Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1880-10-16
CREDIT MOBELIER.

pulsion of Cakes Ames. We will here give a
condensed history of it.
IT'S OBJECT
The company was formed ostensibly to take
contracts from the Union Pacific Railroad and
to all intents and purposes was a legitimate
business venture. In reality it was scheme
to rob the Government of the United States
as follows The company was composed of
stockholders Of the Central Pacific Railroad
Company to which the Government had ex
tended aid and taken security in the shape of
a mortgage upon the read. The U. P. Z. R.
gave its contracts to the Credit Mobelier
Company at enormous figures. 1t was IN re-
atty company within company and run on
the same principle that mining company
which ewns mill and lets the contract to
itself for crushing bad rock at terms which
fill their pockets to the detriment of the out
siders. In this instance the Government was
being swindled because-by means of the con-
tract being let at fraudulent rates-the value
of the Government security was being depre-
ciated At the time, however, that Ames was
disposing of the stock the aims and objects of
the company were not known to be dishonest.
His idea of getting Congress to take the stock
was not to secure any legislation favorable to
the company, that had already been Sc
cured, but TO prevent investigation.
HOW he DISTRIBUTED THE STOCK.
Ames had $50 shares of the stock to float
IL, -,,l
in the habit of assisting his poorer fellow
congressman financially. He asked Garfield
to take ten shares, assuring him that it was a
good investment. Garfield declined, on the
ground that he had bat little money and did
not care to risk it in speculation, Ames
agreed to carry it, Still Garfield declined
and no transfer of the stock was made. Other
congressman agreed to take the stock, and
Ames carried it for them This in De-
cember, 1867, and on Garfeld's return from
Europe in June, 1868, he was informed by
Ames that the dividends on the stock amount
ed to 81 ,329, that 81 900 paid for the stock,
and that there was surplus of 1929 in Gar
fields favor. Now this was a lie on the part
of Ames, for in reality the dividends en- each
ten shares of stock had amounted to S., 900
onevery thousand and if anything was coming
to Garfield it was 81 900 instead of 1929
Garfield declined the 1929 dividend on the
ground that he had not taken the stock and
since he had been asked to take it he had
learned of the fraudulent object of the com
pany. He said that if Ames could lend him
$500 he would feel under obligations, as his
trip to Europe had been more expensive than
he had anticipated and he was short of money.
Ames loaned him $500 and Garfield returned
it in few months afterward. Now does any
sane man suppose that Garfield would have
accepted 1929 as balance due on Credit No
belier stock when in reality $1,000 was due
him if anything.
THE INVESTIGATION.
In 1872 the charge was made that Members
of Congress had been bribed with Credit Mo
bilier stock, and an investigation was demand
ed Ames went before this committee and at.
tempted to show that he had bribed nobody;
but when he found himself in the tolls he be-
gan to dcag other men down with him. His
memory seemed TO freshen as the investiga-
ton progressed, and he finally charged Gar
field with having accepted the stock. although
in the early part of the investigation he had
sworn that he had no recollection of ever hay
ing given him any stock. Hesalso swore that
he had given him a check for 1929, drawn on
the Sergeant alarms. The Sergeant at arms
swore positively that Garfield had never drawn
such a check but Ames himself had drawn it,
Ames then produced memorandum to show
that he had paid the check on the 10Th of
June. The check was produced and was
found dated the 22d. When Ames was con-
fronted with the plain proofs of his perjury |
he wept like child and his sobs resounded |
through the room. 1t was clear that he had |
doctored his diary to help him out in his per-
jury.
HIS MOTIVE.
People will naturally ask what his motive |
was for perjury in the case. The suit of Nc
Comb vs.. Ames shows exactly what :he mo-
tive was. McCOmb was at the Credit Mobil-
Ter business, and had gwen 1870 shares of the
stock to Ames, AS Trustee. Ames had distrib-
nted 40 shares in various directions, and
showed receipts from every man that he had
issued stock fer, but he could show no receipt
from Garfield McCOmh was suaino him for |