The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1876-10-14

SORT 10 come as soon As the Democratic
party are in power, and already enabling
Of Congress to give the rebel claimants 9
clear road into the Treasury. By the way,
do you notice what fat farm that was?
WORKINGMEN, READ.
How Samuel J. Tilden Ruined a Penn
! sylvanin Town.
| Correspondence New York Times.l
BRADY'S BEND, Pa, Oct. Fifteen
years ago, Brady's Bend, in Clarion Coun-
ty, Pa, was one Of the most prosperous
and promising towns in the Allegheny VAL
ley. At that time, the extensive mills,
mines Of the Brady's Bend Iron Company,
conducted by honest and competent man
ayers, gave employment to upward of l, 500
wOrkmen, and comfortable support to a
cOntented population of more than ZOO
persons. The pay-rolls of the iron COM
Pany show that 500, 900 month passed into
the hands of its wOrkmen, and found cur
| rency in the ncighborhood. The farmers
for miles around found at the Bend a ready
market for their produce, and the lively lit
tie village was filed with thriving trades
people. Most Of the mine-laborers and
iron-workers were men Of family, and from
the good wages which were paid them
/
sums. Many Of them owned their
own little houses and few acres Of ground,
and all of them seemed to be in fair
way to independence. This was the con !.
ditiOn Of affairs in 1862. At that time, how
| ever, for reasons which l need not now eX-
plain, the owners of the mills desired to
dispose of their property. Hearing of this,
| MIR. William 3. Ogden, then of Chicago,
went to the Bend, examined the works, and !,
after doing SO, said to Mr.. FL. A. s. D..
Dudley, an honest gentleman who was at
| that time their Superintendent, ''If could
get Sam Tilden into the speculation, I am
sure could make it pay; but l am afraid he
won't take up so small a matter. His re-
| tanning fees are now at least $60, 900 a year. !"
Regarding the retaining fees Mr.. Ogden
doubtless spoke authOritatively, fer he was
the Receiver of the Pittsburgh, Fort Wayne
| and Chicago Railroad Company, was warm
personal friend of Mr.. Tilden, and knew
all about that gentleman's many railroad
schemes.
In one respect, however, he was mistak-
en-. The Brady's Bend speculation was not
despised by Mr.. Tilden. On the contrary,
| as Mr.. Ogden's agent and counsel, he visit
| ed the irOn. works, ''saw money in them, -
and advised their purchase. They were se-
| cured for the ridiculously low sum of $3.50, :
600. The owners were embarrassed and
had to make a sacrifice.
After the necessary preliminaries had
| been gone through with, it was decided that
| only by the formation of a stock company
could profit be made out Of the work. A
stock company was consequently formed,
cipal Director. The capital stock was
placed at 500, 200, and one-half of that sum
was understood to be working capital. Mr..
Dudley, Of whom / have already spoken,
| continued to act as Superintendent, and
under bis management the prosperity Of the
| works increased to such an extent that, dur
| ing the first year of its existence, the new
company realized profit of over 500, 900.
His share Of this sum was not enough for
MIR. Tilden, however; and, as he did not in
tend to continue in the company, he DELHI.
| erately set to work to bring about its ruin,
and make fortune for himself and his
friends, his first move was to issue $5OO, 900
OF tirst-mOrtgage bonds. This was done in
spite Of the determined protest of Mr.. Dud-
ley, and every other true friend Of the works
who knew what was going on. The new
bonds were ostensibly disposed Of at so cents
on the dollar, but were really distributed
privately among certain of Mr.. Tilden's
friends in the company. The interest on
these bonds was made first charge
prosperity Of the works continued,
Tilden & Co. were for time content.
1t soon became apparent to the shrewd
lawyer, however, that crash must shortly
come, and, not being satisfied with the hand
some profit which he had already realized,
he decided upon more extensive operations
He and his friends held enough Of the stock
to control the company, and it was decided
that new issue Of bonds must be made.
The sum suggested was $500, 600, and as the
capital stock did not exceed that amount,
and did not seem sufficient basis for a
bonded Indebtedness Of 81 600 900, the stock
was watered up to $1,000, 900. Then,
hn fr,rf har vav. - T..
second. mortgage bonds were issued to the
amount Of IS, OOO, 600; and that gentleman
Indignantly resigned the position Of Super.
intendent and broke off all connection with
the works. The second-mortgage bonds
were nearly all secured by the conspirators
they can be called nothing else-and the
watered and valueiess stock was disposed Of
to all those who were foolish enough to buy.
OF course, these transactions of the man
who has recently christened himself "the
Great RefOrmer were not known to the
public, and the apparent prosperity of the
works, and the expressed desire to increase
their capacity. were advanced as excuses
fer the issue of the bonds. The wOrkmen
and mine.laborers had unbOunded cent?
dence in the sOlvency and good faith Of Mr..
Tilden's company, and many of them in
vested their little savings in its paper.
Mr.. Dudley's retirement was considered
a misfortune by the little community; but
Mr.. John Haines, who succeeded him, and
who still lives here, soon gained the good
will OF the men, and inspired the same con-
hdence that had been enjoyed by Dudley.
After time, however, it became apparent
to the new superintendent that it would be
impossible for the works to pay the interest
on 81 600 600 Of bonds and dividend on
$2,VO, 600 of stock, and he also quietly with.
drew. Shortly after his retirement the Til
den bubble burst, and the public became
aware that the Brady's Bend Iron Company
was ruined concern. Before this, how.
ever, the Great Reformer' and his init.
mates had disposed Of all their stock, retain.
ing only part of the first mortgage bonds,
They, therefore. appeared after the crash in
the position Of creditors, rather than debt
ors.
As it is, perhaps, unnecessary to state,
the victims in most Of Mr.. Tiden's railroad
"OperatiOns, - or at least those for which
he has become notorious all over the coun.
try, were capitalists and men of business.
The results Of his duplicity and greed in the
Brady,s Bend case, on the other hand, were
most disastrous to poor men and women
who had to work hard for their daily bread.
When, because Of his manipulation, the iron
works suspended, hundreds of men, WON.
en- and children were left penniless, without
work, and without the means TO get to
places where employment might be found. |
Indeed, many Of the poor people were I'M
able to leave the Bend for months after the
closing OF the shops, and their sufferings |
are described rs having been terrible. Their |
savings, the results Of years Of labor, were |
either in the hands of Tilden & Co,
or sunk in the houses in which |
they lived. and the latter, though giving |
shelter, did not satisfy the hunger of their |
children. The whole town was dependent |
upon networks for support, and when they |
closed property Of all kinds became drug
in the market: For this reason the people |
who owned houses could not sell them at |
any price. To-day Brady's Bend is little |
better than wilderness. The long lire of |
massive workshops is falling into decay,
and the cottages of the once prosperous |
wOrkmen are closed and silent. The win