Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1880-07-08


While 1t j. nov generally conceded that
what Is called political mud throwing" has
erased TO really affect the fortunes either Of
parties or individuals. IT Is equally true that
IN no period OF the political liie Of this ooun-
Try has The appetite for scandal been keencr
OF it. exercise less restrained. Hardly had
the Chicago convention nominated General
james A. Garfield for President Of the [ nIicd
States before the opposition press COIN
menccd TO charge him with Official corrup-
ton aud bclabor him with Sstupcraiive
epithc,s. The most serious Of these charges
has reference To General Garaeld's alleged
connection with the Crrdii Msbllicr case.
And though Congressional committee
some wears ago. after most rgid lusesiIga-
ton. failed to find that General Garfield ~as
guilty of any ImpropneiN or even indclicacy
IN hi. transactions with Mr. Oakcs Amcs,
the then manipulaior Of that corporation
though !, was clearly shown that out Of an
unlmportani business transaction. the loan
of a trlfiing sum Of money a. 4 matter of
personal accommodation. and out of an offer
never accepted, arose an enormous fahric Of
accusation and suspicion; though General
Garfelds personal honor was thoroughly
indicated by that investigation. Vet ia the
face Of these facts the scandal is revived
simply TO enable his opponents 10 bedaub
his fair name with political mud. now iha,
he is a candidate for the chief office in the
gif' of the people.
THE CEKDIr MoBIIIER COMPANY.
In considering 80 much OF the history Of
the Credit Mobilier Company a. has any re
la,ion TO General Garfield 10 render the
matter intelligible it will be Necessary to
briefly state the offences which tha, corpora
ton committed, as found by the committees
Of the House Of Representatives. The
Credit Mobilier Company was a corporation
organized under the laws of the State o:
Penn.y lvania, aud authorized by its charter
to purchase and sell VARIOUS kinds Of securi-
ties and 10 make adv anoes Of money and
credit to railroad and other improvement
companies The class Of business described
in the charter Was such as. If honestly con-
Quoted. the mos, upright citizen may prop
erly engage in. On the 10th Of August,
1861. Oahes Ames made contract with the
Union Pacific Railroad Company 10 build
CO.. miles Of road from the Tooth meridian
westward, for an amount aggregating Si..-
s25 600 in cash or in the securitie. of the
ou lAAt VI N'tNbbfIr lNpf. u
triple contract was made between Mr.. Ames
of the first part. and the Credit Mobilier
Company Of the third part, BY the terms of
which the Credit Mobilier Company was to
advance money TO build the road, and to re-
oeiye thereon per cent. interest and 2 i2
per cent commission; the seven trustees
were 10 execute the Ames contract and the
profits were to be divided among them and
such other stockholders Of the Credi, Mo
bilier Company Is should deliver 10 them an
irrevoeable proxy To vote the stock of the
Union Pacific held by them. The principal
stockholders Of the Credit Mobilier Com
pany were also holders Of majority Of the
stock Of the Union Pacific railroad. On the
face Of this agreement the part to be per
formed by the Credit Mobilier as a corpora
ton vas simple and unobjeetionable, being
simply 10 advance money to the contractors
10 receive therefore about 10 per cent as
interest and commissions. But the facts
were tha, ring inside the Credi, Mobilier
obtained the control both Of that corpora
ton and of the profits of the Ames contract.
The day after the triple contract was signed,
BY private agreement made in writing the
seven trustees pledged themselves TO each
other so as TO vote all the Pacific railroad
stock which they held in their own right or
By proxy as TO keep in power all the mem
bers Of the then existing Board Of Directors
of the railroad company not appointed BY
the President OF the United States. By this
agreement a majority of the directors were
in the power Of the seven trustees.
The result was that the Ames contract
and the triple agreement amounted in fact
to a contract made BY seven leading stock
holders of the Pacific railroad with them
selves so that the men who fixed the price at
which the road would be built were the same
men who would receive the profits Of the
contract. Thus the guardians Of a great
public trust were enabled TO contract with
themselves at an exorbitant price, which
virtually brought into their possession as
private individuals almost all the property
Of the railroad company. The 667 miles
covered By the contract included l3S miles
already completed, the profits on which in
ured to the benefit of the contractors. Be-
fore the connection with the. Ames contract
the Credit Moblfief Company had already
been engaged in several non-remunerative
enterprises, and its stock vas below par
The triple contract Of October, 1867. gave il
at once considerable additional value. II
should be borne in mind, however. that the
relations Of the Credit Mobilier Company to
the seven trustees to the Oakes Ames con-
tract and to the Pacific Railroad Company
we're known to but few persons, and they
kept them secret until long afterward
Nothing was known of it to the general
public until the facts were brought out in
the investigation.
In view Of the facts Is above stated, it is
evident that purchaser Of such shares Of
Credit Mobilier stock as we're brought under
the operation Of the triple contract would be
sharer in the profits derived by that Ar
rangement from the assets Of the Paci6c
railroad, large part Of which consisted Of
boads md lands granted to IL roed b Tie