The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1877-07-11
County and City Official Press.
Wednesday, July IL. 1877.
HISTORY OF THE CREDIT
MOBILIER.

A gentleman named smith b. author
i.y for the following account 81 the
origin Of The Credit Mobiiier organizA-
ton, which became so in famous few
years ago. piece of history by the way.
which, We believe, il not generally
known. II il substantially this.
"A prominent Democratic politician,
Of Pennsy lvsria. met Mr.. Duff Green.
on . certain OCCASION. and Mr. breen
wa. a. usual, full OF speculative thee
ries His pet hobby, upon the OCCASION
referred to. was "A project for creating
in this country II corporation similar tn
the Credit Mobilief If France. The
practical Pennsylvania politician seized
upop the ideas Of Mr.. Green. and
framed charter for a company, bear-
ing the title of the Credit Mobllier.
The ball was slipped quietly and with
out oppssliaQn through the Pcnnsvisa-
mia Legisla drc. and no money
vas paid TO securs its passage
The charter was very comprehensive.
coaf.rring the most ample powers, nj
capable Of being applied to almost any
corporate purpose,
"A meeting OF the CORPORATION was
held in the City Of phiIatelphia. aud a
hoard of directors chosen. All the
Board did was 20 vote ear. director
thirty shares Of paid up stock. at
81 900 q share. with the privilege IF
taking still larger amount at ITS par
value The directors bDing upon the
ground floor of the concern. did not pay
anything like full value for the paid
up shares which they voted to them
selves The name originally given 10
the concern was the 'PeDnsy lvauii Els
cal Agency afterwards changed 10 the
Credit Mobilier Of Americas" but that
Agency never engaged in any enter
prise. All this happened before Con-
gress had made any provision for build
ing the Pacific railroad When that
enterprise was undertaken. some enter
prising individual stole the charter Of
the dormant Fiscal Agency, together
with the stock book aud other papers
belonging TO the concern The Iur-
ioihcr at these seemingly yaltieiess
things. carried them over 10 New York.
aud sold them TO the men who, organized
upon stolen charter the company. which
under the name ot Credit Mohiliar' OPP
rated So largely and so proti'ably within
the Pacific railroad company To get
rid of the paid up stock which the
Pennsylvania directors voted Ia them
selves, was all object with the new pos
SCISSORS If the charter and they employed
an agent TO buy up these shares ! he
gentleman who framed tla Till and
passed it through the Pennsy lvania
Legislature sold his thirty shares OF
paid up stock tor the insignificant
sum Of two hundred and seventy dol
lars. That gentleman once took the
trouble to count up how much the
shares he sold. aud the additional shares
Inc was entitled TO receive AZ par value.
would have amounted To when Credit
Mobiiier stock VAS at i,s highest His
calculation footed up 81, 100. 900. no "a
count being taken by him OF the odd
thousands of dollars
This Credit Mohiiier. our readers will
remember. was an organization au-
thorizei ''to become an agency for the
purchase ard sale at railroad bouis and
other securities, aud In make advances
Of money and of credit to railroads and
other improvement companies, aud 10
all. ia like manner, contractors and
manufacturers; ami to authorize them,
rs company. t. make all requisite
contracts. and. especially. 10 receive aud
hold, on deposit and In trust estate. real
aud personal, including notes and bonds
and obligations Of States and individu-
ais aud of companies aud ot corpora
tons AMI also IA sell aud dispose 81
them IN any markets in the United
States or else where
The capital stock VAS fixed at al.ooo
shares oi 800 each, with privilege of
'increasing their resources by borrowing
money on pledge If property or with
out such pledge. ar Icy new suhsesip-
tions Of stock. not exceeding $4,000
more shares And when new sul,~crip-
tions are made, the shares NAV bo issued
NJ par, or sold for the bcncti, ct the
holders Of the shares.
The legislative aet mcorrora;iu. the
Fiscal Agency" Was passed in is60
tive years before Congress chastcred
the Pacific railroad, The amendment
changing the name - Credit Mobilier
WAS Ia 1864, two years after the charter
The concern was chiefly notable far
the melancholy downfall i, broueh:
upon macy of the br,shte.s regulations
in the nation. on the expose Il il
workings hy Cakes Au,es III is-5 IN
vesving first sad foremost a,noa., Is
victims the thea honcrei Nlce President
Of the na,ian--SehuylsF ColfaN.
6s~ Oar pressman yesterday IL 81