The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1876-07-29
[From the Chicago Tribune.l
One of TiIden,S Refarms

An interesting leaf from the history of Mr..
Samuel j. Tilden, Reformer, is furnished by
the Hon. j. X. Edgerton, of Fort Wayne, Ind,
late President of the Grand Rapids & Indiana
Railroad Company, lifelong Democrat, and
one of the most prominent capitalists of his
state. The particular reform to which it re-
lates is the reformation of that railroad COM
pany; and the account Mr.. Edgerton gave of it
was first published in the Fort Wayne Senti-
mel, the Democratic organ of that city, in 1872,
before Tilden was talked of for the Presidency.
The Grand Rapids & Indiana Railroad Com
pany, it appears, was organized in 1869, on the
1st of May, of which year the Continental
improvement Company, as it was called, con-
tracted to build the road from Fort Wayne to
Traverse Bay, and furnish the equipment. The
Continental Improvement Company was sim
ply Credit-Mobiier Ring organized for swal-
lowing up the bona-fde stock subscriptions,
local subsidies, and all other available assets
of the railroad company. Samuel j. Tlden
was interested in the Continental improvement
Company, and, besides, was its confidential
legal adviser, his office as such being to invent
and engineer the legal contrivances without
which it is impossible for Credt-Mobiler
Ring to steal railroad.
This Credt-Mobilier Ring of Mr.. Reformer
Tilden's, with him as the legal engineer of the
steal, began operations by procuring the issue
to itself by the road which was to be stolen of
81 900 bonds for the purpose of equipping
the road, which the Ring had already con-
tracted TO do. That is the Credit -Mobier
Ring in the railroad directory bestowed upon
themselves as gratuity this 81, ,250O00
AS after this there still remained assets of
the Railroad Company to be stolen, Mr.. Til
denis Credit Moblier Ring, with him still as the
legal engineer of its stealing, proceeded there
with. 1t made contract with the Ring, un-
der the dummy name of "R. d. Barclay and
his associates" by which was to be given to
him for completing the road and equipment
all the 1odpptied assets, including about $780,
900 of city, county, and private subscriptions,
enough to pay for the work actually done by
the Ring,-$1, 800, 900 of first-mortgage bonds
and majority of S1,000,000 Of the capital
stock. To realize upon the the plumber it was
necessary that these 81 100000 of bonds should
be made marketable. This was effected by the
Ring through contract with the Pennsylva-
MIA Company and other roads in the same in-
terest BY this contract they guaranteed in
terest upon the $1,S00, 900 bonds, and in return
the Grand Rapids & Indiana line was to be
leased to them for ninety-nne years for practi-
cally nothing besides payment of the interest
guaranteed. This contract had to be ratified
by the stockholders in the Grand Rapids &
Indiana Company. That ratification was Sc
cured by voting over three-quarters of mil
lion of stock regularly pledged by the Ring as
collateral, and of course voted in the Ring in
terest.
The result of it was that Mr.. Tilden's Credit
Mobilier Ring, investing only his eminent le-
gal abilities in engineering the theft, did steal
the road, transferred 1t to the lessees, and for
themselves secured the S1,S00,000 guaranteed
bonds, besides what was realized out of the
subsidy subscriptions. Such is the history of
this reform operation of Mr. Reformer Tilden,
as furnished by leading Democrat of unim-
peachable character. As the Democratic cam,
paign, with deafening din and blaze, is all for
reform, and as it is boasted the reform prom
ised is that of which Tilden of himself is the
pledge, this chapter from his record as re-
former is valuable as indicating the quality Of
reform his election would guarantee.