Autobiography of Seventy Years, Vol. 1-2

by George Frisbie Hoar

When Mr. Ames got to Washington he added the names of several
Senators to his list, some of whom took the stock.

It will be seen by an examination that men of great ability and influence were very skilfully selected. Two of them afterward became Vice-Presidents of the United States. One of them became President of the United States. Another became Secretary of the Treasury. Two others became Speakers of the House. Five others were very prominent candidates for the Presidency. Another was Chairman of the Judiciary Committee of the House. Another became Chairman of the Committee on Appropriations and subsequently of Ways and Means. Nine of these gentlemen, then members of the House, were afterward elected to the Senate.

Mr. Blaine, Mr. Eliot, Mr. Bayard, Mr. Conkling and Mr. Boutwell refused absolutely to have anything to do with the transaction. All the others were fully acquitted on investigation, by the judgment of the House, of any corrupt purpose or any desire to make money or get private advantage by reason of their official influence, or of any expectation that they would be likely to be called upon to take or refuse any action by reason of their relation to these corporations. It was thought that they had been careless in that they had not been put on their guard by the fact that so large a dividend was to be paid on the stock. In all cases the amounts received were very small, in general not amounting to more than $1,000. In two or three instances the people thought there was want of candor or frankness in telling the full transaction to the public, when the newspaper charges first made their appearance.

Henry Wilson never had any of the stock. But some of his friends made a present of a small sum of money to Mrs. Wilson, and the persons having the matter in charge invested a portion of it in Credit Mobilier stock. As soon as Wilson heard of it, he directed that the stock be reconveyed to the person from whom it had been received, and gave his wife a small sum of money to make up the difference of what turned out to be the value of the stock and the value of the investment which had been made in its place. There was no lack of the most scrupulous integrity in the transaction. Wilson met at a great public meeting Gen. Hawley, who was one of the speakers. Hawley told Wilson on the platform just before his speech that he understood that his name had been mentioned in the papers as the owner of Credit Mobilier stock. Wilson answered that he never had any of it. Thereupon Hawley in his speech alluded to that matter and said he was authorized by Mr. Wilson to say that he never owned any of the stock. Mr. Wilson did not get up and say, No, I never owned any. But my wife once had a present of a little money which was invested in it, and as soon as I heard of it, I immediately had it returned to the person from whom it came, and I made up the loss to my wife myself. Such, however, was the public excitement that his omission to do that was held in some quarters as culpable want of frankness.

All the persons who received any of the stock and told the story frankly at the investigation were acquitted of any wrongdoing whatever, and never in the least suffered in esteem in consequence.

But Schuyler Colfax and Senator Patterson of New Hampshire were found by the Committee, and believed by the people to have been disingenuous in their account of the transaction. The Senate Committee of investigation reported a resolution for the expulsion of Senator Patterson. The case was a very hard one indeed for him. The Senate adjourned, and his term expired without any action on the resolution, or any opportunity to defend himself.

Schuyler Colfax was also held to have given an untruthful story of the transaction. But the public attention was turned from that by the discovery, in the investigation of his accounts which the Committee made, that he had received large sums of money from a person for whom he had obtained a lucrative Government contract. But his term of office as Vice-President expired before any action could be taken, and he died soon after.

Mr. Ames, whose character as a shrewd and skilful investor and manager of property stood deservedly high, recommended to his friends the stock of the Credit Mobilier as a safe investment, and one in his judgment very sure to prove profitable.

It has been often asked how the managers of the Credit Mobilier could be guilty of bribing men when nobody was guilty of being bribed. But the answer is easy. The managers of the Credit Mobilier knew that they had violated the law, and that an investigation would ruin their whole concern. The men who received the stock were in ignorance of this fact. It was as if the managers of a railroad whose route under State laws is to be determined by a city council, or a board of selectmen or some other public body, should induce the members of such a board to take stock in their enterprise, intending afterward to petition the body to which the subscribers belonged to adopt a route very near land owned by them, which would much increase its value, the receivers of the stock being ignorant of their scheme. The person who should do that would be justly chargeable with bribery, while the persons who received the stock would be held totally innocent. That was the judgment of the House of Representatives which acquitted the members who had received the stock, but held Ames, who had conducted the transaction, censurable. A large number of the members voted for his expulsion. Ames was a successful business man. He was regarded by his neighbors as a man of integrity. He was generous and public spirited. But he and his associates in the Union Pacific Railroad seemed, in this matter, to be utterly destitute of any sense of public duty or comprehension of the great purposes of Congress. They seemed to treat it as a purely private transaction, out of which they might get all the money they could, without any obligation to carry out the act according to its spirit, or even according to its letter, if they could only do so without being detected. They seemed to have thought they were the sole owners of the Union Pacific Railroad and of the Credit Mobilier corporation, and that the transaction between the two concerned themselves only and not the public. They treated it as if they were transferring money from one pocket to another.

When Congress met in December, Mr. Blaine, the Speaker, who had been one of the persons implicated by public rumor, although in fact he had refused absolutely to have anything to do with the transaction, left the Chair, and, calling Mr. Cox of New York to his place, introduced a resolution calling for an investigation of the affairs of the Union Pacific Railroad.