actual profit received by them is far less than thisthat it did not, in fact, aggregate more than about fifteen per cent. ; but how any such conclusion can be reached from the figures presented by the committee is far more than the ordinary intellect can understand. The claim is made, and with some force, that at times the stock which they took was worth far less than thirty, and that sales were made even as low as nine cents on the dollar; but even considering that the entire issue had been sold at that rate the cash profit would have reached at least $16,000,000, or about thirty-two per cent. on the cost. But the evidence of all parties was that the average net price of the stock was thirty cents on the dollar.

This is the reasoning of the committee on investigation in Congress, but it seems to us as a most wilful perversion of figures, an unauthorized use of those figures to prove a proposition which had been in their minds at the start, and which they were determined to maintain and prove, it mattered not by what means. This estimate made by the committee leaves out from the cost of the road a large number of items, which were expenditures of the Credit Mobilier, but which might not enter into an estimate of the "actual cost" of building the road. Every man who has done any business knows full well that there are always expenses that could not be calculated as items of this actual cost." Such was, indeed, the testimony of the witnesses before this committee, but that testimony was utterly ignored by the committee in their report. It would tell against

their argument, and the bias which it is manifest they entertained from the beginning of the investigation. Again, the committee refused to take notice of the testimony of losses, amounting to millions of dollars, which the Credit Mobilier sustained, notably the loss of their entire capital of $3,750,000, which had been paid in in cash, and was entirely used up in the construction of the road, and which should properly be deducted from the profits shown. The committee also have recorded as profits the transfer of money from one account to another; as an instance, the payment by the trustees of $1,104,000 to the Credit Mobilier. The committee cite it as a payment by the Union Pacific Railroad Company. Again, the committee have figured as profits actual losses, as may be seen in the bonus which the Credit Mobilier was compelled to give in order to get the additional capital subscribed for. As an inducement to the sale of these additional shares, the Credit Mobilier gave $1,000 in first mortgage bonds for each $1,000 subscription to the stock. In this way $1,125,000 of these bonds were disposed of, it being a loss to the company of that amount, but which the committee have set forth as a profit. Nor have the committee noticed the great losses which the Credit Mobilier and the trustees sustained in their endeavors to find a market for the securities they had taken. It was clearly in evidence that more than $5,000,000 of Union Pacific stock was sold by the Credit Mobilier at $4.50 per share, because it could be disposed of in no other way.

But now the actual profit earned by the Credit Mobilier and the trustees was in evidence before the committee, but in their report they made no allusion to it; let us do that, and then we may understand. There was never any question raised but that all the profits made under these contracts were divided. In fact, the committee states that such was the case. Below will be found the date of each dividend, the amount and the cash value of each, reckoning the bonds at 85 and the stock at 30:

Deducting the loss of the Credit Mobilier capital,

(which was an entire loss),

Leaves as the net profits, cash value,

3,750,000 00

8,141,903 70

To this there should, perhaps, be added the present value of the Credit Mobilier stock. But that value is uncertain, and if the utmost that is claimed by some should be realized, there might be added about $2,000,000 to this as the total profits. But these claims are very uncertain.

This being all the profit realized from an expenditure of about $70,000,000 or about 12 per cent. But not counting at all this loss of capital, the profit would

or not.

be but little over 16 per cent. upon the cost. This conclusion coincides with all the testimony before the committee, and to an unprejudiced mind shows the bias of this committee, and the determination to unearth some gigantic fraud, whether it existed there From this report were derived nearly all the arguments that were made before Congress upon this subject, and which arguments have tended to so large an extent to influence the public mind, and prejudice the public against the operations of the Credit Mobilier. But how changed is the result! The immense profits of $43,000,000 which have been paraded before the country, have dwindled down to less than ten millions, upon an expenditure of some $70,000,000. Certainly this is a profit that may of itself sound large, but it was the result of some four years work, and of great expenditure. The profit was not larger than that which some of our merchant princes were making at the same time and against whom no thought of wrong was ever entertained, but whose industry and skill were highly commended.

VI.

THE DIFFICULTIES OF CONSTRUC

WE

TION.

E must at all times consider the risk, and the circumstances under which that risk was taken. It should be remembered that there was no one else willing to undertake so great a contract, no one who would be willing to risk all he had in such an endeavor. He must feel sure that he could recover himself from his great outlay, and this no one could do. The company had tried to build the road itself and had wholly failed, so that it became necessary to even sell their rolling stock to pay their debts. Whatever was done must be done under the greatest disadvantage. All materials used in construction had to be transported overland or by means of the Missouri River, which was exceedingly expensive. The people were afraid it would not succeed, and at times could not be induced to buy its bonds, and thus indeed the capital necessary for its completion could not be obtained. Under all these discouraging circumstances this construction company took hold of the work and pushed it forward to completion. Why