The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1876-08-26
THE SHAM REFORMER.

The report of Thomas Denny, John S.
Barnes and William Bayard Cutting, a
committee of Directors of the St. Louis,
Alton and Terre Haute Railroad Company,
appointed June 8, 1875, to investigate the
transactions of the Purchasing Committee
(of which Mr.. Tilden was a member) in
connection with the reorganization of that
corporation, is made public under date of
August Is, 1876. The would be apoiogists
for Samuel J. Tilden's course of conduct in
connection with the reorganization of the
Company are completely silenced by this
report. 1t is not a political campaign docu-
ment, nor even meant for such, but plain
statement of facts necessary in the endeavor
of the Company to compel Tilden and his
confreres to disgorge their plumber. By
this report it is shown that this committee
has been guilty of one of the most palpa'
BILE railroad swindles of the age.
The charge against Mr.. Tilden and his
associate members of the Purchasing Com
mittee was preferred by William c. Whit
ney, now Corporation Counsel of New York
City, who represented the actual holders
of one-third of tine Company's stocks and
bonds From the outset Mr.. Tilden was an
obstacle in the way of all research. He
held the books and refused to exhibit them.
The committee found, however, that Mr.
Tilden and his confreres had received the
munificent compensation of $3.50, 500 in
money for conducting a friendly negotia-
ton, almost entirely completed within six
months of the sale of the road, and had,
after paying all lawful claims surplus on
hand of securities, consisting of $251, 00O
of bonds and 3,69S shares of stock, which
were subsequently issued and made a liza.
bility of the Company without the Com
pany's receiving any consideration there
for, and were divided between Mr.. Tilden
and his three associates-Charles Butler,
Robert Bayard and Russell Sage. Mr.. Til.
den refused to give any information as to
what had been done with these securities,
telling the committee, in distinct terms,
that it was none of their business. The
committee then offered to Mr.. Snnott, Mr..
Tilden's attorney, to submit the matter to
arbitration. This offer was refused. Then,
seeing no other course open to them, the
committee brought suit by filing a bill in
equity to which Mr.. Tilden recently made
the answer so damaging to himself. One
thing, however, was discovered by the in
vestigation, and that is, that the unlawful
division of the $131, 900 first mortgage
bonds was in pursuance of Mr.. Tilden's
advice.
We cannot give the report of the CON-
mittee entire on account of its length, but
we quote from it in relation to the division
of portion of the spoils:
"Mr. Robert Bayard stated to the COM
mittee that he was prepared to give the
committee any information in his power.
He stated that when the Purchasing Com
mittee came into possession of the securi-
ties of your road, he was made Trustee of
the first mortgage bonds, and Mr.. Charles
Butler was made Trustee of the balance.
That he performed his duty of distribut-
ing the new first mortgage bonds accord
ing to the provisions of the plan of reor-
ganization, and that he had surplus re.
naming in his hands of $131, 900 thereof;
that he held these bonds until about March
IA, 1870, when, on the advice of Mr.. Til.
den, he divided them between himself and
his three associates above named-having
first purchased one bond of 81 900 to secure
equality of division, $33, 900 to Mr..
Tilden, $33, 900 to Charles Butler, $50, O0O
to Russell Sage, and retaining $33, 900 for
his own account and that he also divided
equally among the same parties, the inter,
est accrued on these bonds from July, 1862,
to January, 1870, inclusive.
He further stated that he had likewise
received certain dividends from the surplus
in the hands of Mr.. Charles Butler, but
that he was unable to state the exact
amounts; that he did not believe that he
received as much as the others.'
What, we ask, in the name of all that is
honest and upright, can this transaction be
called but wholesale stealing, equaled only
by the transactions of Tweed? While the
immaculate "Reform Democracy" can
clearly see the little mote in the eyes OF
their Republican friends, they fail entirely
to notice that mammoth beam in their own
optic.