The Russellville Democrat., 1877-09-27

DOhdS as above provided. Ihis IS the language of the agreements: Said Adams and Redfield agree to negotiate with the proper authorities of said State of Arkansas, and use their best endeavors to procure with in twelve months from the date here of, such q settlement oi tho debt of said State by the legislature thereof, as will enapie said Adams and Red field to deliver to said bonaholderg. or to said 'sThe National Bank Of New York, for delivery to said hold CTS, new bonds of said State as above mentioned, without expense Co the holders thereof.n Adams and Rod field as before shown propose to the Finance Board to settle the debts above mentioned for 100000 dol lars. Now, how much of this sum under the agreement with the bond holders will go to them, upon the ex- change of bonds with Adams and kediield, as therein providea2 The contract is plain, and to know exact ly, we have to know the amount of the Principal of the several classes of bonds, and then make calcula- lion that any ordinary schoolboy can make. From the Auditors state- meAt of the public debt recently made we learn the principal of the Railroad Aid Bonds to be $5,350, ,000; Levee Bonds ST ,9S8, ri: and the entire q for the calculation. $5, 350,90 Railroad Aid Bonds at l 9 cents on tlie dollar is $l l,0l6, 300; $l ,9S6, ,774 Ievee Bonds. at l9 cents on the dollar $377, ,f9T: $I, ,87o.- : GOO principal Holford Bonds at 8 cents on the dollar $520. 600; -$1, ,G94 ,000 re- mainder Of principal of funded debt of $3,034, ,000 above, at 67 cents on the dol- lar $1, III, ,sS0; principal of uufunded debt of $485, ,335, mentioned in the pro- posal to the Finance Board. $l62, 600 Ca big estimate), at 67 cents on the dollar Sl0S. 64O. These several amounts stiDu- lated to be delivered in new bonds by Adams and Reddeld to the bondhold- CTS for their old bonds, make q whole of 6, 13S, ,015, short of the $4 900, 900, to be issued by them $362, ,9S5. In whose pockets will this amount of money fall? That the State will be out $SG2, ,9S5, more than the bondholders receive, is certain a9d sure. The above estimates are made upon the true debt or something approximating it. In the proposition submitted to the Finance Board by Adams and Redtield, they estimate the funded debt bonds, principal and inter- est, exclusive Of the Holiord Bonds at g, ,SI4 ,5l0. The principal of this amt could not exceed $2, 900 ,000. We have already estimated the value of $l ,664, z GOO exclusive of the EIolford bonds, so assuming Adams and Redfield to be right, have only to ascertain the value of $336 ,000 the difference between the above sums and add 1t to the foregoing estimate, to ascertain the sum to be paid out by them to obtain the bonds from tine bondholders as provided by their contract. $336, ,000 at 67 cents on the dollar amounts to $22a,l2 Add this last sum to 8, 13S, ,015 and we have $3, 363, I35 the amount to be paid by Adams and Redtield to the bondholders admitting their estimate of the debt to be correct. Thus it will be seen that Adams and Rcdlield still have a margin of %G36, ,S65.
 Now in treating tllis subject we know that we have done no violence to neith- CT facts nor figures, and how it is that men of integrity or intelligence, such as Hon. Jesse Turner can be decieved by the scheme, is truly a marvel.
 Why not, in Heavens name, why not the proposition to the Finance Board and to the bondholders be the same?
 r. S.-From what we have said above on the "Scheme" it does most aagrantly appear that there is q ''bug under the chip" It is hard to be- lievc that Maj. John D. Adams could knowingly be made q party to such a transaction. The valor disylayed by him in making defense of this most indefensible proposition, coup led with the apparent sincerity with which it is done, must convince the candid mind that he knows not what he is doing, or that he presumes greatly upon the ignorance of the public. It is liberal to hold that he is deceived It wlll be remembered that he is coupled with RedGeld, an acknowledged bondholder, in this business. Reddeld has opened not his mouth. He alone, had the scheme prevailed, or been adopted, without exposure, might have pock- eted all the profits. This liberality may be indulged toward Maj. Adams, when it is reflected that he was rais- ed in the honest old county of John son and by an honest father, whose views concerning fraudulent bonds were not private. In his message to the general assembly in IS44, having in view the IIolford Bonds, said. My predecessor saw proper for the purpose of doing ample justice, both to the State and to the bondholder, to recommend the appointment of an agent or commissioner, under the au. thority of the legislature, to investi- gate fully the suhin~<Rf the sale of the bonds, in ord ertain those. sold in good fait bort accord ingly to the next (lre. l fully concur with him n fecommendlng the creation of such an officer, us presume no portion of our population would be willing to pay the interest on bonds fraudulentlY obtained, or disposed of in violation of the con stitution or laws of our State" c.
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