The Findlay Jeffersonian. [volume] (Findlay, Hancock County, Ohio) 1870-1881, 1876-08-11
THE REFORM CANDIDATE AND THE
CREDIT M0BILIER.

In 1866 Mr.. James Parton published
an interesting work entitled "a Manu-
al for the instruction of Rings, Rail
road and Political" etc, which was
bought up and destroyed almost as
soon as it was on the shelves of the
bood seller. The work exposed num-
Der of persons in high places, who in
terested themselves in getting it out of
the way. In the introduction the work
referred to Sir Morton Peto, who died
of grief after having issued, without
authority, 125, 200 pounds in securities
of the London, Chatham and Dover
Railway. The author then stated that
there is now no necessity for such I'M
pleasant occurrences and reverses.-
The mistake of Peto was in not divid-
ing his risk and legaliziEg the proceed
ing by a combination now technically
known as Ring This plan," says
Mr.. Parton, twas first adopted, as far
as known in the United States, by an
eminent lawyer of Wall street. s. j.
Tilden, and a prominent Chicago land
operator" A writer in the Cincinnati
Commercial of July 26th says of this
book:
'The work is devoted, in good part,
to an expose of Mr.. Tilden's operations
and Vaccinations in the Northwest
the larceny of the Galena and Chicago
Railroad, the Chicago and Northwest
ern Railroad swindle, 'Tildens mine
&c, showing how western farmers and
stockholders were robbed of and Mr..
TiIden enriched by millions in a brief
period, and how the Granger move
ment resulted as a consequence"
Bold and unblushing as thase swim
dies were, they are mere triiles com
pared the great robber of the Credit
Mobilier, in which Samuel 5. Tilden,
Esq, was one of tn" prime iastigators.
The Union Pdciii: /: ala al Company
received its funds under grants of Con
gress from the government. 1t soon
became manifest to the company that
the cost of construction would not Alb
sorb all the funds appropriated by at
least $50, 600, 0On, and it was nt once
sought to invent "A scheme by which
this surplus money could be stolen
from the government. They at fist
thought they would build the road
themselves and take the twenty million
dollars as profits, but this would not be
legal Eminent counsel, Mr. Samuel
J. Tilden by name, was called in, and
every obstacle was speedily overcome.
In order to avoid personal response
bility they purchased the charter OF
the Pennsylvania Fiscal Agency"
trading company of Pennsylvania had
its name changed to the Credit Mobi-
lier of America, ard operated through
this new corporation. Two millions of
of the stock of the Union Pacific had
been subscribed, and 21S, 900 paid in.
Samuel j. Tilden received S2O, 1000 OF
this stock. (See page 742, report of
the committee.) The "Credit Mobi-
lier" then purchased all the outstand-
ing stock of the Union Pacific. The
two companies were of course, ideni-
ical, having the same offices, officers,
directors and stockholders. The one
let the contract for building the road
to the other, and the two succeeded i'll
swindling the government out of large
sums, corruptin a number of Congress
men and demoralizing public opinion
generally. The part that Samuel J.
Tilden. Esq, took in this dishonest
transaction, may be seen from the FOL
lowing evidence.
By Mr. Hoar. Were you not inform
ed by the counsel who drew the con-
tract that this was violation of the
lawl
Mr.. Ames. We were Informed by
counsel whom we consulted that this
issuing of stock Ito the G. N. } a. pay
ment upon the contract for building
the road was in entire compliance with
the law.
Question. Who were the counsel
that gave you that advicei
Answer. Mr.. Samuel J. Tilden, Mr..
Charles Tracy and Judge Allen.
U. All of New York;
a. All of New York.
'On page 32s John b. Alley, another