, 1873-11-28
THE GREAT BOND CONSPIRACY.

Judge Tipton's decision In tho Gilman, Clip-
ton & Springfield Railroad case has lot numbor
Of athletic catB out OF tho bag. L Receiver hay-
ing been appointed BY tho Court, the officers Of
the Company have hastoned to defeat the judR-
mont by delivering tho road over to Thomas 4.
Scott as trustee Of certain geoontl- tl-1nortcaeo
bonds. This was done in cloar contempt Of the
Judgment OF the Court. Col. Morgan, tho Re-
cciver appointed BY Judge Upton, is man not
likely to be bluffod Oh, aud this latest acho1ne
OF tho Springfield Ring to steal the road
will not be successful. Tho importance
of this case will be understood WHOM 1t ia known
that thcro arc many other railroads in tho State
in substantially the aamo condition, that Is, they
havo been stolen by tho managers and sold,
mortgagcd, or leased, loaying tho colutiea and
townH, who hold 313, ,000.0 900 OF tho capital stock,
without scrap OF tangible property Thus
stop by step can be tracod tho progress of the
giant conspiracy Of tho specu!ators to rob tho
people OF this State Of tho mouoy to build tho
roads, md then to rob them Of tho roads vhen
built Thcao progressive steps aro as follows:
l. The enactment In 1869 Of tho famoua "Grab
law" by which 1t was proposed TINT in all co1,n-
ties, towns. etc., thon owing, or which might
thereafter contract, debts iu aid Of railroads, the
future increase OF the assessed yulno Of taxable
property should be exempt from taxation for
State purposes; such taxation to be applied to
tho principal and interest of such debt.
4. Undor the frauds and doluaions of this do
coptlye bill. the people Of q large number Of
towns and counties were induced to 70 through
tho forms Of voting subscriptions amounting to
nearly s12000,o00. for which they issued muuiol-
pal bonds, mostly ut 10 per cent interest, and
exchanged the same for 3 corresponding amount
of stock. 1t Is ncealoss to my that while tho
tax to pay tile interest on tho bonds has been
inexorably levied by tho State officers, aud col
lected, there have been no dividends reooiyol On
tho ntock.
8. After tho bonds moro received by tho con-
aprators, the next stop was to mortgage tha rail-
roads to twice their ooat and thua extinguish the
stock.
4. Tho failure and refusal Of certain towns to pay
the interest On tic bonds, aud the oyldantly
growing purpose to test their legality, neoeasi-
tntoa tho no:t step, which was to attempt to OK
ecuto TINT part OF tho Grab law Of 1860 which
wan intended to saddle tho whole debt upon tho
State at largo. 70 effect thiA, however, required
tho corporation Of the Auditors ofIco, aud, III
tho spring ot 1878, this YVES obi:ined through su
order to tho Assessors to incroaao tho assossuopt
for State purposes about 400 por cont. Aftor-
wards tho cooperation Of tho State Board Of
Equalization was soc,,rod, mud general levy
was made upon capital stock OF private corpo.a-
tions In addition to tho Tux OIL tAoir
property. Tho conspiracy wont further. To
mako tho onor1aouu tax loyy losa shocking,
s1G6,00o ce0waa deducted from tho asseBuotl yslun
Of tho property in tho State outsiao OF CAioago,
md an equal amount added to tho tax rol]s OF
this city.
&. Tho next stop was to l,ava tho Auditor 1oyy
rate OF tax In excess Of villa. would be suta-
cent to produce tho legal revenue OF the Rtate.
III ordor to hayo o surplus Of u million or more
to pay Tho interest OIL those awlnlling bonds,
q. Then came tho double explosion, first, the
decision by tho Supreme Court, that al the
municipal bonds iaauel to the Ottawa o.
'sogo l. Fox River valloy Hallway wo1o
void al 1nitio; and second, Judge Tlptou'a
aba nnl fearlcgu exposure Of tho dishonesty
III tho ,nauagcmout Of tho Gilman, Clinton l.
Spriugtsald Eatlroad. Ils nauagors, who wore
trusteos administering > trust fund for tho