The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-06-06

other services, and no vss 70 be PAID Cor ssch services
ubesevx shose beads sAoud be sold"
committee remark, that Mr. Alton agree lot the
vi,ness have the oompanys eonds securities settle
Dsnt Of his o~p psrson % .ua sisS from sss .es
sums Of money belonging TO the company OF which ne
president for his own private use In one part Of
did 600 In The purchase Of real estate
In the city OF New Yerk."
Mr. G. r. Alton vas allowed 70 DO ~ he pleased with
the securities and assss Tie committee say that not un
I'll he had eecuAiy used ard disposed or AL tho stock
honda and other securities OF the COMPANY do the drec
Then they held : meeting aud "ssridged the pc 0,
President Alton" second meeting abridged II stilt
further" third resolved 10 removs this great hnancor
rom 70. mead on the enterprise ana called On MN Tor IN
Another transaction OF this company wo will give In the
For tbs charter &C. Of this railroad company the NIL
wsoke and Superior Company paid bonus Of So 600 aud
soon After this transaction the said R. Alton and his as
Alton states Ia bs testimony that hree thousand dol
lars 10 cash and stpuatou twenty thousand dollars
President OF said Air Line road None Of the new board
OF directors Mr. Alton ses, paid in any OF 1--WE
per cert on the stock subscribed by them James vomar
and John Mann, Of Washington county, werethe "sock
sgenis" OF the Air Line Company, and entered upon their
duties Of procuring farm mortgages subscribers
one per cent the amount Of subscriptions obtained.
Mr. Alton further states that these stock agents obtain
ed little less than 80 600 Of perfected farm mortgages
along the line OF tho Afr Line road which he deposited in
the Marine Bank, Milwaukee collateral to something
over that had been obtained there for tho oho
MwaSss end Superior and seSG 10 tn n
toll the committee how much had been expended along
the line Of the Air Limo road, what amount OF saa
state that he not aware Of the officers directors Of
this Air Line Company ever having any OF this companys
mortgages for their own private purposes That whom
the Milwaukee and Superior Company took tho bonds and
papers Of the Air Line Company, after tho purchase, n
r Tallmage and Noses Well of West Bend and Daniel Nc
scrpt,ons NJ Wen subscribed IS 900 and Mcenry $500
Your committee viii here state that Mr.. Alton ia aaty
conuadcted by several Witnesses In his statement hat
he has not the moneys end bonds of this company
% we'll those Of the Milwaukee and Superior Company
for his private purposes" II appears Also that there
has been p.eimnsry survey MADE on me ssa AR Line
Superior Company, the terms before mentioned; and
also that the S,ock Agent Jas VolimAr Of the Air Line
Company represented 70 the farm mortgage subscribers
that the mortgages given by them TO DO exclusively
appropriated TO the building OF the Air Line road and that
they would never have 70 psy either interest or prnc
pal their mortgage subscription which, IN the opinion
Of your committee, was gross fraud committed by said
jane. volimar Stock Agent and vcePresdent OF said
road"
THE BARsrow BONDS FOR THE ST. cRoX AND sUPE-
ROB Neutrality-suspicious. OF THE ROB-
berries BY THE ORIGINAL LA CROSSE RAILROAD
DIRECTORS.
The committee throw light the transaction by
which the called St. Croix and Superior Railroad OBJ
tanned GOO of bonds from the In Crosse Railroad
Company. 1t proves TO be magnificent swinde; but the
present direction bave repudated the whole Vi 900 000
II will also be perceived that swinde of $50 600 OF stock
the OF the directors far back ~ 1855
We hope Eastern friends do think nat
all robbers ana brigands 10 this Stsse II is only few
men who have sought and acquired prominent positions Of
trust order TO steal But the day or such men Is ended
TO return. well known that IL necessary to
have great In order to appreciate the vital neces
sity OF honest men
By the testimony OF Mr. Kibourn, and II. J.. Palmer,
appears that the only persons who conducting
editing newspapers To whom any appropriation has been
made bv the Ia Crosse Company, are Rufns King Of the
Milwaukee Sentinel Nori,z SbGfer, OF the Wisconsin
Banner; and B. d. Carpenter of the Wisconsin Patriot
The amounts were folows:To Kicg $40 COO TO Snot-
fer, IS 900; TO Carpenter for Carpenter Law SIS 600
The two former had their appropriations IN 1896 and
the latter 1857 To relation 10 the payment to Carpcu
By ron Klbourn, and in pursuance OF agreement par
tally negotiated by him and partly BY myself by his dis
crcon to secure the friendly co operation OF that Or IN
behalf OF tho company generally and 10 consideration OF
their publishing from time TO time such reports aud mat
in rela,on the company might be desirable to
promote lis general interests"
The La Crosse Company 10 get ria Of the opposou Of
those specially interested in the Milwaukee and Water
town Railroad Company, entered Into m arrangement
whereby the latter company passed into the hands OF
the In Crosse Company.
The watertown Company appears N have been loaded
with debt OF sSl2 eco, besdes the floating debt the
amount Of which has not been asceaned by the com nit
tee
In addition In order 10 the support OF the grant
bill by interested in the o. crox aud Lake Superior
Railroad Company the Ia Crosse Company arranged with
the 81 Urox Company 20 coavey all the right or the Ia
Crosse Ccmpapy Rter secured the northwes grant
ST. Cox Company far concerned the length OF
rosd nom Hudson the end OF Lake Superior aud
70 BAYFIELD, Difficulties between the compsaies
the carrying OF this arrangement. which finally was
settled by the Ia Crosse Company giving one million Of rs
bopds.
Stephen H. Alden, vino was specially ohnged with this
busness by Mr Kbourn. This advice may possibly have
been prompted by the private which he had
with Mr. Bssw who represented The = Croix Company,
whereby the esd Alden have $40 coo Of the bonds
land which he subsequently got)
Tie whole thing, In short, substantially was, that The
St. Crox Com papy should convey ell lis property, rights
and ranch the Ia Crosse Company consideration
OF one million dollars in bonds, as already stated
The corporate existence OF It Cfox Company, how
ever TO be uaiptsined by filing up ,he Board OF
Directors with Ia Crosse Company men upon the resigna
ton OF members OF the old beard un the majority the
new board we're Ia Crosse meu,
Then the Ia Crosse Company was 10 convey 10 the 81
Crox Company all ts rights 10 the and grant, IRON lud
superior City and 10 Bay Hco reservng right 10
make up deficiency or any, Of lands between Mafson
and Hrdson. together With AL that which thould be
veyed 10 II BIZ the st. Croix Company and the st. Croix
Company, newly constituted, to give In consiisra
ton thereof i've hundred thousand dollars Of s full paid
capital stock, and ron dollars of rs bonds, So
cured by deed Of trust or mortgage the granted Gnds
from HUI W Superior Csty and 20 Bayfield,.
In tho winter of 1867 legislation obtained In order
70 perfect this rMeemeut or schemetnsi ~ 10 alno
rzs the In Crosse Company 10 make such conveyance 70
the ST. Crox Company. Such conveyance beroattor
made. The deed delivered by Byron kilboorn,
while President OF the Ia Crosse Company. Tue COG
sderaen stated In that deed 10 the sum OF ono dollar,
and the performance CT certain covenants therein con
tanned copy OF this deed will be found in the Ao-
pcndix, commencing on page 100.
Ihe Ia Crosse Company, for the property rights &c,
by this deed convey ed have received cent nor
there any probability that ever will, and so much
property be put down 10 the loss account n the dell
very Of the deed be sustained In Law, which would
hardly possible. The reason is that u 10 the las,
sealed instrument between the two companies, and in
contained "mutusl covenant that tho 81 Crox Com
pany shall SELL convey lease let 70 any party what
ever without the consent OF the sad party Of the rst
part ia Crosse Company Of the Legislature the whole
any part Of said railroad, In any manner ALLEVIATE
the same except that The same may be placed under
mortgage with sipulsons usual In such oases for the
purpose Of rssog funds whsrewh 10 constructs the said
railroad, and 10 provide the necessary buildings and
equipments therefor.
These purposes very different from that Of the pur-
chase price which ought TO be paid 10 the Ia Crosse Com
psny.
The Legislature and the Ia Crosse Company may both
"copseu and uog that the st Croix Company sell,