, 1876-03-19
GOV. HENDRICKS.
BONE LITTLE TRANSACTIONS OF HIS IN 1sD1ANApo-
LIS WATEE-WoRks BONDS.
,deu,e Eiucinaadti ID .ttkk.

ed in finding Con. lIcGinnis,-Who lB esteemed
a man Of truth aud yeracty, and is very general-
Iy respected by the citizens Of 1ndiarapolls,-
and explained to him that in writing OF Ar.
Hendricks had remark ed TINT ho Was " honest,"
on account OF which several Democrats and Re
publicans had said that was not posted, anu
had referred ne to him for proof of my jsnor-
ance. Now, would he be kind enough to
say whether I was right or wrong? swell,
should say, sir. that you we're
wrong," lie repliod. slowly, seomlng to meas
use lis words as il still undocid ed whether to
upbosom himself or not. "But why do you
think INC in the wropg7'' I asked. "simpiy
because do not regard Gov, Hendricks as an
honest mnn." OF corrse you have good rea-
sons for regarding him 10, General ?" yentur-
ed to suggest, ';los, sir; to mo they are good
reasons and think 50 to everybody elso who
Knows the facts" "You hare Ind personal
dealings with tho Governor, then 2" Yes, sir:
moro than I desire to lave again. He Vas one
of tho Directors of tbs Water-Works Company,
which claim deliberately awindied me ont OF
$4,000, and for the iocovery Of which have
brought snit But it Is to another transaction
that referred when I remarked that did not
regard him aa honest nan"
::What is tbass" a,ked quickly. desiring to
keep the old gontlema1 III u talkatiye mood. 1t
grew nut Of the salo OF 100000 worth Of Water
Works bonds. Tho fats aro these In the fall
OF 1870 Harmon WoodlT and Judge Selden. OF
Now York, came hare fr the purpose Of organ
izlns q Water-WorEa Company. They owned
tue Central Canal, aI put it in at S50o. .00'',
which represented the nitro stock Of the Com
pany. To inspire confidence and secure ready
sale for thelr bonds, thy sought the co-opera-
tion Of several prominent citizens of lndtanapo-
lis. Gov. Hendricks, William Henderson. De-
loss Hoot, William Baden, James o.. Wood
ruff, aud two or threo 'thers whoss names 10
not row recall, yallicd to their assistance. and
among them thog divided $3.50, 600 worth OF
STOCK"
Corrcspon dent-''Da they give them this
stock outright!"
Gen. McG.-"Yes, give it to them. and they
| we're ,naua Directors It the Company. Gov.
Hendricks got SIS. 090.s his part-100 shares at
| s5U per share. It d,d-'t cost him fartbing.
| But ~ was saying, tho Company was organ
| lied. aud. to raise uoney to build the works.
| bonds were issued. bned upon the canal, which
represented all the aock; S2o0, 900 worth OF
these bonds we're is5um at first. aud subsequent
| " $3.50, 600 more. Wlcther or not all OF the
| last issue wero disposed Of 1 an not informed !;
but it is in connection with the aale OF
100000 of them that Gov. Hendricks
honesty is shown ip to good advantage
| These bonds Zone hudted 1000 per cent
| po}d -bearing bonds} wre ordered bJ . majority
Of the Directors to be sold to the Indianapolis
| Insurance Company Dna. of this city, at VIZ
| cents on the dollar Tie President OF the bauk'
| AIr. William Henderson. and Gov. Hendricks. as
DIRECTORS, both voted fc tho eale. bit before
| the bank would puEchaD, it demanded personal
security that the interest on the bonds would be
| uaid. AIR. Hendricks a,d four other Directors
| became security, and th3n, as majority Of the
| Board, voted themse1,s $4,000 (7200o each)
| for thus becoming secuity.'
| Cor.-..1n other woto, ATr. Hendricks and the
! four other Directors foraed d r'ng' and voted
themselves $4,000 70: securing thor own
Gen. slcG.-" Certaily- Thoy constituted a
ruaiorit7 of the Board o!Direciors. aud manlpu-
| lated things to suit thmselyea- But the VII
lainy is yet to come. After the bonds were
| secured and sold to the 3auk at VIZ ccots, they
,rere repurchdsed Jy III Directors at par, and
resoM to themselves at 2 cents on Me doEscr. me
Directors allosc.ng MenslEes 81, 00o commission
for their trouble i,s siding Tie bonds to then'-
se!res."
Cor,-"Do you mean b say that after selling
these bonds to the bank br 81 cents, and then
repurcbasiug them Of pr. that after tuis the
ling Directors. Us you all them, bought them
up for their OWL property8t 10 cents :"
Gen. McG.-" moan say just that. Een-
bricks got 81, 1000 OF tie sl03, Quo WORTH paying
| Sl75O0 for them, aud tho took &!00 as his part
of the g 900 commissioner making the SALE"
| Cor.-'In other wordt then, these Directors
used their positions as Diectors to enrich them
selves aud impoyerish to stockholders whom
they represented!
Gen. McG.-" Just tha and nothing less.''
| Cor" Wero no obctions rnado OH tho part
| of the stockholders who ero not III the rlogs"
Gcu. H1cC.-" Very gret objections-so great.
in fact that it was agraetthat the matter OF re-
purchasing the bonds shuld bo postponed until
the noxt regular mountaineering Of the Board
But, in the meantime, prtion OF the opponents
of the scheme being absnt from the city lnot
Buspectine that any unfair advantage would be
takcn). the ring gotto!csher and ordered the
| reourchase OF the bonB-
| Cor--"Did Gov Hultricks and his Cocoon
spirators return tho 5n,J00 which they voted
themselves for securiugthe payment OF tho IN
terest :"
Gen. McG.-"Not saglo cent OF it. On the
contrary. they took 200 more lSl0o each)t as
their commission for selling tho bonds to them
Selves"
Cor,-tsAfter Mr.. Hencrson'a bank had pur-
chased the bonds at 971z:ents, payment OF the
interest being secured VIII did 1t resell them to
the Company p ....
Gen. NicG.-" The sale the bank WAS made
for the purpose Of giTing the ring of which
| Gov. Hendricks was leadlg spirit, an oppor-
tunity Of swindling tho stockholders out of the
e10,0 600. Having secured te money, then the
sale back to the COMPANY "s made for the pur.
| buvlng in the bonds at 70 ents on the dollar.
This transaction resulted ira loss to tho stock
holders Of $37, ,500."
Cor-'tWould the bonds ave sold for more
than 10 cents in open marker"
Gen. McG.-"Of course ;hey would. They
!; were worth par being donb. secured, and bear
lug per cent interest, payale in god.''
Coz. .-'s How much did CIV Hendricks make
out of the transaction, according to yonr fig
. | ures p
Gen. McG-"Wo'1, in tlp first place, be got
$4,000 worth Of stock for mthng; thea s., G0a
for securing the payment Of interest on the
bonds, which ho afterwaEb bought himself
tton $500 forhig share Of The commission paid
to the Ring Directors TO, selling the bonds tc
I themselves; then. OF tho 100000 worth oi
! bond5 he got S25000 for sI7,500, making 10 ali
s62.450 worthot stock and bonds, for which he
paid 81, ,600.'
, ELECTION RiSCALITY.
} CHICAGO TAc1Cs INTRODUCE IN BURLINGTON, Ia.
, 10 the Editor y The Ch,caof Tribune:
Bun11sorc, Ia, March 16-For two days 4
preliminary examination Las been prosecuted ir
|, ! this city that has created widespread surprise
aud the deeest interest. 1t has formed thu
theme Of conversation wherever men were to
pether Itslaturo and result will soon appear
; On Monday March 6, the annual muuicipa
election Occurred. Politics cua no figure IN ths