New-York tribune., 1873-02-26
OAKES AMES's DEFENSE.

AND PARTIAL-NO THOUGHT OF CORRUP-
TION IN SELLING THE sToCK-rHAr HE
SHOULD BE SACRIFICED SEEMS hfHODAoLh
TO HIM.
wAsurNGrov. Feb. 25.-The following is 0akcs
Ames's defense, read in tho House to-day by the
Clerk:
Before The House proceeds TO the consideration Of the
resolution reported Tuesday last by the Special Com
mittee charged with the investigation o alleged trans
actions with certain members Of this body, In the dspo
tio, Of bares OF the capital stock OF the Credit Mo6i
ler OF AucEca desire TO submit the following state
ment:
Tho charges on which said resolution based relate to
events 50 intimately connected with portion OF the
history OF the construction Of the Union Pacific Railroad
thatI shall ask the Indulgence OF the House while pro-
coed 10 trace such history in greater detail than would
otherwise he necessary On the 1st day OF July, 1862
was pissed and approved act OF Congress authorz
ing and providing for the construction OF railroad anu
telegraph line from the Missouri River to the faciuo
Ocean The praccabity andimportauce OF such meas
ure had long urged by our most sagacious puDc
man hpt II failed 20 receive the sanction Of the Gov
ernment until great civil threatened to result in
the Withdrawal Of the states ana Territories OF the IA
cc coast from the authority OF the Federal Govern
ment For a variety OF reasons. then long before the
pnbc but chiefly TO avert tho calamity Indicated TINS
not was passed II was universally esteemed not only
measure Of sound policy but scheme appealing to the
parotsn and loyalty Of the capitalists OF theUmted
STATES a the instrument whereby future separation OF
the Pacific from the Atlantic States would be rendered
forever mpos ble Tho meeting OF Commissioners named
in tho act to carry the same into CT
feet by the organization Of the corporation
was held pursuant to act Of Congress- on the first Tues
day of september. 1862. Though composed OF great
number OF She leading capitalists Of the country, and IN
addition the ordinary inducemont OF pecunlary ad-
vantage. acting under the stimulus OF patriotic ardor'
the mceuag failed 10 accomplish anything beyond the
opening books OF subscription. Not dollar OF STOCK
WAS su'Srrbel or prOmised and 10 not until about
the 9th of October 1S63and then only with the ex-
plicit understanding the part OF the sub
scribers that in Of failure 70 secure future
lecislaton the project must be abandoned
that a sufficient subscription was obtained TO
aulor.ze She election of board Of directors On this
snbscrpton was the name Of recognized capitalist
Parties known tie country as welding large capital
in railroad enterprises had studOusly avoided oil ap-
parent association with tho enterprise and IN thelr
place appeared a class OF comparatively unknown men,
whose names, when rising to the surface, had been
chiefly connected with enterprises involving speculative
and extra hazardous risks Until the passage OF the law
heretofore mentioned, nothing was done under this
organization beyond such acts necessary to pre-
serve the existence of the corporation.
THE ACT OF JULY 2, 1864.
Then came the act OF July 2, 1854 Its principal feat
ures were as follows It authorized reduction OF the
par value OK tho from $1,000 TO $780, with CORE
1ndins Increase number 1t enlarged the land grant
from ten 10 a twcntymile limit; IL authorized the
company 20 first mortgage bonds on its railroad
aud telegraph to an amount per mile equal to the
amount United States bonds authorized to be issued
10 the Company aid Of the construction OF the road
ana made tie mortgage securing the same a lien
prior to that Of the United Sates it declared
chat only Onehalf Of the compensation for services rem
dcred for the Government should be required to be ap
Piled to the payment Of the bonds issued by the Govern
mcnl I'm al OF construction While thus strengthening
the Company by these changes Congress at the same
time and in the same act dealt it well nigh fatal
blows from the effect Of which complete recovery Is i'm
possible. IL authorized the Kansas Pacific, which
required effect junction with the UaiOn Pacific not
farther than the 1OOh meridian OF lODgitude-a
distance o: about 2 miles west Of the Missouri River
to make such connection at point westwardly of such
initial point deemed practicable desirable. The result
is rival parallel road connecting with the Union Pacific
ut a point 5i6 miles west Of the Missouri Rver-beng
ouehai the length Of that road-and claiming equal ad-
vantaees aud facilities in ell running connections and
interchange OF business 1t likewise provided that in
case tie Central Pacific should reach the eastern bound
airy oil California before the Union Pacific should be
built 20 that point the former company should have the
tight to extend its road $50 miles eastward. and this
power wac aevard enlarged by Congress by act of July
1866 10 ~ 10 authorize such extension indefinitely un-
III the two roads should meet Thus by act of Congress
these two corporations were sent forth upon race
across the continent which finally culminated IN the
construction OF so miles OF road by each Company
In a single season. through desert country,
apen a route beset by unparalleled obsta-
rles and at necessary cost largely in ex-
CESS extrayagant estimates 1t is in testimo-
ny before Committee OF the House that after the i'm
pracchbiy of building the road under the first act
had been demonstrated when II had become apparent
that additional aid was necessary TO induce capitalists
to embark IN the enterprise late President Lincoln
was urged that Congress should not withhold the ad-
dtiona assistance asked and that he personally advised
the officers the Company TO 10 Congress for such
legislation would the success OF the enterprise
s4fx~ and pn6iu
thom 70 apply for additional concessions ample to place
the road beyond peradyenture.
THE CONTRACT WITH THE CREDIT NoBLIER COMPANY.
Notwithstanding this favorable legislation, no capital
was attracted additional stock subscribed. On the
9Th August 1854 contract for building 100 miles west
from Missouri River let to H. NJ. HOxe, the only
contractor Offering undertake hazardous venture.
six months demonstrated his inability to perform his
contract and with the experience OF the Company in
dealing with individual contractors course seemed
open except 70 seek consolidation OF personal means
into a corporate body whereby the pecunary ability OF
number Of persons might be made available to
the task of constructing the road while at the time
enjoying the shelter Of corporate liability only Accord
ingly. by contract made March Is, 1865 the Credit
Mobiler OF America corporation created by and
ganized under the laws OF PennsylvanaSn substance,
assumed the Obligations Of the koxle contract and
tered upon its performance 1t manifest that
even this organization then constituted, would be
unable accomplish the work for which IL created.
The state Of the country and the peculiar local cOndi
tions surrounding the enterprise exceedingly
favorable to successful prosecution OF the work Gold
was l5O; there no market for the first mort
gagebOnds and the Government bonds. payable in cur
rency, OF uncertainvalue and Of difficult SALE No
Eastern railroad connection existed whereby the vast
amount Of material essential to construction could find
reasonable and rapid transportation to the line Of the
road; IL was compelled instead, TO follow the long and
tedious route OF the Missouri River at extraordinary