The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1858-11-17

A few months ago the country was astound-
cd BY the development Of the gigantic system
of bribery and corruption through which the
State officers, the Legislature, and the prom
inent men OF Wisconsin, were bought up BY
the railroad companies Of that State. AZ
that time there prevaileda strong suspicion,
which has been Increased by subsequent de-
yclonements into absolute certainty, that
system Of Wholesale bribery had been resort
cd to in order to obtain the grants Of land from
Congress to the four Iowa roads designated
in the bill passed by that body. The officers
or one Of these roads have now set forth Of
fcially, under their own signature, the as
founding fact that nearly one million of dol
lars in the stock and bonds of the company
was pledged to individuals In consideration
of their services in securing the passage Of
the land grant by Congress. The names Of
Ahe individuals, to whom the stock and bonds
were paid, arr not revealed, but we trust that
IN the course Of the quarrel now pending be-
tween the company and the directors all the
particulars may leak out.
What amount was paid by the other three
companies to procure their grants from Con-
gress, has not yet been made public, and
possibly never will be, but no one doubts that
the aggregate sum pledged by these four
roads was immense, aud that public officers
and members Of Congress were bought by
scores, by the promise of shares in the very
lands which they procured from tho United
States by their own efforts and votes. 1t
would be very useful information to the
people of Iowa just in the present emergency,
when these roads are plotting to get the mem
bers OF the Legislature of Iowa together to
endorse scheme to involve the State in a
debt Of ten millions Of dollars for their ben
eft. With that information before them, the
people Of Iowa could resolve the matter
to a mathematical certainty by the following
formula Ii the four land grant roads Of
Iowa agreed to give members Of Congress
and bonds of the roads for millions
of acres of land, how much will they give
the members Of the Legislature Of Iowa and
the Hobbies, for ten millions of State bonds
But as we have not Sufficiently full and sc-
curate information to reduce the question to
mathematical demonstration, we must con-
tent ourself with presenting for the contem-
plstion Of the people the partial develope-
ment made of the operations Of the Central
Air Line Road.
Mr.. S. s. Jones, the President Of that
company, in a communication to the stock
holders, rendering his resignation Of the
Presidency, views at some length the his.
tory Of the proceedings, and from him We
learn that he was in Washington several vim
ters under the instructions Of the company
striving to procure grant Of lands. The
directors authorized him to pledge so much
OF the grant as he might deem necessary to
secure its passage through Congress, and in
pursuance OF those instructions he incurred
liabilities to the amount Of near million Of
dollars. Sir. Jones then goes 90 to say
On returning to Iowa, after the passage Of
the bill, reported to the company the ex-
tent Of my pledges. | believe every body
was we'll satisfied with the result, and so ex
pressed themselves.
When IL became necessary to make mp
financial plan to prosecute the work, il was
deemed advisable TO settle of these Congress.
sienal claims in some way, so as TO save al
the land TO the company; accordingly, par
was devised, after consulting with the bes,
men in financial circles, TO paw them in stock
and simple unsecured bonds Of the company
This plan was finally carried out, hy the ap.
preparation Of one million Of stock and bond.
TO liauidnte those claims, and leave tbs
land entirely clear TO tho company whict
resolution was in the words following viz
MARCH 10, 1857.
Whereas, This company is indebted TO sun
dry persons for services and expenses in the
organization and other preliminary business
together with other services on account Of
the construction Of the road OF this COMPANY
and also Of obtaining the grant Of land and
other legislation required in order to enable
them 10 construct their said road; now, there.
fore, 10 osderio provide for the said indebt.
einess, be il
Resolved. That TWO HUNDRED md
FORTY-FINE THOUSAND DOLLARS, Of
the fol- paid capital stock Of this company
with four options attached be issued. and
the same appropriated TO the purpose above
named; and also that SEVEN HUNDRED
AND FIFTY FIVE THOUSAND DOLLARS
Of construction bonds Of this company, bear,
ing eight per cent. interest, payable .IanuaF,
L. 1863, with semi annual coupons attached
principal and interest payable In the city ID
New York, be Issued in the usual form. and
the same also appropriated for the above
named purpose, and that =. 5. Jones, Jone,
Clark. and A. Daniels. he. and they are here.
by appointed committee 10 liquida.e ant
nav Oh all such Indebtedness at their discre
ton as shall seem to them just aud proper.
All Of which wac duly reported and ap.
proved OF by the company in the following
repor. and order Of the board, viz:
JrsE 3, la5I.
The undersigned having been appointed !
committee al the meeting VI the Board q
Directors OF the lows Central Air Line Rail
road Company, holden on the lssh day o
March last, With discretionary powers 70 4qui
date and pay OF certain Indebtedness men
tened and referred to in said resolution Q
the Board, and two hundred and forsy-dy
thousand dollars oil The full paid capital stoc
Of this company, with four options attachc
10 each share and seven hundred ani Eft,
fve thousand dollars OF construction bonds {
the company, bearing ! per cent. interest, til