, 1876-11-04
CREDIT nrOBIL1ER.
Who turns his cgo With suc1, horror
At tho dirty "EtccnGatk dol!arf
"This Is slusc ne nB'er eau swnllowe
The yirtuQuk SAm Tllleut

" In 1865 james Parton published his 'Manunl
for the Instruction Of Rings, Railroad and ro-
lltical, j" etc. On its appearance al. Of tho
edition that could bo had In tho market, It Is
aaid, was bought up and destroyed by parties
exposed. At my rate, II is tho rnrcst ehaneo
now that copy ran to had. :: >"
In the Introduction, after referring to Sir Nor
ton Petos troubles, on hccount OF l1ls uniuthor-
Lied Issue Of securities (G125 OoO Of tho London,
Chnthant g. Dover Railway, and thd fnct that
robert Schuyler, OF this country, died of D
broken heurt, for similar ofrcnse, tho author
adds: "Thera ts no necessity for such unplcas-
nnt oecnrrences an and sudden rcyerses. 4. !.
dividing their risk and legaltxtng their proceed
fngs by q combination now Technically known as
a Ring, This plan was 1rst adoptcd, rs fur ~
hnown' Il a ;thG United . stntssI It,; BY al eminent
.1ncnt Chicago 1hnd opcrltpr.n. r.yy
The work ia devoted, In good part; to an cx-
pose Of MIR. Ifllcn's operations md mhchfna-
'tlons In the, Northwcsh-thc larceny Of tho
Northwestern Railroad swindlc, ia Tildcn'a
Minc,h etc, showing how Western farmers nnd
stockholdcrs Wcrc robbed Of and Mr.. Tilden en-
1iched by millions in a brief period, md how
the s Granger" movement resulted us q con-
Enormous md unblushing as these swindlcs
art shown to have been, they are Insignificant us
compared with .tnE -
GREAT PUBLIC NonuEHr
Of the Credit hfobilrr of America, whosc ex-
posure had not occurrcd-i,l fact, tho Ring fur
It's consntnmation was scarcely more tlail
foEmcd--wicn Mr.. Parton wrote.
tion to the rccor1Gd evidence connecting Samuel
j. Tilden's name with this Ring. >
Events OF moment colnc ind fado away so
rapidly that 1t Is worth whiIe first to recall the
9alient lacts respecting tho construction Of the
a
The Union Pacific Nallroad Company, under
the grants of Congress, had the following
r. sources from which to raiso money to construct
:. FSst-Twenty sections, or 1a, 500 acres Of pub
iiG land to tue mile, Or about ,ooo0oo acres In
Steond-Goycrnment 9 per cent bonds to tho
~ amount OF sls,o0o pGr n,slS for portion, s32,
Mo for portion, aud s4s,ooo for portion Of Its
TAird-1ts own bonds to az, amount cqta, to
that go issued by the Government, secured by
first mortgage on thu road and franchises.
oo1 F1nr;h-Ihc %n; capital stock, limited to sloo,-
For something near 600 ~ miles Of road the
Company realized, from tho first thrco sources
amount Of fa7,el8,QO Il has issucd
bonds, ealled laud:grant bonds, to the amount
Of St0, 400, COO" lfseport Cong. Select Com,
a9: 2. IF, Fc6, 3. 20, 1917, pags Fl .,,..,,
II
road that the cost Of itA construction would not
by at least s2o, ,06o, ,O0o It transpsreI that the
problem thon arilong those having tho enter
si,noag themse!ycs, and yet seem to be e1pend-
lug i IN building the road, The thought was,
for the Directors to hire themselves 10 build it.
But tlero was tho trouble ot "legallzInE their
II n ths he ~ fly s0a hsd sio ra III
Of "e,nineilt counsrl," and goon over
cunc ali obstacles. They proceeded thus: In or
der TO ayold personal responsibility. In case Of
Pennsylvania Fiscal Agency" i trading cor, s
poration OF tho State Of PcnMsylyaula, had It's
name changed to tle " Credit Mobtlfer 0f Amer
isa," and acted through 1t. This was IN 1851
Ind beeu subscribcd, a,'d ssly 200 paid ill-thu
fore: or this stuck, Samuel j. "iilacn Ind
t9m Ss,,l lsce pags ~ fepoFt q the Commit
{tn lsoA) purchased all this outstanding stock.
Report, page ~ The management of the two
corporations betlmu IDENTICAL For timt thelr
offices were together. Tho Treasurer anu Sec
sstary Of ono wns tho Auditor of tic other, etc.
The stockholders III the two were substantially
tlu saH'e. In short, thosu who controlled una
managed tho ono, controlled and M4llngcd
sfS,,. fAe other LRcport pagcs Il, 7, 1871
roupS SrsnG9 !ne ,as S1 4S hss eass &C., GS%Bpsn Bs
md certain Trustees let thu contract for
eD,0oo to siD, QUO per mile
r,. 49, hoas THAN Ir WAS WORTH.
PEELED to resign hecauss llo would liat colscnt 10
tng A1cs s"nas, '1t r., lSss psga as Iho "oakes
from ,na1 ~. ss9 to tel, per milo, when the 10.
built ct the time tho contract was made, was
only 8a7, 500 per miie. [sea Iage i. u
The amount ruade In bonds aud stocks by tho