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Story
June 20, 1880
The Weekly Elko Independent
Elko, Elko County, Nevada
What is this article about?
In 1872, the Credit Mobilier scandal implicated VP Schuyler Colfax and James A. Garfield in accepting bribes via stock from Oakes Ames. Both perjured themselves in denials, but records and checks proved their guilt, damaging their reputations.
Merged-components note: Direct text continuation of the Credit Mobilier scandal story across adjacent columns.
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In the Summer of 1872, the New York Sun first made public the infamous Credit Mobilier steal, in which Schuyler Colfax, Vice President of the United States, and James A. Garfield, Chairman of the House Committee on Appropriations, both leaders of the Republican party, appear in the worst possible light.
Writing to Col. McComb in 1872 in regard to Credit Mobilier stock set apart for the purpose of corrupting legislators, Oakes Ames had said, "I have used this where it will produce most good to us. I think." Penciled on the back of the same letter was Oakes Ames's memorandum list of Senators and Congressmen bribed. There were thirteen names in all. Here are two of them:
S. Colfax, Speaker ..... $2,000
Garfield ..... $2,000
Most of the persons affected by this preliminary revelation hastened to deny their guilt. The denials of Schuyler Colfax and James A. Garfield were alike explicit and impressive. Colfax went from his desk in the Senate Chamber before a committee of the House of Representatives, and having sworn in the name of God to tell the truth, the whole truth, and nothing but the truth, made this statement:
"I state, explicitly, that no one ever gave or offered to give me any shares of stock in the Credit Mobilier or the Union Pacific Railroad. I have never received, nor had tendered to me, any dividends in cash, stock or bonds accruing upon any stock in either of said organizations. I never received a dollar in bonds, stocks, or dividends."
In the Senate chamber again, Colfax shed tears while protesting his innocence, and appealed to the Eternal Tribunal of Justice to establish the truth of his words.
Gen. James A. Garfield also swore in the name of God to tell the truth, the whole truth and nothing but the truth: and having taken that solemn oath, he said:
"Mr. Ames never gave nor offered to give me any stock or other valuable thing as a gift. I once asked and obtained from him, and afterwards repaid to him, a loan of $300; that amount is the only valuable thing I ever received from or delivered to him. I never owned, received, or agreed to receive any stock of the Credit Mobilier or of the Union Pacific Railroad, nor any dividends or profits arising from either of them."
"Q.—Were any dividends ever tendered to you on the stock of the Credit Mobilier upon the supposition that you were to be a subscriber? A.—No sir."
"Q.—The loan you have repaid if I understood you correctly? A.—Yes sir."
Both Colfax's and Garfield's denials were made under the pressure of the emergency, and before it was known or supposed that Oakes Ames would ever be a witness to the truth. Circumstances which it is not now necessary to recall brought Oakes Ames to the stand, with his memorandum book. By the record of his transactions with Colfax the account stood:
"Colfax, twenty shares Credit Mobilier, cost $2,000; interest for seven months and ten days $86.72, making a total of $2,086.72, less 80 per cent. bond dividend at 97, $1,552; $534.72."
The same book showed that a sixty per cent. cash dividend of $1,200 was paid by him to Colfax. Gen. Garfield's account in the same memorandum book was as follows:
"Garfield, ten shares Credit Mobilier, $1,000; seven months and ten days' interest, $43.36—$1,043.36; 80 per cent. bond dividend at 97, $776; $267.36; interest, June 20, $3.64; balance, $271.
Ten shares of Credit Mobilier stock, ten shares of Union Pacific Railroad stock."
And in another place a general statement:
J. A. G.
Dr.
1868—To 10 shares Credit Mobilier of A. .......... $1,000
Interest ............. 43.36
Jan. 19—To cash ..................... 329.00
$1,376.00
1868
Cr.
By dividend bonds, Union Pacific Railroad, $1,000, at 80 per cent. less 3 per cent. .................. 776.00
June 17—By dividend collected for your account .... 600.00
$1,376.00
Schuyler Colfax swore he had never received the $1,200 which Ames claimed to have paid him as cash dividend. Oakes Ames swore that he had paid it by check on the Sergeant-at-Arms.
Sergeant-at-Arms Ordway produced the cancelled check:
"Washington, June 20, 1868.
Sergeant-at-Arms, U. S. House of Representatives: Pay to S. C. or bearer $1,200, and charge to my account.
Oakes Ames."
This check which Colfax swore he had never seen was drawn June 20. The books of the Sergeant-at-Arms showed that it was paid June 21st. The books of the First National Bank of Washington, where the Vice President kept a private account, showed that on June 21st Schuyler Colfax deposited there $1,200 in cash, and the deposit ticket in his own handwriting was produced. His perjury as well as his bribe-taking was proved. His closest friends ceased trying to defend him. After one effort pathetically absurd in its weakness, he ceased to try to defend himself.
Garfield, after he had sworn that he "never owned, received, or agreed to receive any stock of the Credit Mobilier or of the Union Pacific Railroad, nor any dividends or profits arising from either of them," went to Ames and besought him to let this payment "go as a loan," and when Ames had refused to perjure himself to save him, he made figures to show that Ames still owed him $2,400 of the bribe money!
Oakes testified as follows:
"Q.—You may state whether, in conversation with you, Mr. Garfield, claims, as he claimed before us, that the only transaction between you was borrowing $300. A.—No sir; he did not claim that with me.
"Q.—State how he does claim it with you; what was said? State all that occurred in conversation between you. A.—I cannot remember half of it. I have had two or three interviews with Mr. Garfield. He wants to put it on the basis of a loan."
"Q.—What did you say to him in reference to that state of the case? A.—I stated to him that he never asked me to lend him any money; that I never knew he wanted to borrow any. I did not know that he was short. I made a statement to him showing the transaction and what there was due upon it; that deducting the bond dividend and the cash dividend there, was $329 due him, for which I had given him a check; that he had never asked me to loan him any money, and I never loaned him any."
"Q.—After you made that statement, what did he state in reply? A.—He wanted to have it go on as a loan."
"Q.—State all you know in reference to it? A.—I told him he knew very well that it was a dividend. I made out a statement and showed it to him at the time. In one conversation he admitted it and said, as near as I can remember, there was $2,400 due in stocks. He made a little memorandum of $1,000 and $1,400, and, as I recollect, said there was $1,000 of Union Pacific stock, $1,000 of Credit Mobilier stock and $400 of stock or bonds. I do not recollect what."
"Q.—Have you the memorandum that Mr. Garfield made? A.—I have the figures that he made."
Paper in Mr. Garfield's handwriting was shown to the Committee, containing figures as follows:
$1,000
1,400
$2,400
"Q.—You say that these figures were made by Mr. Garfield? A.—Yes, sir.
"Q.—That was his idea of what was coming to him? A.—Yes, sir."
All this be it remembered occurred after the investigation had begun. After James A. Garfield had sworn that he "never owned, received, or agreed to receive any stock of the Credit Mobilier or of the Union Pacific Railroad, nor any dividends or profits arising from either of them."
And after Garfield had sworn to this falsehood, a Republican committee of the House of Representatives made up of his own political and personal friends and with Judge Poland, of Vermont, as its Chairman, branded him forever as a bribe taker and a perjurer in these blasting words:
"Garfield agreed with Mr. Ames to take ten shares of Credit Mobilier stock, but did not pay for the same. Mr. Ames received the eighty per cent. dividend in bonds, and sold them for ninety seven per cent., and also received the sixty per cent. cash dividend, which, together with the price of the stock and interest, left a balance of $329. This sum was paid over to Mr. Garfield by a check on the Sergeant-at-Arms."
The Credit Mobilier exposure shattered a good many reputations; but it left no characters worse damaged than those of Schuyler Colfax and James A. Garfield.
Schuyler Colfax, unnoticed, is living out the last years of a dishonored life, while by a curious turn of a memorable struggle in a nominating Convention, James A. Garfield, his fellow criminal, is the Republican party's candidate for President of the United States.
Writing to Col. McComb in 1872 in regard to Credit Mobilier stock set apart for the purpose of corrupting legislators, Oakes Ames had said, "I have used this where it will produce most good to us. I think." Penciled on the back of the same letter was Oakes Ames's memorandum list of Senators and Congressmen bribed. There were thirteen names in all. Here are two of them:
S. Colfax, Speaker ..... $2,000
Garfield ..... $2,000
Most of the persons affected by this preliminary revelation hastened to deny their guilt. The denials of Schuyler Colfax and James A. Garfield were alike explicit and impressive. Colfax went from his desk in the Senate Chamber before a committee of the House of Representatives, and having sworn in the name of God to tell the truth, the whole truth, and nothing but the truth, made this statement:
"I state, explicitly, that no one ever gave or offered to give me any shares of stock in the Credit Mobilier or the Union Pacific Railroad. I have never received, nor had tendered to me, any dividends in cash, stock or bonds accruing upon any stock in either of said organizations. I never received a dollar in bonds, stocks, or dividends."
In the Senate chamber again, Colfax shed tears while protesting his innocence, and appealed to the Eternal Tribunal of Justice to establish the truth of his words.
Gen. James A. Garfield also swore in the name of God to tell the truth, the whole truth and nothing but the truth: and having taken that solemn oath, he said:
"Mr. Ames never gave nor offered to give me any stock or other valuable thing as a gift. I once asked and obtained from him, and afterwards repaid to him, a loan of $300; that amount is the only valuable thing I ever received from or delivered to him. I never owned, received, or agreed to receive any stock of the Credit Mobilier or of the Union Pacific Railroad, nor any dividends or profits arising from either of them."
"Q.—Were any dividends ever tendered to you on the stock of the Credit Mobilier upon the supposition that you were to be a subscriber? A.—No sir."
"Q.—The loan you have repaid if I understood you correctly? A.—Yes sir."
Both Colfax's and Garfield's denials were made under the pressure of the emergency, and before it was known or supposed that Oakes Ames would ever be a witness to the truth. Circumstances which it is not now necessary to recall brought Oakes Ames to the stand, with his memorandum book. By the record of his transactions with Colfax the account stood:
"Colfax, twenty shares Credit Mobilier, cost $2,000; interest for seven months and ten days $86.72, making a total of $2,086.72, less 80 per cent. bond dividend at 97, $1,552; $534.72."
The same book showed that a sixty per cent. cash dividend of $1,200 was paid by him to Colfax. Gen. Garfield's account in the same memorandum book was as follows:
"Garfield, ten shares Credit Mobilier, $1,000; seven months and ten days' interest, $43.36—$1,043.36; 80 per cent. bond dividend at 97, $776; $267.36; interest, June 20, $3.64; balance, $271.
Ten shares of Credit Mobilier stock, ten shares of Union Pacific Railroad stock."
And in another place a general statement:
J. A. G.
Dr.
1868—To 10 shares Credit Mobilier of A. .......... $1,000
Interest ............. 43.36
Jan. 19—To cash ..................... 329.00
$1,376.00
1868
Cr.
By dividend bonds, Union Pacific Railroad, $1,000, at 80 per cent. less 3 per cent. .................. 776.00
June 17—By dividend collected for your account .... 600.00
$1,376.00
Schuyler Colfax swore he had never received the $1,200 which Ames claimed to have paid him as cash dividend. Oakes Ames swore that he had paid it by check on the Sergeant-at-Arms.
Sergeant-at-Arms Ordway produced the cancelled check:
"Washington, June 20, 1868.
Sergeant-at-Arms, U. S. House of Representatives: Pay to S. C. or bearer $1,200, and charge to my account.
Oakes Ames."
This check which Colfax swore he had never seen was drawn June 20. The books of the Sergeant-at-Arms showed that it was paid June 21st. The books of the First National Bank of Washington, where the Vice President kept a private account, showed that on June 21st Schuyler Colfax deposited there $1,200 in cash, and the deposit ticket in his own handwriting was produced. His perjury as well as his bribe-taking was proved. His closest friends ceased trying to defend him. After one effort pathetically absurd in its weakness, he ceased to try to defend himself.
Garfield, after he had sworn that he "never owned, received, or agreed to receive any stock of the Credit Mobilier or of the Union Pacific Railroad, nor any dividends or profits arising from either of them," went to Ames and besought him to let this payment "go as a loan," and when Ames had refused to perjure himself to save him, he made figures to show that Ames still owed him $2,400 of the bribe money!
Oakes testified as follows:
"Q.—You may state whether, in conversation with you, Mr. Garfield, claims, as he claimed before us, that the only transaction between you was borrowing $300. A.—No sir; he did not claim that with me.
"Q.—State how he does claim it with you; what was said? State all that occurred in conversation between you. A.—I cannot remember half of it. I have had two or three interviews with Mr. Garfield. He wants to put it on the basis of a loan."
"Q.—What did you say to him in reference to that state of the case? A.—I stated to him that he never asked me to lend him any money; that I never knew he wanted to borrow any. I did not know that he was short. I made a statement to him showing the transaction and what there was due upon it; that deducting the bond dividend and the cash dividend there, was $329 due him, for which I had given him a check; that he had never asked me to loan him any money, and I never loaned him any."
"Q.—After you made that statement, what did he state in reply? A.—He wanted to have it go on as a loan."
"Q.—State all you know in reference to it? A.—I told him he knew very well that it was a dividend. I made out a statement and showed it to him at the time. In one conversation he admitted it and said, as near as I can remember, there was $2,400 due in stocks. He made a little memorandum of $1,000 and $1,400, and, as I recollect, said there was $1,000 of Union Pacific stock, $1,000 of Credit Mobilier stock and $400 of stock or bonds. I do not recollect what."
"Q.—Have you the memorandum that Mr. Garfield made? A.—I have the figures that he made."
Paper in Mr. Garfield's handwriting was shown to the Committee, containing figures as follows:
$1,000
1,400
$2,400
"Q.—You say that these figures were made by Mr. Garfield? A.—Yes, sir.
"Q.—That was his idea of what was coming to him? A.—Yes, sir."
All this be it remembered occurred after the investigation had begun. After James A. Garfield had sworn that he "never owned, received, or agreed to receive any stock of the Credit Mobilier or of the Union Pacific Railroad, nor any dividends or profits arising from either of them."
And after Garfield had sworn to this falsehood, a Republican committee of the House of Representatives made up of his own political and personal friends and with Judge Poland, of Vermont, as its Chairman, branded him forever as a bribe taker and a perjurer in these blasting words:
"Garfield agreed with Mr. Ames to take ten shares of Credit Mobilier stock, but did not pay for the same. Mr. Ames received the eighty per cent. dividend in bonds, and sold them for ninety seven per cent., and also received the sixty per cent. cash dividend, which, together with the price of the stock and interest, left a balance of $329. This sum was paid over to Mr. Garfield by a check on the Sergeant-at-Arms."
The Credit Mobilier exposure shattered a good many reputations; but it left no characters worse damaged than those of Schuyler Colfax and James A. Garfield.
Schuyler Colfax, unnoticed, is living out the last years of a dishonored life, while by a curious turn of a memorable struggle in a nominating Convention, James A. Garfield, his fellow criminal, is the Republican party's candidate for President of the United States.
What sub-type of article is it?
Crime Story
Historical Event
Deception Fraud
What themes does it cover?
Crime Punishment
Deception
Justice
What keywords are associated?
Credit Mobilier
Bribery
Perjury
Political Scandal
Oakes Ames
Colfax
Garfield
What entities or persons were involved?
Schuyler Colfax
James A. Garfield
Oakes Ames
Where did it happen?
Washington
Story Details
Key Persons
Schuyler Colfax
James A. Garfield
Oakes Ames
Location
Washington
Event Date
Summer Of 1872
Story Details
The Credit Mobilier scandal revealed bribery of politicians including Vice President Schuyler Colfax and James A. Garfield by Oakes Ames through stock shares. Both denied receiving any benefits under oath, but Ames's records and a check proved they accepted dividends, exposing their perjury. A Republican committee confirmed Garfield's involvement as a bribe taker and perjurer.