Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1884-04-15
nlsT oRICAL AND INJEsEsTINC.

The following extract from the mi
Aority report Of the Judiciary Commit
tee Of the House Of R-preseut tatives
presented in June, lss2, will be found
interesting and instructive reading al
this time. We shall refer 70 sore of
the facts therein stated hereafter. merely
remarkinR At this time that all the AT
gument. in favor of forfeiture which are
st forth In that report s;ill exist. and
are reinforced by ms1y others Of equal
validity and weight:
But ~ neither tn commit "a nar tn.
minority thus dissenting hav. recon-
mended ANY action 10 relation to this
particular trant, the undersigned beg
leave T. subu IL the following facts and
ask that the ACCOMPANY ing joint reso u
tipn be placed upon the calendar for the
con-idcration Of the Housa Under the
joint ra-olntipn approved May n. 1870.
eAItuof.ling the issue of bonds. the con-
pans on the first of tae following July
Issued its bonds 10 the amount Of 800
0UO, 90, pay able In gold thirty years af-
ter date. aud bearing interest payable
semi annually At the rate Of 7.3 per cent.
per annum, securing the same by snort-
gage In accordance with the provisions
of tho resolution. These bonds we're put
upon the market and sold In the money
centers Of the United States and Europe.
They offered a most tempting bait To
those who h ID money to invest. and es-
peclally To the misiuformej and unsns-
pec'ing. What they originally brought
the undersigned have no means of know
ing. but the crash Of 1873 caused pro-
ceedIngs To be instituted IN the United
States Court for a foreclosure of the
mortgages. Tn Ter the decree of that
Court the prop ,rty and franch ~ weie
sold at auction on the 18th Of August,
1873, and purchased by a committee OF
the bondholders. Before the SOFT WAS
instituted, however. the bonds had gone
down to zoo. on the dollar, and before
the decreeywas re ad-rsd they had gone
down to l4,. tits not Improbable, there
fore, that At the time of the sale a very
large proportion. If not tue whole of the
bonds, we're iii the h inds Of those VINO
had bought them up at an average of 20
or % per Cent of their foe value. There
are no quotations of tue st ,ek of the
comp my from the failure OF Jay Coske
d Co., in 1873, to the date of the sale IN
1875: but 1t 10 notorious fact that dur
ing that time its value was merely nom
NAL, aud tia large quantities of 1t we're
sold at from 30. to loo. on the dollar, or
perhaps even less. and it il fair tn PIE
some that the most of It had been bought
up a, not exceeding 10 cents of Its face
value. On the Both of September, 1875,
the company WAS reorganizod upon a
A a. lk.sx "a.
bo reimbursed for the principal and in
terest upon their bonds up to and in
cluding July |, 1873; preferred stock to
the amount of Fol ,UO,OOO being issued
for that purpose, common stock to be
issued to the holders of stock III the oi;
einal conpany, share for share, which
has been done tD the amount of x49,-
100000. Concec ing, therefore, the en-
tire legality OF this arrangement, the
stockholders obtained some flO0.U00,00O
In stock, together with tne franchises
and property of the old c imp,ny, III
Guiding the contingent right To over
5000 square miles of lane, tor a prob
aple outlay OF xl2,tOO.000 or less. Upon
this hypothesis 1t would s-em that all
that could be asked of the most prodisal
generosity would he t. allow the com
pany "a sufficient amount of land to ena
ble Il to construct ltS road free of cost
TO Itself, even concvdIng the attainment
Of that object to have heen the one 81
preme, ali-abs0rbing desire oi Congress
when the original act Was passed. IL I
as see, then. what the facts are: l he
committee say III their report that lls0
miles OF the main Inc have already been
compie ed. Upon this The company is
entitled To "a $50 90 acres. Inc aver ,gc
prlcs tor the land granted 10 this com
panv has heretofore sid, II Is stated III
tue report If the auditor to railroad ec-
cunts, at So p r acre; but estimating
the average At only S3 an ac.c. tue lana,
already