The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1880-06-17
GARFIELD AND THR CREDIT.
MOBILIKk.


corporation, organized by certain stock
holders of the Union Pacific Railroad
Company, their purpose being to secure
to themselves all the profits of build
ing the road, and to defraud both
the government aud the honest stock
holders of the company. While the
plan for huge swindle was being laid
before Congress, oakes Ames, q mem
her from Massachusetts,, was entrusted
with the duty of distributing shares,
where they would do most good, among
congressman. Ames was prominent
member of the Credit Mobilier, and
the scheme entrusted to him resulted
in the government being defraud-
ed out of $s5, 900, 900. In 1873
committee was appointed to investigate
these frauds, and the facts as stated
were proven beyond a doubt, and many
of the most prominent men now in the
Republican ranks were proven to hsYe
beenthen used while congressman IN the
perpetration of this huge government
swiudle. The committee in lengthy
report said;
In relation to the purpose and mo-
tives of Mr. Ames in contracting to let
members of Congress have Credit Mo-
bllier stock at par, which he and all
other owners of 1t considered worth at
least double that sum, the committee,
upon evidence taken by them and sub
mitted TO the house, can not entertain
8 doubt. When he said be did not
suppose the Union Pacific company
would ask or need further legislation,
he stated what he believed to be true.
But he feared the interests of the road
might suffer by adverse legislation, and
what he desired to accomplish was
to enlist strength and friends in Con-
gress who would resist any encrosch-
ment upon or interference with the
rights and privileges already secured,
and to that end wished to create in
them an interest identical with his
own. This purpose is clearly avowed
in his letters to McComb. He says he
intends to place the stock "where 1t
will do most good to u.s." And again:
"We want more friends in Congress J"
Ia his letter TO AIcComh, and slso in
his statement prepared by counsel, he
gives the philosophy of his action, to-
wit: "Thsi he has found there is no
difficulty in getting men to look after
their own property" The committee
are also satisfied that Mr.. Ames enter
tanned fear that when the true rela-
tions between the Credit Mobilier
aud the Union Pacific became gen.
orally known and the means by which
the great profits expected to be made
were fully understood, there was dam
ger that congressional investigation
and action would be invoked. The
members of congress with whom he
dealt were generally those who had
been friendly and favorable to Pacific
railroad, and Mr.. Ames did not fear or
expect to find them favorable to move.
ments hostile to it; but he desired to
stimulate their activity and watchful-
ness in opposition to any unfavorable
action by giving them personal inter-
pecially so far as it affected the inter-
est of the Credit MobIlier company"
The plan operated like charm, and
congress did not permit the country to
know anything of the outrageous swim
die until the government robberies
were completed, and until the eDor-
nous profits were safely laid away
by the stockholders. 1t was
proven in the committee inves-
tigatIon that many congressman did
receive Credit Mobiller stock and div
idends, for which they gave nothing,
and among these was Mr.. James A.
Garfield, congressman from Ohio. The
committee said of his case:
The facts in regard to Mr.. Garfield,
as found by the committee, are identi-
cal with the case OF Mr.. Kelley to the
point of reception of the check for
$329. He agreed with Mr.. Ames to
take ten shares of Credit Mobilier
stock, but did not pay for the same.
Mr.. Ames received the eight per cent.
dividends in bonds, and sold them for
ninety-seven per cent and also receiv-
ed the sixty per cent. cash dividends,
which together paid the price of the
stock and interest, and.left balance of
$329. This sum was paid over to Mr..
Garfield by check on the sergeant-at;
arms, and Mr.. Garfield then under
stood this sum was the balance of div
idends after receiving for the stock.