The Indianapolis journal., 1896-02-18

The Credit Mobilier Scandal Recalled
by Morgan and Frye.

WASHINGTON. Feb. H. - The Credit
Mobilier scandal figured in the hearing OF the
Pacific railroad reorganization question be-
fore the Senate committee Pacific rail-
roads to-day and brought out incidental
reference to the possibility of such scan
dal in connection with the Nicaragua canal.
Mr.. f. b. Thurbef. chairman of the Ma
tional Board of Trade committee on railroad
transportation, was before the committee,
and Senator Morgan questioning him
about the relative probabilities Of corruption
in the scheme under govsrnment control
and under the management OF private indi-
viduals. Reference had been made to the
Credit Mobilier by Senator Morgan, whose
evident purpose was TO draw from Mr.. Thur
ber expression of opinion that the Credit
Mobilier scandal could never have occurred
IL the entire dictatorship OF the roads had
been composed of men appointed by the
government. when Senator Frye interrupted
TO say that the Pacific roads would never
have been built IL there had been no Credit
Mobilier. mo more" he added, than can
the Nicaragua canal be built. without the CO.
operation of some company under the plan
proposed"
'Much as am interested in the Nicaragua
canal replied Mr.. Morgan. II should aban-
don its advocacy IL 1 believed il to be true
that 1t would be built under circumstances
>
as grew out OF the building of the Pacific
roads. He added that in the bill which
he had reported at the last session of Con-
gress 1t had been provided that the United
states, Nicaragua and Costa Rica should
have a large majority OF the directors.
This, he thought. would prevent any Credit
Mobilier scandal. In that connection, Mr..
Morgan said he had proposed to find way
or preventing the recurrence of any such
disgraceful state Of affairs in connection
with the Pacific roads, but when Senator
Gear, chairman of the committee, asked
him how he proposed to accomplish that
he would enlighten the committee in an
executive session.
Mr.. +. b. Thurber read a prepared state
ment In opposition to government ownership
OF the Pacific roads. The report on which it
was based had. he said been submitted to
the Board of Trade. Mr.. Huntington was
not questioned. He declared he had had no
interest in any of the contracts for building
the Central Pacific, but he was interested
somewhat in the contract and finance COM
2any, as were his three railroad associates
CHARLES Crocker, Mark Hopkins s-.d Leland
stanford. lie could not say what the Cen
tral Pacific had cost. but after a great deal
OF questioning Mr.. Huntington admitted that
the contract and finance company had re-
ceived all the stock and bonds of the COM
pany Tor building the road: These at par
value were worth sll6OO0,OO0 on their face,
and he thought the cost OF the road was
about $SOOCO.CCO or $90.000.0O0. The assets
pany's debts. Mr.. Huntington said he
thought the bonds of the contract company
had been destroyed waste paper.
Al the conclusion Of the hearing Senator
Brice expressed dissa tisfaction at the wide
range the Investigation was taking, but
Senator Morgan said that his purpose was
70 ascertain whether Congress should legis-
Ete SO as to provide for the sale of the
roads or for proceeding through the courts
by means OF a foreclosure The hearing will
be continued tomorrow.