The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-05-01
CREDIT MOBTLTER ONCE MORE.
The Memory Of the Great Fraud Revived by
Henry n. McComb's Lawsuit.

PHILADELPHIA, April 90.-In the United
States Circuit Court this afternoon, before
Judges McKcnna and Cadwalader. case came
up for argument which since 1868 has been
quietly smmering away over the slow nrc Of an
equity examination In the back Office of Phila-
dclphia lawyer but which Ia the summer OF 1879
gave the material to THE SUN for causing an OK
plosion on the floor Of Congress that swept
AWAY in their dishonor men who stood high in
the nations councils men whose titles OF Ex-
vice. President" United States Senator" Re
preventative" Government DIRECTOR" Trus-
tee" and Officer" might well have given as
surnnce of their freedom from the smut OF the
bribc-taker and the corruptionist. All this oc-
Cured In 1879 and 1879. and yet it was only to-
day that the case out Of which the spark was
struck which exploded the mine cnmo up for
hearing on bill. answer and proofs the case OF
Henry \. McComb. Of Wilmington. Del, against
the Credit MObilier II America. Sidney Dillon
John b. Alley Oakcs Amcs. Thos. G. Durnnt
Chas. II Nelson. and others. the prayer Of the
bill being for nm account of $50 shares OF the
stock OF the Credit Mobilier Company with
their a"cumulatons. amounting in oil to some
1900 900
In lsG5. Thomas G Durant wns elected Prcsi-
dent of Pennsylvania corporation originated
10y Gen Dun Green IA the PENNSYLVANIA Fisrn
Agency. subsequently changed to Credit
Mobilicr Of America" under direction OF George
Francis Train and Oakrs Ames. sydney Dill
ton. John Is. Alley. G. :. Bushnell Henry ~ Mo
Comb. and others stand out prominently as
directors. The corporation under their manipu-
lation became the notorious builders Of the
Union Pacin, Railroad which cost the railroad
company $y3.jOO,VuO. and the contractors, or
rather the Credit MObilier only siiQOO.0OO The
distribution ~ such enormous profits ~ these
OF course made trouble. and finally internal dis
sonsions seem to have broken out, This inside
Ring Of the Pacific Railroad ~ M'Comb calls
IT in his testimony. under multiplication OF
on the. ground floor. The Durant party. to
which M.COmb is very large sto 'khold-r and
one of the originators and fir>, subs ribers
10 the Pacific Railroad ana Credit Mobilier
seems to have linked his fortunes. was finally
beaten hy th" Oak's Amcs and Jno. II. Alley
party. and Durant WAS displaced from tn Pr '~i-
dency and McComh shut from the secrets of the
| company in 1866. MNomh suy- h" subscribed
| for $50 shares of additional stock IN the name
ol II. o. FAINT ~ kchmond. aul out II the suit
| growing out of this alleged subscription 1t was
thni tue clsc to-day came before the court
During crO@s- NAminutlun Vt thr pldinti n No
/ Comb before the Philadelphia examiner. MAJOR
/ II. Wilson Norris, there came out two letters.
! unr ~ pnrti Hular from Onkcs AnVS 81 Henry =.
| MNomb. ~ which the writer says. und'r date
uf Jan. 20 1858. by way - cVplainin-. " at ho-
! came of several hundred shares of -io X which
/ h" N l'Comhl was claiming. that he iAme-l
/ Lad liin'"d where they would DO the most good.
rus N'r bore upon i ~ IN rnlurso om.lt the
] v W n.
/ Daw r. Bingham. Garil 'ld. S'hol.ld Kelly of
| J. 'nnsylNnn a. Patterson Elliott. and others.
| THIS lrti r. and the testimony grouped about IL
were. in the summer of 1872, brought TO light in
! the 'olumn- of The SUN
| ~ soon a- Congress met in December Mr..
! BIAin" came down from the Speakers chair.
and moved the famous investigation. This
named. badly -'orrh"d others. In the storm
| which swept over Credit Muhilicr the Union
| faciil'. and Congress. the suit of MrComh
| against the Credit Mphilirr was forgotten or
rather left for the lawyers To drag through
| Ia u hearing. Such men as Judge Black Mr..
| Thompson. on behalf Of vi Comb. hammered
| away at Il. c. McMurtrie, who seems To have
| been the only counsel of the Credit Mobiicr
| people. Ex-Attorney General BENJAMIN Harris
| Brewster also took side shy" at the case as
| counsel for Fant of Richmond. All of these dis
| un;tlishrd gentleman were present to-day.
| or course tn. peculiar functions ~ ~. Credit
| Mobiicr MS a builder Of the great railroad have
| long sine" passed away. hut Judge Black and
| his colleagues hope g. g't n decree for an Hr-
| count of these one. Valuable shares and their
| ac'retiOns by way Of enormous dividends and
| either max" Sydney Dillon. Thomas C.
Durant. John Is. Allry Charles H. Nrilson.
named as defendants pay the amount Of the
| final decree. or else thry will de- END upon the
assets of the Credit Mobilier corporation which
stlll Exists, and. n II said has fallen into tho
hands of Jay Gould. These ass,t- It Is snii
! consist Of considerable real estate along the
/ lin" of tho road. and II has large claim of
/ several millions against the Union Pacific Rail-
/ mcnt WAs hgun to-day hy Mr.. GowHn. H. iH
tl b, followed 10y Judge BlH' X who " IL IgV" the
| Credit Moblll"r people moro severe caStigu-
ton than he gave the Electoral Commission.