The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1856-05-06

Des uosnes improvements of
tEe President,

sEe President.
In letter addressed TO the Hon. Geo. W
Jones, james Harlan, Augustus Hall, and
James Thorington, delegates in Congress oil
the State Of Iowa, by w. 9. johnson, Pres
dent Of the Des Moines Navigation and r.
r. Co., dated at Washington, March 49,
1886, there appear many statements to which
| wish to draw the attention of the public.
Mr.. President johnson starts with d lame
attempt at an apology, as though he was
ashamed, as well he may be, Of what he
is about saying, with the proposition ''as a
response to the distrust" felt among por-
ton of the constituency Of these honorable
gentlemen. Instead of meeting and answer
ing charges which if true disgrace his Com
/ pany forever, he cunningly seeks to divert
attention BY making great parade Of the
achievements Of his Company landing
/ them for ''their energy and faithfulness TO
their engagement" which is entirely irree-
want to the real subject. | am not at all sur
prised at the anxiety manifested by Mr..
Johnson to divert the attention of the pub
lie, and more particularly that of our dele
CATION in Congress, from an examination into
the modus operandi Of his stock iobbng
| Company. lie speaks of ''the unavoidable
delays incident to a new organization. p
There were no delays incident to a new or
ganization. The articles Of incorr Grafton
under the Code of Iowa bear date Of the 9th
day Of May 1854, and the 4th article states
that the corporation commenced on that day.
The Company was fully organized and the
officers chosen during the same month
About the lst of the month following, jane
the officers, directors, and great portion of
the members of the Compony visited Iowa,
and on the 9th day Of June, 1854, at keo-
sauqua, the contract made with the Com
missioner of the Des Moines River Improve
ment was signed by the President and Secre-
tary of this Company. | know Of no ''new
| organization" since that time, and presume
such information to Mr.. Johnson would be
news. The design to misead is too appa-
/ rent, and shall leave the public to draw
their own differences from the facts Of the
case.
Mr.. Johnson seems TO have labored zeal
/ ously to impress upon the minds Of the del
! egation, the peculiar labor that had been nc
complished iii "organizing a Company on
such IN unusual basis, and collecting within
| ii gentlemen Of sufficient pecuniary ability
| to undertake the responsibility Of such cnor-
nous advances of money" Every person
any way conversant with the nature Of the
contract of this Company will readily admit
that the Company was formed on San unusu-
al basis" That one million Of acres of the
most valuable lands west of the MIssissippi
afford rather san unusual basis for the or
ganlzation of company, will be fully adj
mltted, and to show that Mr.. Johnson's mag
unanimous Company so consider it, II will be
| only necessary TO refer to their first annual
report, where many interesting statements
mey be seen, but more particularly the one
referred to. They there exhibit the value Of
| about three-fourths Of the lands which they
will receive, as being fully sufficient to con-
struct the entire works OF the Des Mones
River Improvement on the then expensive
| plans of ''costly structures" to pay all con-
tingent expenses, and have remaining from
the sale Of the same the moderate sum OF
81 200, 000to divide among the stockholders
| No sane person can do otherwise than admit
that Mr.. Johnson was correct when he de
nominated this San unusual basis
OF the details Of the operations Of TIM
Company, presume but few outside of tn
Board of Directors are acquainted. I,
show the necessity of collecting within i
gentlemen Of sufficient pecunary ability II
undertake the responsibility OF such enor
nous advances of money!" it viii be onl
necessary to refer to the character Of tn
means adopted by these gentlemen of abil
lily" In the summer Of 1854 their first ii
nanclal transaction was made, by which thei
stock books represented that 80 per cent. 0
s., 100000, (Which would make 5000, 000)
Of their capital had been fully paid, and thu
on the remaining 10 per cent. of the s., 100,
600 there had been paid % per cent, (whic
would make $500 ,O00), and certificates wer
issued for the amount of full-paid, and ais
for the 20 per cent as above stated. If thi
transaction had been legitimate, there woul
have been paid into the treasury of the Com
pany Tor the above named issue, the sum @
$500 900. But this was not the case. Th
transaction was Schuylerized, on this Who'll
issue, the full paid well as the 20 be
cent. paid. There was only per cent. nc
tually paid in, (and a large proportion o
that was not IN cash, but IN checks, which
remained unpaid in July, 1850, giving onl
Sl05, 700 TO their treasury, instead of 1890,
600, making difference Of the small sum 0
$3.50 900, which was doubtless pocketed b
the stock iobbers Of this self sacrihcn
Company, by this fraudulent transaction.
This stock has been hawked about Oh
streets Of New FORK and through the coun
try, much Of it disposed Of, even at d pre-
MUM upon its deceptive representation, ain
IN many instances where it could not be 9th
erwise disposed of, it has been battered fo
stocks and real estate which had a legitimat
as well as marketable value. During tn
time that these gentlemen Of sufficient pc
cuniary ability were pursuing this PREACHER
Gus policy with the public, their checks give
for the payment Of the per cent. lay in til
hands of the Treasurer unpaid. What
beautiful commentary upon Mr.. Johnson
efforts to impose upon the credulous, tina
his Company had undertaken the response
hility Of such enormous advances Of money.
Tins would generally be styled new system