Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1860-12-22
Farm dortgagors of the NJ. 81 NJ.
Railroad.

/ The Farmers General Home League
|of the Mil. q Miss. Railroad, have recently
adopted definite plan Of operations with
view to compel the Railroad company to
relieve them from the debts assumed in
behalf Of the road, and have issued an adj.
dress setting forth their grievances and in
dicating the proposed remedy,
The address in our judgment savors
rather too much Of personal bitterness and
maleyolence to commend it to the favor Of
the company or the sympathies Of the peo-
lple. But its rehearsal of facts, and its
charges against the Directors Of the road
involve degree Of moral and official de
linquency and fraud that calls for the most
thorough investigation, and if sustained
entities the farm mortgagors to the relief
they demand.
/ They charge that the company gave and
violated the following assurances:
/ LIST. That the road was free from debt
and paying a dividend Of Is per cent. /;
when the road was encountered $500 per
mile at 10 per cent. interest and neyerpaid
any such dividend.
I'd. That full-paid stock should be is
sued, transferable rs other stock; when no
such stock was ever issued to them.
! Sd. That the company would pay the
interest on the mortgages, which were IT,
be used as a sacred trust and never to De
transferred unless at par, and that no lien
should be created upon the road which
should have precedence. No interest has
ever been paid; the mortgages have been
sold at from 20 to so per cent. discount, and
liens have been created upon the road to
supercede the rights Of the farm mort
gagors.
They charge further that the Directors
have been guilty of specializing at the ex-
pense Of the Company, and that thereby
the road has been impoverished and rem
dered bankrupt, while the Engineer and
Directors have enriched themselves.
They say that three of the Directors,
one Of which was the Attorney and another
the fiscal agent Of the Company, conspired
with the Engineer to procure false esti-
mates of the cost Of the road from Mad
1 ison west, and that the contract was let
upon those estimates, which afforded a
profit Of 100000 or 100000 which was
share ed by these three directors and Engi-
lneer- about 100000 to each.
i They charge that these same Directors
bought up third mortgage bonds of the
] Company at forty cents on the dollar, and
secured their redemption by the Company
at eiqhty cents, and thus added $4,000 to
the debt of the Company.
And finally, when the road had become
bankrupt through their operations, they
procure its transfer to trustee and the
passage of a law to authorize the formation
lof new corporation Of purchasers of the
road, thus forever excluding the farm mort
gagors from any participation in the ben
Iefits of the road.
THE REMEDY.
e After detailing at length these and other
grievances, they ask the new company
either to place the stock Of Tie farm
naortgagors IN tie best class Of preferred
stocks or to pay of their mortgages and
save them harmless. And they declare
that one or the other Of these must be
done or the road cannot be operated at all.
To the holders of these mortgages they
say The object of the league is ITO Preueat,
J sCithin the scope Of proper means, the
fnol collection of the mortgage deJts,"
and cot the propriety of these means they
intend to be the judges" And in concIu-
sion they call upon the press Of the State
to refuse to publish notices Of foreclosure
Of these mortgages.--Madison Journal.
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