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Story January 15, 1873

The Charleston Daily News

Charleston, Charleston County, South Carolina

What is this article about?

Commentary on potential government action to recover millions in interest arrears from Union Pacific Railroad, exposing Credit Mobilier scandal where funds were diverted for dividends to shareholders, including legislators who suspended claims, enriching insiders at public expense.

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Full Text

-If the government is seriously determined to recover its arrears of interest due on the pledges of the Union Pacific Road, amounting to a sum between five and six millions, there is a likelihood of a still further disclosure of motive in connection with the manipulation of the Credit Mobilier that promises an excitement supplementary to the present one. It will be one wave following close upon another. The charge brought against the Credit Mobilier management is that it took the government dues to make dividends out of, for its shareholders, and that the interested recipients of these big dividends were not, as national legislators, unwilling to vote for the suspension of the government's rightful claims for interest. Any one can see, if that was the order of the operation, how it was possible for this inside financial machine, that took the contract to construct the road, to divide sums large enough to take up the cost of the stock many times over. But the government, that is the country, all the time appears to have made up these rich and frequent profits. It has stood back on the subject of its lien on the road and its interest dues. Two or more efficient attorneys might not prove bad friends to a government that seems to have been so seriously plucked.

What sub-type of article is it?

Deception Fraud Crime Story Historical Event

What themes does it cover?

Deception Crime Punishment Justice

What keywords are associated?

Credit Mobilier Union Pacific Financial Manipulation Government Arrears Legislator Corruption

Story Details

Story Details

The government seeks to recover arrears of interest from the Union Pacific Road, revealing motives in Credit Mobilier manipulation where management used government dues for shareholder dividends, influencing legislators to suspend claims, allowing large profits while the government bore the costs.

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