Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1876-04-25

money 10 puliu tnelr road. 1860, 1866 and 1857
passed without their getting dollar. Finally
towards the close of 1868, company of Boston
gentlemen, representing considerable capital, un-
dertook its construction. In raising the requisite
means they placed the bonds Of the road on the
New England market in the summer of 1869, of
fering them on terms which seemed very favora-
Bile to the purchaser, and offering them at q time
when investments of this kind were fatally popu-
lar.
In common with hundreds Of other people in
New England and other parts of the country
bought very large amount, paying for them at
precisely the same rate that others paid. never
heard and do not believe that the Little Rock Co.,
which know is controlled by highly honorable
men, ever parted with bond to any person ex-
cept at the regular price fixed Tor their sale.
The enterprise, though apparently very promis-
ing, proved unsuccessful, as did so many similar
projects about the same time. lost considera
bic sum OF money, over $4,000, by my invest.
mcnt, and presume New England made a net
loss Of over $500 900 in completing that road
for Arkansas as she lost over one hundred million.
west and south within the last II years.
In addition to my investment in the bonds,
united with some others in raising some money
for the company when it met its first financial
troubles. Proceedings are now pending in the L.
5. Circuit court in Ark, to which l am party of
record, for the reimbursement of the money
advanced
All The bonds ever purchased | continued to
hold, and when the company was rcorganzed in
1874 exchanged them for bonds and stock of the
new concern, which | still own. Ny whole con-
nection with the road has been as open as the day.
If there had been anything about it to conceal
should never have touched it. Whenever con-
cealment is dc. able, avoidance is advisable, and
do not know any better test to apply to the far
ness and honor of a business transaction. As to
the question of propriety involved in member of
Congress holding an investment of this kind. it
must be remembered that the lands were granted
to the State of Arkansas, and not to the railroad
company, and that the company derived its life,
franchise and value wholly from the State, and to
the State the company is amendable and answera-
BILE, and not in any sense to Congress.
Since | purchased the bonds, but act of
Congress has passed in any way touching the sub
ject, and that was merely to rectfy previous
mistake in legislation. | take it when any secur-
ity, from government bonds to town scrip, is Of
fered at public sale to anv any one who can pay
for it, every American citizen is free to buy it. Ii
you exclude Representative from it the
ground that IN some secondary or remote way the
legislation of Congress affected ormay affect the
value of the article, then you exclude every man
on this floor not only from holding government
bond or share in National bank, but also from
owning flock of sheep, or field of hemp, or a
tobacco plantation, or a cotton E!l, an iron
furnace, for all these interests vitality affected
by the tariff legislation on which we vote every
session, and Of which an important measure even
now is panGng in the committee of the whole. In
the intervening years since the Little Rock Il
Fort Smith bonds were placed on the market |
know few investments that have not been more
affected by the legislation of Congress.
But this case does not require to be shielded by
any such comparisons or citations for repeat that
the Little Rock railroad derived all it had from
the State Of Arkansas, and not from Congress. 1t
was IN the discretion of Congress to give or with
hold from the State, but it was solely in the dis
erection of the State to give or withhold from the
Little Rock X. r. Co. When the Little Rock II.
K. fell into the financial troubles of which l have
spoken, there were certain interests connected
with it that were under peculiarly pressing embar-
easements and that needed relief There had been
at different times very considerable talk about in
ducing the y. & Z. road, which on its southern
branch was to be connecting link east and west
with the l.. II. Il f. Smith, and the Mo-, KS. 4 I.
road, which would be connecting line north and
south at the point of junction. to aid the Little X.
& Fl. Smith enterprise by taking some Of its Sc
curetes apractice very common among connect
ing roads.
To both these the completion of the Little Rock
road was Of great importance; accordingly in the
spring of 1871, when only one coupon had been
pas ed by the Little Rock Co. on shares of its
bonds, and none passed on the other, and when
there was sanguine hope of getting the enterprise
on its feet again, the Atlantic Il Pacific Co. took
Sl00,0 900 of its bonds and 100000 of its stock for
the gross sum of $4,000, and the Missouri, Kan
sas & Texas, if l remember correctly, took half
the amount at the same rate. This was done, not
for the corporation ITSELF but for interest large
ly engaged in the construction of the road. With
the circumstances attending the negotiation with
the Atlantic < Pacific road was entirely familiar,
and with several of its officers have long been
we'll acquainted. l also knew Of the negotiations
with the the Missouri, Kansas & Texas road,
though l never to my knowledge saw any of its
officers, and never had an interview with any of
them on any subject but in the case of both roads
desire to say that the bonds sold to them did not
belong to me, nor did have one dollar pecuniary
interest in the whole transaction with either COM
pany. The infamous insinIations made in certain
quarters, that l engaged to use my influence in
Congress for the Atlantic & Pacific road, and also
for the Missouri, Kansas Texas, in consideration
of their purchasing these securities, hardly merits
notice. The officers and directors of both COM
panies, so far as | have known the one and heard
of the other, are high toned, honorable gentlemen
and they would have justly spurned me from their
presence had been willing to submit an offer so
d<shonora5e and mutually degrading. had no
pecuniary stake in the negotiation, and should
have loved nfamy for infamy's sake had betray-
ed my personal and official honor in the transac-
ton, and am sure that every man connected with
either company would repel the dishonoring sug-
gestion as warmly as do myself The whole
affair had no more come ction .with congressional
legislation than any one Of the ten thousand SIM
liar transactions that are constantly occurring in
the business world of a ike character.
With the insinuation just answered is that which
in an irrespor sible ami Anonymous way attempts
to connect the ownership of the Little Rock X
Fort Smith bonds with the legislation of last win
ter respecting the State government of Arkansas.
There are some accusations which it is difficult
to repel with sufficient force, because of their
absurdity, depravity and falsehood. | never
heard this stupid SANDER until within few days,
and | venture to say there is not a responsible
man in the country of the 81 ghtest sense, who can
discern the remo'est connection between the two
things that are alleged to have an intimate and
Infamous relation.
Let me now Mr.. Speaker, briefly summarize
what have presented:
lst-That the story Of my receiving $4,000 or
| any other sum of money other thing of value
from the L. p. r. r. Co., directly indirectly or
in any form, is absolutely disproved by the most
conclusive testimony.
2d-That no bond of mine ever sold to the
Atlantic Il Pacific or the Missouri, Kansas II
Texas Il. r. Co.'S, and that not single dollar of
| either of these companies ever went to my profit
or benefit.
3d-That instead of receiving bonds of the Lit
tie Rock 4 Fort Smith X. X. as gratuity, never
had one, except at the regular market price, and
that instead of making large fortune out Of the
company, have incurred severe pecuniary loss
from my investments in its securities which still
retain, and out of such affairs this grows the
popular gossip of large fortunes amassed in con-
gresS.