The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1876-03-31
THE ONLY HONESTz. DEMO
CRAT Is A FRAUD.

THE ONLY HONEST. DEMO
CRAT IL A FRAUD.
How Gov. Hendricks, of EndI.
8WIndIed hIS Fellow Stock
holders.
dents.
From the Cincinnati GAzette.l
INDIANAPOLIS, March IA
succeeded in finding Gen. McGin-
nis-whO is esteemed a man of
truth and veracity, and is very
generally respected by the citizens
of Indianapolis-and explained to
him that in writing Of Mr.. Hen
bricks l had remarked that he was
"honest," on account of which
several Democrats and RepubIi-
cans had said 1 was not posted,
and had referred me to him for
proof of my Ignorance. Now,
would he be kind enough to IN
form me whether 1 was right or
wrong? "Well, should say, sir,
that you were wrong" he replied,
slowly, seeming to measure his
words as if still undecided wheth-
er to unbosom himself or not.
"But why do you think me in the
wrong?" I added. "Simply because
/ do not regard Gov. Hendricks as
an honest man." sOf course, you
have good reasons for regarding
him so, General?' I ventured to
suggest. Eyes, sir; to me they
are good reasons, and 1 think so
to everybody else who knows the
facts" "You have had personal
dealings with the governor, then?"
Eyes, sir; more than 1 desire to
have again. He was one of the
directors of the Water-works com
pany, which, ] claim, deliberately
swindled me out of $4,000, aud for
the recovery 1 have brought suit.
But it is TO another transaction
that referred when l remarked
that I did not regard him as an
honest man"
"What was that?" asked quick
ly, desiring TO keep the old gentle
man in talkative mood. at grew
out OF the sale of 100000 worth
Of water-works bonds. The facts
are these: In the fall OF 1870,
Harmon Woodruff and Judge Sell
den, of New York, came here for
the purpose Of organizing a water
works company. They owned the
Central canal, and put it in at
100000, which represented the
entire stock Of the company. To
inspire confidence and secure a
ready sale for their bonds, they
sought the cooperation of several
prominent citizens of Indianapolis.
Gov. Hendricks, William HendeF-
son, Delos Root, William Braden.
James Q. Woodruff and two or
three others whose names I do not
now recall, rallied to their assis
lance, and among them they dlvl-
ded $250,0O0 worth of stock"
Correspondent. "Did they give
them this stock outright"
Gen. Meg. ayes, gave it to
them, and they were made direc-
tors Of the company. Gov. Hen
bricks got $4,000 as his part
700 shares at $50 q share. It did
not cost HIM fsrthing. But, as /
was saying, the company was or
ganized and to raise money to
build the works bonds were issued,
based upon the canal, which rep
resents all the stock; 100000
worth of these bonds were issued
at first, and subsequently $4,000
more. Whether or not all of the
last issue were disposed of 1 am
not informed; but it is in connec-
ton with the sale of 100000 of
them that Gov. Hendricks homes
ty is shown up to good advantage.
These bonds Zone hundred 81, 900
8 per cent gold bearing bonds
were ordered by majority of the
directors to be sold to the Indian
apOlis Insurance Company bank,
of this city at 974 on the dollar.
The president OF the bank Mr..
William Henderson, and Governor
Hendricks, as directors, both vo-
ted for the sale. But before the
bank would purchase, it demanded
personal security that the interest
on the bonds would be paid. Mr..
Hendricks and four other direc-
tors became security, and then, as
majority of the board, voted
themselves $4,000 $4,000 each
for thus becoming security"
Cor. ain otner words, Mr..
Hendricks and the four other di-
rectors formed a ring and voted
themselves $4,000 for "ring" Sc
curing their own bonds"
Gen. Meg. Certainly. They
constituted a majority of the board
eff directors, and manipulated
things to suit themselves. But the
villainy is yet to come After the
bonds were secured and sold to the
bank 1T ninety-seven and q hall
cents, they were purchased by the
directors at par, ana resold to
themselves at seventy cents on the
dollar; the directors allowing them.
selves $4,000 commission for their
trouble in selling the bonds to
themselves.
- Cor. "Do you mean to say that
after selling these bonds to the
bank for ninety-seven and . hall
cents, and then repurchasing them
at par, that after this, the ring di
rectors,' as you call them, bought
them up for their own property a
seventy cents?"
! Gen. Meg. 81 mean to say JUS