New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-07-23
TILDEN'S RECORD.

SS~~
Or tLer dear lives 90 for Dausht
TILDEN'S RECORD.
The Bomb that the Republicans Hold il
demonstrating Revelations Coz
corning Another ROad-Ast0undiEI
Discoveries by a htockhOiters' Con,
E,ittee-CorporatiOn Counsel Whitney,
Astonishing Revelations.
The following article appeared in tn
New York Express, leading Democratic
organ, June "a, 1876, with the heading q
given above:
The revelations already published i,
these coluu ns regarding Governor Tilden'
operations IS railroad lawyer, do not, by
any mesrs, comprehend all that is charged
against him, and is intended to be useC
against the Democratic party, should he bt
its nominee for the presidency during The
coming campaign. For the second Chapte,
which the party will be called upon to de
lend the enemy has selected the construc
ton and lease Of the Belleville and South
ern Illinois railroad, the particulars OF
which demand just az much ventilation
and explanation as any Of the other rail
has been engaged. 1t will not be out OF
place, however, previous to laying the
facts in this case before the reader, to pro
duce some additional evidence in support Of
the allegations already set forth, in the
case of the St. Louie, Alton and Terre
Haute road.
On May y, 1873, the stock holders of the
St. Louis, Alton and Terre Haute railroad
appointed a committee TO 60 to St. Louis to
attend the annual meeting, and to ascertain
the condition Of the company, and procure
,oh o<ho tv,{n ,vIH H. Co. Il.
interest OF the stockholders. This commit.
tee took with them, as their counsel, a rls-
ing member of the legal profession. Mr.
William c. Whitney, now corporation cOun-
sci OF the city of New York This commit
tee claimed TO have cast in the election for
directors a majority of the votes legally
polled; but some of Mr.. Tilden's associates
in the company voted on proxies in some
cases eight years old, and in one instance
attempted to vote on the proxy of a dead
bondhoider. The inspectors of election de-
cided against the ccntesting stockholders,
and the old board reelected their favorites
On this. Mr.. Whitney asked to be heard be-
fore the board, and, being granted hear
ing, made scathiDg speech. The commit
tee finally returned to New York and made
a report to the stockholders, drafted by
Mr.. Whitney. The official copy of this doc
ument bears the signatures Of the commit.
tee, with that of w. G. Whitney. counsel to
the committee. From this report we take
the following extracts. which tell their own
story:
ILLEGAL ISSUE OF BONDS.
The next matter to which the attention of
the board was called was the question
whether there has not been an illegal issue
OF portion of the bonded indebtedness of
this company, matter which is connected
with the relations between the corporation
and the purchasing committee under the
in 1861 and 1862 In that
connection We called their attention to the
undisputed facts:
'First-Tbe road was organized in 1861
and 1862, in accordance with certain laws
which permitted the creditors and stock
holders OF a railroad corporation to enter
into an agreement for reorganization or
capitalization, providing for the purchase
Of the property by trustees for them, and
the forming OF new corporation in which
the old stock and the old debts should be
represented by new stock and new bonded
which new stock and new
bonded indebtedness should be distributed
according to the terms Of the agreement
for reorganization by the trustees. i. e., the
committee. The agreement was
make, the road was purchased under the
agreement and new securities were dis
,ributed.
''Second-The laws provided that within
Xix months after the organization of the
lew company, all claims which, under the
avs Of the agreement, were to be satisfied
~ the mortage bonds of the new company,
must be put in, and at that time-nsmely,
lpOn the expirs ton Of the six months-it
uch claims were not properly made upon
he new comDanv-if the old bonds and
oupons were no: surrendered at that time
hey ceased to be claims thereafter upon
he property.
SIN June, 1862, the certificate of incor-
'oration of the new company was filed, and |
q that month the property passed into the
possession Of the new corporation, out of |
he hands of Mr.. Azariah C. Flagg, the |
rustee, who had been in possession OF the |!
property for considerable time. by virtue /
f the provisions Of some previous mort
ages which were taken up by the new
rganizatiOn.
''Third-Some time in the year 1868,
lore than six. months after the organiza-
ion OF the new company, Mr.. Flagg made
nd printed report, showing in detail the
of the securities of the new
and, after including every
hing that was q claim to be satisfied by |
lortgage bonds of the new company, and
II the expenses of the reorganization, in
luding $4,000 to Mr.. Bayard as chairman
the purchasing committee, and $3.50 to
[r. Charles Butler, each for three years
,rvice, and 81 900 to Mr.. Samuel j. Til
EN- as counsel and trustee, these payments
eng made in cash, he states as follows:
1t is seen by the preceding statements
lat the trust mortgages under which the |
rst and second bonds are issued, authoriz-
g the creation Of new debt equal to 1884,
- 10 beyond the basis furnished by the
d bonds, coupons, and 90 forth. as al
lady set forth.
That is to say, in issuing the new seourl-
30 they had very prudently allowed for q
'operly required, which margin, after the
counts were all made up, seems to have |
zen this sum Of $2S4,7l3 TO-"
In point of fact, erything which, bv |
q terms OF the agreement of reorganiza-
IN, was constituted claim upon the new
'nds seems to be covered in this account.
point OF law, it was not within the power
the purchasing committee to create new |
Utilities for which these bonds should be-
me- responsible, inasmuch as the time al
we'd by law for the presentation of claims
these bonds had expired. And at this
ne, when, in point of fact, everything
ems to have been in, and when, in point Of I
W, no new claims could be created upon =
Q new bonds, when the purchasing COM :
ttee had been compensated for their SER a
ces, the final settlement had been made | \
tn the counsel and the printed pamphlet =
10 put out, containing the whole history Y
the reorganization and the full statement !,
detail of the accounts Of the purchasing h
mmittee, this surplus of bonds is ac- a
owledged in the hands of the purchasing ! g
mmittee. These bonds, it is apparent, j,
ould at that time have been Cancelled or h
iced in DOeeeseiOn OF the new eOrnOra- |
n for their use, since the limit of the
wer of the purchasing committee to dis.
rse them was contained in the reorgan- a
,g agreement by virtue of which they Il