The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1884-10-04
SETTLING WITH COL. PLUMB.


that now is good time TO settle il. Tn
history of II is briefly this:
Jan. 90, 1869, O. Young entered into
contract with the Ottawa, Oswego and f
r. V. X. X. Co. TO build their road from
Wenona TO Geneva for $1,000 per mile il
stock and $4,000 per mile in bonds-o
$4,000 per mile, for road which at tn
outside ought to cost but 100000 per mile
Whatever county, town or individual sub
scriptions of stock were made along the
road were TO enure 10 the benefit of Mr.
Young, who was 10 exchange stock ISSUED
70 him for the cash paid or municipal
bonds issued on such stock subscriptions
Worthy S. Streator, a man Of immense
wealth, was Oliver Young's security on hi'
contract, and of course if that contract had
not been transferred TO Cushman, Force
and Plumb, the road would have been
built and the individual and municipal
stockholders would haye been saved.
Under the Young contract the road was
built from Wenona TO Sueator, and then
Col. Plumb, the chief manager and treasu.
rer of the road, and hacker of o. Young,
says II became necessary, in order 10 raise
means for the further prosecution of the
work, TO sell the portion of the road from
Streator to Wenona, and il was sold 10 the
Chicago, Alton Il st. Louis Road, the
$71 900 municipal stock, as well as about
$150,00O stock due Young on construction
account for that portion of the road, being
wiped out or, in other words, saddled on
the road from Streator to Geneva.
II was found that by this nice little game
Young had made some money, and then it
occurred to Col. Plumb and others equally
sharp that the same sort of game could be
made to work profitably on the rest of the
road. So Young, who was mere putty in
the hands of Plumb, was induced TO sell
out his contract 10 Cushman, Force Co., the
$50" being Col. Plumb, and soon after
wards we find these parties approaching
the Chicago & n. W. Road with an offer
to sell, or, which is the same thing, lease
in pcrpetuity the o. o. & f. II. V. r. r.,
turning over all the stock of the road ex-
cept such as had been issued to individual
and municipal subscribers about $500, 900,
and mortgage on the road at the rate of
$4,000 per mile, so worded that if there
was single failure to pay the interest on
the mortgage it could be at once foreclosed,
and all the stock thereby became forfeited
or wiped out
The Chicago and Northwestern Road,
seeing in the proposition simple scheme
to swindle the individual and municipal
stockholders out of their stock, refused to
have anything to do with it. 1t was reject
ed by the Rock Island road for the same
reason. The Burlington Road, as com.
pany, also refused to touch it, but seeing
there was big money" in it, J. f. Joy,
President of the Burlington Company,
closed the bargain las an individual" with
Cushman, Plumb, &c, and then, of course,
Immediately turned it over TO the Buring
ton Company
Now the swndle involved in this "job,"
as we have already minated, lay in the
robbing of the individual and municipal
subscribers of their stock, for unless they
paid the interest on all the bonds of the
company, amounting TO about $4,000 per
year, of course the mortgage was closed on
them, and the idea of their paying that
amount annually for an indefinite period
was of course ridiculous. And il is 10 be
noted as a special meanness in the same
connection, that because the individual
stockholders, finding themselves thus swim.
died, refused TO pay up the remaining in
stalments on their stock, Cushman, Plumb,
&c, sued them and actually made them
pay the last cent, principal and interest.
The municipalities, who had also been
Swindled out of their stock and on whose
bonds Cushman, Plumb, &c, had realized
dollar for dollar, happily found "hitch"
in the law under which the bonds were is
sued and got out of paying them, though
II cost them about S45, 900 TO pay lawyers
fees and other expenses of the litigation.
OF course the honorable thing for Cush.
man, Plumb Il Force TO have done was TO
provide in their sale 10 the Burlington road
for the protection of the 100000 individ-
ual and municipal stockholders. The
North Western, the Rock Island and the
Burlington were all eager to get the road,
and If such provision had been made
sine ga non no sane man doubts but what
II would have been acceded TO. In that
case the individual and municipal subscri
bers would cheerfully have paid the inter
est on the part of the deb, of the road their
stock covered, would have been saved the
worry, scandal and $45,0 900 cost of the sub
sequent litigation, and would now be the
owners of stock paying good dividends and
no doubt worth handsome premium on
the market.