Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1878-01-23
CREDIT MOBILIER AGAIN.
The National Scandal of Ten Years
Ago Revamped in Philadelphia
Philadelphia Times, Jan. s.


The reargument of the famous Credit
Mobilier case was begun yesterday in
the United States Circuit Court, before
Judge McKennan and Cadwalader. It
has been dragging along slowly for the
last ten years, and is now brought be-
fore the Court for final settlement,
when the memorable Congressional in
vestigation. which followed when the
testimony taken in the back office of
Philadelphia lawyer was laid before the
National Legislature is almost forgotten.
1t was then that the interesting letter of
Cakes Ames to Henry S. McComb,
showing how quantity of the stock Of
the Credit Mobilier was passed to GER
tain members Of Congress in considera-
ton of their support of the Union
Pacific appropriation, was made pub
lie, what occurred in Congress and the
disgrace which mantled some OF its
active members is part Of the history
of the country. The great suit arose
in this wise: Henry S. McComb, one
of the original stockholders, in the
spring 66 called at the Office of the
Company in New York and subscribed
for $50 shares in the name of H. B.
FAINT, of Richmond. He gave his draft
on the latter for $4,000, the subscrip-
ton price. FAINT failed to take the
stock and sent the draft back to New
York. McComb, upon being called up
on by Mr.. Crane, the Assistant
Treasurer, to make the draft good, sent
a clerk from his residence in Whining
ton, Del, on to New York with check
for $25, 900 and power of attorney
from FAINT for the purpose Of having
the stock transferred in his name. The
transfer was not made because Crane
objected to the form of the power Of
attorney, and the clerk returned home
with the check. McComb said he
thought everything was all right and
that the title to the FAINT stock was I'M
doubtedly in him, and so paid no furth-
er attention to the matter, and expected
at any moment to be called upon to
pay over the subscription money. At
this time Credit Mobilier as an invest
ment was not thought much Of except
by those, to use the words Of one o
the witnesses, "who were on the ground
floor" and knew all about the rich har-
vest to be reached The contract for
building the Union Pacific was awarded,
and Cakes Ames displaced G. 7. Durant
as President of the Company, and be-
gan to manage matters his own way.
Jealousies and contentious began to
arise among the stockholders. This
was natural consequence Of the dis
tribution of the enormous profits that
were realized. McComb asked for his
dividends on the FAINT stock and its
accretions. He was told that his sub
scription was void that Crane had acted
upon his individual authority, and not
being an officer Of the Company the
transaction was of no effect. McComb
persisted in asserting what he called his
rights, and commenced suit in '6S.
Ames had informed him by letter that
the stock chad been placed where it
would do the most good" 1t was this
paper which created the explosion in
Congress, and was the basis of the in
vestigation. McComb, by his legal
proceedings, is trying to obtain from
the court decree to, compel the Com
pany to account to him for the profits
of the FAINT stock. Argument was had
upon this matter last May, but the
Judges were unable to arrive at con-
cusion, and they ordered the rehearing
which began yesterday.