Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1880-06-26


its ignored in granting powers to
the directors. Now, when excep-
tional means and exceptional
powers are granted to a corpora
ton, the stock generally falls into
the hands of a few great capitalists,
who are able to control matters to
their own interest and profit. The
Credit Mobilier company was their
opportunity; it was bought up by
the same parties as controlled the
railroad, and, in this way, the man
ayers could assign the contracts for
construction to themselves at what
price they chose. Thus, say John
Smith, Tom johnson and John
Thompson, as managers of the rail-
road company, were able TO make
contract with John Smith, Tom
Johnson and John Thompson, as
members of the Credit Mobilier
company, for grading so many miles
of the railroad, and what John
Smith & Co. might pay John Smith
d Co. for the work, was not apt to
be matter of serious difference be-
tween John Smith, railroad man.
ager, and John Smith, Credit No
bilier stakeholder; and some con-
tracts are on record in which the
price paid to the contractors is more
than double what the contractors
paid for the work. 1t is not sur
prising that the profits of the Credit
Mobilier were enormous, producing
to the stockholders as much as
sixty to eighty per cent. on their
stock, and if there had been any of
it in the market, it would have
commanded fabulous prices; but
such stock does not come into the
market-it rests peaceabIy in the
hand of men who are not at all
anxious to sell.
But this very profitable scheme
was one which it was both the right
and duty of the government to look
into. OF course, when profits were
so magnificent as that, they were
made at the expense of the stock
holders of the road, and the govern
ment of sthe United States was
very largely interested in that
stock, as it was mortgage upon it
which secured therepayment of the
immense sums which the govern
ment had advanced. Moreover, it
was the duty of the government to
see that the work was done as rap
idly and as efficiently as possible,
which was not likely to be done by
contractors employed by them
selves. For this reason, and be-
cause the managers were constantly
desiring new powers from the gov
eminent, it was a most important
consideration with them that they
should have friends in congress.
Mr.. Cakes Ames, himself a men,
Der of congress from Massachusetts,,
was the special agent of the COM
pany for reaching" members of
congress, and bribing on a stipend
Gus scale was instituted. Money
was not needed. Where you can
sell man stock at par, which pro-
duces sixty or eighty per cent, and
which can be purchased nowhere
else, money need not pass in the
transaction and, indeed, in deal
ing with members of congress,
money was not even paid by them
for the stOck-it remained on hand
till the dividends had accumulated
beyond the price of the stock, and
then a check for the balance was
handed to the honorable represent
alive. Owners of such stock were
not likely to be rigid enquirers into
its management or to favor legisla-
ton calculated to diminish its
profits.
General Garfield was one of these
members so reached, and if anyone
desires to study a miserable phase
in human nature, let him peruse
the evidence of Garfield himself.
See how at one time he denies he
ever had any such stock, at another
says that the money paid him for
his dividends was a loan from
Ames, and if he had any stock he
never knew it, etc. Then read the
testimony of Ames, who evidently
wants to shield his man, but can't
afford to perure himself. (The truth
is that Ames had a good, solid
block of lying to do on his own
account, and had to economist his
peuury.) You will not find it
choice reading, at least it is not
much to our taste, but now, that
the old vicious element. has again
got the upper hand in the republic
can party, it is necessary that the
people should be reminded what
that element really is.