New-York tribune., 1875-02-02
ANOTHER CREDIT MOBILIER.
THE MEMPHIS Ell PASO. TEXAS AND
PACIFIC RAILROAD.

The SIM published Yesterday q series of startling
documents, which puTpOrt to he merely the hrse
chapter in story of corruption SURPRISING even
the famous Credit Mobilier. They are transcripts OF
certain papers in the suit of Paul 3 Forbes CT al ag
The Memphis FL Paso, and Pacihc Railroad
Company on the equity side of the United States
Circuit Court for the Western District of Texas the
complaint In which, dated July 6, 1870 alleges that
in March. 1865 construction certificates of the par
value of $1,000, payable at the holders option
either in land, or "by one of the thousand
dollar bonds that may be granted to the Company
by the United States in aid of the construction OF
railroad from Jefferson to FL PasO" were given to
various persons in payment for their influence IN
procuring the passage of certain bills by Congress-
The affidavit OF w. r. Berghotz. who seems TO have
been confidential agent of the Executive Commit
tee of the Railroad Directors alleges that STOCK
certificates to the amount of about SlOOO'OOO were
distributed by him to various individuals, no COM
pcnsation being given by any of those individuals
nor any consideration, except their supposed lhhu
ence as aforesaid" William Sutphen makes affidavit
that John A. c. Gray Receiver of the Memphis
FL Paso and Pacific Railroad Company, brought suit
in December 1870 against Morton G. Hunter then
eX-member and now member OF Congress from
1ndana) and five Others 10 recover certain cOnstruc-
tion bonds issued to them by the Company for
Illegal purposes-that is to influence legislation by
the Congress of the United States in its behalf
Gen Fremont at this period was President OF the
Company. w. g. Snethen Secretary, and "m'
scbnoele Treasurer Snethen and SchmOele const-
tnting the Executive Committee. The records ot
the Company seem to have furnished the following
documents. and they require no comment: Feb. %,
1863 the Executive c mmittee resolved to petition
Congress for a grant of lands and bonds on the
same terms as the subsidy given TO the Union IA
cifc Feb % they resolved to issue 10000 settle
ment certificates par value S105 each. March 2they
resolved 10 issue the construction certificates al
ready described at the rate of $4,000 per mile on
the first $50 miles of the road and 300 OF these GER
tiicates Of the par value of $1,000 each were placed
in the hands of Gen. Fremont, to be used by him as
the Committee might direct Gen Fremont writes
TO Schmocle from Washington, April14:
Ihave also to report that by and with the advice and
consent Of the Secretary Of the Company have IN
saId ceftacates from Nos. Al TO 100 inclusive on the
first 80 Of the railroad. amt FROM Nos 81 TO 2VO
Inclusive the last ten sections thereof by which IN
nv Judgment permanent inter sts outside of TeXa' and
Vital TO the construction OF the lalIOsd nave oeon
attained.
Jan : 1869 a convention of the stockholders, con-
ssting of b. H. Epperson, William Schmoele, and
John c. Fremont representing, 1t was alleged, all
the stock of the Company, was held IN New-fork,
and $5,OO0OOO of stock belonging to the Company
was authorized to issue SchmOee, " to be used by
him under the direction or approval OF the Execu-
tive Committee of the Company as full paid and
unasses>able stock, for promoting the interests OF
said road provided, that the said Schmoele IN bona
fde disposipg of the said S5,OOOOOO Of stock under
the direction or approval of the said Executive
Committee shall in event, OF under no clrcum-
stances be held responsible for the money value OF
the same or for the proceeds or results Of their
application, or any part thereof
On motion of Gen. Fremont. the following pre-
amble and resolution were adopted, to wit:
Whereas 1t is considered advisable and most
ducve securing the speedy construction of the Com
pany's railroad to distribute large proportion Of
stock parties whose past and future services are
best calculated TO eject me REQUIRED s1odldiy eRSa-
ton OF Texas aud to assist III every other way The exc
e@oe sei2% o dated aS SSR m 5 a mSdsd by this on
Yention. with the consent OF the parties thereto.
Therefore, be a further rcS0tred BY ana with the con
sent OF the parties TO contract OF Nov. H. 1901
that the said further far modified as 10
sad Company. and they hereby authorized and di
rocted to the said William Schmoele the remain
by him. In and by said contract. TO he disposed OF by
him as assets Of the Com!any FOR the eoHstrnfuGn OF
declared be fun paid and unassessaOle. and the said
transfer all or so much Of said SIS 100000 OF
persons the Board Of Directors or their Executive
Committee may authorize hiIn to transfer ana ne, lhe
said SchmOele. Is hereby released from an Iufthe ac
count responsibility for the sad Sl5OOOOO or stock
him transferred, and he snail ~ no wise DC ic-
spODsiOe for the money value thereof
April 10 Schmoce was authorized to transfer 40
shares of stock to Winfield Scott Smith, 5000 to
Morton c. Hunter, 1000 TO Richard {. Mccormick,
400 to Frank Fuller and 400 to Gen. S p. Heintzel
man; and to engage George w. Woodward as cOuu-
sci and give him 1000 shares a retaining fee. An
additional million of stock was also placed in
Schmoeles hands to be used for the purposes Of the
Company. The Committee approved OF the DISPOSE
ton made by Schmoele of S50O,OOO in construction
bonds distributed in the interests OF the Company.
They then passed the following resolution:
Aud the Committee further appoint Gen. John c.
Fremont to VISIT Paris as the general agent Of tins Com
pany with full powers 10 act for the Comp NY his acts
being binding upon the Company, and the President ana
Secretary shall issue the necessary papers for Gen Ere
mont for the purposes named.
Committee also approve OF a transfer OF s2o0O0C
Of siOck made by W. SchmOele to gnau DOnuey, aud
sutbOriz" W. SchmOro 10 pay TO SAID Donnely Que
b O SjO0O ou Of the proceeds OF the loan in Paris
Fremont T. II. EppersoD, aud dated February 1859,
aud 10 be considered retaining lee FOR the said Don
nelly counsel Tor this Company required to enect
CtiOn OF this Company with tne Northern Pacific
RlirOsu Company Tor united action 10 obtain subsl-
dies.
great deal of correspondence between the parties
to these transactions is given, and we add some of
the most significant portions OF it:
Btu,ton duncan 10 Eppcrsom
LOUISVILLE, Dee. 81, 1852
have received from Col j. II. Epperson, President
OF The NJ -nphlS aud L Pdso Pacific RhirOad Company
certificate, OF stock in Washington City durUg
the Spring OF 1879, amounting TO $4,000, which dis
Company .ceivcd in the Summer other certificates
amounting {45UC0 Tor the purpose, and have dis
trihnt a them accordingly
have received In part paw Of services rendered hv me
10 The Menpnis aud / Iaso Pacific Company the amount
BLASToN DUNCAN.
u. y c. CtfE, ErecNire Clerk Of ne Se'tue TO Berry
UNITED STATES SENATE CnAMBRR1
WASHINGTON June 22 1869. 5
Ny DEAR MAJOR: A few moments since / met Gen.
Dent III the oDDy. He asked for YOU aud said Why
them ten BiiulfcS." told hlm | expected