The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1876-05-11

men, representing consde able ca pital, un-
dertook its construction. In raisisg the re-
quislte means they placed the bonds of the
road on the New England market in the
summer of 1869, Offering item on terms
which seemed very favorable to the purchas
er, and offering them at a time when invest
ments of this kind were fatally popular.
In comm on with hundrt DIS of other ueople
in New England and other parts of the
country, bought some OF these bonds-not
a very large amount-paying for them At
precisely the same rate that others paid 1
never heard and do not believe that the
Little Rock mpany-whieh / know is con-
trolled by highly honorable men-ever
parted with bond toany person except at
the regular price fixed for their sale. The
enterprise, though apparently very proms-
Ing proved unsuccessful, as so many sim lar
projects did about the same time. / los q
considerable sum of mObey lover $50 00O) ny
my investment, and | presume New Eng
land made a net loss of 100000 in COM
peing hat road for Arkansas, as she has
LOST over one hundred millions by similar
ven ures West and South within the last
twelve years. In addition to my inYest
meht IN the bonds, | united with Others in
raising some money for he company when
1t met IT'S first financial troubles. Proceed
ings Are now pending in the United States
circuit court IN Al kansas, to which I am
party OF record, for he reimbursement IF
the money so advanced. All the bonds
winch eve, purchased continued TO bold;
and when the ompany was re-organized, in
1874 exchanged them for stock and bonds
ia the nav concern, which / still own. NV
whole connection with the road has b IN
OPEN as the day. II there had been any,
tn ng to conceal about it should never
have touched it. Wherever concealmeDt Ia
desirable avoidance is advisable, and | do
not know any better test TO apply to he
honor and fairness of business TRANSACTION.
AS to the question Of propriety involved
IN member of Congress holding nm invest
meDt Of This kind, It must be remembered
that the lands were granted to the State of
Arkansas, and not o the railroad company.
and that the company derived its life,
franchise. and value wholly from the Sta e.
And to the STATE the company is anlenable
and ansWerahle. and no III any sense to
Congress. Since purchased he bonds hut
one act of Congress has passed in any way
touching the subject, and that was merely
20 rectify previous mistake in Legislation.
take 1t when any security from Govern
meHt bond TO town scrip is offered at pubic
sale to any one who can pay Tor it, every
American citizen is free to bay. II YOU ex-
clude Representative from the investment
on the ground hat IN some secondary or
remote way the legislation of Congress has
affected or may affect the value Of the ar
ticle, then you exclude every man on this
floor, not only from holding a Government
bond or share in national bank, but also
from owning flock OF sheep, or a field OF
hemp, or tobacco plantation, or q cotton
mill. or an lr0n-f1rnace; for all these inter
ests arc vitality affected by the tariff legisla-
ton 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 marke i know few investments
that have not been more affected by the
legislation Of Congress But this case does not
require TO be shielded by any such comparl-
sons or citations, for l repeat that the Little
Rock road derived all it had rom the State
OF Arkansas, and not from Congress 1t was
IN the discretion OF Congress 10 give or with
hold 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 tell into the.
financial troubles of which 1 have spoken.
there were certain interests connected with
1t that were under peculiarly pressing en-
barrdssment and that needed relief. There.
talk about inducing the Atlantic and Pacific
road-whch on Its southern branch was to-
be connecting line east and west with the
Little Rock and Fort Smith and tie Missouri,
Kansas and Texas road, which would be a
connecting line both North and South at the
point of juno ion-to aid the Little Rock and
Fort Smith enterprise by taking some of it's
securities, a practice very common among
reads. To both these roads the
completion eff the Little Rock road was of
very great Importance. Accordingly, in the
spring of ST., when only one coupon had
been passed by the Little Rock company on
Que series OF it's bonds and none passed on
the other, and when there was sanguine
hope of getting the enterprise on it's feet
again, the Atlantic aud Pacific Company
took one hundred thousand of its bonds and
one hundred thousand of its stock for the
gross sum Of $4,000; and the Missouri,
Kansas and Texas, if remember correctly,
took half the amount at the same rate. This