Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1880-07-30
Credit MObilier History.
Portland Standard.

In conversation with an old Re.
publican the other day, he asked
why the Standard did not publish an
historical sketch of "Crodit Mobil-
ier," about which so much was now
being said; that it was so long
since the matter was before the pub
lie that he had forgotten what it was
and asked if the Standard would not
at some convenient time give q state
ment of tho matter, in order that
people might judge whether or not
it was such crime to hold stock in
it, as the opponents of Gen. Garfield
wished to make it appear. We have
obtained from the Congressional
proceedings, reports of committees,
etc., contained in the Congressional
Globe, a condensed statement of the
origin and some of the transactions
of that one of the most stupendous
frauds ever perretrated on any
government. In 1862 a charter vas
granted by the Government to the
Union Pacific Railroad Company
to build in connection with another
corporation called the Central Pa
citic Railroad Company, q railroad
and telegraph from the Missouri
river to the city of San Francisco.
The Union Pacific were to construct
that part of the road between the
Missouri river and the extreme west.
ern boundary of the Territory of
Nevada; to aid in the construction
of this road the United States Gov
ernment granted these corporations
privileges and powers to an almost
unlimited extent aud endowed them
with public lands and the credit of
the Government to an almost fabu-
lous amount. The stock of the I'm
ion Pacific Company was to consist
of one hundred thousand shares of
the value of 81 900 each or one hun
dred million dollars. It was to be
managed by band of fifteen direct
ors, thirteen of whom were to be
elected by the stock holders and the
other two to be appointed by the
President of the United States Gov
ernment. These directors were each
| to xbe the oHner tat, ,lasst &RA shares
OF stock excepting the two appointed
ON part OF the Government who were
not to be in any manner personally
interest therein. Congress granted
them every od1 numbered section of
land on each side of the road extend
ing back from the road the distance
of ten miles on each side, aud fur
ther authorized the issue of U. s.
bonds of the denomination of 81 900
each, having thirty Years to run and
bearing Gper cent. to aid in con-
structing the road Mt the rate of
SIG 900 per mile for one art OF the
road; at the rate of S32 600 per mile
for another, and at the rate of S4S,-
600 per mile for IL third portion
thereof. These bonds to be paid by
the railro Dad company, and also the
sem-nnnual interest thereon.
In 1859 the Pennsylvania Legsla-
ture granted charter to the " PEN
nsylvania Fiscal Company" with the
most unlimited and extraordinary
powers. 1t had power to became an
agency for the purchase and sale of
railroad stock, to lend credit, mon
ey, etc, to contractors for building
railroads, ETC.; make contracts for
building and equipping railroads,
etc. The stock of this most extra
ordinary company was sc, 900 shares,
of the value of 800 each. Iu March,
1864, Thos. G. Durant, who was
then Vice President of the Union
Pacific Railroad Company, purchased
the Pennsylvania charter of extra
ordinary privileges for the purpose
of using it in the construction OF the
Union Pacific Railroad, and on the
26th day of March, 1864, the Penn
sylvania Legislature changed the
name of the Pennsylvania Fiscal
Company to "The Credit Mobilier
of America" and an agency for it
was established in New York to
which was delegated the full power
of the whole of the Credit Mobilier.
Thus this expatriated corporation
took upon itself the control of the
Union Pacific Railroad. Stock OF
the Union Pacific Railroad (Which to
all inteuts was United States enter
prise) had been sold to the amount
of 81, $4,000 This the Credit Mo-
biIier proceeded to buy, and did sue
ceed in purchasing, at ten cents on
the dollar, $218,O00 worth in July,
1864. This extraordinary company
got Congress to change the Union
Pacific charter so as to allow persons
who held less than five shares OF
stock to serve as directors, and also
to reduce the par value of the shares
from 81 900 to 500 each and then
proceeded to cancel the two million
one hundred and eighty thousand
dollars worth of stock bought at 1C
cents on the dollar, and had it re.
issued to the Credit Mobilier direct
in shares of 500 each instead of 81, ;,
600 each, and thus their stock cos,