The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-06-21

the money advanced by MI. WaRer ana MI
associates, they agreed to give the government o.
Mexico half million Of full paid stock in one Of the
Texas railroad companies, to which had been grant
ed at that date by the State Of Texas five Thousand
hundred and twenty of land for every mile
Of road to be constructed, which grant has since
been doubled by an act of her Legislature Last au
tumn, intelligence was received from Mexico, in
ducing the conviction in the minds of all who read
the communications. that Mr.. Walker and his asso
ciates would obtain from the Mexican government
this valuable grant of land and chartered privileges
Under these circumstances, the executive committee
of this company urged on Mr.. Walker the necessity
Of transferring to it all his interest and that of his
associates, present and contingent, in said grant.
Thus urged by the committee Mr.. Walker proposed
to sell this contingent and prospective interest to
the company on the following most reasonable
terms, namely:-Ten thousand dollars in money and
the return to him of the Texas railroad stock before
referred to, in case only that he should have paid
the same, in lieu thereof, the same amount of the
stock of this company, at their option, and not
Mr.. Walkers up to the first Of January, 1885,
On the 10Th of December last this proposition
was accepted unanimously by the executive COM
mttee Of this company: We would here remark
FIRST the suppression of the material fact that Mr..
Walker and his associates had already, as early as
March, 1858, advanced six thousand five hundred
dollars in cash. as above stated, for the purpose of
obtaining this charter and grant Of the land from
Mexico; they had also incurred other liabilities by
the appointment and actual sending of agents to
Mexico, for the purpose of negotiating for, and
curing the grants above referred to-. Now, for all
this money with the interest thereon, labor and res
possibility Mr.. Walker and his associates get moth.
I ing but credit of ten thousand dollars, on the
! books of this company, since converted into that
amount OF its stock, now represented as worthless
by our opponents.
second, SO far from Mr.. Walkers having taken
any interest in procuring Mr.. Lelands receipt on
account Of stock as represented in the pamphlet he
entitled to the cash, or the receipt athis option
and it was at the instance of the committee
that Mr.. Walker consented TO oblge the
company. by converting cash liability of $4,000,
due by them to him and his associates, into re.
ceipt for so much and more on account of stock.
Surely, this proceeding on the part of Mr.. Walker
was liberal and generous in high degree.
Third, it is represented in the pamphlet, that it
was known at the date of the purchase U5th De-
cember last,) that Z" the Gadsden treaty had fore
closed any attempt to obtain such grant," The
Gadsden treaty had no existence at that date nor
was there the remotest suspicion here of such con-
templated treaty. Some time after this purchase
from Mr.. Walker the committee, desiring to aid in
obtaining this grant from Mexico, sent for dstin-
guished citizen of Maryland, well versed in Next
affairs, and enjoying, deservedly, the confidence
of the people Of this country, and desired his pre-
sence here for the purpose of inducing him to pro-
coed forthwith to Mexico to aid in obtaining this
grant. He did repair here some time after the 18th
of December last and after q conference on the
subject, and examining the papers, agreed to go
to Mexico to aid in obtaining this grant, provided,
on inquiry, he should come to the conclusion
that the grant could probably be obtained
from Mexico. This gentleman subsequently
sought all the information that could be obtained,
come to the conclusion that this grant could proba
bly, be obtained from Mexico, agreed to go there to
aid in accomplishing this purpose. His terms for
this service were agreed to by the committee, and it
only on the of his departure that the first
news of the Gadsden treaty reached US here by
telegraph from New Orleans 1t is proper to say
that the committee would never have consented to
interfere in any way with any pending negotiations
Of their own government. Such negotiations were
wholly unknown to them at the date referred to;
and the government having approved the obtaining
the right Of way for railroad by the three Isthmus
routes, from the governments of Mexico, Nicaragua
and New Granada, we had right to conclude and
did conclude, that if we could obtain from Mexico
the right OF way and grant Of land, essential to
the construction Of a direct railroad from the At
lantic to the Pacific, we would perform an import.
ant public service, which would be appreciated and
approved by the government and people of the
United States.
Walker proposed to the committee that if it should
be ratified he would cancel the contract made with
him and return the stock to the company; which
proposition they declined to consider. Subsequent
ly, when the Board Of Directors convened here,
in May last, this whole matter was fully explained
to them, when Mr.. Walker made formal offer to
The Board to cancel the contract and return the
ceipt on account of stock. But the Board declined
t. entertain the proposition The course of events
has Eeen, and is likely to be SUCH that the company
wiki in all probability, be compelled to avail Itself
menced, and prosecuted by Mr.. Walker and his as
sccetes, for the purpose Of securing these grants
or portion Of them from Mexico, which are indis-
pensable to the construction Of the road II any in
jury should occur from communicating these facts
to the public it must be remembered that this pub
icatcn is made in necessary Standardization and to
prevent most injurious consequences to the COM
pany, that might result from caumnious assaults
, uncOntradiCted.
It is falsely represented in the pamphlet that this
purchase was made from Mr. Walker by special
committee Of which he was member, whereas it
was never considered by that committee, present
ed to it, but was presented only to the regular exc
cutive committee, and unanimously adopted by it,
Governor Dimond, the Vice President of the cOmpa
ny, with Messrs. F0wlkes, Bridge, and Woodruff be-
| ing present, and MIR. Walker being absent at the
time as shown by the records Of the proceedings Of
the committee. Such base Justification OF the re
cords by this pamphleteer requires no comment.
As regards the large original subscriptions for
stock paraded in the pamphlet, it Is proper, in re-
ply. to say that an assessment was made on the
whole stock of the company and that on the 10Th e
March last the following resolution was adopted by
the Executive Committee, to witt
Resolved That all said stock upon which said assess
ment has not been paid was absolutely forfeited pso fac
by said non payment at the date said assessment be
came due
II twill be perceived that mo person whether large
or small stakeholder could retain his stock without
meeting the assessments upon it promptly 1t is
that large amounts of stock have been forfeited
to the company, which have been and are now being
distributed, in small sums to cash paying subscri
bers.
With respect to the powers reserved by the exc
cutve committee to designate the stockholders who
shall be entitled to the benefits Of the Texas charter
proper to state, that upon the original certificates
Of stock issued by Mr.. Chatiield and Mr.. Leland
President and Secretary OF the company before any
) payment was made, and which show that the par
tics hold only right by subscription to certain
slalea of stock. liable, to all
as provided in the chatter, and which could be le
galy issued in no other manner. A fraudulent
claim, without pretence Of any payment, was made
by some persons, TO hold said certificate:
! as full paid stock Hence the power that
! was received on the 4th of April last by the Execu
tive Committee in sending proposals for the State