The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1873-01-07
THE CREDIT noBILIER.

. .[From the Hartford Courant.l

Without at this time going into the
history OF the Credit Mobilier, whose
affairs, SO far as Congressman have been
connected with them are now being in
vestigated, we give, in answer to inaui-
ries, something about the nature aud
objects of such corporation. The
Credit Mobilier of this country takes its
plan OF operations as well as its name
from q similar company founded in
Paris about twenty years ago, on the
principle of limited liability, and sane.
toned BY the French Government
The Paris Company was joint stock
affair, the shares being made payable to
bearer, and its capital was 60,000.00o
francs and after the complete issue of
this g bital, it was authorized to issue
its 6lds Tor ten times this amount It
wasI founded for the transaction of a
general banking business, and its pro-.
fessed object was to aid in constructing
public works, promote the development
of national industry, and consolidate
into coeimon stock the shares and
bonds of trading companies. Fa
As M. Pereire, the French fnancier,
and one of the founders of the compa-
ny, expressed it, at Is 10 play with re-
spect to the fixed capital employed in
industry, part analogous to that which
banks of discount fill with respect to
its circulating capital" The French
Company was authorized to subscribe
for and acquire public securities, and
shares aud bonds of Industrial enterpri-
seq, particularly railroads, canals, mines
etc 1t had unlimited power to engage
in the most extensive operations, and it
has been concerned in many of the fa-
nous enterprises of Paris, such as the
consolidation of its gas and omnibus
companies, and with great railway op-
teratsons, extending through many Eu-
ropean nations NJ Berryer, one of the
prominent opponents of the company
(whose profits fluctuated greatly from
year to year, and whose shares rose or
fell with every political excitement, and
were eEected by financial disturbances,
spoke Of it as "the greatest gam bling
house the world has ever seem" Upon
the general plan of this company,
though with some notifications, simi-i
lar institutions have been founded in
Switzerland and the German States. flz :
The American Credit MobiEer was
founded upon the same general idea
The exact privileges or limitations Of
its charter we do not know The pow
ers granted are doubtless as extensive
as its ambitious and liberal founders
could obtain from an accommodating
Pennsylvania Legislature Its first
great enterprise was the building of the
Union Pacific railroad. OF course, as
many of the prominent men in that
enterprise were also among the stock
holders of the Credit Mobilier, it was
easy to secure favorable contracts. Ta-
king Ge Government bonds allowed for
each mile of road, and the other re-
sources of the Union Pacific road, it
was easy for the Credit Mobilier mana
gers to calculate upon large profits in
the construction of the road If they
could give assurances that dividends
would speedily amount to one hundred
per cent, it was an attractive stock to
hold Favorable legislation for the
Pacific road by Congress would, of
course, he to the advantage of the Cred
it MobiIier The managers Of one
played into the hands of the other, and
rice versa If Congressman held
stock in the Credit Mobilier which be
had given his note for, he would natu-
rally be very glad to have the dividends
cancel his notes at maturity. The hol-
ding of stock might influence his vote
upon railroad legislation under circum-
stances. Of course the proper way
would be for him to decline to vote wp.
on matter in which be had large pc.
cuniary interest. Just what relation,
to legislation, if any, the distribution Of
the stock of this company had, the in
vastigation now in progress hopes to
ascertain. The general character of the
Credit Mohilier corporations is all we
intended to speak of in this article
This is given in the description of the
French institution which we have given
above. $50
! The New York Herald fears that the
splendid internal improvements suggest
ed as the future domestic pelicy of Gen.
! Grant are splendid schemes only for wide