The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1873-03-14
4 FLORIDA CREDIT MoBILIER.
The Jacksonville, Pensacola and mobil
Railroad Ring.

The Jacksonville, Pensacola and Mobile
Railroad Ring.
A letter from Attorney General VIM. A.
Cooke, of Florida, 10 the Governor Of that
State, gives an exposure OF stupendous
swindle which, 1t alleges, has been perpetrs.
ted by ring which has obtained the manage
ment of the Jacksonville, Pensacola and ho.
bile Railroad, and of the four million dollars
worth of Slate bonds, Issued some time ago
In aid OF the construction of that road. or
these bonds 1t appears that twenty-elgh: hum
dred were sold by 8. W. Hopkins Co., of
New York, who were appointed the financial
agents of the road. for 1890 which sum
was reduced, by the most exorbitaBt charges
for commission, &C., to $99s,s2O. Nor was this
latter amount allowed to be devoted to the
purposes for which the bonds were Issued,
some s6OO,OOO of 1t being alleged by the at
torney general to have been diverted 10 the
pa .ent of personal debts owed by the presi-
dent of the road, Milton S. Litueaeld. Twelve
hundred more OF these bonds were conveyed
TO F. n Flagg and G. L. Chase In trust, to be
spplled solely to the construction of the road,
and these parties, who were organized as
stock company under the name OF the "Flor-
ida Construction Company" have, according
10 the attorney general, sold the bonds and
pocketed the proceeds under the pretence ol
claim for labor and material OF which the
attorney general asserts that the railroad com.
pany was not properly chargeable with one
third. The letter concludes with the follow
Ing picture OF how the business Of the railroad
ia now conducted and the Interests of the State
cared for:
By the terms of the law under which the
Staie bopds were issued to the Pensacola and
Mobile Railroad, the road was to pay interest
To the State each six months, and tne Siate
was 10 pay interest to the bondholders. Tne
fund provided by law 10 pay suca lnteress Was var
to be derived from the net earnings OF tne
road. IL was asserted by the company t0at
when the road should be repaired, equipped,
and extended from Quincy 10 the river,
1twenty milee,) the earnings would be snth-
elent 10 pay interest on the $4,O00,000. Ihe
result has been otherwise. They nave not IN
creased; the road has been and is out OF re-
pair; the rolling stock mas run aown lt ana oeeI ~
destroyed by reason of the bad condltlon Oh
| the road. The expenses have oeen greai,
enormous salaries, utterly beyond the Dusl-
ness done, have been paid, and q large
amount of the earnings has oeen spent III M n,tl-
CATION and in improper and illegal ways; Ine
eYlra expenses which have been made oy tne
nacing of the road at various times ID hanos
| of RECEIVERS OF courts, could and should nave
been avoided. Owing 10 these causes DO IN
terest has been paid by the road to the STATE
TO enable It TO pay the interest on State bonds.
I am assured, however, that all the Interest
| commons up to this date have been cancelled.
| and that all will be delivered to the state.
regret, however, 10 learn that this result mas
been obtained by appropriatiDg money PAID
| for The bonds; that already sum OF between
s4O0 600 and $500. 900 has been spent Oh Inc
bond fund In that way.
I respectfully suggest that the legislature
should make provision Tor the protection OF
the interest of the State in the public work 1t
has loaned the credit Of the State to complete,
and to compel those who have fraudulenlly
possessed themselves OF money arising from
q sale of the bonds 10 refund 1t with interest;
to defeat the schemes that are on foot 10
work further wrong and iIjury to the slate'
and TO insure proper application OF the pro
cepds of lhe bonds and completion OF tne
imnortsnt enterprise itself, hat adyenluIer.s
be no longer allowed to make the sala puo,,SS ~
work means OF raising enormous sums esjl IL
money 10 be- dissipated with reckless plon''
gacy. WILLIAM af.nrney. General,