The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1876-06-28


were prepared and issued each in the fol-
certificates were and are Endorsed by the
said John G. Fremont, and large numbers
of them have been given to various per-
sons and are now held by them, the only
consideration, therefore, If any, being sup
posed influence which said persons might
exercise in obtaining the passage OF GER
tain bills by the Congress OF the Uoited
States, applied for on behalf OF
the said company, and intended to
make its railroad part of gen.
eral railroad across the continent"
AffidsvIts and petitions OF w. r. Berg
holz, George w. Gerrish ct al, and Will
liam Sutphen. are to the same effect. The
latter. being SWORD, testifies:
sUrPHEN's STATEMENT
that he has carefully examined the records
in the Office OF the clerk of the city and
county of New York, and find therein
filed complaint In an action wherein
John A. G. Grey, as receiver of above
named defendant, is the plaintiff, and
Morton G. Hunter and five others are de-
PENDANTS; that such complaint was duly
verified by the plaintiff on the 1st day OF
December, 1870, and az Injunction thereon
was, on the "a day of said December, duly
issued; that such action is brought to re-
cover from defendants certain bonds
issued by defendants. known as corstruc-
ton bonds, on the ground that some were
delivered to the defendants therein, or to
some one of them, by some person or
officer of the Memphis, FL Paso and Pacific
Railroad Company tor illegal purposes
that is to influence legislation by the Con
gress of the United States in its behalf"
Then follow
EXTRACTS FROM THE RECORDS OF THE COM
PANY.
The more important sections in the
memorial to Congress, adopted in Feb
rusry, 1868, are: Second, to grant the com
pany public lands and United States bonds
70 aid it in building its railroad from E
Paso to San Diego, on the same terms
and conditions as such lands and bonds
have been granted to the Union Pacific rail-
road. Third, to grant TO the company
United States bonds TO aid it in building
its railroad from Jefferson to Ell Paso, on
the same terms and conditions as such
bonds have been granted TO the
Union Pacific railroad. At the same
meeting of tue directors the issue OF
10000 CONSTRUCTION certificates" wss
authorized, and in the following
March, Z, 500 of these certificates at a nOmi-
nal value OF 81 600 each were placed in the
hands OF Gan. Fremont, aud he reports, In
a letter dated Washington, April 10, thal
he had dis posed OF 8 600 OF them in a man.
ner "by which. in my judgment, perms-
nept interests outside OF Texas and vital
to the construction OF the railroad have
been attained" So much for the con-
struction certificates. Now for the stock.
At a convention of stockholders Ia New
York, January Il 1869, when it was that
twenty millions of stock stood in the
books in the name of William Schmoele,
IT WAS RESOLVED
ito authorize and direct the issue, to Will
liam Schmoele, by the president and sec
rotary of the company, of five millions GU
of the twenty millions of their capital
stock standing in the name OF the said
William Schmoele. as the assets of the
company, for the construction of their rail-
road, to be used by him under the direc-
ton or approval of the executive commit
tee OF the company as full paid and unss
sessable stock for promoting the interests
of sale road; Provided, That the said
Schmoele in bona 6de disposing of the
said five millions of stock under the direc-
ton or approval of the said executive COM
mittee shall in no event, or under no cir
cnmstances be held responsible for tht
money value of the same, or for the pro-
ceeds or results of their application, or any
part thereof" By later resolution, the
entire twenty millions was placed at the
disposition OF Schmoels on the same terms.
A resolution of April 10Th, 1869, shows
HOW A PART OF THESE BONDS WERE
Placid,
1t was resolved "that William Schmoele
be and he is hereby authorized and directed
to transfer to each party hereinafter
named such amount OF stock as is set after
their names respectively out of the stock
issued to him by order of this commltte. ,
for the purpose of the committee; and the
said Schmoele shall In no wise be respon-
sible for toe money value OF such stock
transferred by him."
To Winfield Scott Smith, four hundred
shares.
To Morton @. Hunter, eight thousand
shares.
To Richard @. Mccormick, four thousand
shares.
To Frank Fuller, four hundred shares.
To Gen. s. p. Heintz9lmsn, four hundred
shares.
THIS ESTABLISHES THE FACT
of the payment OF the money to Hunter
The confederation for which 1t was paid lie
best shown by extracts from letters which
passed between several parties to the en-.
terprise. w. r. Bergholz writes to Colonel
Duncan, under date OF December Is, 1869
"Gen. Snsnks had also long interview
| with the general. Shanks said that you
had more i0fuence In Washington. than
anybody else, in or out of Congress, and
| he would not attempt to do any thing
| there without corporation. He though
that yourself, Hunter and him could
carry the measure" And on December
"a, "Gen. F., as president, ought to be
here, but will have to go to Washington
Immediately after New Year, and watch
congressional matters! Gen. Hunter will
also remain there and help Sbanks. /,
myself, do not expect to go there, but
remain In the Office here. Outsiders are
of course not wanted. Your plan to pass
the right Of way bill is, no noubt, the only
practical one. and by far the cheapest for
1 f<o