The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-11-01

% great that capital could he enlisted Oh
NO other terms II was common for a rail-
NAY company to turn over oil lie assets
return completed and equipped railway.
Each OF the Pacific railways was built
practically on this plan. the construction
companies aud the railway companies hav-
Ing identical stockholders.
The name Of the contradiction company Of
the Union Pacific was the Credit Mobllier.
aud the moving spirits In II were the broth
ers Cakes and oliver Atncs, 0akcs Ames
Yves in congress. and when he became In
terested In the Union Pacific and Its alter
ego tho Credit Mohllier. he tried to get
influential men, both In and out Of con-
gress, to connect themselves with the
enterprise He offered to sell to his friends
Credit Mobilier stock at par, but at that
time the outcome OF the enterprise was
dubious, and the offers were not accepted
with avidlty. Later. however. when 1t
was proved that the road would 60 through.
| and that the holders OF Credit Mobllier
stock would make large profits. those who
had had promises OF stock--and probably
Others also--caIne forward and claimed the
privilege OF buying at par. although II
was then worth much more Ames sold
stock at this rate. according to nis prom
ises. part OF 1t 10 congressman. This was
In 1867. In the campign OF 1872. Just te-
Tore election, charges were made that the
Credit Mobilier. through Ames. lad hritcd
various prominent congressman. IL was too
late to explain and disprove the accusa-
tons, SO, that being the only political
alternative. they were denied. hut the
men accused demanded vindi >a;ion, and
| during the winter OF 1878 tho affairs
OF The Union Pacific were subjected TO a
| searching examination by committees OF
the house OF representatives..
| showed. aud the committees ported, that
no legislation was pass "a on Union ltt.fc
or Credit Mobilier atfairs; that none was
proposed, that none Was wlnrci, that the
| men who bought stock weca not influenced
| by Its possession. that Amcs specii ed
nothing which was to be done or retra,ned
| from; that the buyers o. the stock w,ic
guiltess. II then went on to state that
AIMEE In selling the stock, had commit
| ted the crime of bribery, aud recommended
| his expulsion from the house, This report
was referred to the Judiciary committee,
which. after considering It. said that no
| house had any jurisdiction over its mem
bers for acts committed during the exist
ence OF a previous house. as in the case
| In hand and so that Ames could not legally
| be expelled, The only influence Of this
report was TO soften the sentence FROM OK
pulsion to censure. While the report OF
| he Judiciary committee was based on
| technicality. tho important thing was the
| Injustice of the investigating committees
action. During the war corruption found
| its way into every phase of life, public
| and private BY 1872 tho reaction had
come, and the people demanded a scape-
| goat for their sins. Congressman dared
| not vote against the recommendations OF
| The committees lest they seem to implicate
themselves thereby. The name OF the
Credit Mohilier became synonymous with
corruption. and Oakcs Amos, the man
whose efforts did most toward carrying the
| greatest enterprise OF his day through 10
| successful issue was sent out OF CON
| grees In disgrace This Credit Mobilier
| scandal injured the reputation of the
Union Pacific immeas,irably Its effect
| Ia still felt and II viii long continue to he
| felt
| Under the mastery management OF jay
| Gould the eastern part OF the Pacific rail-
way system was improved in physical con
dlton given n better system OF urganiza-
| lion nnd thus soon raised onto a dividend
| paving basis. Durlng tho later 70s and
early SOS largo profits were distributed TO
the stockholders. Very little provision.
however. was made for meeting the debts
to the government. whose maturity was
nearly a score of years in the future This
| ipflamed the jealousy OF congress-, and In
1875 there was paseed the Thurman act
| ,t,.,s. 49,, l......l - ,a,,i,,. 80,