The Findlay Jeffersonian. [volume] (Findlay, Hancock County, Ohio) 1870-1881, 1876-07-14
A FEW LEAVES FROM HISTORY As
RECORDED IN DEMOCRATIC
NEWSPAPERS.

NEWSPAPERS.
From the New York Express, (Democrat).
The Rockville Valley Union Railroad
was intended to run from Chicago into
Wisconsin. a charter was obtained,
bonds issued and exchanged in England
for railroad iron, the same shipped to
Chicago, and some of it sold To pay the
expenses of the charter and provide
means for grading the track. The road
was finally foreclosed, and out of the
foreclosure grew another company, en-
titled the Chicago, Fon du Lac and St.
Paul Railroad. This company had for
its President prominent gentleman,
and It's cars we're running over about
sixty miles of track when Il second col
lapse took place.
ENTER SAMUEL J. TILDEN.
This was about 1857, and in those
davs railroad companies obtained large
amounts of money from the Eastern
banks, the officers or directors indorsing
the company's paper. The President of
the Chicago, Fon du Lac and st. Paul
Railroad had indorsed heavily for the
company, and was a large owner of real
estate in Chicago. In the dilemma in
which he found himself he engaged Mr..
Samuel j. Tilden rs counsel. The Pres
ident had taken the precaution to secure
himself by taking the railroad company's
bonds rs collateral. The question of
usury was raised and a compromise sug-
gested of exchanging real estate IN
Chicago, at high valuation, for bonds
and stock of the road at par. Unsecured
creditors of the company were offered
common stock for 60 per cent. of the
claims, while the said stock was worth in
the market about ID per cent. Of It's par
value. Another reorganization" then
took place, under the title Of the
CHICAGO & NORTHWESTERN RAILWAY,
with William P. Ogden as President and
Samuel J. Tilden as Trustee for the
bondholders. The usual watering pro-
cess took place. and the company was
saddled with bonds and stock Of about
$4,000 per mile. The company had Il
hard time with its load of debt, and
struggled along until 1868, when Tilden
d Co. saw that something must be done,
and, in casting about, set their eyes upon
the
GALENA & CHICAGO UNION RAILROAD,
which was then running from Chicago
to the Mississippi River. 1t was the
first railroad in the West, having been
chartered in 1886. That company had
never watered its stock, and seldom, if
ever, failed TO declare an annual dividend
of from 6 to 10 per cent. In 1864 ii had
some 500 miles of road in perfect order,
ON which was based mortgage debt of
about $4,000 per mile, and 4 stock issue
of but 10000 per mile. Its net earn
ingS for 1868 were over S1y0O0000, and
il had about that sum in cash in its
treasury as working capital. Its stock
was largely held b. those living along its
line, and was looked upon as Il fIvorite
investment for trust funds involving the
estates of widows and orphans. Stock
was bought and borrowed, proxies Sc
cured. and finally Tilden Il Co manipu-
lated SO that they had majority. and
obtained possession of the property
when it was consolidated with the
Chicago & Northwestern.
TIE KENosHA AND ROCKFORD RAILROAD
The consolidation paid so well that
some cheap railroad properties which
might be consolidated at a high price
into the new organization were hunted
up. Among such properties the Keno
sha & Rockford Railroad, 73 miles in
length, which did not pay. was selected,
and was, rs detailed in the petition of
Julius Wadsworth TO the United States
Court for the Northern District of Hi
nois. bought for 100000 and consolidated
for S1.400000.
IMPORTANT CHARGES AGAINST GOV. TILDEN.
The case of the consolidation of the
Galena K Chicago. Union & KenOSha, and
Rockford Roads with the Chicago &
Northwestern, Is completely set forward
in the following complaint of the Hon.
Julius Wadsworth, who was a Trustee
for the original Galena bondholders, and
also acted for the stockholders:
Your orator further represents that
the said Samuel J. Iilden, of New York,
and others to your orator unknown, con-
certed together, operating through Mr..
Crokers of New York City. procured
the proxies of a large number of the
shareholders for the election of Directors
of said Galena & Chicago Railroad Com
many that it was on
The dav of the stockholders meeting sud
denly presented by VIM. b. Ogden, and
those persons above mentioned acting
with him. and voted upon in a viva vOce
manner by proxy, and, without any
notice to your orator, and great num-
Der of the shareholders, representing
nearly two millions Of money, declared
passed.
"Your orator represents that sad Cal
ena & Chicago Union Railroad was the
first railroad which WAS constructed
leading to and from Chicago, and the
first of any importance whatever that
was constructed in the State of Illinois /;
that said railroad corporation had been
for many wears so managed and control
led that it had acquired a great reputa-
ton for trustworthiness throughout the
United States and Europe, and its stock
and bonds were purchased and held as a
most reliable, safe and permanent in
vestment by various parties throughout
the United States and Europe.
NIts gross earnings per mile for the
fiscal year 1868, ending December 81.
1868, were eight thousand eight hundred
onJ aiobt dollars and fortv-fUo cents nor