The Columbian. [volume] (Bloomsburg, Pa.) 1866-1910, 1880-06-25
That Credit Mobilier Story.
HOW SOME OF OUR PUBLIC MEN BECAME
sCANDALIZED.


HOW SOME OF OUR PUBLIC MEN BECAME
scANDALIzED.
Mr.. Garfield was, like Blaine and Colfax,
badly smrche by the Credit Mobilier in
vestigation. The Credit Mobiler was a
joint stock company founded in Paris, No
vember IS, 1852. under the lead of the
broth ers Emile and Isaac Pereire and on
the principle of limited liability for trans
action of general banking business, to facili-
tate the construction of public works and to
develop,national industry. On the model of
this company the title of "Credit Mobiler of
America was adopted by joint stock COM
pany organized in May, 1868, with a capital
of S250O,0OO. In January, 1869, the char
ter having been purchased by a company or.
ganized for tho construction of the Union
Pacific railroad, the stock was increased to
50 100000 and afterwards rose to great
value, paying enormous dividends. In 1872,
in the course of legal proceedings in Penn
sylvania respecting the ownership of stock,
il appeared that several members of Con-
gress, including James A. Garfield as well
as Vice President Colfax, were unavowed
stockholders This caused a great political
scandal as it had often been held to be
highly improper for member of Congress
to be pecuniarily interested in corporation
the profits of which might be largely and d.
rectly affected by his vote on bills concern
ing it. The fact that presidential canvass
was in progress, in which several of the per
sons implicated took an active part, added
interest and excitement to the subject: The
result was congressional investigation in
the session OF 1928. In 1878 both the sem
ate and the house com mittees made reports.
When the house committee said in their re-
port that none of the congressman inplicat-
ed supposed "that he was guilty of any i'm
propriety or even indelicacy in becoming a
purchaser Of the stock" the public read the
exculpation with incredulity and amaze
ment. The public was astonished and con-
founded when the committee went on to say
that "nad it appeared that these geutlemen
were aware of the enormous dividends upon
their sto, *, and how they were earned, we
could not acquit them" The evidence had
shown that five or six members of Congress,
including Garfield, had owned Credit Mo.
biler stock. that they had purchased it of
Oakes Ames, had received enormous divi-
dends or it and had resorted to subteriuge
to conceal their transactions. As Ames
WAS judged guilty of bribery and thought to
deserve expu sion for selling the stock in
this manner to these congressman, the pub
lie could not understand how one of the par
ties to these corrupt transactions could be
guilty, like Ames, and the other parties, like
Garfield, innocent.
When Oakes had been censured by the
house, February 1873, Mr.. Fernando Wood
offered the following resolution:
ReSolced That the house absolutely con.
demns the conduct of Samuel Hooper and
Henry L. Dawes, of Massachusetts,; William
d. Kelly, of Pennsylvania; Glenni W. SEQ
field Of Pennsylvania; James A. Garfield
| and John A. Bingham, of Ohio, members
of the House of Representatives, inasmuct
as they become interested in the Credit Mo-
bilier of America a contracting company fol
| the construction of the Union Pacific rail
road, and continued to be so interested at a
time when said corporation was dependen
on the legislation of Congress for its mainte
nance and support.
Mr.. Samuel j. Randall made the point o
order tnat resolution of censure should b'
confined to one individual
The speaker sustained the point of orde
and stated the reasons for the ruling.
Subsequently the house, mainly by par
ty vote, refused to take any action agains
Mr.. Garfield. The New York World, on
February 2S, 1868, commenting on this sc-
ton editorially, said: "The tenderness O
the house towards its offending members i
one ofthe most alarming signs cfthe times,
confirms the prevalent impression that grea
railway corporations and other moneyed cor
porations are omuipotent in controlling leg
islative bodies, that members of congress ,lik
members of the state legislatures, are til
willing tools of great corporations whicI
have money enough to buy them. The mo:
prostrating blow ever struck at popular con
fidence in legislative purity was dealt yes
terday by the action of the house in screol
ing its members from deserving punishment
The great question of the immediate fuIur
is the emancipation of Congress and II
State legislatures from the corrupting inf,
ence of great corporations"
Ever since that time Gen. Garfield hi
rested under this imputation, and no fu
defense to the charge has ever been made.