The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1881-02-24
HISTORY OF THE REPUDIATED
BONDS.
How u Company OF Swindiers and Shari'-
ers "Pl,ycd IL" On the fcopie"f mime
sofa. but Got Left Themselves.

BONDS.
How Company oc SwindIers and sharp
ers "Ti,ycd IL" ON the reoplcof Mime
sofa, bat Got LET: Themselves.
Some twenty-five years ago. COM
pany of swindlers engaged in build
ing railroad in the State OF WiScon-
sin. notified the farmers living along
the route. that they must assist the
company or the road could not be
finished. and proposed that the farm
ers should all loan their credit y to-
the company. The smooth-tongued
villains went from house to house,
and induced each farmer TO give his
note. secured by mortgage on his
farm, for sums ranging generally
from 81 900 To 5000. and turn them
over to the company to use as collat-
eral security. for money to finish the
road. The company agreed to pay
the interest on the notes rs it became
due. and rs soon us tho road was com
pletcd, to pHtd mortgage on ii To raise
money with which to pay all these
notes and mortgages, promising that
the farmers should never be called
upon 10 pay one cent of principal or
interest. IN due time the railroad
WAS completed, and mortgaged for a
large amount of money, which mort
gage was eventually .forecl0sed, and
scooped in the whole thing. But do
you suppose they used the money TO
pay the notes and mortgages given
10y the farmersi Not much. Every
note and mortgage WAS transferred to
other parties. (who were IN legal par
lance called "innocent holders" al
though they fully understood the
circumstances under which the notes
were obtaincd) and in due time fore
closed. \ thousand people were
stripped Of all they possessed, driven
| from their homes, 10 starve or subsist
rs best they might. Ii was one of
| the most 0trOci0HS SciadLeS ever per
petrated, but the courts gave the
victims no relief. and they in their
desperation and wrath tore up tracks,
burned depots and bridges. rendering
it unsafe for years Cor trains to run
on the road; but the strong ann of
the law finally compelled them 10
submit 10 their fate, and they gradu-
ally scattered and moved 20 other
regions.
AS soon as this band of railroad
robbers had finished up the Wisconsin,
job and pocketed the money received
from the sale Of the farmers notes.
and that which they obtained by
mortgaging the railroad. they retreat
ed from the State of Wisconsin, and
moved up To try their hand on the
young State of Minnesota. by Civ
! ing large brides To some leading men
in the legislature. they eventually
succeeded IN making IA bargain with
! The people of the State. the most
pro.ninent feature of which provided.
! chat the company. on their part,
should build two hundred and fifty
miles of railroad, all completed. with
the ears running thereon. and the
people Of the State agreed on their
part. 10 give them Five Million dol
lars of Minnesota State railroad bonds
| Tor completing this job. (but the rail
road comptnles were To pay the IN
tereSt on these bonds us it became
due. and also pay the entire prin-
cipal when due, making it merely Il
loan OF State credit. precisely like the
farmers loaung their credit in Wis
cousin.) But these crafty villains
got clause pat into the contract.
which was RATHER bl!ndly worded.
which provided they might receive
two and ong-hag millions dollars
Of these bonds, as an advance pay
ment" Oh this job, rs soon rs they
had done Il certain amount grad.
ing" on the read beds.
They did the grading which cost
them. comparatively but a very small
amount OF money. and got possession
OF the two and one-haif million dol
lars of State bonds, then INN didiey
run u and abandoned the job, and
never did any more work on 1t,
never laid one tie or rail. Their
| plans thus far had succeeded as well
rs they did IN Wisconsin, and they
went To New York 10 sell the bonds,
and divide the swag, but now their
troubles commenced. The Brokers
had been willing 10 buy the farm
mortgages, obtained by swinlling the
! farmers i'll Wisconsin, because the
security WAS good, and the courts
could he used to enforce payment. but
they declined to buy the Stlte bonds
that the company had got by sw.nd.
ling the people III Minnesota, because
they could not Use the courts 10 en-
force collection against the State.
and, as they knew how the bonds
We're obtained they rightly judged
the people would never consent to
pay them. This opinion was JUST
tied by subsequent events, us the PEG.
pie almost tnimously declared they
would never pay these bonds.
And now at last the ''Biters were
bitten,' the swind!ers had over.
reached themselves, they could not
sell their bonds in the city of New
York, and they have never at any
time since, had any particular market
value. But it is known that large
amounts have been bought by specu.
latOrS at serenfesn cents on the dollar
with the coupons thrown in (these
are the "innocent holders" verify
and every year when the Legislature
is in session they send up Il howl
about reputation, and pay "leading
Eastern papers" for publishing lying
statements about the facts connected
with the issuing of these bonds to an
organized band of swindlers. Ten to
fifteen per cent. on the amount of
bonds they received, would probably
have covered the cost of all the grad.
ing they did. and they never paid
the laborers for doing much Of this.
But the swindie was not profitable,
only because the people would not
pay the bonds. NJ.
| Prevention of Pests.