The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1876-05-09

| procisoly the same rate tnat others
paid. I never heard and do not believe
that the Little Rock Company, which
I know Is controlled by highly honora-
BILE men. ever parted with bond to
any person except at tho regular prioc
fxed for their sale. The enterprise,
though very promising. proved unsuo-
cessfnl, az 30 many similar projects
did about the Same time. lost con.
siderable sum Of money--over twenty
thousand dollar--by my Investment,
and presume New England made a
net loss OF two millions OF dollars in
completing that road for Arkansas, as
she has lost over one hundred millions
by similar ventures West and South
within the last twelve years. In addi.
tion TO my investment In the bonds, ]
united with others in raising some
money fer the company whom IL met its
drst financial troubles. Proceedings
are now pending In the United States
Circuit Court in Arkansas. to which I
am . party OF record, for the reim-
bursemcnt OF the money so advanced.
All the bonds which ever purchased
I continued to hold. and when the com.
pany was re-organixed in 1874, I ex-
changed them for stock and bonds in
the new concern, which ] still own
My whole connection with the road has
been ss open as the day. III there had
been anything to conceal about il I
shoald never have touched il. Wherev-
er concealment IL desirable avoidance
is advisable, and I do not know any
better test to apply to the honor and
fairness Of o business transaction.
aA hA - s.&w Il
volved In . member Of Congress hold
ing IN investment OF this kind, il must
be remembered that tho lands were
granted to the State Of Arkansas, and
! not to the railroad company, and that
the company derived its life, franchise
and value wholly from the State, and
To the State the company 10 smensble
and answersble. and not in any sense
to Congress. Since / purchased the
bonds, but one act Of Congress has
passed in any way touching the subject
and that was merely to rectify pre-
vious mistake in legislation. take it
when any security, from Government
bonds 10 town scrip, Is offered at pub.
| lie sale to any one who can pay for IL,
every American citizen 10 free 30 buy.
II You exclude O Representative from
the Investment on the ground that
I in some secondary or remote way the
legislation OF Congress has affected, or
NAV AFFECT, the value OF the article,
/ then you exclude every man on this
floor not only from holding a Govern.
msnt bond or . share In q national
bank, but also from owning a flock OF
sheep, or Geld Of hemp. or . tobacco
| plantation, or cotton mill, or an iron
furnace; for all these interests are
vitality affected by the tariff legislation,
on which We vote at every session, and
OF which an important measure Is even
now pending In the Committee OF the
I Whole. In the seven intervening years
since title Rock and Fort Smith
bonds were placed on the market, i
know few investments that have not
been more affected by the legislation OF
Congress. But this case does not re-
quirc 10 be shielded by any such COM
parsons or citations, for repeat that
the Little Rock road derived all il had
from the State OF Arkansas and not
from Congress. II was In the discre-
tion Of Congress to give or withhold
from tho State, but il WAS solely in the
discretion OF tho State 20 give or with
hula Irom tus Iittio nocA nalIroau
Company.
When the Little Rook road fell into
the financial troubles Of which I speak,
there were certain interests connected
with il that were under peculiar press
ing embarrassment and that needed re-
lief. There had been at different times
very considerable talk about inducing
the Atlantic and Pacific road which, on
its southern branch, was to be q con-
Meeting line East and West with the
Little Rock and Fort Smith, and the
Missouri, Kansas and Texas road,
which would be o connecting line both
North and South at the point OF juno
tion, to aid the Little Rock and Port
Smith enterprise by taking some of the
securities, practice very common
among connecting roads. To both
these roads the completion OF the Lit
tie Rock road Was OF very great impor.
tance. 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 pass.
ell on the other, and when there WAS
ssnguine hope Of getting the enterprise
on its feet again, the Atlantic and Paci-
&c company took one hundred thou.
sand Of ito bonds and one hundred
thousand Of its stock for the gross sum
Of e79, 600, and the Missouri, Kansas.
and Texas, il I remember correctly.
took half the amount at the same rate.
This was done, not for the corporation
itself, but for an interest largely en-
gagged in the construction OF the road.
With the circumstances attending the
negotiation with the Atlantic and Pa
ciHc road, / was entirely familiar, and
with several OF il officers have long
been we'll acquainted. also knew OF
the negotiation with the Missouri,
Kansas and Texas road. though never
10 my knowledge. saw any OF its on
\ GERS, and never lad an interview with
any Of them on any subject. But in
the case Of both roads desire 70 say
that the bonds sold them did not be-
long 10 me, nor did have one dollars
pecuniary interest in the whole trans
action with either company.
The infamous insinuation made ia
certain quarters that / engaged to use
my influence in Congress for the At.
lanhc and Pacific road, and also for the
Grafton Of their purchasing these &C.
4 CuTittcss nnfuty hyhiAb nStiCt. Abs
officers and directors Of both compsn.
les, 30 far m have known the one and
heard Of the other, are high.toned, hon
orable gentlemen, and they would have
Justly spurned me from their presence
had been willing 10 submit 10 an offel
so dishonorsble and mutually degrad.
ing. I had no pecuniary stake in the
neg citation, and 1 should have loved
infamy's sake had 1 bsrtered my per.
sonal and Official honor in the trsnsac.
lion. And ] am sure that every mar
connected with either company would
repel the dishonoring suggestion M
warmly as l do myself. The wbols AZ.
fair had no more connection with Con
gressional legislation than any one ol
the ten thousand similar transactions
that are constantly occurring in th,
business world.
OF like character with the iusinus'
tion Just answered is that which Ia m
J irrepressible and anonymous way st
tempts 10 connect the ownership o.
Little Rock and Fort Smith bondl
with the legislation OF last winter re
specting the State government OF Ar
Kansas. There are some accusationl
} il 10 difficult TO repe. with sufiicien
} force because Of their mixture OF ab
surdity. depravity. and fslschooj.
J never heard this stupid slander upti
within few days, and venture 10 sa,
J there 10 not responsible man In th'
, country OF the sliRhtest sense who cal
, dsscaru tho rsmotcsk conuecfiou bS