New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-05-14

though apparently very promising, proved
unsuccessful, as 60 many similar projects
did about the same time. lost q consider
able snm of money lover $50. 00O) by my in
veHtment, and / presume New England
made net loss Of 81, 900, 600 in completing
that road fOr<Arkansas, as she has lost over
OO,OOO,OOO by similar ventures West and
South within the last twelve years. In ad
ditiOn to my investment in the bonds,
united with others in raising some money
for the company when it met its first fnGn-
cial troubles. Proceedings are now pend
ing in the United States Circuit Court in
Arkansas, t0 which am party of record,
for the reimbursement of the money so adj
vanced. All the bonds which | ever pur-
chased continued to hold; and when the
company was re0rganized, in 1874, ex-
changed them for stock and bonds in the
new concern, which l still own. MY whole
connection with the road has been open as
the day. If there had been anything to
conceal about it should never have touched
it. Wherever cOncealment is desirable
avoidance is advisable, and do not know
any better test to apply to the honor and
fairness of business trans ton.
As to the question of prOprlety involved
in a member of Congress holding an invest
ment of this kind, it must be remembered
that the lands were granted to the State of
Arkansas, and lot to the railroad company
and that the company derived its life, fran
chise and value wholly from the State.
And to the State the company is aDenabie
and answerable, and not in any sense to
Congress. Since purchased the bonds but
one act Of Congress has passed in any way
touching the subjsct, and that was merely
to rectity previous mistake in legislation.
take it when any security from govern
ment bonds to town scrip is offered at pub
lie sale TO any one who can pay for it, every
American citizen is free to buy. If you ex-
clude Representative from the investment
on the ground that in some secondary or
remote way the legislation of Congress has
affected or may affect the value of the
article, then you exclude every man On this
floor, not only from holding government
bond or a share in a national bank, bat also
from owning flock of sheep, Or field of
hemp, or q tobacco plantation, or q cotton
mill, or an iron furnace; for all these inter-
ests are vitality affected by the tariff legis-
lation 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 and Fort Smith bonds were
placed on the market, l know few
investments that have not been more
affected by the legislation of Con-
gress. But this case does not require
to be- shielded by any such comparisons
or citations, for l repeat that the Little
Rock road derived all it had from the State
of Arkansas, and not from Congress. 1t
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 certain interests connected with
it that were under peculiarly pressing en-
barrassment and that needed relief.
There had been at different times very con-
siderable talk about inducing the Atlantic
and Pacific rCad--which on lite southern
was to be connecting line East and West
with the Little Rock and Fort Smith, and
and the Missouri, Kansas and Texas road,
which you'd be- a connecting line both
North and South at the point of junction
to aid the Little Rock and Fort Smith en-
terprise by ia king some of its securities, a
practice very common among connecting
roads. To bo5n these roads tho compile
ton Of the Little Rock 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 Atlantic and Pacific company
took one hundred thousand Of its bonds
and one hundred thousand Of its stock for
the gross sum of $40, 600; and the Missouri,
Kansas and Texas, if remember correctly,
took half the amount at the same rate
This was done, not for the corporation it
self, but for an interest largely engaged in
the construction of the road. With tho
circumstances attending the negotiation
with the Atlantic and Pacific road I was
entirely familiar and with several Of it's
officers l have long been we'll acquainted.
l also knew all about the negotiation
with the Missouri, Kansas and Texas
road, though l never to my knowl
edge saw any of its officers, and never had
an interview with any Of them on any sub
ject. But in the case Of both roads de-
sire to say that the bonds sold to them did
not belong to me, nor did l have one dol
lars pecuniary interest in the whole trans
action with either company.
The Infamous insinuati0n made in certain
quarters that engaged to use my influence
road, and also for the Missouri, X ansas and
Texas, in consideration Of their purchasing
these securities hardly merits notice. The |
officers and directors of both companies, so |
far as l have known the one or heard of |
the other, are high minded, honorable gen
tlemen, and they would have Justly spurned |
me from their presence had l been willing !
to submit an offer SO dishonOrable and mu- !
tually degrading. had no pecuniary stake |
in the negotiation, and ! should have loved !
intamy for infamy's sake had l bartered |
action. And am sure that every man con- |
nected with either company would repel |
the dish0noring suggestion as warmly as | |
DO myself. The whole affair had no more |
with congressional legislation |
than any one of the ten thousand similar |
that are constantly occurring |
10 the business world.
Of a like character with the insinuat:ou |
Just answered is that which, in an irrespon-
sible and anonymous way, attempts to con-
meet the ownership Of Little Rock and Fort |
Smith bonds with the legislation of last |
winter respecting the State government Of |
Arkansas. There are some accusations |
which it is difficult to repel with sufficient |
torce because of their mixture Of absurd |
ty, depravity and falseh0od. never heard |
his stupid Islander until within few days,
Ind l venture to say there is not a respon-
,ible man in the country OF the slightest
ense who can discern the remotest connec-
ion between the two things that are
llleged to have an intimate and infamous
citation.
Let me now, Mr.. Speaker. briefly sum
narize what have presented:
First-That the story of my receiving
;G4 900 or any other sum of money or other
hing of value from the Union Pacific Rail
DAD Company, directly or indirectly, or in
ny form, for myself or for another, is alb
olutely disproved By the most conclusive
Sscond-That no bond of mine was ever
old to the Atlantic and Pacific or the Mis-
Ouri, Kansas and Texas Railroad Com
any, and that not a single dollar of money
rom either OF those companies ever went
0 my profit or benefit.
Thlrd-That instead of receiving bonds Of
be Little Rock and Fort Smith road as