Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-07-29
From tine Chicago Tribune
One OfTiIden'S Reforms.

An Interesting leaf from the history OF
Mr.. Samuel J. Tilden. reformer, is fur
nished by the Hon. j. X. Edgerton, OF
Fort Wayne. Ind, late President of the
Grand Rapids & Indiana Roilroad Com
pany. a lifelong democrat. and one of the
most prominent capitalists of his State.
The particular reform to which it relates
is the reformation of that railroad COM
pany, and the account Mr.. Edgerton gave
of it was first published in the Fort Wayne
Sentinel, the democratic organ of that
city, in 1872, before Tilden was talked of
for the Presidency The Grand Rapids &
Indiana Railroad Company, it appears,
was organized in 1869, on the 1st of May
of which year the Continental Improve
ment Company, as it was called, contract
ed to build the road from Fort Wayne to
Traverse Bay, and furnish the equipment.
The Continental Improvement Company
was simply Credit Mobilier Ring organ
lied for swallowing up the bona fle stock
subscriptions, local subsidies, and all 9th
er available assets of the Railroad Com
pany. Samuel j. Tiden was interested
in the Continental improvement Company,
and. besides, was its confidential legal ad-
wiser, his Office as such being to invent and
engineer the legal contriyances without
which it is impossible for Credit Mo-
biler Ring to steal railroad.
This Credit Moblier Ring Of Mr.. Re
former Tilden's, with him as the legal en-
gineer of the steal, began operations by
procuring the issue to itself by the road
which was to be stolen of 81 ,2j0, 900 bonds
for the purpose of equipping the road,
which the Ring had already contracted to
do. That is. the Credit Mobiier Ring in
the railroad directory bestowed upon
themselves as gratuity this 81, $50 900.
As after this there still remained assets
OF the Railroad Company to be stolen, Mr.
Tildens Credit Mobilier Ring. with him
still as the legal engineer of its stealing,
proceeded Herewith. 1t made contract
with the Ring under the dummy name of
''R. ID. Barclay and his associates" by
which was to be given to him for complet
ing the road and equipment all the unap-
piled assets, including about 100000 of
city, county and private subsidy subscrip
tions,-enough to pay for the work &C
tually done by the Ring-$l, 100000 of
first mortgage bonds and majority of
81 600, 900 of the capital stock. To real
ize upon the plumber it was necessary that
these 81 800 900 of bonds should be made
marketable. This was effected by the
Ring through contract with the Pennsyl-
vania Company and other roads in the
same interest. BY this contract they guar.
anteed interest upon the 81 800 900 bonds,
and in return the Grand Rapids & Indiana
line was to be leased to them for ninety
nine years for practically nothing besides
payment the interest guaranteed. This
contract had to be ratified by the stock.
holders in the Grand Rapids & Indiana
Company. That ratification was secured
by voting over three-quarters of million
of stock, regularly pledged by the Ring,
rs collateral, and of course voted in the
Ring interest
The result of it was that Mr.. Tilden's
Credit Mobilicr Ring, investing only his
eminent legal abilities In engineering the
theft. did steal the road, transferred it to
the lessees. and for themselves secured
the 81 100000 guaranteed bonds, besides
what was realized out of the subsidy sub
scriptions. Such is the history of this re-
form operation of Mr.. Reformer Tilden,
as furnished by a leading democrat of I'M
impeachable character. As the demo-
cratic campaign, with deafenng din and
blare. is all for reform, and as it is boast
ed the reform promised is that of
which Tilden of himself is the pledge, this
chapter from his record as reformer is
valuable as indicating the quality of re-
form his election would guarantee.
A conference Of soft money men was held in
New Haven Wednesday. They took no positive
action, deciding to wait fer Tilden and Hendricks
to show their hand,