The Van Buren press., 1873-04-08
Railroad Bond Steal.

have been expecting all along, that there wa
some grand damnable scheme. to be Launched
ont before the close of the session. whereby
large portion Of the Legislature wouid line
their pockets with bonds of some Kind. nj the
expense OF the state. Ne havc not time Ia
give this scheme careful review this week,
aod copy from the correspondent ofthe Little
Rock Gosetts on the subject:
The "whereas" portion Of the bill to donate
State bonds t. certain railroad cliques, which
was introduced into the House Oh Monday
last, sets forth that S5.2OO,ooo Of bonds have
already beer Issued and under the present
law 81. .2o0QCo. in addition, could he Issued,
and then. by implication. It Is set forth that
by the passage OF the bill the further issue Of
the bonds will be stopped. This Is not the
case. The bin now pending neither repcals
or modihss the act Of 1893 granting the MD.
il simply provides that the companies lich
accept Of It's provisions shall release the State
from any further Issue of bonds to them, but
II does not provide against the formation OF
other companies, or for the reorganization oi
present companies under new names, who
can GENE forward and claim the bonds yet In
the treasury.
II the friends OF the present bill are in good
faith, why not make this bill repeal the act
Of 1895. 50 that no further swindling, at least
10 that direction, can be pcrpetrated?
1t is to be hoped that the people everywhere
in the State will promptly and earnestly pro-
test against this iniquitous scheme. If the
State Is to advance in wealth and population,
its legislation must be Of a different style from
that embodied In this stealing bill. Instead
Of increasing taxation, payable in lawful
money of the United States" which, when
collected. will go into the pockets of a few
Unscrupulous adventures, who have possess
ed themselves OF State bonds Tor nominal
consideration, and In many instances for no
consideration at all. they must endeavor to
strengthen the credit fthe State by reduc-
ductiou of expenditures and a consequent re-
duction Of taxes.
One other feature Of this infamous bin is
worthy orthought refer to the clausc pro-
yiling for the levy Of u three mtlitax, payable
in lawful money Of the United states, y
which shall be held sacred to the payment Of
the interest anG principal OF these bonds.
What prominent service has been rendered
TO the people by the holders Of these bonds
that they should be especially and particular
N provided for over all other creditors of the
etateY Is 1t not notorious that where sold at
oil these bonds have been sold for fraction
OF their par values II they have not been
sold, they are still in the hands Of the com
pnnies TO which they have been donated;
Ak Acr amcndatory Of and supplementary
10 "An act to aid IN the construction Of
railroads. approved July u. 1865.
WHkREAs, In pursuance of an act entitled
sAn act TO aid in the construction OF r'is-
roads." approvec July a. lsGS. the State OF
Arkansas has Issued her bonds. amountin. in
the aggregate TO IS. 100000; and
WnERkAs, The said railroad companies and
Che railroad commissioners have the power To
SHcrease the Indebtedness OF the State 81 2UU, :
OOQ, In excess OF the amounts now issued,
thsreby making total issue in aid OF rail
roads of Sll, 100000; and
,WHkRkAs said amount of Sc 100000 may
be issued when tile road beds Of railroads are
prepared for the iron; and
WHEREAS, Bonds have already been issued
70 aid railroad companies To the amount ol
81 000,0o0. for road-beds prepared for iron
rails on which no iron rails have yet been
placed; and
WHEREAs, Said railroad companies have
become otherwise indebted to the State, and
In their present condition. not completed or
FULLY equipped, or without iron rail. or bal
last thereon. are OF no security orvalue to the
State; ;and
MHRRgAs. 1t IL greatly to the Interest Of
the State, and the citizens thereof, 10 have
said railroad completed and laid with iron
rslls and ballasted, and fully equipped for the
,n.l.ft ft.,, nf 40 mi n nd
action of business; and
WHKREAs, 1t viii be also greatly TO the in
tcrest Of the state to limit, so far as it can DO
NJ without impairing vested rights, the inr-
thcr expansion or issue OF State aid bonds;
and
wHERrAs, The railroad companies of this
State are entitled to receive, in addition to
the bonds already received further issue Of
bonds, to the amount of So 100000, upon COM
plying with the provisions of said act; there
fore, as an inducement TO said railroad com
panies 10 release the State from the said fur
ther issue OF bonds:
Section l, Be il farther enacted, etc" That
any railroad company which has received the
bonds OF the State Of Arkansas to aid in the
construction OF its railroad. or become other
wise indebted to the State, which shall de-
II, er to the treasurer of the State certificates
Of full paid stock Of said company. not liable
10 assessment equal in amount to the bond,
Issued " said company. or other indebted
ness, and any railroad company now.eXisting
or which has been or shall be organized 10y
purchasers or otherwise, are authorized, by n
vote Of a majority Of the directors Of said
company, to issue and deliver to the treasury
ofthc State the amount Of stock herein indi-
Gated. which. when rendered and delivered
by said company, shall release the same from
tho payment Of the principal of said bonds
delivered to said company. anu the interest
or tax due. or, 10 fall due thereon. and from
any and all liability to the State OF Arkansas
arising out Of the delivery OF said bonds to
said railroad company, under and by virtue
Of the provisions Of an act entitled An act
70 aid In the construction Of railroads aud
for any other Indebtedness. and that the
treasurer shall execute and deliver In the
name and on behalf of the State. a receipt for
said stock. and discharge of sail railroad
company from tue payment OF said bonds. in
tefcst OF tax due thereon. and any other in
debtedncss Tor which said stock was deliver
ed; provided. that any railroad company shall
be entitled to the provisions and benefits OF
this feciion, whenever the board OF directors.
or q majority thereof Of said company shall,
within ninety days from the passage Of this
net, file with the board of railroad commits.
sioners written acceptance Of the provisions
Of this act, and release Of the State from the
further issue Of bonds and Of the right to de-
tnand tie same.
Section 2. Be It farther enacted. That any
and all dividends which may be declared upon
sail railroad stock delivered to the State
shall be paid to the treasurer OF the State aud
shall be set apart as n separate fund. T., be APP
piled by him exclusively to the paynen. OF
,hc interest of said bonds, and to their re-
uemption when they become due.
a. n L.. Al, IL,