The St. Cloud journal. [volume] (St. Cloud, Minn.) 1866-1876, 1875-05-06

Il Weetjen, Kerkhoven & Co., Tutein,
Nolthenius 4 DeHaan, Warfbain &
Son, H. G. Voorhoeve & Co., and
Johan Carp. This Ring scattered
them into the hands of many small
bankers and brokers throughout IIol-
land, Germany, France and Austria,
and they in turn sold them to the
really honest men Of those countries.
These men, as j. S. Kennedy & Co.,
say in their letter Of February 3,
1873, to the Legislature, were "near-
ly all persons Of moderate circum-
stances-small farmers and trades
people, who believed they were in
vesting their savings in a reliable
American enterprise" Now while
these sales were running at their
highest, the machine broke down
s'sep !-or, as J. s. Kennedy & Co.,
the New York lawyers, say in their
letter, "that when 81, 100000 had
been sold as above, and when Lip
man, Rosenthal & Co. had advanced
100000 on collateral security of
100000, and on which 100000
had been paid over to the railroad
company, the enterprise fell into DIS
trust in Holland"
Right here Jet me raise the query
as to who made these men Of small
means believe that this was "relia-
bic American security" and who Gre
ated the feeling which all at once
"caused this enterprise to taN into disrc-
pete IN HoNand" Who had any OBJ
ject to gain in doing it? Could
any one in this country haye who de-
sired to see the roads finished?
Well, the money stopped and work
stopped, and from July LIST, 1872,
until August LIST, 1873, nothing was
done except that DeGraff & Co. went
on and worked three months without
any pay and for which pay they are
still waiting. During the above
named thirteen months this Dutch
Ring were operating to increase the
feeling Of dsstrust and were planning
for the future, with the following re-
suit: In June and July, 1873, with
out any consultation with American
bondholders, they called meetings Of
bondholders in Holland, and under
the influence Of certain representa-
tons induced said bondholders, or a
large number Of them, to appoint a
"Committee," which Committee so ap-
pointed should take charge Of all mat
tiers appertaining to said bonds, and
if necessary, foreclose any or all
mortgages on the same in which said
bondholders were interested, and to
more particularly see to it that such
means should be taken as would
cause the St. Vincent and Brainerd
Extensions to be finished within the
time required by the Act of Congress,
to-wit by December Sd, 1873. The
Committee so appointed consisted Of
the seven banking firms heretofore
named-the very firms which had
placed these bonds on the market and
paved the way for their sale to the
Dutch public who found themselves,
according to Kennedy & Co., after
wards so badly deceived. The bond.
holders, in appointing this Commit
tee and in binding themselves to sus-
tain their action in the premises; en-.
tered into an agreement by which
they surrendered to the Committee their
bonds and consented that said bonds
should be charged with a pro-rata
share of all the expenses of the Com.
mite that might be incurred in con-
nection with these suits. For the
bonds so surrendered the Committee
issued to the owner a certificate of sur
render, stating therein that the bonds
were so liable for costs and expenses
and we're to be held by the Commit
tee until all was settled.
! Under this arrangement about two
thirds of the Holland bondholders
haye given up their bonds to the
Committee, and most of these are the
small holders, 'the farmers and trades
people"-the large holders not enter
ing into the scheme.
| This Committee, in July, 1873,
commenced suit before Judge Dill
lon, Of the United States Court, and
applied for the appointment of a Re-
ceiver, setting forth to the court that
if such Receiver was appointed the
bondholders would Immediately raise
the money with which to complete
the Extension Lines. Right here, in
my opinion, plain and palpable
fraud was perpetrated by this Com
mittee on the court, on the people of
Minnesota, and on the bondholders.
The Committee knew that these bond
| holders would not, and could not,
raise any more money; the class that
surrendered their bonds had no more
money to invest what they wanted
was to sell their bonds, and from the
representations made they were given
to believe that it was only necessary
for the Committee to act, and the
roads would be finished and the bonds
60 up to par.
| Deluded Dutchmen! and deluded