New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-10-08
A SCRAP OF HISTORY.

mas taken as 1lgn as $lGl.UUU gaze none
at the centennial in single day, and neve
stole q cent of it.
| SCRAP OF HISTORY.
How Samuel j. Tilden Ruined a Penn
| sylvania Town.
An editorial correspondent of the Ne,
York Times writes the following lette
from Brady's Bend, Pennsy lvania, unde
date of October l:
Fifteen years ago Brady's Bend, in Cia
| rion county, Pennsylvania, was one of tn
most prosperous and promising towns il
| the Allegheny valley. At that time the ex
| tensive mills, furnaces and work shops
and the rich mines of the Brady's Benz
Iron Company, conducted by honest ant
competent managers, gave employment II
upward of 1890 workmen, and comfortabl,
support to q cOntented population of NOR,
than 5000 persons. The paw rolls Of TIL
iron company show that 100000 q month
passed into the hands of its workmen anG
found currency in the neighborhOod. Tht
farmers for miles around found at thu
Bend a ready market for their produce. snd
the lively village was filed with thriv
lsborers and iron workers were meI
OF family, and from the good waget
which was paid them they were
saving considerable sums. Many OF
them owned their own little houses and q
few acres of ground, and all of them
seemed to be in a fair way to independence
This was the condition of affairs in 1862
At chat time, however, for reasons which
need not now explain, the owners Of the
mills desired to dispose of their property
Hearing of this, MIR. William b. Ogden
IF 70 ho
amined The works, and, after doing 80, said
to Mr.. H. A. S. D. Dudley, an honest gen.
tleman who was at that time their superin-
tendent, If l could get Sam Tilden into
the speculation ! am sure l could make ii
pay, but am afraid he won't take up SO
small matter. His retaining fees are now
at least SEC, 900 year" Regarding the re-
tanning fees Mr.. Ogden doubtless spoke
authOritatively, for he was the receiver OF
the Plt.sburg. Fort Wayne and Chicago
Railroad Company, was a warm personal
friend of Mr.. Tilden, and knew all about
that gentleman's many railroad schemes.
In one respect, however, he was mis-.
taken. The Brady's Bend speculation was
not despised by Mr.. Tilden. On the con-
trary, as Mr.. Ogdens agent and counsel, he
visited the iron works, saw money IN
them," and advised their purchase. They
were secured for the ridiculously low sum
and had to make a sacrifice
After the necessary preliminaries had
been gone through with it was decided that
Ocly by the formation of stock company
could profit be made out of the work. A
stock company was consequently formed
and Mr.. Samuel j. Tilden became It's prin-
cipal director. The capital stock was placed
at 100000, and one-half of that sum was
understood to be working capital. Mr.,
o1~ L.
spoken, continued TO act as superinten-
dent, and under his management the pros
perity of the works increased to such
an extent that during the fret year of it's
existence the new company realized profit
of over 100000. His share of this sum
was not enough for Mr.. Tilden, however.
and as he did not intend to continue in the
company he deliberately set to work to
bring about its ruin, and make fortune
for himself and his friends. His first move
was to issue 100000 of first mortgage
bonds. This was done in spite of the de-
termined protest of Mr.. Dudley, and every
other true friend of the works who knew
what was going on. The new bonds were
ostensibly disposed OF at eighty cents on
the dollar, but were really distributed pri
vately among certain Of Mr.. Tilden's friends
in the company. The interest on these
bonds was made first charge against the
prOfite. and as the prosperity of the works |
Tilden & Co. were for q time
content. 1t soon became apparent to the |
shrewd lawyer, however, that crash must |
shortly come, and not being satisfied with
the handsome profit which he had already i
he decided upon more extensive |
operations. He and his friends held enough |
OF the stock to control the company, and it |
was decided that new issue of bonds |
must be made. The sum suggested |
was 100000. and as the capital stock did |
not exceed that amount, and did not |
Indebtedness of $l,OOOOO0, the stock |
was watered up to 100000. Then
against the further protest of Mr.. Dudley, |
second mortgage bonds were issued to |
the amount Of $5,000,00O, and the gentle |
man, however, indignantly resigned the |
position of superintendent and broke off all |
with the works. The second |
bonds were nearly all secured by |
The conspirators-they can be called nothing
was disposed of to all those who were fool |
sh enough to buy. OF course these trans. ]
actions Of the man who has recently christ
sned himself "the great reformer" wee not
known to the public, and the appar ant nros-
)erity Of the works, and the Expressed de-
sire to increase their capacity, we're ad-
ganced as excuses for che issue of the
bonds. The workmen and mine laborers
had unbounded confidence in the solvency
and good faith of Mr.. Tilden's company,
and many OF them invested their little saw
ngs in its paper.
Mr.. Dudley's retirement was considered
q misfortune by the little community, but
Mr.. John Haines, who succeeded him and
who still lives here, soon gained the good
will of the men, and inspired the same con-
fidence that had been enjoyed by Dudley.
After time, however, it became apparent
to the new superintendent that it would be
impossible for the works to pay the interest
on 81, OQ0.0 900 of bonds and a dividend on
$2.0OV,C0 of stock, and he also quietly
withdrew. Shortly after his retirement
the Tilden bubble burst, and the public be-
came aware that the Brady's Bend Iron
Company was a ruined concern. Before
this, however, "tbe great refOrmer" and his
intimates had disposed of all their stock.
retaining only part of the first mortgage
bonds. They, therefore, appeared after the
crash IN the position of creditors rather
than debtors.
AS it is, perhaps, unnecessary to state,
tne victims IN most of Mr.. Tilden's railroad
operations" or at least those for which he
mas become notorious all over the country,
were capitalists and men of business. The
result OF his duplicity and greed in the
Dlauys oeno case on the other hand were
.nos' oieastrous to poor men and women,
sx5I na0 10 work hard for their daily bread.
w men because OF his manipulation the iron
wo,ks suspended, hundreds of men, women
sno cnldren we're lett penniless, without |
Places where employment might be found. In.
deed MANY nf tho moan ron01. 1919 u..HI