.. JAMES BROOKS. OF NEW YORK.
The case OF MIR. Brooks stands upon "A differ
ent state of facts from any of those already
given.
The committee review the evidence in his
case at length, and saw
Mr.. Brooks had taken such an interest i'm the
credit mobilier company, and was 50 connected
with DIR. Durant that he must be regarded a.
having fun knowledge of the relations between
that company and the railroad company. and OF
the contracts between them He must hay,
known the cause of the sudden Increase i'm yalu,,
of the credit mobiier stock, and how the large
expected profits were TO be made. We have
already expressed our view Of the lgopriety o.
a member OF Congress becoming the owner
OF stock, possessing this knowledge. But
Nr. Brooks was not only a member OF Con
gress, but he was a government director of the
Union Pacific company. As such it was his daty
to guard and watch over the interests OF the.
| government iP the road, and to see that they.
IL
faithfulness on the part of government direc7
| tors, Congress very wisely provided that they
should not be stockholders in the road.
Mr.. Brooks readily saw that though hecom
ing stakeholder in the credit mobiier was not
forbidden by the letter of the law. vet IL was
violation rs to itsspirit and essence, and there
fore had the stock placed in the name OF his
son-in-law. The transfer of the oakes contract
to the trustees, and the building of the road un-
der thafcOntract from which nous div ,lends
were all derived, was allduring Mr.. Brooks Off
L yer enf Al INST box-
l been WITHIN hrs knowledge, and vet passed
l without the slightest opposition from him. The
committee believe this could not have been
done without an entire disregard OF his official
obligaten aud duty, and that while appointed
to guard the public interests in the road he
Joined himself with the promoters OF a scheme
| whereby the government was to Ice defrau,led.
| and shared m the spoil. .-
In the conclusions of fact upon the evil
| dence. the committee entirely agreed
The committee then review at great length
| law and precedence ON the general question of
| the jurisdiction OF the House over its membe
| ana say: 'But apart from these general views
| the committee are of the opinion that the fact
found in the present cases amply justify the
taking Jurisdiction over them" for reason,
| which they give at length, reviewing the legal
MEssRs. AxYs AND BROOKS.
Inc conclusion OF the report is a follows:
In the Judgment of the committee. the fact
reported i'm regard TO Mr.. Ames and Mr.. Brooks
would have justified their conviction under the
above reeited statute, and subjected them to
need not enlarge upon the dangerous character
or these offences; the sense OF Congress is shown
by the severe penalty denounced BY the statute
itself. The offences were not violation OF pri-
vate right, but were against the very life Of a
constitutional gorernment, by poisoning the
fountain of legislation
The duty devOlved upon the. esmmittee has
been OF most painful and delicate character
They have performed it TO the best of their
ability. They have pxOceeded with the greatest
care and deliberations fer while they desired 10
DO their full duty to the House and the country,
they were most anxious not TO do injustice to
any man. In forming these conclusions, thev
have Intended to be entirely cool and dispas-
sionate, not to allow themselves to he swerved
by any popular favor on the one hand. OF any
feeling OF personal favor and sympathy on the
other. ffels III, E-flT' :
RESOLUTIONS OF EXPULSION. -
r. The committee submit to the House, and
recommend the adoption of the following reso-
buttons:
+ 1. Whereas Mr.. Cakes Ames, Representa-
tive In this House from the state Of Massachu-
e1ees, has been guilty Of selling to members OF
Congress shares Of stock in the credit nlObilier
spf America for prices much below the true value
of said stock, with intent thereby to influence
the votes and decsions Of such members i'm mat
tiers to be brought before Congress Tor action:
Therefore,