, 1875-06-13
SUBStDtZING THE PRESS.
How To Float Worthless Rail-
road Securities.
The Rockford & Book Island Road
and the New York Papers.
Mr. Bowen Of "The Independent - &c.
cures $4,000.
How the Financial Writer'S Communicate
Their Wishes.


Tbs court record Of paper is generally passed
over By the ordinary render IS uninterostlng and
un1mportapt, and very often 1t is 80. D'scords
and chickering's are too common in everyday
life, and form too large part OF each mans ex-
pecieuco to need auy additions BY recitals of
others woes But sometimes there will be
found to be notable exceptions, and the fore
closure suit agaiust the Rockford, Rock Island d
St. Louis Railroad Company forms an example.
Here, amid the ciash1ug interests OF parties
whose claims involve over $40, ,0oo, 600, ss bit Of
testimouy-a tale pointed with moral-an
episode in the epic OF the lawsuit which Ia
worthy Of exception. Hore also is shown 4
glimpse Of tbs machinery by which new railroad
schemes are launched On thu smooth sea Of
favorable public opinion. Tho crost Walking
beam Of tho machinery Was
NH. H. Il. DooDT.
Treasurer. and also Director, Of the Rockford.
Rock leland l. st. Louis Railsohd Company in
its early days. who, though he WEE OF genius
to msxe the debit and credit sides Of hts &C.
counts balance by the ordinary rules OF book-
keeping, vas nevertheless acquainted with human
nature in the concrete. The motive power which
moved the mass WAS money in the shape Of bonds.
-now, crisp, cracking railroad bonds,-and the
wheels, as it wore, which gave the motion to the
vessel were- But ne prefer to allow Mr.
Docdy to tell it in his own words.
Some weeks ago reference to the Master in
Chapcery was made in the foreclosure suit OF
tue linton Trust Coupany IS. The Rockford,
Rock Island i st. Louis Noad for the purpose OF
aacertalning tue amount due under tfe trust
deed, the length and value Of the roed and fran
for her lutn
this o1uor
LARGE AMOUNT OF EVIDENCE
Eas taken, among which WAS tnas uf Mr.. Body,
whose testimony wns particularly accurate and
agent OF the Company. Mr.. Doody, after giving
al account OF the manner in which the Dun18
we're disposed OF By himself or his financial
agents, eays that, at the time tho drst-mortgage
for S., 00OUo0 was given, not mile OF road had
been constructed. o. 1t covered line proposed
to be built from Rockford, by way Of Sterling, to
near lock Island. aud through TO East Burling-
ton 10 properly actually owned by tho Company
being covered unless you can Bay that some pre-
ln,ilary surveys constituted property
Q.-What "aa dons after this mortgage wss
exc bodSn Of he osd oa mq
part, as the tlnanc;a1 agent Of the
contractors, took the bonds aud endeayored to
make market for them With some success.
The contractors got to work IN tho latter part Of
the suumcr Of 1868 on tho new grade. anti made
some contracts for se-t,es, End late lu the
season I made some coutraots for iron.
Mr. BoolY then stateB that after the bonds and
mortgage we're Issued, and rights had accrued,
THE PROPOSED LINE or THE ROAD w,As CHANGED
without the eousent OF the boaaholdors
line OF the rond]7 Why did they not follow the
old line Alt was found, by examination.
that, although Some Of the grade-work had been
executed. TINT which renamed to be done would
cost moro than the other line; another reason
waa that largor stock subscription could be OBJ
tanned On this l.ne than Oh the other.
This change OF the ruad has raised an i'm
portant question in the case, as Judge Drum
moud has decided, to the Intense disgust OF some
Of rte German boudholders, that the holders OF
the frst-morsgage bouds are entitled to prefer
ence or priority in payment, aud the ns1s ques-
ton is as to now much OF tho road ia covered by
the f1st-mortgage, its direction having beon ms
terially changed nfte1 the making OF tue mort
gage. Tho bonds, the witness further stated,
we're sold st varying prices, principally between
81 and 1U0 cents Oh the dollar. The examining
counsel then asked:
PLACING BONDS.
Q.-You Epo6e OF so1ne bonds being placed by
the Company or by yourself for tho purpose OF
siding their negotiation what did you mean By
that? Al mean that whoever endeAyors to
Rcter that MAS handling, must secure the aid OF
tho press in order 10 be successful. Il cannot
Ia so,oyr1,;nhaa without tha ;nAuapca ~ tha
% aeconipneueu M!Anous 10 .; '1uasuse ~ sne
is to be purchased.
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Company.
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