The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1872-06-22
NEUTRALITY-SUSPICIOUS..

1Hc xHtHtyc"Se' -
formation CONCERNING the sale Of the
Baltimore and Ohio railroad stock in
1869. In reply, we are perfectly willing
to furnish all the information we have
in relation to the transaction, though
we believe it is pretty well known to the
public already.
In March, 1869, there was necessity
for raising come money for the Market
street bridge, a very important in
provement, by the way, and one which
we believe the Intelligence favored
The treasury was empty and the only
feasible plan proposed to raise the ne
cessary funds was by the sale OF the
remainder OF Baltimore and Ohio
railroad stock held by the city: This
course had been suggested by former
sales of stock in order TO redeem the
city's bonds held by, the United States
Department OF the Interior as part OF
the Cherokee Trust Fund. The sale
was ordered by the Council to take place
at once" as the MtelEgncr will prob.
ably find by examining its report of
the proceedings Of Council published on
the Sd of March, 1869. A letter was
written to Mr.. GARRETT by the then
Chairman of the Finance Committee
asking him to make a bid for the stock,
but no reply was received. After
several efforts, the best bid that
could be obtained was that made by
HENRY NJ. WARFlELD and Company,
of 143 per cent premium. This was
reported to and accepted by the Coun-
Gil, and the sale made accordingly.
The reasons for the acceptance of tine
bid were, in brief, these: The Balti-
more road was then extending it's oper.
atoms by leasing new lines and aiding
! in the construction of others. 1t was
thought by many that the stock would
be likely to depreciate in consequence
of these operations, and that the pre-
MUM offered was probably as high as
as was likely to be obtained in
several years. 1t is true the marke.
value of unincumbered stock was higher
than the price which WAKEFIELD aud
Company proposed 10 pay; but then 1t
must be emembered that the shares
held by the city had been pledged for
the payment Of the principal and inter
est OF certain bonds; that the stock
would not be available to the purchaser
for three years unless he could succeed
in retiring those bonds before their full
maturity; these circumstances rendered
the city's stock unsaleable at the cur
rent price and subjected it to special
contract at tie best attaiuable rate.
The stock was accordingly sold at l44
per cent. premium, the city thereby
paying her Baltimore and Ohio bonds
and putting something over $4,000
cash into the public treasury
The IntelRgencer says:
at does not excuse this to say that it
resulted not from dishonesty but from
incompeteucy of the city authorities
Those who undertake to conduct the
public business are bound to conduct it to
the public advantage, not loss; blunders
IN such affairs are little better than
crimes; and repetition OF them should
not be ENCOURAGED, AZ it is, by excusing
them"
Unfortunately The city authorities
were not gifted with that financial
eagacity which our neighbor possesses
in such q wonderful degree, and were
in consequence unable TO foresee that
the stock would appreciate iii value az
rapidly as it has. 1t Is somewhat sur
prising that, with SO much ability TO
discern the financial future, our friend
has not forsahen the field Of journalism
aud realized q princely fortune b. Wall
etreet operations. We presume he
might have bought that railroad stock
in 1869 by paying Il per cent. pre-
MUM. That he did not do 30, takes
away HE right to charge the Council
with incompetency aud blundering be
cause It accepted what vac then con-
sidered fair price.
We are not the especial defenders 81
the Council of 1862, the majority OF
whose members were the IHtelEgcacsr s
friends; but we believe IN fair play.
We try to render honor where honor is
due, and have never shrank from al,
ministering censure where censure was
needed. There may have been some
corrupt practices on the part Of city
officials during the past few years, and
we therefore join with the Intelligence
in calling for q full exposition of the
financial affairs of the city, now and al
all times; but we have, as yet, failed tc
find in the sale of the Baltimore and
Ohio railroad stock any evidence o.
fraud, or any lack Of proper regard
for the public good.
The Parkersburg Daily Times has
been consolidated with the Gazette, and
will hereafter appear as a Democratic