Saint Paul weekly Minnesotian., 1859-06-25
The Battle OF Magenta.

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The Battle OF Magenta. :
We publish in another column further par t
iculars of this bloody battle, which will be
ound interesting as throwing more light on
his most sanguinary conflict of modern times. {
rhe Inside View OF tho Affairs of tho
Lacrosse Railroad.
Under the above heading the Madison jour,
nal of the 18th, publishes statement OF the
affairs of the Lacrosse and Milwaukee Rail
road Company, from the Hon. j. P. McGRE-
COB of Portage County, in that State, and late
a Director in the Company. 1t contains varl-
Gus items of information not heretofore gwen
to the public. One fact disclosed by Mr..
McGregor, the Journal endorses as
man of high character for ability and integ-
rity-wiA startle many, and serve as warn
ing to the people of Minnesota, in view Of the
almost certainty that our Railroads are to be
built without capital; sustained by all sorts OF
shining and skullduggery; and will most
probably eventuate just as the Lacrosse Road
has, in utter and desperate ruin. Mr.. Nc
GREGoR tells us, that while the Lacrosse Com
pany has issued millions upon millions OF
stock, not 100000 in cash has ever been
paid in upon that stock. This gives some
idea of what monstrous bubble that corpo-
ration was in its palmy days, and shows that
the purchasers of its stock, even at the merest
nominal rates, have made but sorry specu-
lation- We extract from Mr.. McGREGoR's
statement the following:
Of the whole ten millions or over of stock
issued, do not believe that two hundred thou
sand dollars is full paid cash stock.
The road was built wholly on credit, and
all the cash stock ever paid in would 60 but
a small way towards making up the discount
| suffered on sale of the securities of the COM
panv. When We came into Office l was in
formed by the Secretary of the Company
that the items charged to Discount and
Commission" amounted to the sum OF four
million of dollars. Just as soon as the stock,
by shrewd management, had been made to
have a value in Wall Street, it began to be
issued to officers and agents in payment OF
their services it was issued to protect d.
rectors for indorsing for the Company; it was
issu to pay contractors at the rate OF nifty
cents on the dollar; it was sold to raise mo-
new it was sold to pay debts and, finally,
it was issued IN large amounts as collateral
security for borrowed money, and was sacrl-
feed in default of payment. Large amounts
of convertible bonds were issued at low rates
and turned into stock. "BarstOw and Cor
ruption" bonds were turned into stock. Sc
that your stock certificates represent almos,
everything but cash stock and in my view
of the case, the gentleman who recently pur
chased large amount of the stock in New
York at + of one per cent. as q great specu
} lation made q very bad bargain.
i Itmay be that there are lines Of Railroad
which could be built without cash capital b.
paying for their construction in first mort
gage bonds at 80 cents, on the dollar, in farm
] mortgage bonds at 70 cents and in stock at D.
r cents-(these were the rates in the palm.
6 days of the company later period, firs
mortgage bonds were turned out to contract
ors at thiry cents on the dollar, )-and sti
e earn and pay dividends on the fictitious stock
|. But favorable as is the location ofthe LaCross
& Milwaukee Railroad it will never be able
boast of such an achievement. Some of tn
IS liabilities above mentioned have been comprt
= missed and taken up with the third mortgage
r others have been cut off by the sale under i
70 but my fear is that there is still so large a
amount of debt ahead of the third mortgae
= that even the most prudent and energet
g management will but inadequately secure tn
in creditors and farm mortgage stockholders a
er tempted to be provided for under that instr
ment.
Now as to the effect of this foreclosure &
1t the rights and interests of the stockholders
r Mr.. Chamberlain had a judgment for $629 90
,e Mr. Cleveland subsequent one Tor $ll4
II 600, and after this came judgments OF $7t
III 900, $25, 900 and so on. Now sale of Il
r. road under any of these judgments wou
K cut off the stockholders and subsequel
as creditors Just as effectually as sale und
f. the mortgage Nothing but Mr.. Chamberlain
lease prevented, and in point of fact MI. Clev
land obtained decree in chancery settil
aside the Chamberlain judgment and lease,
to him, and had not that decree been apes
n. ed from to the Suprrlne Court of the U. 5.
would doubtless before this time have SO
81 the road to satisfy his judgment Che has a
D. veItised it for sale for the year past) al
he would have thus cut off not only the sto
but all subsequent creditors as we'll as t
. claims of the farm mortgagors.
w Unless the stockholders should come ft
IN ward and raise large amount of money, t
er- road must necessarily be lost under some
,le these lines, and suppose that every hone
.s stockholder would prefer to see such disp
sition made of the road as would protect
rh most creditors.