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3d Session.

No. 77.


FEBRUARY 18, 1873.-Ordered to be printed with the evidence, and the further consid

eration postponed until Tuesday next, after the reading of the Journal. Caree Mr. POLAND, from the select committee to investigate the alleged Credit

Mobilier bribery, made the following

REPORT: The special committee appointed under the following resolutions of the House,

to wit : Thereas accusations have been made in the public press, founded on alleged letters of Oakes Ames, a Representative from Massachusetts, and upon the alleged affidavits of Henry S. McComb, a citizen of filmington, in the State of Delaware, to the effect that members of this House were bribed by Oakes Ames to perform certain legislative acts for the benefit of the Union Pacific Railroad Company, by presents of stock in the Credit Mobilier of America, or by presents of a raluable character derired therefrom : Therefore, Resolred, That a special committee of fire members be appointed by the Speaker pro tempore, erhose duty it shall be to investigate whether any member of this House was bribed by Oakes

Ames, or any other person or corporation, in any matter touching his legislative duty. Resolved further, That the committee have the right to employ a stenographer, and that they

be empowered to send for persons and papers ; beg leave to make the following report :

In order to a clear understanding of the facts hereinafter stated as to contracts and dealings in reference to stock of the Credit Mobilier of America, between Mr. Oakes Ames and others, and members of Congress, it is necessary to make a preliminary statement of the connection of that company with the Union Pacific Railroad Company, and their relations to each other.

The Company called the 6 Credit Mobilier of America” was incorporated by the legislature of Pennsylvania, and in 1864 control of its charter and franchises had been obtained by certain persons interested in the Union Pacific Railroad Company, for the purpose of using it as a construction company to build the Union Pacific road. In September, 1861, a contract was entered into between the Union Pacific Company and H. M. Hoxie, for the building by said Hoxie of one hundred miles of said road from Omaha west.

This contract was at once assigned by Hoxie to the Credit Mobilier Company, as it was expected to be when made. Under this contract and extensions of it some two or three hundred miles of road were built by the Credit Mobilier Company. but no considerable profits appear to

became interested in the Union Pacific Company and also in the Crerlit Mobilier Company as the agents for the construction of the road. The Messrs. Ames were men of very large capital, and of known character and integrity in business. By their example and credit, and the per. sopal efforts of Mr. Oakes Ames, many men of capital were inducell to embark in the enterprise, and to take stock in the Union Pacific Company and also in the Credit Mobilier Company. Among them were the firm of S. Hooper & Co. of Boston, the leading member of wbich, Mr. Samuel Hooper, was then and is now a member of the House ; Mr. Jobn B. Alley, then a member of the House from Massachusetts, and Mr. Grimes, then a Senator from the State of Iowa. Notwithstanding the vigorous efforts of Mr. Ames and others interested with him, greut difficulty was experienced in securing the required capital.

In the spring of 1867 the Credit Mobilier Company voted to adıl 50 per cent. to their capital stock, which was then two and a balf millions of dollars; and to cause it to be readily taken each subscriber to it was entitled to receive as a bonus an equal amount of first-mortgage bonds of the Union Pacific Company. The old stockholders were entitled to take this increase, but even the favorable terms offered did not in luce all the old stockholders to take it, and the stock of the Credit Mobilier Company was vever considered worth its par valne until after the execu. tion of the Oakes Ames contract hereinafter mentioned.

On the 16th day of August, 1867, a contract was executed between the Union Pacific Railroad Company and Oakes Ames, by which Mr. Ames contracted to build six hundred and sixty-seveu miles of thie Union Pacific road at prices ranging from $12,000 to $96,000 per mile, amounting in the aggregate to $17,000,000. Before the contract was entered into it was understood that Mr. Ames was to transfer it to seven trustees, who were to execute it, and the profits of the contrat were to be divided among the stockholders in the Credit Mobilier Com. pany, who should comply with certain conditions set out in the instrumeut transferring the contract to the trustees. The Ames contract and the transfer to trustees are incorporated in the evidence submitted, and therefore furtber recital of their terms is not deerned necessary.

Substantially, all the stockholders of the Credit Mobilier complied with the conditions named in the transter, and thus became entitled to share in any protits said trustees might make in executing the contract.

All the large stockholders in the Union Pacific were also stockholders in the Credit Mobilier, and the Ames contract and its transfer to true. tees were ratified by the Union Pacific, and received the assent of the great body of stock bolders, but not of all.

After the Ames contract had been executed, it was expected by those interested that by reason of the enormous prices agreed to be paid for the work very large profits would be derired from building the road. and very soon the stock of the Credit Mobilier was understood by those holding it to be worth much more than its par value. The stock was not in the market and had no fixed mau ket value, but the holders of it, in December, 1807, considered it worth at least double the par value, anal in January and February, 1868, three or four times ile par value, but it does not appear that these facis were generally or publicly huowu, or that the holders of the stock iesired they should be.

The fore going starte ment the committee think gires enough of the historic details, and condition and value of the stock, to make the fol. lowing detailed facts intelligible:

Mr. Oakes Ames was then a member of the Ilouse of Representatires, and canie to Washington at the commencement of the session, about

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