Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1884-09-27

to lapse.
The spectators who took up the Fort
Smith and Little Rock land grant found
the original grant was for 600, 900 acres of
land They thought there would be no
trouble in getting the land grant restored,
particularly if the Southern States should
unite upon the other grants. The argu-
ment in favor Of the restoration Of these
land grants was most plausible. The
States to which they were granted were i'm
poverished by the war, and some sort Of
aid was needed to stimulate their depressed
commercial interests. Mcdonald, soon
after his removal to Arkansas, was elected
to the United States Senate. The party
working up the plan to revive the Fort
Smith land grant, although it had no
money, was influential enough to push the
matter into favorable notice The Arkan-
Sas delegation to Congress We're solidly
pledged to it, while all the Southern men
were naturally for Il project which would
help their section.
The bill to renew the grant came up in
1871. two years after Blaine was first elected
Speaker. At that time there was not one
dollar invested in the enterprise. The Lit
tie Rock and Fort Smith RailrOad Com
pany was not organized. and, rs q matter of
course, moi single bond or share of the
stock had been issued. Mcdonald says
that no one ever spoke a word to Blaine
about the bill. There was no need. Mr.
Blaine could not have defeated the measure
if he had so ,lrsirod. He might have been
able to delay il. but he could not have de-
feated it. The bill was passed by both
houses withnu; any opposition. Mr.. Blalne's
decision upon point Oh order raised in
connection with the hill was one that any
Speaker would have been obliged to make
if lie had followed the rules. Atler the bill
was passed is Arkansas projectors who
were unable 10 raise money i'll their own
State, in order to avail. themselves Of the
land grant visited Boston 10 see what could
be done ihere.
In Boston they met a banker by the
name Of Bates. lie was the President of
the Bank OF Commerce, a man of high
character and standing. He took charge of
the enterprise and brought into it spccula-
tors by the name Of Caldwell and Earring
ton. Caldwell soon became the master
spirit of the scher4e. 1t was he who organ
lied the original company and who HOated
the original bonds and stock Caldwell
was a very cXtrayagant, visionary man. and
he bonded the road for much more than it
could have borne if it had been conducted
as a legitimate instead of a speculative en-
tcrprise.
caldwell, in pushing about for a market
for his bonds. sought the support Of Adams,
the founder Of the express company bear
ing his name. Warren Fisher was then
quite intimate with Adams, and it was for
the sole purpose of getting at Adams that
Warren Fisher was pat into the road. 1t
was soon after the organization of the COM
pany that Caldwell made Mr. Blaine the
agent for the sale Of the securities of the
road for the State of Maine. He promised
him a handsome commission, as is usual in
such enterprises. Caldwell had known
Mr.. Blaine, and knew that he had the con
tidcncc Of the capitalists Of his State. Cald-
we'll made such representations OF the value
of the road that llr Blaine was induced to
place some Of the bonds, and from this
dates all his trouble. In selling these bonds
he gave what is unusual, 4 personal pledge
of security.
Caldwell 50 oyerbonded the road that it
was impossible to meet the interest, and
the first Mr. Blaine knew Of this was the
notification from Lot ". Merrill that the
interest upon his investment was not being
paid. Then it was that Mr.. Blaine put his
hand in his own pocket and began to make
good the losse, which were threatened.
This drain upon his private resources to
maintain what only the most scrIpulouS
could have dictated soon embarrassed Mr..
Blaine to an extraordinary degree. At thgt
time his means We're limited, and this fail
ure upon the part Of the road TO meet its
liabilities meant, to him. simple financial
ruin. His letters to Fisher, therefore. were
not to Fisher as :: private individual. but to
Fisher as the chief officer of a detaultng
road.
How much Mr. Blaine actually lost at
the hands of the spectators who handled
the affairs of this road is not officially
known to Mr.. Mcdonald, but he says he
understands the loss to have been in the
ncghborhOod Of 100000.
Caldwell afterwards made 4 large sum Of
money QUE of the enterprise. lie con-
struclcd twenty miles of the road, and then
/ sold control of il to Allan and Marquand
! OF St Louis, So as 90 clear for himself 500
/ OG0. Allan and Marshall sold the same
property in London for 100000. War
/ rem Fisher was thrOWa over by Caldwell in
! the end, and he found himself with moth
| ing In the way of assets Of the road except
! Mr.. Blaine's letters begging for justice
| from the men who had imposed upon him
! Fisher rightly judged that Il malevolent
/ construction might be placed upon them,
So he has held them for sale to Mr. Blaine $
enemies when they could iniurc him the
most Part of them were used in 1876
| with the object OF defeating M Biaine's
nomination at that time They are now
| brought out in an attempt to defeat Mr..
/ B.aincs election.
Ex-senator Mcdonald says that when
the exact facts in connection with the case
! are known the public can only SympathiZe
: with Mr.. Blaine as victim of sharperS
whom he trusted. - far rs his official life
is concerned and this Is the only part
which concerns the public, there is absO-
! luteIy no relation between ii and the rail-
road transaction Mr.. Blaine knew nothing