The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1880-07-01
What the Credit Mobilier Was.

No biographical sketch of the Repub'
licsn candidate for President is complete
without an allusion to the Credit Mo-
bilier and many people have forgotten
what that was. It the most stupendous
swindle of the century. Some fifteen or
sixteen years ago the United States Gov.
ernment, in its great desire to encourage
the building of the Union Pacific and
Central Pacific Railroads, offered most
liberal aid. 1t gave charter with one
hundred million capital, backed by
loan of sixty millions of dollars, aud a
land grant of twenty millions of acres.
But even this was not enough to induce
cautions capital to undertake the ven-
ture. So vet more liberal terms were
offered. A bill was reported by com.
mittee, of which Oakes Ames was men,
ber and was passed by Congress, en-
powering the companies to issue their
own bonds for an amount equal to that
offered by the government, the said
bonds to be first mortgage, besides
which, the roads were allowed to issue
construction bonds many miles in ad-
vance of construction. Some New York
and Massachusetts capitalists, headed by
Ames took hold of the charter. The
government was offering aid to build the
road, ranging in amounts from SGD, 600
to SOC, 500 per mile, while the engineer
of the company had estimated that its
outside cost would range from thirty to
forty-seven thousand dollars per mile.
How to defraud the Treasury of the vast
amount which was the difference between
these two sums, was the problem which
puzzled Ames and his fellows. He solv.
ed it, and this was his solution: An
other corporation should be formed, or
rather a corporation bearing an other
name, whose stock should be owned in
amounts equal to their shares of railroad
stockholders. This company should
take the contract for building the road,
should pay the cost thereof out of the
government grant, and divide among its
stockholders the immense profit remain
lug. The sham corporation was organ
lied under the name Of "The Pennsylva-
MIA Fiscal Agency" which was shortly
changed to that Of "The Credit Mobil-
ier." The work was done at cost, to
government, of fnine.fve millions, while
Credit Mobilier paying out only fifty-one
millions, retained in its hands as profit
forty-four millions of dollars in stocks
and bonds. In single year, from the
profits single contract land there were
severaN, cash dividents were paid
amounting to upwards of twenty million
of dollars, or nearly five hundred per
cent. on the par of stock. Now began
threats of investigation by Congress into
the conduct of The work. A. Mr.. Nc:
Comb entered suit for the possession of
some stock he claimed, and by the pub.
lication of certain letters from Ames
called public attention to the matter.
Ames was empowered to bribe what in
Auential members of Congress he could,
and soon reported that the had "placed
three hundred and forty-three shares of
stock where they would do the most
good" One of the prominent members
so bribed was James A. Garfield, of Ohio.
The bribery leaked out, and the famous
Poland committee was appointed to in
vestigate. They reported that Ames
undoubtedly intended to bribe. Sena-
tors and members prejured themselves
vainly, some claiming to have returned
the stock as soon as they understood what
it meant. But opposed to their assertion
remains the daming evidence of Ames'
memorandum book, showing the debit
and credit of each interested member.