Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1874-07-30

bled, ana the company 5 treasury filed.
The revenues were 50 large it seemed
pity the Government should share
them. But as a stockholler. the Gov
eminent WAS entitled to nearly one
third of the net revenues. The Grow
ernment was not represented in the
management of the company. That
was governed by five directors, each of
whom was It c'lholIer. Those di-
ractors conclu led they colll make a
/ h tier use of the revenues than to d.
vide them with the Government. To
that end they resolve the clnul ought
to be ma lie free. In order tint it
m rht become free it was resolve that
the net revenues shnaii be apple 70
the purchase of the prigu stock.
Having foand a market for the stock.
there was nothing left bnt 70 fix the
price OF it. That WIS mo lestly set by
the directors at only fifty per cent.
premium.
Kentucky sanctioned the arrange
N ant; the Uoitel States was not con
saIted. B 1t it was evident that if
the earnings which belonged tn the
United States were appropriated 10
purchase private stock, the Unite
States would soon own majority Of
the stock. To avoid slch Il c,tlSrro-
phe, kentucky required the directors
to pay for the stock with Government
fan Is. but to have the stock trtnsfer-
rel TO the ijrectors, who should holi
it in trust for the Unitel States, bas
vote on it as the legislation Of Ken
lucky required.
In pursuance of these directions. the
directors proceeded to apply the surplus
earning t. the purchase Of the private
stock Between 1872 and 1875 they
paid for such stock, Of the par value
Of 500, sec, the SAN IF S1.709, 36Z
Then the directors admitted that they
had receive enough, ami noti6el the
Secretary Of the Treasury they we're
ready 10 transfer the canal to the cas-
toIy Of the ''5isnerlI Government 81
soon as the Department may he pre-
pared to receive it Rut it happanal
that at the time the Secretary was a.
so a kentuckian lie evidently felt
that he could take some liberties with
his fIienia. lie accordingly replied
that Congress was not authorized the
acceptance, ''bat requested the presi-
dent and directors each to retain one
share, (for eligibility, } ana to manage
it under the charter until authority
might by law be conferred on the De-
partment to receive it, The presi-
dent anil directors very promptly ne
ceeded to that re1HeSt. 1t should be
noticed that the conduct OF tie tecre-
tary exhibits an instance Of Difference
to legislative authority on tle part of
L high executive Off ;er which is be
ljcvel to BE quite unique lie could
not ieei free to take charge Of the ca.
MI himself, because Congress hal not
toll him to 10 50; occorltng.y he
goge II ~ Ills tr,emlS. &uch exhihi
tiona Of scrupulous regard for the limits
~ III i'Nttiit i'il CtiC SCtAtbl W SScAi.
1t is grltifyin. to know that this one
was duly rewarlad When the distin
@aishel SECRETARY retired from the
Treasury he gas male president Of tie
ca,o5 compory
OF the subsequent management. it
is only necessary to state that the Ai-
ractors at once telncel the rate Of tolls
fifty per cent. ANA as the canal WIS
only two miles long, and there were
only five directors they could manage
to spend for their own salaries anj
that of their assistants bat S44. 012
per annum, to which they added go.
600 for contingencies consequently
the revenues accum dated in the treas
ury Of the company 70 mike that
money useful, the directors organized
themselves into savings bark, and
then the canal company deposited
their surplus with thu banking compa
ny II the LITTER receiv.l as much
t1r the use of the revenues a the
former did for collecting, they OF sht
- nave btGi CjhjCui. DllU dNfalcc
rarely is content This anomalous
corporation, with one body. one heal.
but two faces, was not content When
it was ascertajnel how profitable they
coul mike money derIveI frpm the
work they did not own. they desired
to get more money.
They hit upon the expedicnt of nv
pothco tting the canal ali raising mon
ey under pretense of enllrring it. In
1850 Congress authorized the direct
oFs, with the revenues AMI cje,i.is OF
the company, to enlarge the saiei c9nal.'
Under that act the company mort
gagged the work for some two millions
Of dullars and it is not ye5 known
whether the Government will be able
to recover it or not.
OTHER SPECIMENS OF DEMoCR Alto
RULE.
That party dill not overturn oar
land system, notwithstanding it wa, a
very good one. During the year 1S4l
the system WAS mach improved; that
must be confessed But the Demo.
cratic party was not in power that
year. We ought also gratefully TO re
member that the grants Of land made