The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1880-06-23
FACTS FOR THE CANVASS |
GARFIELD's RECORD.
A BRIDE TAKER AND A PERJURER.
HIS CREDIT MOBILIER TRANSACTION.


The construction of the Union Pacific
Railroad furnished the opportunity for
gigantic fraud. Congress voted money and
land enough to build it without any consid-
cradle issue of bonds or stock by the COM
pany The directors were forbidden by law
from engaging in contracts or holding other
interests of profit. Therefore they could
not be beneiciaries by the abuse of their
trust until that obstacle was overcome.
They soon found a way to do it. A com>
panv known as the Credit Mobilier. organ
lied upon the French plan, had procured
charter from Pennsylvania, which proved
10 be failure in its hands. This charter
was purchased. A ring of officers and di-
rectors of the Union Pacific road obtained
absolute control of its affairs. They con-
tracted with themselves under another name
for the construction at exorbitant prices.
They swindled the United States, the bond
holders and the stockholders, for the benefit
of their own close corporation. In 1867,
Cakes Ames, John B. Alley, and Others,
known as the Boston party" got posses
sion of the Union Pacific and the Credit
Nobilier. At that time, Ames was men,
Der of Congress, and manufacturer of re-
puted wealth The great contracts passed
into his hands, and the dividends of the
Credit Mobilier had already attracted at
tention. Elihu 3. Washburne introduced
a resolution in the House which alarmed the
jobbers for their immense profits. Colfax,
then Speaker, and one of the creatures of
the ring, silenced this movement for time
by parliamentary tricks. Still the Credit
Mobilier monopolists- were uneasy, and pro-
posed to buy off opposition. In January,
1868. Ames wrote to ApComb, who after
ward started the investigation from motives
ofrevenge. Il have assigned as far as have
gone" Certain shares to different States
''the fifty per cent. increase l want for dis
tribution here, and soon" A few days after,
he was still more urgent. He wrote again:
s'In view of Washburne's move here, 60
in for making our bond dividend in full. I
want that fourteen thousand dollars in
crease Of the Credit Mobilier to sell here
We want more friends in this Congress-"
As he himself said, the object was to put
the stock where it ''would do the most
good" The stock was then selling at three
hundred and fifty dollars a share on par
value of one hundred dollars. 1t was issued
in blocks of thirty, twenty and ten shares
to members of Congress at par, and the so
called purchase was more than extinguished
by the accrued dividends. 1t was a nice
stock to hold. The first disclosure of this
corruption was made in the Sun during the
summer of 1872, duplicating many of the
Republican leaders. 4 Presidential elec-
ton was then pending, and they all vehe-
mently denied any connection with the
fraud. Garteld's statement was more ex-
plicit and holder than that of any of his
confederates in the crime. An investiga-
ton was ordered by the House soon after
the meeting of Congress; the examination
of witnesses began on December u, 1872.
At first Cakes Ames was disinclined to make
an exposure, but when the incriminated
members combined to swear down and free
themselves by rank perjury, his blood
warmed quickly, and he determined to let
the truth be known, though in the end there
was much concealed.
Garfield submitted to the committee
prepared statement, on January II, 1878:
81 never owned, received or agreed to re-
ceive any stock of the Credit Mobilier or of
any dividend or profits arising from either
of them"
The following.is an extract from Cakes
Ames testimony on the Credit Mobilier in
vestigation
4 got Mr.. Garfield ten shares of the Credit
Mobilier stock.
''Q.-State what grew out of it. AIR.
Garfield did not pay any money. sold the
bonds belonging to his $1,000 of stock at 81,
making $776. This was the so per cent. divi-
dend--Ed.] In June | received dividend in
cash on his stock of 5000, which left balance
due him of $500, which paid him
The following memorandum was read
from Ames' diary
j. A G. Or.
1868. To ten shares of Credit MobiIier
of An. ....SI, 900
st.......... $3.50. ..... ....... A.
June 10. To cash................... 80. 800
1886
CIR
1865 By dividend bonds Union Pacific
Railroad, 81, 600 at 50 per cent.
less three per ceut..................... $776 I
June II. By dividend collected
Tor your accOunt................... 600