The sun. [volume] (New York [N.Y.]) 1833-1916, 1875-09-04
ROBERT W.MACKEY'S BRIBE
uoy THE PEOPLE or PENNSTLT1-
Nh IRE PLUNDERED.
. clear aud Instructive History Of the South-
crn Pennsylvania Iron ana Rnilrond Coi'-
,npv MIR. Treasurer Mackcy's Part Ia H..

put,pEtrIuA, Aug. 3l.-ln October last
Tur srN Illuminated some q the da'k transac-
don. If the Southern Pennsylvania Iron and
Railroad {. MT. ny. and disclosed the fact 81 {
Richmond l.. Jones. the little Cakes Ames OF
tbat corporation, had given n bride II $4,000 to
Robert w. Mackey. Treasurer of the state Of
Pennsylvania, to secure the deposit OF large
,um. " the sinking fund moneys with certain
bank In Reading, Pa, and that he might there
by borrow the same to sustain the waning for
tunes u his company This. however, was hut
one " the many things which have been revealed
during the successive stages of the case Of Rice
Of al. AIT. the Southern Pennsylvania Iron and
Railroad Comp ny ct al. \ complete exposure
Of the "bottom facts Of this case viii reveal
the true inwardness Of Pennsylvania politics as
well as Of the Pennsylvania Railroad COMPANY
Richard l.. Jones is the son Of the Hon. j.
Clancy Jones Of Bcrks county, who ". many
years ago somewhat prominent rs a Democratic
politician In this State. The young Nr. Jones Is
aman Of tair ability Gne presence ana engaging
manners. He WIS elected to the lower mousse OF
the LEGISLATURE from Bcrks county In 1865 and
served three terms. During his first term he dis
PLAYED commendablo zeal In behalf Of the in
tercsts of the Commonwealth; but nc could not
resist the blandi .hmenis II the lobbyists and he
fell fruu his nigh estate
o. relieve the Pennsylvania and the Philadelphia
and Erie Railroad comp MES ~ all their ohliga-
tons g. the state for tne payment Of the pur-
chase money for the public works. which had
bepu sold tO them In ~, and 1855. bV eNVhaug-
ing bonds Of those corporations then In the
eiukiuv fund Tor tho securities 81 n half dozen
yaiiroads Intended a. feeders 10 the Pcnnsvi-
Viua Railroads main line. Tho initial step
toward the contamination 81 this fraud was
taken in lSN when she S35oO,W0 II the bonds Of
the philudcluhia and Erie company were taken
from the sinking fund aud exchanged FOR the
second mortgage bonds II the Allegheny Valley
great "nnc-milnon steal" which was e. forever
relieve the PENNSYLVANIA Railroad from the pay
mpnt OF the purchase money Of the main line Of
public WORKS M distribute the bonds 81 that
company, which the state held az security for
the faithful performance Of rs contract, along
with those q the Allegheny Valley road. TO tour
unknown cOrnprations, was successfully carried
through the Legislature, hut failed through the
veto OF GOV. Gcary.
GETTING READY ron BUSINESS.
One Of the projects which the PENNSYLVANIA
Railroad mad then In view was the construction
Of what was known as the Connellsville and
CURED the repeal of the charter OF the Pitts
burgh and Conceivable Railroad Company.
which was controlled bv the Baltimore and
Ono. and 1t proposed TO substitute for the
former a road starting at Conceivable In ia.
yette county. and running through lmerset.
with the Cumberland Valley road at or near
Chamherburg, In franklin county. Along the
line OF this proposed road ia Franklin county
there u one OF the largest ara most N1lu bic
deposits OF fossil and hemHtitc IRON ores in the
The Iuscarnfa Mountain, several ID inbred itet
above the valley, with only two r. three feet q
earth covering IT, and il o. ore than two huhdted
feet deep. These ores yield nearly % per cent.
Of pure iron. and the great abundance ~ wood
IN this locality makes the prudu 'tiun u che best
charcoal iron wonderfully chcao.
One of the finest bodies OF these ore land VA.
owned 10y Daniel V. AM and bis brothers. Ihad
Stevens iron works, winch were q. rovcd ny
Gen. Early In 1863, were IN tins neishborhood.
Ia 1861 MIR. Stevens obtained charter from the
pennsylv MIA Legislature for the Caledonia iron,
Land lksllF mt MD
for the purpose Of rebuilding his iron works and
developing hese rch ore lands. lie sutscribcd
LARGELY himself, and his friends. the Ahls among
the rest took considerable stock. Mr.. stevens
died in 1862, and the project WAS temporarily
hohhnnheu. some OF ihe prlhclp u managers OF
the fennsylVanla Railroad, confident OF their
AGILITY to carry out the schemes above referred
90 tor the division OF the sinkiac fund moneys
and the construction Of the COnnellsville and
Southern PENNSYLVANIA Railroad. determined H.
1865 TO gobhle up IN advance large slice Of the
guscarora ore lands. Richmond l.. Jones. then
In tue Legislature, was the uan selected To carry
out THIS scheme. lie began negotiations with
Daniel V. Ali Tor the purchase of what was
known az the Mount Pleasan, Furnace pro perty.
when incluced about 5,tOO acres OF valuable
mineral lands near Cowan'. Gan. along the rus
ourura Mountain. He represented that he was
backed by men Of large means in Philadelphia.
who were DESTROYS OF being unknown IN the
Transaction. All. who ~ supplemented, in
exp rienccd cOuntryman, entered heatttis into
the ~ OF Jones, who gave him to understand
In the suictest confidence that
BILL KEMDLE ADDITION, DIVISION, SILENCE
feasibility Of OUtaiuing control ~ the taledouia
Iron, Land, and Railroad Comp iuy's CHARTER nd
organizing under IL corporation for the de-
velupment of the Mount Pheasant property was
Iuggts ed. and Jones at once Instructed Aul u
obtain "A trausfef Of all the stock whicl had been
subscribed by Stevens and his friends. IN :
was done and the new company otg .ui2ed a
majority Of Jones's friends were made directors
anu his ltther in-ldW President. anu the stock
of the old company was transferred without
consideration to him. Jones procured "a sup
Elementary act Of Assembly changing TIE name
l.
vanin Iron and Railroad COmDany. He a.reed
with Ali to purchase the Mount Pleasant prom
erty, and win the company To OIild a railroad
from point On the Cumberland Valley road
W the Mount Pleasant Furnace. lie was
TO pay AN s2DutO, $1,000 ia cash. SlHWU
Ia the bonds Of the company. und Slei.OuU Of
the plial stock Of the same. lie was 20 build
the railroad for S@juOJ per mile, and ne COM
pahi Mas To pay MN WIN IT. ur-t moftg re
bonds aud capital stock. lhe road was about
tweniy-Nc miles long, ana he capital stock was
u De- Sutj,JD aud d. u mortgage bonds to like
amount were To Toe issued. On December :,
le6g' All conveyed by deed jOo1 acre Of lind 10
The comp ny for confederation of slSlNN To
Dc secured py judgment bond OF SJOsU, uus
Nav l. lo'u, aud a common Judg men, BONA Tor
DC aNhn ny pad thereon, .nd. ia tue event Of
laillr", tine right Was given ann To- enter uuon
We W. 'l'riy, sedues'rate y. and use ths machine
eN on the ronpany md all of itr AZ pHance. for
w0lk.As the mines until the full amount Of
tlhDo WITH Interest thereon was aid Tins
agreement tontdiued the fuuuer provision that
mount M Hen To the bond for Si}lo0J, held 10y
AHl' anu ne was 10 Dave m addition a Ike
amount II capital stock. On the 9ith Of Deccnl-
Der the directors Of the company resolved To-
Issue tt-JtVJ y hrst mortgage boud-, pA,abie
to Edgar Thomson, PRECEDENT OF the Penn
syvania Railroad Complny and freurrick
Mash, President Of the Cumberlaud Valley
Railroad, which were secured los mortgage ON
the railroad. it, rights and franchises, and the
property purchased from ALL.
SHARP PRACTICE FROM THE START.
H. the spring Of 1870 Jones began work on the
railroad, and It Is a significant fact that the sur
Veys made by the Pennsy wanna Railroad Com
pany for the Connellsyllle ana southern pern.
syvania Railroad were used by Jlnes's cngi-
neets IN the location Of their line 4 ON the Cum
beiland Valley Road TO Mount Pleasant Fur
pace An arrangement was made. under reso.
luton adopted by Jones's Board Of Directors,
March 10, 1870, whereby Chircs L. Yerke-, Jr.,
OF Philadelphia the same person VINO was eni-
ployed by Mackey and Hdrtranft 70 speculate
Tor them with the 81 money IN oil stock -
WAS to advance money TO the COMPANY until Il
could realize on i.s lrst mortgage bonds. An
agreement had been made, through the
Cumberland Valley Railroad Company was to
bonds Of the Southern Pennsj lvanin Iron md
lerkes TO advance money was merely tempo
TaTy, in order to enable n1c4 TO carry on his
operations until this money could bc obtained.
The judgment bond for 5000, which had
been given ALL ls part of the consideration tor
his property. Tell due on the lst OF MAY, 1870
and was not paid. Ali demanded his money.
laTH InE