The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1880-06-25
CREDIT MOBILIER.
Gen. GarfieId's Explanation Of His Alleg'
ed Connection with 1t.

Gen. Garfeld's Explanation Of His Alleg-
ed Connection with 1t.
In view of the stale charges against
Gen. Garfield in connection with the
Credit Mobilier frauds, which are being
revived by the Democratic papers, the
following statement made by Mr.. Gar
field before the Packard committee in
1873, is of interest:
1.-THE first ever heard of the Credit
Mobilier was in 1865, 1857. | cannot
fix the date when George Francis Train
called on me and said he was organic
ing a company to be known AS the
Credit Mobiier of America, to be form.
ed on the model of the Credit Mobilier
of France; that the object of the com
pany was to purchase lands and build
houses along the line of the Pacific rail
road at points where cities and villages
were likely to spring up; that he had
no doubt money thus invested would
double or treble itself each year; that
subscriptions were limited to $1,000
each. and he wished me to subscribe.
He showed me II long list of subscribers
among them Mr.. Cakes Amcs, to whom
he referred me for information concern
ing the enterprise. answered that |
| mad not the money to spare, and If /
| had | would not subscribe without
knowing more about the proposed Or
ganization. Mr.. Train left me, saying
he would hold place open for me, and
hoped would vet conclude to subscribe.
The same day asked Mr.. Ames what
he thought of the enterprise. He eX-
pressed the opinion that the investment
would be safe and profitable.
81 heard nothing further upon the
subject for a year or more, and it was
almost forgotten, when some time, |
should say, during the long session of
1868, Mr.. Ames spoke OF it again; said
the company had organized, was doing
well, and he thought would soon pay
large dividends. He said that some of
the stock had been left, or was to be
left, in his hands to sell, and l could
take the amount which Mr.. Train had
offered me by paying the $1,000 and
accrued interest. He said that if was
not able to pay for it then he would
hold il for me until could pay, or I'M
til some of the dividends were payable.
l told him | would consider the matter,
but would not agree to take any stock
until knew from an examination of
the charter and the conditions of the
subscription the extent to which ]
should become pecuniarily liable. He
said he was not sure, but thought Il
stakeholder would be liable only for
the par value of his stock; that he had
not the stock and papers with him. but
would have them after awhile From
the case as presented probably should
have taken the stock if had been salts
fled as to the extent of the liability.
Thus the matter rested for some time,
think until the following year. During
the interval | understood that there
were
DIVIDENDS DUE
amounting to nearly three times the par
value of the stock. But in the mean
time, had heard that the company was
involved in some controversy with the
Pacific railroad, and that Mr.. Ames's
right to sell the stock was denied.
| w men next saw MT. AlneS L tolu MIN
that had concluded not to take the
stock. There the matter ended so far
as was concerned, and had no furth-
er knowledge of the company's opera
tons, until the subject began to be dis
cussed in the newspapers last fall.
Nothing was ever said to me by Mr..
Train, or Mr.. Amcs, to indicate or i'm
ply that the Credit Mobilier WAS or
could be any way connected with
the legislation of congress for the Pa
cilic railroad, or for any other purpose /;
Mr.. Ames never gave nor offered to give
me any stock or other valuable thing as
a gift | once asked and obtained from,
and afterwards repaid to him 4 loan of
5000. That amount is the only valua-
bic thing ever received from or deliv-
cred to him. never owned, have re-
ceived or agreed to receive, any stock of
the Credit Mobilier, or of the Union
Pacific Railroad, nor any dividends or
"a q