The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1876-04-25

I :
plicit statement: More than % year
ago, In the closing days of Mr.. Fillmorci
administration, the Government granted
to the State Of Arkansas some
public lands within its own limits, 10 bt
applied 10 the construction OF railroad.
In that State. The Legislature OF Ar,
kansas incorporated the Little Rock 4
Fort Smith Railroad Company the SAINT
year and gave to the company n portion
Of the lands II had received from th'
General Government to aid in the con
struction OF the road, about 5000 acre.
to the mile, I think; but the company
were unable to raise any money for th'
enterprise, though they made strenuous
efforts, and when the war broke out II
1861, eight years after the State had
given the lands to the company, not
mile Of the road was built. OF courst
nothing was done during the war. After
the war all grants Of land previously
made to the Southern States were re-
newed in gross In the session Of 1866 and
1865. The Little Rock & Fort Smith
Company againreceived grant from the
State, and again tried To raise the money
10 build the road. The years 1865, 1856
and 1867 passed without their getting
dollar. Finally, towards the close oi
1868, q company Of Boston gentlemen
representing considerable capital, under.
took It's construction. In raising the
requisite means they placed the bonds oi
The company on the New England market
In the summer Of 1869, offering them on
terms which seemed very favorable to
the purchaser, and offering them at a
time when investments Of this kind were
fatally popular. In common with hun.
dreds Of other people in New England
and other parts Of Che country, bought
some Of these bonds-not a very large
amount-paying for them at precisely
the same rate others paid, and do not
believe the Little Rock Company, which
| know is controlled by highly honorable
men, ever parted with bond to any per-
son except at the regular price fixed for
their sale. The enterprise, though ap-
parently promising, proved unsuccess-
ful, rs did SO many similar projects
about the same time. l losta considera-
bic sum Of money-over $40, ,0O0-by my
investment, and | presume New England
made a net loss Of $2,000,000 in com
pleting that road for Arkansas, as she has
lost over $lOO,0O0,000 by similar ven
lures in the West and South within the
last twelve years, ~ addition 10 NY M ia'
yestment IN bonds, united with others
inraising sum Of money for the compa-
nv when 1t met It's first financial troubles.
Proceedings are now pending in the
U. s. Circuit Court In Arkansas, TO
which.I am party, for reimbursement
Of money so advanced on the bonds
which / ever purchased l continued TO
hold, and when the company was reor.
ganized in 1874 exchanged them for
stock and bonds in the new concern, which
/ still own. Ny whole connection with
the road has been as open as day. II
there had been anything to conceal about
It / should never have touched it. When
ever concealment Is desirable avoidance
Of publicity is advisable, and l do not
know any better test 10 apply 10 the honor
and fairness OF business transaction.
As to the question OF propriety involved
In members OF Congress holding an In.
vestment Of this kind, itmust remembered
that the lands were granted to the State Of
Arkansas and not to the railroad COM
pany, and that the company derived its
life, franchise and status wholly from
the State. The company is amcnable and
ans nswerable to the State, and not to
Congress. Since l purchased the bonds
only one act OF Congress has passed in any
way touching the subject and that
was merely to rectify previous mistake
in the legislation. 1 take it that any
security from government bonds to town
scrip Is offered at public sale to any one
who can pay for it. Every American cit
izen is free to buy. II you exclude q
Representative from the investment on
the ground that in some secondary or
remote way the legislation Of Congress
affected or may affect the value OF the ar:
ticle, then you exclude every man on this
floor not only from holding government
bond, or a share in National Bank, but
also from owning flock Of sheep, or u
field OF hemp, or tobacco plantation, OF
cotton mill, or an iron furnace, for all
these interests are actually affected by
the tariff Legislation on which We vote at
every session, and OF which an important
measure is even now pending in
the Committee OF the Whole. IN the
seven intervening years since the
Little Rock & Fl. Smith bonds wereplaccd
on the market, there are few investments
that have not been affected by the legisla-
ton Of Congress; but this case does not
require to be shielded by any such COM
parison, for ! repeat that the Little
Rock road derived all it had from the
State Of Arkansas and not from Congress.
Il was in the discretion OF Congress to
give or withhold. from the State, but it
was solely in the discretion OF the State
TO give or withhold from the Little Rock
Railroad Company. When the Little
Rock road fell into the financial troubles
of which have spoken, there were GER
tain interests connected with 1t that were
under peculiarly pressing embarrass-
ments and that needed relief.
There had been at different times
very considerable talk about induc-
ing the Atlantic & Pacific Railroad,
which on It's southern branch was 10 be a
connecting link east and west with the
Little Rock & Fort Smith road and the
Missouri, Kansas & Texas road, which
would be a connecting line both north
and south at the point OF junction,
to aid the Little Rock & Fort Smith en-
terprise by taking some OF its securities,
practice very common among connect
Ing roads, To both Of these roads the
composition Of the Little Rock & Fort
Smith road was Of very great Importance,
Accordingly in the spring Of 1871 when
only one coupon had been passed by the
Little Rock Company on one series OF its
bonds, and none passed on the other, and
when there was sanguine hope Of getting
the enterprise on its feet again, the Allan.
tic & Pacific Company took 100000 Of
lis bonds and Sl00,0O0 Of its stock
for the gross sum Of $4,000
dollars and the Missouri, Kansas and
Texas IL 1 remember correctly took
half the amour. at the tame rate. This
was done not for the corporation itse!l
but for an interest largely engaged in the
construction ofthe road. With the cireum
stances attending the negotiation with
the Atlantic & Pacific Road. was en-
tirely familiar, and with several Of its
officers have long been well acquainted
/ also through negotiations with the Mos
souri,, Kansas & Texas though l never