New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-04-27
THE ISLANDERS ON BLAINE
MIR. PHELPS'S LETTER.
rur CHARGES OF THE EVENING POST SHOWN TO
BE FALSE AND MALICIOUS.


were made eight years ago, and which were, think,
n that time satisfactorily answered. Lest others,
however. may. like yourself have forgotten every
thing except the misStatementS you must permit me
10 Remind YOU of the facts | think may CLAIM
some qualifications for the task. have long had a
rlosc personal intimacy with Nh Blaine, and during
many years have had that knowledge and care OF
his mOneycd interests which men absorbed IN puoic
Riairs are not uuapt 70 dcvOlvc upon irieh"N WHO
have mad financial training and experience
I do not see how one man could know
another bettor than | know MI Blame an"
he has today my full confidence and warm
reg,rd am myself somewhat known in the
CITY of Ncw-York and think | have some
nersonol rank with Won and your readers. Am
claiming too much in claiming that there IS not one
among you who would regard me is capable OF an
attcmpt to mslead the public in any wayY Nrh
thi, personal alusion pardOnable, nnot demanded
under the circumstances, proceed TO consider Your
charges.
mn LITTLE ROCK AND FORT SMITH CHARGE
The first charge is really the one upon which all
the others hinge give ii in full, and in your own
language. only italicising some of your words III
order hat my answer may be the clearer. You say
In the spring session of Congress IN 1868
n bin was before the House Of Representa-
five, which sought to renew land grant 10
t,kan>,- in ,rfci some Of Mr.. Blainss friends
90 a,f ,cst~d. - that an attempt to defeat IL
bv an amendment was made, ana us pIoImiotvls
wore in dr>uair: that nj this luncturc MI. blalhe
bcinp then Speaker of the House sent MESSAGE 10
General Logan to make the point OF orer tIiat IIe
amendment was not gerlnane TO the PURPOSES VI 1nI
ami promptly sustained by Mr. Blame a. IlS"HJtt
md the bill was in tins manner saycu' m't ~
E1iyc rot al once 10 The promoters cdthg dUtH0f 10
H. s,rirc be hat rendered them. and tHaiy W@ some
ops secured from hem as rcrard ,o' e. ms
APPOINTMENT as selling agent OF the peht5 OF .l!e
rad ON cnmml sion in Name, ana received II mum
Der of such bond, rs his percentage; lhat t4e l'"U
irr feature of this transaction appeared III Two
letters OF his afterward made pubhc, datcd losIcc
lively june - and October i, IoO".
Yonr error is in the facts. Mr.. Blaine's friends
were not connected with the Fort Smith and L'tle
Rock road at the time of the passage OF TINS DILL
Tbos, 10 whom you refer as his friends were C"Iu-
well and Fisher The bill passed in April, lo"J IN
Aprl. 1869 Mr.. Blaine did not know th"t tAc'o
vas any such man as Caldwell and IlsA'H WHO
was Mr. Blaines friend. dl not know that th'i'
,yasonv sucb enterprise as the Little Rock Railroad
In the world The evidence OF these assertions was
before Cou.-reSs was uncontradicted and Is WITHIN
your reach On the 10Th Of June. nearly eighty
day, after Congress had adjourned. Mr.. Blame from
his home i'm Maine wrote To Fisher and spoS" OF
Fishers "ollr t. admit him 20 share IN the new
railroad enterprise" Fisher had introduced the
suhect 10 Mr. Blaine for the first time "a week be-
fore al tie great musical festival IN Boston lie
told him there that Mr.. Caldwell, whom Mr. Blame
had not vet Seen had now obtained control OF the
eut,rpriso and had invited Fisher TO JOIN him. AT
that time Fisher was sugar rehner OF considerable
wealth in Boston, had been partner OF Nh B.hHeS
brotler-in-!ayy. and through him had made Mr.
Bla.ne's acquaintance. The offer Nh Blame refers
70 in his letter was Fishers offer to induce C|ld-
V,el) if lie could TO let Mr.. Blaine have share ln
fine bedrock of the enterprise Nh Fisher Iadcd
10 do this and Mr. Blaine never secured any interest
f., th. building Of the Fort Smith and Little Loc@
Railroad.
What interest then. did Nh Blame obtain? An
interest in the securities of the company. lo" 10y
purchase on the same terms as they were Sod ON the
Eo,tou 10 al applicants, sold to Josiah Bird
well 10 Elisha Atkins. and to other reputable NOR
,haDts lie negotiated for q block of tie securities
which were divided as is usual i'm such enterprises
into three kinds, fr,t mortgage bonds. second mort
r,,. hands. and stock The price think was three
(ororc That is. the purchaser got first mortgage
bonG, for I'M, money and an equal amount OF second
mortgage or land grant bonds and of stock thrown
In rs The basis of possible profit l may be mis-
taken "a, TO the price, but think not. went my
self mt this time INTO several adventures OF TIE khd
Oh that ratio, and have always understood that
gcrotor Crime, and his friends got their interests
In the Darlington and Missouri road, h'dnch OF
the Union Pacific on the same basis of three for
nrc Il WAS the common ratio in that era
of su,gulltion Mr.. Blaine conceived tie
idea that he might retain the second mort
gaze bonds rs profit and SCI! the first mortgage
bonds with the stock a~ "a bonus. He believed the
first rrYrt.sarc bonds good aud he disposed OF
them {, his pcighhorS i'm that faith and with 'h' de-
termination 10 shield them from loss ID case o. uS
R>ter
Disaster came Tho enterprise, Ike so many
'otlc!, %. the kind, proved a disappointment. and
fine bond. deprecated. Nj. Blaine rcd,enc. tIoIn
all. In one or two cases only had hc given q guar
optcr I'm none other was there any legal ob. g2-
tion bat Ec recognized moral clam and Hc
pbcvci il 10 MS own p,cuu.My loss. cannot but
feel that the purchasers Of these bonds Vou" have
Jared worse had they been compelled % look to
many oi those who have sought To give an o1-oas
ipt,rprc;at.on to Nj. BIaiac's honorable conduct.
The arrangement tor the purchase 81 lAe poe" OF
.aru'.t..s. Uo, made in June or July. The sales
Of lie fl,, mortgage bends ont of the bloc, were
continued through the month, OF july, August ana
He transaction was nearly closed when in
TIE letter of October Mr.. b.,. ,laT Mi''y ,r ="
Tshcr and told him the paIiam'h{'l{ aloII
ot the 9th of April. Nj Eia.nc bal come
pcros, il while looking over me o%"grg oe'' ''g't'
with "a natural curiosity 10 zee what mao 'e'l ms
decision, during the first siX weeks OF ms speaker
Sim and De- wrote OF u to l>Acl a. an item Pm the
l.l.'t. .c history of the enterprise INTO when ilt(
III 10Th sul,,coucntly entered II concerned q b.I
4, r.fir q land grant. made long before Tie Wl, 10
the Lit;le Rock ana Font smith railroad me D!il
H.. ,as.d tLc senate without oIDo-lt aud tI' re
was 10 one ObjcctuL 10 II M ILc House. bui ULc
oi@ocotc. Of the Memphis, II Paso and Pacific Bai-
WAY hin sought to qt!ach fhg[ l oh " 20 II as an, I
-, 49, General Frcnouts scheme and lad been
,,,r.I mon Congress before. 1t was mp.un,ar and
WAS ouc,lv opposed by General Logon. Welded 10
fLr iltlc Rock bill II would gain strength but the
LITTLE Rock bill would lose strength, ana "a luoj
measure universally approved would DE Mlicd IN
1lc effort TO pull through with it this objectionable
measure which was generally d .sapPrOvcd.
Nj Baincs letter to Fisher VIII tell d, rest OF
lie wrote: IN ll.ie ti4cilLd lt't'l~ tIlt
Ar.,0s.s member came 10 me to know what on
gItl he could DO under tie rules toI hc sad II was
vital 10 L, constituents that the h.ll should pass.
tnid I,n that the amendment va, entirely ont Of