Press and daily Dakotaian. (Yankton, Dakota Territory [S.D.]) 1880-1889, 1882-01-27
THE PORTAGE AND SUPERIOR.

to the Omaha company of Sl,OOO.OOO in {
stock of the Air Line company, and the
effect of the sale upon the land grant bill
now before the legislature. continues {
to be the subject of much speculation. {
There has been little news obtainable ,
that was trustworthy until to-day, when
General Solicitor Spooner, of the Omaha {
srrived in Madison. He was
asked BY your correspondent for state
ment of the case, and said that as far as
the published statements impute any
improper action to A A. Jackson, they
are entirely without foundation. II is
true that Jackson held in his name $l,-
100000 paid up stock of the Chicago,
Portage and Superior Railway company,
which was owned by Barnes and his
associates. Jackson's interest in it be.
ing as security for money due him and
services rendered at various times for
several years. The statement that the
sale of the stock interfered with and de-
feated completed arrangements with the
Grand Trunk parties by which the latter
was to furnish money for the completion
Of the road was false. General Manager
Hickson, of the Grand Trunk railroad
company, was in Chicago for tho purpose
OF holding meeting of the board of
directors to authorize the execution of
mortgage for several million dollars upon
the Chicago and Grand Trunk railway,
and had frequent interviews and con-
sultations with the Chicago, Portage and
Superior people with reference to assist
ing the latter. The stock above referred |
to was offered to the Grand Trunk peo-
pie for less money than it was finally
sold for, and the offer was open for
several hours before the final sale of the
stock. and the Grand Trunk people re-
fused absolutely to purchase it. Some
hours before the sale of the stock, Hick-
son, of the Grand Trunk railway CON-
pany, stated to President Porter, of the
Omaha Railroad company, that the
Grand Trunk railway company, had
Portage and Superior railway company,
that he hoped no one would pay out
money or stock of the latter company
upon the theory that the Grand Trunk
or any of its people were supporting it.
It was some hours after this that stock
was sold, 80 that it is manifest that nego.
tiations with the Grand Trunk railway
company were not interrupted, defeated,
or in any manner interfered with by the
final sale of the stock. The statement
that Mr.. Jackson, having, having trif-
fling interest in the stock, sold it against
the protest of Barnes Bros, is not true.
The sale of the stock was negotiated and
arranged by Barnes, representing him
self and his brother and MIR. jackson had
nothing t. do with it except in assisting
to arrange details at the request Of
Barnes. The real reason that Grand
, Trunk people declined to have any
further negotiations with the Chicago.
Portage, and Superior railway people
arose from the fact that the latter had
! agreed with the English Investment
| company to issue to two members of that
company S5,l00,000 of full paid stock OF
the railway company, to be used in
negotiating bonds and to pay them fol
/, their services. This stock if valid would
constitute o control of tho company
The agreement to issue stock as bonus
was in plain violation of section 1883 oi
the revised statutes, which provides
"that no corporation shall issue any Ger
titicate of stock except in consideration
of money or labor or property estimated
at it's true money value actually received
: l1y it equal to the par value thereof, ant
s all stock issued contrary to the provision
4 of this section shall be void" MIR. Hick
son was advised of the invslidity Of tn
stock and considered that he and hi
d partners had been misled and immediate
:. ly cut off all further negotiation, so tina
a stripped Of false and inaccurate state
ments, and sensational rumOrs. the trans
action simply amounts to this: Tha
/, certain parties owing $l.OO0,000 of pai
Q up stock of that railway company, sol
n 1t for consideration to party who wa
willing to take it, and who had the COL
stitutional right to purchase it. Til
10 change in the ownership of the stoc
thus effected took from the company n
!, assets which it before had, and revolt
" tionized in no respect its corporate exis
1t tence. Whoever it was indebted I
Is prior to the sale of this stock ii is indeb
rt to to-day, aud whatever remedies il
=, creditors had bef ore the sale of the stoc
d they still have.
10 JAoKsoN's STORY.
1t GAINESVILLE, Wis.,, Jan. 24.-A. A. Jacl
son, who is charged with creating
great sensation in railroad circles, sal
to-day when his attention was called [
the telegram from st. Paul yesterda
and the one from New York to-day, thi
no such conversation az is in the speci
as dispatch occurred: that Mr.. Barnes d
or not object to the sales: that the so
&C. included large amount of stock owne
by John Q. Barnes and Charles ]. Barne
in which jackson had not interest: th
w. Charles ]. Barnes, Of Chicago. nephe
1t. of, and representing j. G. Barnes, Or
k Quoted the preliminary negotiation
-, that jackson did not see the purchase
until the terms had been fully conside
10 ed; that after the offer was made for Il
stock, and before it was decided. the ia
was communicated to General Schofel
Al. president of the railroad company, al
he was urged to take it at the same prit
which he declined to do; that the off
q was also communicated to the Graz
lin Trunk officers, and they were urged
q. take it at the same price, which th
@ ." declined to do; that the stock held
ha jackson was then; by Barnes and Jac
ks son, offered to General Scho6eld
in about half of the price offered for t
stock Of Barnes and jackson; that GEN
al Schofield declined to take it; th
before Barnes and Jackson accepted I
ma offer made, the general manager OF t
jus Grand Trunk informed Mr.. Porter of I
lis. Omaha c0mnanv that the Grand Trn