The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1880-07-03
THE CREDIT MoBILIER ROBBERY

THE CREDIT MOBILIER ROBBERY
The amount of money the Democrats make
out that Gen. Garfield rot through the Credit
Mobilier frauds Is 1920 Now, readers do
YOU think that u man of his position would
sacrifice his honor for S329? II is the most pre-
posterous charge ever made against public
man, and is as foolish as preposterous.-Ren-
daU county Record
This is equal to the girl that was expelled
/ from church for having an illegitimatc baby
and complained Of the severity of the sen
: tence because the baby was very small one
Is it possible that the editor of the Record is
, so ignorant as not to know what the Credit
! Mobllier really was and why ii was such scan
dalous thing for any member of congress TO
hold even single share of stock in it? Con.
gress had voted to the Union Pacific Railroad
Company in round figures $35,00O00O of its 6
per cent bonds, nearly 200O0000 acres of gov
eminent land, and had allowed the company
to borrow on second mortgage on the road an
amount equal to the government bonds issued
to the road, to say nothing of selling stock of
the company to the amount of $35 000, 600 In
short, the means placed at the disposal Of the
company for building the Union Pacific Rail.
road were
| Government bonds ...............S $50, 900 600
| Loan on Company's bonds. ....... $4,000 900
100000 600 acres govt. land at $50. 50,000000
Stock actually issued ............. 20,0O0000
Total E. ...................S14 $40, 900 900
The length of the road was GG7 miles
and the actual cost for grading, ironing and
equipping it less than $4,000 mile, but say
100000, and the total cost was but s4O,OO00OO
The original corporators of the road were
half dozen of men consisting of T. C. Durant,
c. S. Bushnell, John b. Alley and few others
whose names it is unnecessary to lock up.
! These gentlemen conceived the idea of taking
the contract themselves to build the road and
to gobbe all the above means They organ.
lied themselves into construction company"
under the name of the Pennsylvania Fiscal
| Agency" and got charter from the legisla
ture of that state. Soon, however, it was seen
how enormous the steal was they contemplated
and it became necessary to let other thieves in
company was reorganized under the name Of
the Credit Mobilier. The contract TO bald
the road was taken by this organization, con
sistlng really of the President, directors and
stockholders Of the railroad company, at such
enormous figures as to absorb all the above
means. In order, however, to be able to get
the So 100000 the company was authorized
to borrow on its own bonds, twas necessary to
get from congress a release of the first mort
gage the government held on the road as Sc
loaned to the company. 1t was to get the bill
through congress to release that mortgage that
from 100 to 1000 shares of Credit Mobilier
stock were placed IN the hands of Cakes Ames
to be placed where 1t would do the most good"
to secure the votes of congressman in favor of
that release AT that time everybody was wild
10 get credit mobiier stock. Every intelligent
man IN the country knew all about it. 1t had
already declared dividends amounting to $40
on each share that cost 500, and If congress
released the government first mortgage on the
road every share was worth at least $1,000 To
say that Garfield, ColtaX, Kelly, &C. &C., who
took of this stock from Cakes Ames didn't
know anything of its character or why Cakes
Ames was distributing ii to them is equivalent
to saying they were ignorant asses without any
possible knowledge of the commoncst news
paper talk of the day,
Congress, to the Indignation and disgust Of
the country, did cote to rc!ease that first mort
maze! The bill was passed by a Uiud yOce vote
so that no one knows who all voted for 1t, but
though Cakes Ames's little memorandum book
accounted for less than 100 shares OF credit
mobiler stock distributed among SIX or eight
congressman, no doubt from so to 100 other
congressman who were lucky enough not to
get "blowed" shared in the steal. After the bill
had passed congress the Credit Mobilier pro
crossed swimmIngly. As rapidly as the bonds
of the railroad company could be sold and the
cash realized on them, 1t declared dividends,
dividing as sheer plumber IN single year
from Dec 1867 to Dec, 1868 as follows:
December 1867, 100 per cent $44SS,OOO
January, 1868 90 per cent. ........ 74S,OOO
June, 1868, 100 per cent. 3,5O,OOO
| July 3, 1868, 70 per cent ......... 2'9l 900
December. 1868, 200 per cent .... 1885, 900
Total ................... $50, All 900
The cutlery against the enormous steal now
became so loud and emphatic on the part of
the newspapers that congress was obliged to
institute the Poland investigation, and that
finally put a head on the Credit Mobiler,
though it did not put a stop to the steal in
other forms, for the whole $1,000 900, as stat
ed above. we're stolen nevertheless in the build
ing of the road and the company never since
then had any means outside of its regular earn,
ings and the sale of such lands as the credit