The Russellville Democrat., 1877-09-27
The Adams-RcdGeld Scheme.

To the Editor ot tbe DEMooRAr:
 These parties propose to the Fi- nance Board to settle what is assun- ed to be $3, 727, ,S27,oS, of the undis- puted, and II ,474,50l dollars of the disputed debt of the State for 1, ,000,- GOO dollars. To verify these figures reference is made to their proposi- tion to the Finance Board of date 27th June, 1877, published in the Gazette of September 14th; and that THEY themselves propose to settle it, the following quotation is made from said proposition: Now, we propose to settle the entire debt of the State, excepting that part of it due to the United States, the out standing scrip, and the ten per cent, and Loughborrough bonds, in new six per cent. bonds having thirty years to run, for the aggregate sum of 100000 dollars" THEY, Adams and Redfeld, of course could not make the settlement proposed with
 the State should issue the 100000 dollars, new bonds, and THEY have control of them as well as the old bonds. This proposal of Adams and Rediield to settle the above debts for 100000 dollars in new six per cent. bonds, was accepted by the Finance Board, subject to the ratification of the Legislature on the day made. In spired by the acceptance of the Fi- nance Board, with the hope that the needed legislation could be had to ratify their proposal and make it Q contract, giving them the control oi the new bonds, to be issued under it, they to be ready to perform on their part, on the 10th of July following, prepared contract between them selves and the bondholders with the view of obtaining control of their bonds for delivery to the treasury of the State. The following is q quota tion thcrefrom: "The holders of said bonds agree to deposit all bond3held by them as heretofore subscribed, of the several issues of the Arkansas state bonds, known respectively as the old Bonds, Unfunded, Funded Debt Bonds Railroad Aid Bonds,
 and Levee Bonds with the Nation al Bank of the State of New York, to be delivered to said Adams and Redtield, or their authorized agents, in exchange for new bonds of said State of Arkansas, having thirty years to run," &c. Thus it is seen that the exchange is to be madewith Adams and Redield, or their author Ized agents, and not with the State of Arkansas. It may be asked, How is the exchange to he madeY The contract answers. Here is it's Ian guage Said new bonds to be re- cieved in exchange for. the above mentioned present issues ofbonds al the following rates: For Old Bonds, unfundcd, and Funded Debt bonds, except the Holiord Bonds, so called, at the rate of 67 per cent. of prin
 cipal thereof, being G70 dollars fol each 1000 dollar bond; for said Hol- 1 ford Bonds at the rate of 3S per cent of principal thereof, being 3S0 dol
 lars for each one thousand dollal bond; for the Lcvee Bonds at the rate Of nineteen per cent. of the prin
 cipal thereof being one hundred and ninety dollars for each one thousand dollar bond; and for the Railroad Aid Bonds at the rate of nineteen per cent. of the principal thereof, be ing one hundred and ninety dollar; for each one thousand dollar bond.
 Thus far there is no stipulation ir this contract that the bondholdeis shall receive ALL the bonds proposee to be issued to Adams and RednelC for the settlement of their debt, buI on the contrary immediately follow
 ing Adams and RedGeld agree tous, their best cndcayors to Cileet sacl
 settlement with the state, aa Nili eu