Credit Mobilier Scandal rocks State Street.

A story in the New York Sun reveals that the company, established in in 1864 to oversee contracts for construction of the Union Pacific Railroad, charged inflated prices and failed to contractors while its investors grew rich from government funding. U.S. Rep. Oliver Ames, for a time president of the railroad whose headquarters were in Boston, and his brother Oakes, are among the biggest beneficiaries. Control of the railroad passes out of the hands of Boston investors and many reputations are tarnished.