The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1884-11-01
p. G. COOKS vINDICATIoN OF PLUMB.

FB. c. Cook the General Solicitor OF tle -
& n. W. r. H. Co, and propounded to him
the following interesting questions;
First Does the contract between &. II,
Force & Co. and J. +. JOY show that by IT'S
provisions the stockholders OF the o. y, "
+. r. X. II. Co. were roJbcd Gfthetr @orh(
,second. Isthere any provision in the lease
made by the o., o. IL f, T. X. X. GO, 70 the
C. b. d. q. Co. which could be enforced 70
he niDjnG ant IF tie stOch IF the u, D. IL r.
| H. 7. H. IL. co.,
To these queries the General Solicitor OF
the Northwestern X. r. Co, in webbing
reply of about column, professionally
arrives at the following sage conclusions;
cannot see that the stock OF the towns
was In any way unfayorably affected by thiS
agreement If the first issue OF bonds was III
good faith and the proceeds necessary Tor
the construction of the road. II can make
no difference to the stockholders whether
the money to build the road was raised up
on the first or second issue OF bonds, unless
some fraud Is shown In the sale OF one or
the other of the issues OF such bonds.
| cannot see any provision In this lease
which could In any way affect the stock OF
the towns except as 1t provides for the pay
ment of the bonds and thereby made the
stockholders more safe against the sale OF
the road under the mortgage, which was
the only way Of extinguishing the stock
In other words Solicitor Cook says; "Co-
lionel, If there was any crookedness in this
matter, professionally don't see it. This
answers your questions" This discounts
Jack Bunsby's opinion as to the fate OF the
missing vessel: "If this ere wessil has gone
down, then this ere wessil has gone down;
but II this ere wessil has not gone down,
then this ere wessil has not gone down"
Incredible as 1t may seem, nevertheless,
Col Plumb is circulating Cooks prctesston-
al opinion to show that by the Joy contract
and the lease of the Fox River road to the
Burlington in perpetuity the municipal and
individual subscribers TO the stock OF the
former we're not thereby robbed of their
STOCK, nor was their stock thereby wiped
out" whatever that may signify. Upon the
submission of Mr.. Cooks letter to a mem
Der of the bar, whose opinion we asked as
TO the effect of the Joy contract and lease,
his reply was in substance that he cOncurred
with Mr.. Cook in his answer To the first
question, that the stockholders were not
robbed of their stock" but he disagreed
with the answer to the second question, be
cause II was perfectly obvious that the stock
was effectually wiped out" that strictly
speaking, while the stockholders might still
hold their stock, yet the very moment this
diabOlical lease was executed this stock was
rendered utterly valueless, and 1t was II
matter of entire indifference whether they
held one share or thousand, as under this
contract and lease in no conceivable way
could any stakeholder receive nickel up
on his stock in the way of dividends, for the
simple reason that by the lease the railroad
passed to the Burlington company IN perpe-
htity, that company simply agreeing to SET
aside 40 per cent annually of the earnings
of the road to purchase the outstanding
bonds which, ,ohen purchased, should abso-
lutely belong to the Burlington company,
and this purchase of the bonds by the ex-
press terms of the lease, was to he in tuN for
all rent for tie road in perpetmty.
How then, in the name Of reason, can II
be possible, if this road was leased d. per
petnty for the sole and only consideration
of an appropriation of It's earnings to pay
the mortgage debt n full for all claims for
rent, can the stockholders ever realize dol
lar? TheIroad Is gone in perpetaity
ver-and none but an idiot supposes that
the stock since that lease can have any in
trinsic value.
II any man can illustrate how the stock
holders of railroad company can receive
dividends upon its stock when the road is
transferred IN perpetutty 10 another company,
for the sole and only consideration Of the
payment 10y that other company of an out
standing mortgage on the transferred road,
then the whole system of mathematics rs
now duEHt Ill our StnoplS SliuuIu We over
hauled and corrected Yet this Is what the
enterprising fgurer Plumb has the effront
cry to say TO an intelligent community.
Can il be possible that this man Plumb,
after having perpetrated this outrage upon
the citizens along the line of this railroad,
can receive the support of the communities
he has thus wrongeds Is such aman wor
thy of the confidence of the community =
And yet this slippery railroad wrecker
makes brszen attempt To vindicate him
self against the charges he rests under In
connection with this matter.
II the town of Ottawa had not escaped Ii
ability upon it, bonds, itwould have had 10
pay about S4jOOJO for what lis " stock
in this Generated railroad!
II might hold its stock ia pe,PetHhg free