The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1884-09-17
NEW WAY TO COLLECT DEBTS
Hen. James g. Blaine as a Lender OF
Money.
A So, 900 Loan to Josiah Caldwell--what
Became of the $4,000 Land
Grant Bonds


lateral. Mr.. Warren Fisher, Jr., advanced
the collateral to Mr.. Caldwell, and the pro-
ceeds Of the loan were to be paid to him. By
reason Of his Illness Mr.. Fisher directed Mr..
Blaine to pay the money to Mr.. John @.
Pratt for his (Fisher's) account and credit,
which was done, Mr.. Blaine delivering to Mr..
Pratt $4,000, and receiving $4,000 land
bonds of the Little Rock and Fort Smith
Railroad Company in exchange. There are
minor details regarding the delivery
of these bonds which it is unnecessary to
mention, as Mr.. Blaine recognizes the re-
oeiving OF this collateral in his letter of July
3, 1872, written at q time when he was en-
deavoring 70 come TO compromise with Mr..
Fisher covering their various transactions.
1t was read in the House of Representatives
June ., 1876. (See Congressional Record,
page 3,605.) Es says: 1T seems to me- as
review and resd our several conferences, that
we ought nCt - have any trouble in coming
to an easy adjustment, as follows: First. /
am ready to fulfil the memorandum held by
you in regard to the Northern Pacific Rail
road, as I always have been. Second, you
are ready to consider the land bonds in my
possession as surrendered in payment of the
debt to which they we're originally placed as
collateral
1t is evident that Mr.. Blaine looked to MIR.
Caldwell for his reimbursement, and not to
Mr.. Fisher. of the Little Rock and Fort
Smith Railroad Company. In the various
letters taken by Mr.. Blaine from Mr.
Mulligan, and read in the House of Repre-
sentatives June ., 1876, this is fully shown.
In the letter dated Augusta, Ne, October 1,
1871, Nj Blaine, writing to Mr.. Fisher, says:
You must have strangely misunderstood
Mr.. Caldwell in regard to paying these notes
He (Caldwell) has paid me in all Just Sc 600,
Wb L yfr,cr
here at s and So per cent. interest.
The Little Rock and Fort Smith matter has
been q sore experience to me, and II you
and Mr.. Caldwell between you can not
pay me the $4,000 of borrowed money,
don't know what / shall do. Politically,
l am charged with being wealthy man,
personally and pecuniarily, I am laboring
under the most fearful embarrsssments, and
the greatest OF these embarrassments is the
$4,000 which I handed over under your
orders, and not one dollar of which have
received. OF the original debt, Mr.. Caldwell
has paid $4,000, and $1,000 only"
IN A SUBSEQUENT LETTER,
dated October 4, 1871, he says again: ''You
must have strangely misunderstood Mr..
Caldwells statement in regard to his paying
me all but 3, 500 Of the $25, OO0 borrowed
money which loaned the company through
him and you last January. Mr. Caldwell
paid me in June $, 500, and in July g, 500
more. accepting at the same time draft for
$500, July 10, ten days, which draft re.
but $4,000 from Mr.. Caldwell, leaving SIS, 900
(besides interest) due me to-day"
In this connection it is proper to state
that Mr.. Fisher had sold the contract for
building the road to Mr.. Caldwell, who was
to assume the obligations. II Mr.. Blaine
loaned the money to Mr.. Caldwell as con-
tractor, surely the railroad company was
not responsible in any way whatever. When
Mr.. Caldwell became insolvent and could
not make further payments, Mr.. Blaine en-
deavored to make Mr.. Fisher assume the
obligation. The reason of this is obvious.
Mr.. Blaine was indebted to Mr.. Fisher for
the SIS, 900 advanced to him for the interest
in the Northern Pacific" as well as some
$1,000 or $4,000 additional, for which Mr..
Fisher held Blaine's notes or memoranda.
at this time, April Is, 1872, Mr.. Fisher was
demanding payment OF Mr.. Blaine, and
Blaine replies to one of these urgent re-
quests: 81 am not prepared to any money
Just now in any direction, being so cramped
and pressed that / am absolutely unable to
do so. Please send me a copy Of the notes of
mine held by you, with the Endorsed pay
ments thereon"
Mr.. Blaine desired to put in the balance
due him from Caldwell as an offset. Mr.
Fisher declined to recognize this claim upon
him in any way. and, therefore, CaldwelPs
notes. with the $50, 600 land grant bonds as
collateral. were left upon Blaine's hands. In
the final settlement with Mr.. Fisher, Sep
TENDER 81, 1872 there was no reference TO
this transaction in the accounts of either
party.
Failing to collect the $4,000 from Cald-
we'll, and having no claim upon Mr.. Fisher,
Il would be supposed that Mr.. Blaine would
dispose of the $4,000 land bonds held as
collateral, and apply the proceeds to the
loan. Does he do this? In a statement made
IN the House of Representatives, April a,
1876, ten days previous to the reading of the
Blaine-Fisher correspondence (see Congress
siOnal Record, page ?, 125) abiding to this
transaction, Mr.. Blaine said: "In addition
to my investment in the bonds, 1 united
with others in raising some money for the
company when it met its first financial
trouble. Proceedings are now pending in
the United States Circuit Court in Arkansas,
to which l am party OF record, for the re-
endorsement Of the money so advanced"
ACCORDING TO THIS STATEMENT,
he had two years previously abandoned hope
of collecting the money from Mr.. Caldwell,
and had taken steps "for the reimbursement
of the money so advanced" from the new
company What shall he claim from the
Little Rock and Fort Smith Company? Mr..
Blaine has on his hands an original indebt-
edness of SO coo, upon which has been paid
5000, leaving due $40 600 and interest, from
probably July, 1871. and holding $4,000 of
the Little Rock and Fort Smith Railroad Com
psny land grant bonds as collateral. That
these bonds had some value in the
eyes of railroad companies, we have
knowledge that seventy-five at least
reached the treasury of the Union
Pacific Railroad Company at over eighty-ive
cents on the dollar months after the notes
fell due. The Little Rock and Forth Smith
Railroad Company became bankrupt, the
mortgages of s., 100000 were foreclosed, and
the United States Circuit Court of Arkansas
on the 9th of November, 1874, directed the
sale Of the entire property. On the 10th of
December, 1874, the Little Rock and Fort
Smith Railroad, upon which had been ex-
pended the proceeds of So, 800, 600 of bonds,
besideiother sums which the corporation had
borrowed, or was indebted for 70 a large
amount, was sold to Messrs. Shattuck, Weld
and Ripley for 500 600. and on the 10Th of
December. 1874 the United States Circuit
Court tor the Eastern District of Arkansas,
Judge Henry G. Caldwell presiding, con
firmed the sale of the road, but or
dered that the said corporation shall
pay such claims against the Little
Rock and Fort Smith Railroad Com
pany as G. w. Huntington, George Ripley
and Henry. @. Whitney may, within one
year from date, approve" According to the
report of Messrs. Huntington, Ripley and
Whitney made to the court, Mr.. James G..
Blaine appeared before them, not asking
payment Of the $4,000 due with interest,