Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-08-01
From the Baltimore American
Tiluen'S Reform Record.

Tiden's record as wildcat fnancer is engag-
ing attention in the West just now and the can
ddate who processes to be hard-money man is
dubbed "Shinplaster Sam" 1t appears that it
was the general practice among the mining COM
panies Of Northern Michigan to issue scrip, the
total issue being so large as to drive other curren-
cy from circulation. Tilden's Companies were
the Iron Cliff, which issued $4,552094 and the
New York. which issued $2,ll3, 666.66 of this
currency. This sort of paper money was kept in
circulation from 1868 to 1874, when some persons
were indicted for counterfeting it, and the Court
discharged them, on the ground that the currency
itself was fraudulent and illegal, and it was no
crime to counterfeit it. The revenue officers also
began TO look into the matter the tax upon bank
note circulation other than that of National Banks
being ten per cent. and for the twelve years dur
ing which the currency had been issued the tax
amounted to an enormous amount. On the night
OF March ID, 1879, however, a bill was smuggied
through Congress RENTING back taxes, so that
only one years payment was required. When
1lden holds forth upon the demoraliZng influence
OF paper money, be has practical experience in
abe manufacture Of shinplasters from which to OBJ
tain suggestions Is to the strong points upon which
to enlarge.
The operations of Tden as a railroad specula-
tor have been already to some extent ventilated
by the New York Express, democratic paper,
from whose account it appears that Tilden is an
operator of the Jay Gould species. A bill of com
plant filed in the United States District Court for
the Southern District Of New York, sets forth
Illdens method CT doing business in a way that
will strike the public mind very forcibly, especial
ly IN the West, where the popular temper is very
sensitive to railway mismanagement and colrup-
tons. 1t appears that the Terre Haute, Alton
and st. Louis Railroad Company became fnan-
cialy embarrassed and was about to be sold out
when a Ofr niz
was effected by which the road was to be pur-
chased, new corporation formed and the liabili-
ties OF the old organization were to be converted
into the securities Of the new. Tilden was chair
man of a committee of five to carry the plan into
effect. The issue of $40, $50, 900 of stock and
mortgage bonds was authorized for the payment
OF the purchase money and settlement Of claims.
Here came in the first cause of complaint. A
quarter of a million Of stock issued in excess
of the authorized amount, and is now outs, anding
part of the liabilities of the Company, and the
stockholders want to know who got it and where
it is.
But this is not all. The total claims against
the old company, for which first mortgage bonds
OF the new company were issued ut par, were
$2,045, 740 q. But Tilden and his committee is
sued to themselves ostensibly for this purpose
S2,2OO,oOO, leaving balance OF Sl54 $50 50 to be
accounted for. or the second mortgage bonds,
only S4,369, oS9 were required to take up sim
liar securities issued by the old company, but Til.
ton, which excess has never been accounted for.
The total number OF transactions Of the kind are
recapitulated in the concluding paragraph OF the
bill Of complaint. as follows:
And your orator further complains and AYERS
that the SAID defendants (Tilden and the purchas-
lag Committee) have not nor has either of them,
ever rendered TO your orator any account of the
herein before mentioned surplus of Sl54 900 first
mortgage bonds, $3.50. 600 second mortgage bonds
Si3l 200 preferred stock and $500, 900 common
STOCK, or any OF the stocks or bonds inIrusted to
them as me nbers of the said Purchasing Commit
tee, although your orator has repeatedly, by its
agents duly authorized, demanded such an &C
count put, on the contrary, your orator alleges
and AYERS that the said defendants, or some of
them, have refused TO render any such account,
or to give your orator any explanation of the man
ner IN winch, or the purpose for which. the said
bonds and stock were issued aud disposed Of; and
your orator charges that the said surplus bonds
and stock have been unia,efa2ty retained by and
dieided among tie said detendants, or issued and
disposed Of by them, in violation of their duty az
members of the said Purchasing Committee. and
OF the Board of Directors of the sand corpolaton.
complainant herein, and OF the trust and conf.
depce reposed in them as such and that the pe-
curiary liabilities and burdens of your orator
have been, thereby, unjustly and unnecessarily
increased to the amount of more than 81 900 600"
The statement is to the effect that Tllden and
his associates have abused trust in order to de-