Amnesty.

The first regular session of the 42d Congress met Dec. 4th, 1871. The Democrats consumed much of the time in efforts to pass bills to remove the political disabilities of former Southern rebels, and they were materially aided by the editorials of Horace Greeley, in the New York Tribune, which had long contended for universal amnesty. At this session all such efforts were defeated by the Republicans, who invariably amended such propositions by adding Sumner's Supplementary Civil Rights Bill, which was intended to prevent any discrimination against colored persons by common carriers, hotels, or other chartered or licensed servants. The Amnesty Bill, however was passed May 22d, 1872, after an an agreement to exclude from its provisions all who held the higher military and civic positions under the Confederacy-in all about 350 persons. The following is a copy: Be it enacted, etc., (two-thirds of each House concurring therein,) That all legal and political disabilities imposed by the third section of the fourteenth article of the amendments of the Constitution of the

United States are hereby removed from all persons whomsoever, except Senators and Representatives of the Thirty-sixth and Thirty-seventh Congress, officers in the judicial, military, and naval service of the United States, heads of Departments, and foreign ministers of the United States. Subsequently many acts removing the disabilities of all excepted (save Jefferson Davis] from the provisions of the above, were passed.

The Liberal Republicans.

An issue raised in Missouri gave immediate rise to the Liberal Republican party, though the course of Horace Greeley had long pointed toward the organization of something of the kind, and with equal plainness it pointed to his desire to be its champion and candidate for the Presidency. In 1870 the Republican party, then in control of the Legislature of Missouri, split into two parts on the question of the removal of the disqualifications imposed upon rebels by the State Constitution during the war. Those favoring the removal of disabilities were headed by B. Gratz Brown and Carl Schurz, and they called themselves Liberal Republicans; those opposed were called and accepted the name of Radical Republicans. The former quickly allied themselves with the Democrats, and thus carried the State, though Grant's administration " stood in" with the Radicals. As a result the disabilities were quickly removed, and those who believed with Greeley now sought to promote a reaction in Republican senti

ment all over the country. Greeley was the recognized head of this movement, and he was ably aided by ex-Governor Curtin and Col. A. K. McClure in Pennsylvania; Charles Francis Adams, Massachusetts; Judge Trumbull, in Illinois; Reuben E. Fenton, in New York; Brown and Schurz in Missouri, and in fact by leading Republicans in nearly all of the States, who at once began to lay plans to carry the next Presidential election.

They charged that the Enforcement Acts of Congress were designed more for the political advancement of Grant's adherents than for the benefit of the country; that. instead of suppressing they were calculated to promote a war of races in the South; that Grant was seeking the establishment of a military despotism, etc. These leaders were, as a rule, brilliant men. They had tired of unappreciated and unrewarded service in the Republican party, or had a natural fondness for "pastures new," and, in the language of the day, they quickly succeeded in making political movements "lively."

In the spring of 1871 the Liberal Republicans and Democrats of Ohio-and Ohio seems to be the most fertile soil for new ideas-prepared for a fusion, and after frequent consultations of the various leaders with Mr. Greeley in New York, a call was issued from Missouri on the 24th of January, 1872, for a National Convention of the Liberal Republican party to be held at Cincinnati, May 1st. The well-matured plans of the leaders were carried out in the nomination of Hon. Horace Greeley for President and B. Gratz Brown for VicePresident, though not without a serious struggle over the chief nomination, which was warmly contested by the friends of Charles Francis Adams. Indeed he led in most of the six ballots, but finally all the friends of other candidates voted for Greeley, and he received 482 to 187 for Adams. Dissatisfaction followed, and a later effort was made to substitute Adams for Greeley, but it failed. The original leaders now prepared to capture the Democratic Convention, which met at Baltimore, June 9th. By nearly an unanimous vote it was induced to endorse the Cincinnati platform, and it likewise finally endorsed Greeley and Brown-though not without many bitter protests. A few straight-out Democrats met later at Louisville, Ky., Sept. 3d, and nominated Charles O'Conor, of New York, for President, and John Quincy Adams, of Massachusetts, for VicePresident, and these were kept in the race to the end, receiving a popular vote of about 30,000.

The regular Republican National Convention was held at Philadelphia, June 5th. It renominated President Grant unanimously, and Henry Wilson, of Mas

sachusetts, for Vice-President by 3644 shall be chosen by the President from the votes to 321 for Schuyler Colfax, who several Departments, and they shall ex thus shared the fate of Hannibal Hamlin in his second candidacy for Vice-President on the ticket with Abraham Lincoln. This change to Wilson was to favor the solid Republican States of New England, and to prevent both candidates coming from the West.

Civil Service Reform.

After considerable and very able agitation by Geo. W. Curtis, the editor of Harper's Weekly, an Act was passed March 3d, 1871, authorizing the President to begin a reform in the civil service. He appointed a Commission headed by Mr. Curtis, and after more than a year's preparation this body defeated a measure which secured Congressional approval and that of President Grant.

amine at Washington for any position there, or, when directed by an Advisory Board, shall assign places for examination in the several States. Examinations are in all cases first made of applicants within the office or department, and from the list three reported in the order of excellence; if those within fail, then outside applicants may be examined. In the Federal Blue Book, which is a part of this volume, we give the Civil Service Rules.

When first proposed, partisan politics had no part or place in civil service reform, and the author of the plan was himself a distinguished Republican. In fact both parties thought something good had been reached, and there was practically no resistance at first to a trial.

The Democrats resisted the passage of this bill with even more earnestness than any which preceded it, but the Republican disciplíne was almost perfect, and when passed it received the prompt ap

time was classed as "the most radical of the radicals." Opponents denounced it as little if any less obnoxious than the old Sedition law of 1798, while the Republicans claimed that it was to meet a state of growing war in the South--a war of races

and that the form of domestic violence manifested was in the highest degree dangerous to the peace of the Union and the safety of the newly enfranchised citizens.

The Credit Mobilier.

The civil service law (and it is still a law though more honored now in the breach than the observance) embraced in a single section of the act making appropri-proval of President Grant, who by this ations for sundry civil expenses for the year ending June 30, 1872, and authorize the President to prescribe such rules and regulations for admission into the civil service as will best promote the efficiency thereof, and ascertain the fitness of each candidate for the branch of service into which he seeks to enter. Under this law a commission was appointed to draft rules and regulations which were approved and are now being enforced by the President. All applicants for position in any of the government departments come under these rules-all classes of clerks, copyists, counters; in the customs service all from deputy collector down to inspectors and clerks with the salaries of $1200 or more; in appraisers' offices all assistants and clerks; in the naval service all clerks; all lighthouse keepers; in the revenue, supervisors, collectors, assessors, assistants; in the postal really all postmasters whose pay is over $200, and all mail messengers. The rules apply to all new appointments in the departments or grades named, except that nothing shall prevent the reappointment at discretion of the incumbents of any office the term of which is fixed by law." So that a postmaster or other officer escapes their application. Those specially exempt are the Heads of Departments; their immediate assistants and deputies, the diplomatic service, the judiciary, and the district attorneys. Each branch of the service is to be grouped, and admission shall always be to the lowest grade of any group. Such appointments are made for a probationary term of six months, when if the Board of Examiners approve the incumbent is continued. This Board of Examiners, three in number in each case,

At the second session of the 42d Congress, beginning Dec. 2, 1872, the speaker (Blaine) on the first day called attention to the charges made by Democratic orators and newspapers during the Presidential campaign just closed, that the Vice President (Colfax), the Vice President elect (Wilson), the Secretary of the Treasury, several Senators, the Speaker of the House, and a large number of Representatives had been bribed, during the years 1867 and 1868, by Oakes Ames, a member of the House from Massachusetts; that he and his agents had given them presents of stock in a corporation known as the Credit Mobilier, to influence their legislative action for the benefit of the Union Pacific Railroad Compay.

Upon Speaker Blaine's motion, a committee of investigation was appointed by Hon. S. S. Cox, of New York, a noted Democrat temporarily called to the Chair.

After the close of the campaign, (as was remarked by the Republic Magazine at the time) the dominant party might well have claimed, and would have insisted had they been opposed to a a thorough investigation

and a full exposure of corruption, that the | Wilmington, in the State of Delaware, to verdict of the people in the late canvss the effect that members of this House was sufficient answer to these charges; but the Republican party not merely granted all the investigations sought, but summoned on the leading committee a majority of its political foes to conduct the inquest.

The committee consisted of Messrs. Poland, of Vermont; McCreary, of Iowa; Banks, of Massachusetts; Niblack, of Indiana, and Merrick, of Maryland.

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 valuable character derived therefrom: therefore,

Resolved, That a special committee of five members be appointed by the Speaker pro tempore, whose 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:

Messrs. Poland and McCreary-the two Republicans were gentlemen of ability and standing, well known for their integrity, moderation, and impartiality. General Banks was an earnest supporter of Horace Greeley, upon the alleged ground that the Republican organization had become effete and corrupt: while Messrs. Niblack and Merrick are among the ablest In order to a clear understanding of the representatives of the Democratic party; facts hereinafter stated as to contracts and in fact, Mr. Merrick belonged to the ex- dealings in reference to stock of the Credit treme Southern school of political thought. Mobilier of America, between Mr. Oakes Having patiently and carefully exam- Ames and others, and members of Conined and sifted the entire testimony-often gress, it is necessary to make a preliminary "painfully conflicting," as the committee statement of the connection of that comremarked their report ought to be con-pany with the Union Pacific Railroad Comsidered a judicial document commanding universal approval, yet scraps of the testi- The company called the "Credit Momony and not the report itself were used bilier of America" was incorporated by with painful frequency against James A. the Legislature of Pennsylvania, and in Garfield in his Presidential canvass of 1864 control of its charter and franchises 1880. There has not been a state paper had been obtained by certain persons insubmitted for many years upon a similar terested in the Union Pacific Railroad subject that carried with it greater weight, Company, for the purpose of using it as a or which bore upon its face a fuller reali-construction company to build the Union zation of the grave responsibilities assumed, Pacific road. In September, 1864, a conand it is the first time in the political his-tract was entered into between the Union tory of the United States that an all-im- Pacific Company and H. M. Hoxie, for the portant investigation has been entrusted by building by said Hoxie of one hundred the dominant party to a majority of its po- miles of said road from Omaha west. litical foes.

The report of the committee gives the best and by far the most reliable history of the whole affair, and its presentation here may aid in preventing partisan misrepresentations in the future-misrepresentations made in the heat of contest, and doubtless regretted afterwards by all who had the facilities for getting at the facts. We therefore give the

OFFICIAL REPORT OF THE CREDIT MO

BILIER INVESTIGATING COMMITTEE.

Mr. Poland, from the select committee to investigate the alleged Credit Mobilier bribery, made the following report February 18, 1873:

The special committee appointed under the following resolutions of the House to

wit :

pany, and their relations to each other.

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 have been realized therefrom. The enterprise of building a railroad to the Pacific was of such vast magnitude, and was beset by so many hazards and risks that the capitalists of the country were generally averse to investing in it, and, notwithstanding the liberal aid granted by the Government it seemed likely to fail of completion.

In 1865 or 1866, Mr. Oakes Ames, then and now a member of the House from the State of Massachusetts, and his brother Oliver Ames became interested in the Union Pacific Company and also in the WHEREAS, Accusations have been made Credit Mobilier Company as the agents for in the public press, founded on alleged the construction of the road. The Mesletters of Oakes Ames, a Representative of srs. Ames were men of very large capital, Massachusetts, and upon the alleged affi- and of known character and integrity in davits of Henry S. McComb, a citizen of business. By their example and credit,

and the personal efforts of Mr. Oakes Ames, many men of capital were induced 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 which, Mr. Samuel Hooper, was then and is now a member of the House; Mr. John 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, great difficulty was experienced in securing the required capital.

In the spring of 1867 the Credit Mobilier Company voted to add 50 per cent. to their capital stock, which was then two and a half 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 induce all the old stockholders to take it, and the stock of the Credit Mobilier Company was never considered worth its par value until after the execution of the Oakes Ames contract hereinafter mentioned.

cuted, 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 derived 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 market value, but the holders of it, in December, 1867, considered it worth at least double the par value, and in January and February, 1868, three or four times the par value, but it does not appear that these facts were generally or publicly known, or that the holders of the stock desired they should be.

The foregoing statement the committee think gives enough of the historic details, and condition and value of the stock, to make the following detailed facts intelligible.

Mr. Oakes Ames was then a member of the House of Representatives, and came to Washington at the commencement of the session, about the beginning of December, 1867. During that month Mr. Ames entered into contracts with a considerable number of members of Congress, both Senators and Representatives, to let them have shares of stock in the Credit Mobilier Company at par, with interest thereon from the first day of the previous July. It does not appear that in any instance he asked any of these persons to pay a higher price than the par value and interest, nor that Mr. Ames used any special effort or urgency to get these persons to take it. In all these negotiations Mr. Ames did not enter into any details as to the value of the stock or the amount of dividend that might be expected upon it, but stated generally that it would be good stock, and in several instances said he would guarantee that they should get at least 10 per cent. on their money.

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-seven miles of the Union Pacific road at prices ranging from $42,000 to $96,000 per mile. amounting in the aggregate to $47,000,000. 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 contract were to be divided among the stockholders in the Credit Mobilier Company, who should comply with Some of these gentlemen, in their concertain conditions set out in the instru-versations with Mr. Ames, raised the quesment transferring the contract to the trus- tion whether becoming holders of this tees. The Ames contract and the trans- stock would bring them into any embarfer to trustees are incorporated in the evi- rassment as members of Congress in their dence submitted, and therefore further re- legislative action. Mr. Ames quieted such cital of their terms is not deemed neces- suggestions by saying it could not, for the Union Pacific had received from Congress all the grants and legislation it wanted, and they should ask for nothing more. In some instances those members who contracted for stock paid to Mr. Ames the

sary.

Substantially, all the stockholders of the Credit Mobilier complied with the conditions named in the transfer, and thus became entitled to share in any profits said trustees might make in executing the con-noney for the price of the stock, par and tract.

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

interest; in others, where they had not the money, Mr. Ames agreed to carry the stock for them until they could get the money or it should be met by the dividends.

Mr. Ames was at this time a large stockholder in the Credit Mobiler, but he did not intend any of these transactions to be After the Ames contract had been exe-sales of his own stock, but intended to ful